I post this here instead of free trading system board because I believe the nature of this post is more newbie-related…
OK here’s the thing that confused me. After an order is placed, and the price movement is indeed as expected and hit the profit target, the author simply moved the stop loss to the previous profit target and created a new profit target. Does this mean he created a new order or did he modify the order before the profit target was hit? I think it was former because the decision whether going for a new profit target was based on if it’s a clean break on the original profit target.
I believe you refer to the blog post at Pip My System?:
Entry: Short at 1.5741
Stop: 1.5840
Initial Target: 1.5700
1:00am EST- My target was hit at 5700. Price made a clean break, so I moved my stop to 1.5700 and set my next target for 1.5650. On the same candle, my 2nd target was also hit at 1.5650. Price made another clean break so I trailed my stop at 1.5650 and set my next target for 1.5600.
1:15am EST- Unfortunately I was stopped out at 1.5650.
What happens here is that the “Initial Target” is 1.5700. This is probably a mental target, and not an order for Take Profit. So when the target was hit, the stop loss was simply moved up to take over the take profit point, to ‘protect the profits’.
IE, order to short at 1.5741 with stop loss 1.5840 and NO take profit. When it hit 1.5700, stop loss modified to be 1.5700, etcetc.
Hope this helps to place another order would simply be giving the broker extra unnecessary money haha.
Depends on how you trade, this method works, but of course the price could ‘hesitate’ around your initial profit target, so if you move your profit up there while it’s still jittering around you would obviously trigger it.
Also, if the market is crazy, it might hit the target and surge back down before you can catch it; that is what ‘take profit’ levels are for. Finally, Trailing stops should interest you.
yeah i use mental stop and set a limit over my mental limit just to catch odd spikes worked out great for me like 14 times and then when i reach mental i 1/2 exit position move stop loss up by prev candle mid rate - %ofATR of candlejust below break even cause even if it stops out for a low ive 1/2 exited the position so now new full position would have to move below entry or above entry by *2 for me to see a loss so i can give myself more room then while still moving up my stp loss…