hi all,
My risk is mostly around 25-35 pips. Therefore, some of you guys approach maybe different.
When i place my trade order on buy or sell with my stoploss in place.
For example, i risk a 30pips on one trade. Normally, when the price start to move about 10pips in my favour. I quickly changed my order to be. Once the price start to move in the 18-22pips in my favour. i closed half my position.
Now,
a) should i move my stoploss back to my previous 30pips or
b) should i put the stoploss at the same price that i buy/sell. so that when it hit my stoploss. i still gain some.
I did tried (b), but it seem if i got two loss, it wipe off a lot of my profit.
Any idea to improve my approach
Myself, I like to move my SL to break even as soon as I can, if I’m not so sure about the trade. That way if the trade reverses I dont’ lose any pips, but I don’t make any. (except for slight slippage).
If I’m more sure about the trade, as soon as I can I move the SL to the amount of pips I initially risked, so worse case scenario is that I win the amount I risked. A 1:1 ratio.
If the trade is real good it will continue in my favor. So, at my descretion I’ll just keep moving my SL postive.
Another thing you can do is to split your risk over multiple lots/ trades, that enter on the same price.
As the first trade hits i’ts TP (same as your risked), it takes profit, then the second trades SL is moved to break even. At this point the worst case scenario is a profit from the first and a break even on the second. If it keeps going just keep resetting the SL postive.
Of course both trades could back up and hit your SL, so split your risk among the two trades don’t multiply by two.