Crazy question -risk management

Hello guys!

I just want to ask a crazy question. I have this idea (that just pop up inside my head) but I don�t know if it is worth trying.

So here it is,

Example I�m going to short GJ and I will open 2 same trades. They just differ on Take Profit.

[B]Trade 1 [/B]

Entry: 162.00
Stop Loss: 162.40
Take Profit (level 1): 161.00

[B]Trade 2 [/B]

Entry: 162.00
Stop Loss: 162.40
Take Profit (level 2): 160.00

Okey now, here�s the move� When Trade 1 hit the target, Trade #2 will adjust. The Stop Loss will be the �Trade 1�s Take Profit�

So it will now be�
Entry: 162:00
Stop Loss: 161.00
Take Profit: 160

Gain:
Trade 1 = 100 pips
Trade 2 = secured 100 pips and if TP level 2 was hit, another 100 pips
Total of 200 � 300 pips :o

Loss:
Trade 1 = 40 pips
Trade 2 = 40 pips
Total of 80 pips

I know this is crazy if the price doesn�t go my way. With two same losing trades, I already lose 80 pips. But, with the Risk/Reward ratio, is this really a bad idea? :eek:

Opinion please� :confused:

If you move T2 SL to T1 TP level, you dont give your trade enough room to go your way to the T2 TP and you will get stopped out.

I would open 1 trade with double the lot value and manually close 1/2 the trade at TP1 level, and move SL + 50 or so to let it ride to TP2 if it gets there.

Demo trade it and see how it works

Ohh yes, I understand what you�re saying� how about adjusting SL as if it�s the original entry?

Example: Trade 1 hit the target. 100 pips

Then Trade 2

With 162.00 as the original entry, already gain 100 pips. Now, to leave a breathing room for this trade, I�ll keep the original 40 pips Stop Loss and ride to get Take Profit (Level 2)� :confused:

Here are two possible situations:

Situation 1: Trade 2 did not make it, and stopped out. It still has 60 pips gain because I only risk 40 pips.

100 pips (Trade 1) + 60 pips (Trade 2) = 160 pips

Situation 2: Trade 2 hit the target and gains another 100 pips.

100 pips (Trade 1) + 200 pips (Trade 2) = 300 pips

BTW, Thanks for the input! :smiley:

That’s actually a pretty common technique.

But, what you do instead of moving the seconds SL to the firsts TP when it’s hit, is move the second’s SL to break even.

That way, at that point, the second one will either hit it’s TP or go out at break even and you don’t lose anything and still make profit on the first one.

That’s brilliant. I’ll try it right away. Thank you very much. :smiley: