Personal account I’m more flexible but dont have more than two lots open on a pair. Two lots for TP1 and TP2 close. The basic premise being that if I run two lots (for the sake of this example) and PA moves 10 pips (my TP1), I’m up 20 pips and close half. Now the second half can keep on going or reverse back to original entry position and I could close… but I would still be up 10 pips. One lot up 10 pips then fall back to BE = zero sum gain.
Conversely you could scale in a bigger trade without increasing risk. Example: 1 lot up 10 pips add second lot. Lot two can fall back to lot 1 entry before BE but if goes in your favour double pips.
Mike if trade 1 is up 10 pips. Then you enter another identical lot in the same direction as lot 1 trade… at that point lot 1 is up 10 pips and lot 2 is zero. Now PA moves against you by 10 pips. Lot 1 (which is up by 10 pips) cansels out the 10 pip loss of lot two. Sum gain BE or Zero.
[B]Edit:[/B] Head up my ass today (can’t multi task). meant 20 pips up then fall back 10 etc etc… its Monday!
Dont know why that thread was locked? Didnt see anything offesive in it a few strongly worded posts but nothing to get in a twist about?
Yep… I use the first example all the time… it greatly increases the chances of making some decent pips when the trade goes in your favour from the off but comes back on you. Dont use the second example with or without the correct maths. :D:D:D
Err
Enter 1 trade
Trade moves to +20pips, close half = +10pips effectively
Enter trade 2, currently zero (or -3 for spread but I get the point).
Trade 2 moves to -20pips
Trade 1 is then closed out at break even.
Trade 2 is closed out as hits stop loss
Total = -20+10 = -10.
Two lots when reached TP1 sell one lot and let other lot ride. So say (example) 2 lots X 10 pips = 20 pips. Sell 1 lot. Now second lot can reverse to initial entry point but will still be up 10 pips.
One lot up 20 pips. Add second lot. Second lot can lose 10 pips before combined BE.
I prefer example 1. Example 2 is just a safer way of incrementally increasing your position.
Aha, yes. Example 2 suffers from a fairly tight stop loss though?
You can also add to your position on the retraces but that takes some getting used to the places to do it and the strength of the trend.
I agree which is why I dont use example 2. Would rather take a long term trade in the direction of the trend (1 day TF and up) and hedge or close out when there are obvious retraces.
I dont see one yet but 5:1 boll on the 1h is starting to get pretty tightly squeezed. Could go either way?
Yeah, got a sell in just under 1.6360, looking to lock in 18 pips for my 100 weekly, but hoping for a deep drop somewhere before Euro/London close. Edit: Got my 100
Please Robert or RC. Well with GU and GJ today took 254 pips so not bad. But I think its best just to look at each and every set up and judge accordingly. Some days its flat others its really moving… I try and keep an open mind at all times… even after entering a trade.
