Couple newb questions...stop loss and charts question

Beginner Questions
1

  1. The other day, somebody explained to me the concept of what they called a parachute stop loss. The idea was that if your trade goes in your favor X amount of pips, then goes against you back to the entry value, you get out of the trade for no loss or gain. How exactly would I implement this? I have a demo account at Oanda, and didn’t see any option to set something like that.

  2. Oanda charts don’t have weekly charts available. Is there a way I can “highlight” a portion of the daily charts and see the high, low, close for the highlighted section?

Thanks

2

To lschmidt :

I can only answer question one since I do not operate on Oanda.

If your price returns to your entry you will get out with a loss.

The loss is the spread (in pips) that you paid.

This is a silly form of trading. If you trade is in profit you should be alert enough to see this and take the profit if the trade tanks.

I cannot see the point of entering a trade, see it profit, only to go back to the begin again. :stuck_out_tongue: :rolleyes: :confused: :frowning:

3

  1. With OANDA you would have to manually move the stop to your entry point.

  2. I dont think that isnt possible with OANDA’s charting platform. You could download metatrader and use that for your charting as many members do.

4

This sounds like a trailing stop which only works one way - if you’re going to use them, you want it to carry on trailing; not to stop trailing once you reach break even I’d imagine.

I don’t know if Oanda does trailing stops, but my broker doesn’t. Still, so long as you’ve not got a really tight TSL, and you can live without doing it to the exact pip, you’ll find you only have to change it a couple of times a day to trail your trades.

5

Hi,
In agreement with triphop, a parachute stop loss is otherwise known as a trailing stop. However it doesn’t necessarily mean you will exit a losing trade at little or no loss.

For example, you enter your trade and perhaps set a regular stop loss at 20 pips away, and perhaps a take profit level of 60 pips. You’re pretty sure it will go up, but not sure if it will be 60 pips or not, so you set a trailing stop, for example of 10 pips, to “follow” or “trail” the current price.

Once the price moves and reaches that first gain of 10 pips, then the stop loss will establish, or reestablish, itself to 10 pips away from the current price…which should initially be your entry price.

If you made it to the first 10 pip gain past your entry, you should have little or no loss should it decide to reverse here. [B]If it didn’t reach the first 10 pip gain before reversing, then it could hit the stop loss level you previously set at the 20 pip loss.[/B] (if you didn’t set a stop loss initially, then it wouldn’t be a good thing :frowning: .)

From here on, [U]each time the price moves in a gain direction [/U]the stoploss will reestablish itself 10 pips away, [U]but not if it moves against[/U]. If the price did reach 60 pips and then reversed, your profits would have been protected at 50 pips.

The pro is when there is a breakout and you can capture a lot more pips than you anticipated. The con is too tight a buffer can stop out too early.

It’s too bad if your platform doesn’t have this feature as it can be handy.

Hope that helps :slight_smile: