Hey guys I’ve just found out that i have a problem with holding my positions looking at my trading journal and history for example i was bearish on EURUSD last 1.5 weeks which would have been a good profitable positions but when the price moved against me i closed my positions and these happens all the time for me.
Any advice to how to control this ,I thought of that I would not open the charts until my TP/SL was hit?
Hi, it is possible to create EA from your idea? Regards Greg
Yes since it is a simple EMA cross strategy but i also include price action which i don’t see how to combine the two so i want to rather trade myself.
Hide the P&L helps alot
How did you arrive at your entry, SL and TP? Which chart were you trading? H4, D1, etc.
Hello @Ervin_Nagy
I think there are 2 parts to your question about holding a position.
Part #1 is holding on to a position that has gone against you. If you have done your due dilegance and have determined that your strategy yields a positive expectancy over time, then you should maintain discipline and allow a losing position time and enough drawdown capacity to eventually develop into a winner. The other side of that is that there is nothing wrong with closing out your position early and cut your losses in the event that price action gives you a hint that maybe you should, even if your S/L hasnt been hit.
Part #2 is by far more complicated in my opinion. Thats knowing how long to hold on to a winning position. If your using a fixed TP, then once again you should maintain discipline and allow the trade to play out if you have determined that your strategy yields a positive expectancy over time. If your like me and refuse to use a TP because you dont want to cap potential profit and want to let your winners run, then trade managment of a winning position becomes a bit more difficult. There is a delicate balance between taking profit, pyramiding your position and letting the trade run that will depend upon your particular strategy.
May the pips be with you my friend.
Can you give info when you have closed your trade after the price moved against you? Is it immediatelly or after certain pips?
I would like to see what was the situation you were been so I can make some conclusion.
But generally, that happens all the time. I close the trade when the price reverses against me.
The reason I am doing it is because when I watch the chart I see that the trade is moving against me. I feel frustrated why the price moves against me.
Why do not price move in my direction. It was all by the book. The signal has been there and I have done the entry by the trading plan.
Well, my patience and discipline is not good enough. I could not watch the price move against me.
Imediatlley my fear and protection impuls in my head have reacted and signaled to my hand to close the trade. Just to prevent my trades go into losing scenario.
The solution for that was setting the risk on that trade around 1% where I do not mind losing that 1%. If it hits my stop loss it means I have lost only 1% which is nothing.
If I see again good signal I will enter again.
The second thing I have done is move away from the screen.
When I get back I just check the situation. If it is bad I know that I will lose 1%. Which is nothing.
If the price is heading in my way, then great. I will make some money.
I hope this is helpful and you can do the same thing.
Do not risk to much and do not sit in front of the screen.