Rank Newbie here, first post. I did a search, but couldn’t find anything, hopefully it’s not a repost.
I’m working through the school, and maybe this question will get answered eventually, but it’s something that I’m wondering now as I start to formulate a trading plan.
Am I able to open multiple trades in the same currency pair?
If I look at a daily chart and decide that over the next few days price on USDCAD is going to go steadily down, can I open a short trade that I intend to ride over a few days, and then switch to a lower timeframe, and open another series of trades to ride the ‘wave’ down to the bottom’.
I don’t know if that makes sense, or even wise, but it’s something I’ve been thinking about.
I not sure about the broker you deal with, but all the ones I deal with allow it. There are two types of orders Market execution and pending orders. Market is immediate execution. Pending can be done 4 different ways. You can see both by going to utube and searching how to place a pending order.
Thinking is good. Especially before you risk your money. In addition you could go to your demo account and try it and see what happens or you could go back a month or so plot your multiple entries push F12 and see based on past price action if you should try it or not.
As long as your trades are in the same direction, almost every broker should allow you to do that.
If your trades would be in opposite directions it’s considered hedging and you would be unable to do so in the U.S. If you’re outside the U.S., you could easily find a reliable broker that offers hedging.
This would be ill advised. Great to take a longer short of course. Wrong to hedge it on a shorter time frame. Hedging is complex and only advised on negatively correlated forex pairs with experience. Hedge funds employ this strategy on equities to off set risk. Its not to be applied to the same pair, ever!
I realize what hedging is, lol. Why can’t someone employ both a swing strategy on the Daily time frame along with scalping the 5M charts? In OP’s case he wouldn’t be hedging for the purpose of reducing risk… It’s just as a technicality. And it’s a completely valid trading style.
You can if you want to lose pips. You pay the spread twice or in your example, trading the 5M (assuming no losses, LOL). If PA moves against your longer position, EXIT. Simple MATH.
Its a ZERO sum game. Plus a negative additional spread.
Are you for real? So if you take a short trade based on the Daily chart, you’re going to exit the second a bullish candle appears on the 5M? Of course you pay the spread twice. They’re two separate trades.
It’s not about hedging for the purpose of risk reduction. It’s about hedging as a technicality to take advantage of two trades on the same pair in opposite directions, on two different timeframes.
Go read up on Wave Theory and then come back and look at what you are writing.
To the right is a line graph of let’s say the 5M chart during the formation of that candle. What is wrong with having a long position open on the Daily chart during the formation of that candle, and also shorting at the red arrows on the 5M chart?
Hint: Nothing. They’re separate trades and you make additional profit.
You can. I did it today. The GBPUSD 4 hour and daily were showing an up trend. I entered long. The 5 minute, 15minute were ranging so I scalped with a series of buy/sells. It’s not something you should do on a whim. There are a lot of things to consider when doing this. To start with you will probably end up taking a loss until you get the flow right. What you’re betting on is there will be no break outs. When this strategy works you feel like . . when it doesn’t and you go for a bath down the boluvard of broken dreams you end up first :51: then :17: I use it once in a while but if anything starts to go funny I stop.
OK guys, if you don’t get it, you don’t get it. Its your accounts and money. One final time? If your in a longer short and you take a quick or otherwise long without closing out the short, its a ZERO SUM game plus the additional spread. I rest my case! The only way to prosper is to trade twice (or at least more long than the original longer term short). This begs the question, why are you still short?
We could say the same thing for you. You don 't get it you don’t get it. Waste of space. It is not a zero sum gain. It’s 2 different trades, it doens’t matter if it’s the same pair or not. When you trade you pay spreads. Maybe you should consider value as much as you do costs. There is no such thing as always right always wrong. You’re right this is not a long term strategy, it is a strategy that under certain conditions can be profitable, like anything else. This strategy would not be profitable for someone who considers themself a swing trader, position trader or long term trader. This is a strategy that under certain conditions is profitable for someone who does not approach the markets with a single pre concived trading method
Sit back and listen to op’s question. Then sit back and read our repsonses. Here’s an example for you. For all the right reasons on a daily time frame you enter a long trade for 1 standard lot. On the daily pair is trending up. So you went long. You drop down to the 25 minute where you see the pair is ranging between a support and resistance of 100 pips. Now using your ranging strategy you enter short because that’s the 15 minute trend you also place a long order at the bottom of the range lets say it keeps ranging and starts to move back up. You place another short order at the top of the range.
A zero sum gain if I’m not mistaken is a situation in which a gain is offset by an equal loss: " So you would be right if he entered a long and a equal short. That’s not what we’re talking about. Again read the responses. Again you’re right . . how simple does this have to get? Comparing what we’re talking about to what you’re talking about is the same as saying if my sister had a **** and balls she’d be my brother. And you would be right, but that’s not what we’re talking about. Each trade is it’s own. Anyway lets quit this non sense this back and forth is semantics
Yes the OP was asking in effect if he/she could add to a winning longer position on the shorter TF’s. All well and good, but hedging as brought up in a subsequent post on the same pair would still be ill advised unless in excess of the original longer position. If that mindset is in place, I would strongly suggest either going long? Or exiting the longer short and re-entering when prudent. Frankly, I see no upside to hedging the same pair.
I think you’ve got it :60::60::60::60: What you’re talking about is making 2 trades at the same time or a couple of pips between them one long one short no other analysis. That’s zero sum, and one of the dumbest things I’ve ever heard of. What we’re talking about is adding to a position Whether long on a trend or short within the same range but on a smaller chart. Each trade (if you’re smart) will have be entered, with a stop loss and take profit based on it’s own merits. Hedging is when a trader takes a long for example on the usdjpy then short on the gpbusd. I’ve seen traders start on a trade with a minimal lot then if they called it right add to the position. I’ve also see traders including my self fade a stop loss with a pending order triggered as soon as the stop loss is hit. Again you should only be doing this when conditions permit. fading, adding to trades have to be done in front of the computer not a set and forget in my opinion. Anyway good back and forth.
This is essentially the scenario I was trying to get across.
Thanks to all who replied, I appreciate everyone who took the time to do so. To me, this was more of a ‘I wonder if I can do this’ kind of scenario. I’m nowhere near trading on a live account yet, but I’m starting to think about how I want to approach things.
you cant be too sure of your trade if u have to hedge your bet , IMO u are just betting against yourself … I open multiple deals on same instrument going in the same direction, you just need to watch your margin and your available margin , when I run multiple deals I run a trailing stop on each 1 and open new deal when stop gets taken out ,so at any 1 time I may have the same number of deals open … cheers Q
. . when it doesn’t and you go for a bath down the boluvard of broken dreams you end up first :51: then :17: I use it once in a while but if anything starts to go funny I stop.
