Hello All,
I have been “playing” with a strategy of trading. Works like this
step 1. Open a buy and sell order at the same time.
step 2. Set 2 pending orders one sell and one buy, each order is set to execute 12 pips from the already existing order.
step 3. When either of those pending orders execute you close the other pending order and open 2 new pending orders (one buy and one sell) each 12 pips from the most recent order.
step 4. Continue this till the bottom line profit is $X.XX (I do a total of 5 pip profit because that is my daily goal). Once your goal is reached close all trades and call it a day.
step 5. Repeat.
Known Issues:
1 - If the market stays flat for an extended period of time, you end up with alot of open orders…if your money management is at a higher risk, this could lead you to a position where you cannot open any more orders.
2 - If you have too many open orders…getting them to close at the same time to secure your target profit. (if anybody knows any possible way to make all open orders close at the same time PLEASE let me know)
Any opinion on this trading theory would be appericated, I am basically new to forex and at this time this is only a theory.