I think you should forget about it… because there will ALWAYS be a moment that only one order gets filled and then you have BIG drawdown or margin call.
Actually, that’s not too bad of an idea in general, but you need to have a SL, which isn’t too small or it will be hit too often, but small enough to create a good risk\reward ratio, probably the same as the gap between the straddle orders.
Or you can try something more risky and have the SL also open an order the opposite way for continuation.
Rather than looking at random entries, I would look for a time when price has a higher likelihood to hit both. How you do that… well it just takes some thinking.
It works very well if you can predict the trend direction - for example in a down-trend you can push both orders down in price so the sell is under the current price… Predicting trend is hard, though.
This system would be best used in a situation where there is NOT a trend… If there is a trend then that increases the likelihood of the orders not being filled as price movement will be one directional
That’s how I’m reading his first post and screenshot… He places a sell limit above price and a buy limit below and just waits for price to bounce between them.
Yes, my apologies, depending on where the orders are placed, they’re either limit or stop orders - either way they’re pending order which is what I should have put in my diagram in the first place
Anyways, to help with your dilemma here. I think what you’d want is look for a breakout setup. And the size of the gap will depend on setup of the breakout.
I think you can figure out the rest. I’ll get something coded real quick!
NZDUSD - 1H - March 2011 to Present (2 Years) - 1 Standard Lot/Trade
Spread is accounted for, 0.2 pip slippage/trade, $100K initial balance, bar precision was set to 1 tick.
Just whipped something up quick to show you that it can be done without blowing up your account. But again, really primitive and still needs a lot more work and development.
