Worth? You analyze the chart and set pending order, sl, tp and forget it…anyone use this method?
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depending on timeframe you want to trade maybe not good to forget. But in saying that it is much better to use pending orders and get into the market at the best place for your strategy than to use market buy or sell and compromise your entry. Can be a great method to begin trading.
Set and forget is too extreme a term, and I don’t think many people do this literally.
However, once I’ve got a position running, the stop-loss and TP (if I set one) are never adjusted.
Two issues can arise -
The obvious one is what to do if price just lazily drags long between the SL and TP and never hits either. The answer is that whatever momentum was in price that got me in has been dissipated and that particular part of the reasoning to enter is gone, so the trade should be closed. I would typically give it about 5 bars.
The trickier issue is what to do if you get a second entry signal on the same pair on the same time-frame. I don’t like doubling up positions (unless in a fantastically consistent trend). Under those rare circumstances I’d recommend closing the first trade and just running the second.
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