Exit strategy #7 (Leaving intra-day trades overnight)
Submitted by Edward Revy on November 12, 2009 - 14:42.
Intraday trades are normally closed during the day. However, some traders may choose to leave certain trades overnight, which rises a question: how to protect your open positions overnight?
Option 1: allow an Expert Advisor to manage your trades.
Option 2: Leave everything as is and go to sleep. Your trade must have a stop loss. Setting a profit target is up to you.
Option 3: Never sleep, wake up every hour or so.. hmm..
Option 4: If a trade made some profits before the bed time, set your stop loss to breakeven and leave it overnight.
Option 5: Use a trailing stop.
The method I'm going to describe uses a simple well known Parabolic SAR indicator.
Preferred settings (0.1, 0.11) for all time frames.
When leaving a trade overnight, set initial stop loss at the most recent Parabolic SAR dot.
The step of the trailing stop = the distance between the two most recent Parabolic SAR dots at the moment.
Evaluate PSAR (0.1, 0.1) and (0.02, 0.2), whichever shows a greater distance at that moment will be used for calculating a Trailing stop.
That's it, if a trade has something to offer, you'll be there to grab it, otherwise your trailing stop will help you exit when the time is right.
Don't lose your sleep over Forex!
If you know alternative options, you're welcome to suggest!
Edward Revy,
http://forex-strategies-revealed.com/
Copyright © Forex Strategies Revealed
Dear forex expert/trader, all ido ve a probelem, when i set a order with a trail stop,when i close my platform
and went to bed i find in next morning ,oder is triggered but trailling stop was not initiated,one
expert can help me pls.
Reply to my email godman20j(at)yahoo.com
Hi Sola,
trading currencies is a business which requires skills. Not every person can be good at managing investment portfolios and use financial data to successfully speculate in Forex.
If you're currently trading on a losing side, it is simply an indication that you need more practicing and studying. A strategy can point you in the right direction, but even after that it is how YOU trade it and use your critical judgment and ability to manage risks.
Among good strategies to start with would be:
- simple #4, #8
(there is an indicator I just saw posted on our website, which I wasn't able to review yet, it might help with 123 patterns:
http://forums.forex-strategies-revealed.com/123-pattern-recognize-indica... )
- advanced #5, 10 and 14
(there is an active discussion to join about trend line strategies here:
http://forums.forex-strategies-revealed.com/advanced-strategy-trend-line... )
Best regards,
Edward
Which strategies can a newbies use to make more pips in forex
from sola
I'm newbie in forex i ve been trading over 6 month but i have been losing trade. Does it mean that fx is not real. If it is real can u show me best strategies i can use to make money before going live. From sola nigeria
Suppose that you're sold on the breakout, but it now time to go to sleep and you don't want to close your trade just yet. So, you find the distance between the two last PSAR dots and that's going to be your Trailing stop Step for the night.
Regards,
Edward
Hi Edward
Can we see a screen shot of your strategy?
Thanks
Edwin
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