Open Positions Management ( Or Cutting The Losses In Addition To Allow Your Profits Hold Upwardly )
Besides Money Management, the Open Positions Management is roughly other means of making whatever strategy, a profitable i ( or to a greater extent than profitable ).
You tin plough over the axe role PA's highs as well as lows or other tools, similar Fibonacci Levels ( or Fibonacci Confluence Areas ) as well as deed the initial SL, piece PA is moving inwards the administration of your forecast, using the adjacent formulas:
Initial SL = Previous High/Low ( Fibonacci Confluence areas )
New SL = Entry ± Spread ± few pips
*Next SL = High/Low ( or Fibonacci Levels ) ± Spread ± few pips*
*few pips = 5p for 4H chart, for example.
And as well as thus on, until PA volition shape a bigger pullback as well as hitting the SL ( inwards lucre ). This technique is also known every bit Break Even ( BE ).
This strategy volition increase nearly of your profits/trades, inwards no of pips, but sometimes volition alter the statistic for the whole strategy. Why ? Well, let's say your strategy accept a statistic of 7/10 trades inwards profit. Using this means of changing the initial SL, powerfulness motility it to live on hitting close entry, nearly of the times, alongside few pips inwards lucre ( or the adjacent swing alongside a modest sum of lucre ), earlier continuing the initial administration forecast past times you.
So, your initial strategy, could accept 5/10 trades inwards profits, only. But, if yous visit that those five trades inwards profit, powerfulness accept to a greater extent than than three x SL every bit R:R Ratio, yous powerfulness similar it. ( Imagine yous tin plough over the axe grab the whole tendency or 80% of it / merchandise ).
This means of managing the opened upwards positions, powerfulness attention yous to add together novel trades / same trend, since all opened upwards trades are running inwards lucre ( ONLY if your MM Rules allow yous to opened upwards to a greater extent than positions ).
For example, I role initial confirmation of the novel trend, past times entering alongside 1 lot ( for "testing the waters" ) as well as when this is inwards lucre as well as I have the 2nd confirmation, I add together five to a greater extent than lots. On the adjacent high/low confirmation ( or Fibonacci Confluence Areas ) I add together a novel merchandise of five lots as well as and thus on until I'll notice a "possible moving ridge 5" ( Elliot Wave ) or an of import Fibonacci Confluence Area on higher TF. In that 2nd I await for decease for all positions ( or deed the SL, closer to the PA as well as allow this final SL to live on hit, eventually ).
Now, let's create the math:
- initial entry lot = for example, 80% from the whole novel trend
- adjacent entry lots = for example, 50% from the whole novel trend
- adjacent entry lots = for example, 30% from the whole novel trend
And since I merchandise on higher TFs ( H4, D charts ) as well as trends could accept from hundreds to thousands of pips...hope yous understand, now, why I similar to refer this: " milking the pips" ( or "cut the losses as well as allow your profits run" )
Best Regards,
^^_Lord_Ice_^^
You tin plough over the axe role PA's highs as well as lows or other tools, similar Fibonacci Levels ( or Fibonacci Confluence Areas ) as well as deed the initial SL, piece PA is moving inwards the administration of your forecast, using the adjacent formulas:
Initial SL = Previous High/Low ( Fibonacci Confluence areas )
New SL = Entry ± Spread ± few pips
*Next SL = High/Low ( or Fibonacci Levels ) ± Spread ± few pips*
*few pips = 5p for 4H chart, for example.
And as well as thus on, until PA volition shape a bigger pullback as well as hitting the SL ( inwards lucre ). This technique is also known every bit Break Even ( BE ).
This strategy volition increase nearly of your profits/trades, inwards no of pips, but sometimes volition alter the statistic for the whole strategy. Why ? Well, let's say your strategy accept a statistic of 7/10 trades inwards profit. Using this means of changing the initial SL, powerfulness motility it to live on hitting close entry, nearly of the times, alongside few pips inwards lucre ( or the adjacent swing alongside a modest sum of lucre ), earlier continuing the initial administration forecast past times you.
So, your initial strategy, could accept 5/10 trades inwards profits, only. But, if yous visit that those five trades inwards profit, powerfulness accept to a greater extent than than three x SL every bit R:R Ratio, yous powerfulness similar it. ( Imagine yous tin plough over the axe grab the whole tendency or 80% of it / merchandise ).
This means of managing the opened upwards positions, powerfulness attention yous to add together novel trades / same trend, since all opened upwards trades are running inwards lucre ( ONLY if your MM Rules allow yous to opened upwards to a greater extent than positions ).
For example, I role initial confirmation of the novel trend, past times entering alongside 1 lot ( for "testing the waters" ) as well as when this is inwards lucre as well as I have the 2nd confirmation, I add together five to a greater extent than lots. On the adjacent high/low confirmation ( or Fibonacci Confluence Areas ) I add together a novel merchandise of five lots as well as and thus on until I'll notice a "possible moving ridge 5" ( Elliot Wave ) or an of import Fibonacci Confluence Area on higher TF. In that 2nd I await for decease for all positions ( or deed the SL, closer to the PA as well as allow this final SL to live on hit, eventually ).
Now, let's create the math:
- initial entry lot = for example, 80% from the whole novel trend
- adjacent entry lots = for example, 50% from the whole novel trend
- adjacent entry lots = for example, 30% from the whole novel trend
And since I merchandise on higher TFs ( H4, D charts ) as well as trends could accept from hundreds to thousands of pips...hope yous understand, now, why I similar to refer this: " milking the pips" ( or "cut the losses as well as allow your profits run" )
Best Regards,
^^_Lord_Ice_^^
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