@Taggie11
Maybe I might be out of topic here in your thread.
At the moment some of the FX-pairs moves within very narrow ranges.
The statistics shows e.g. by the EUR/USD a hourly volatility by appr. 20 pips at the maximum. The EUR/USD moves, resp. ranges daily and weekly in a range at the max. by 50/60 Pips (before at appr. 150 Pips a day, please refer to January 2014), except of occasionally spikes at the open- or concerning news-trading hours.
I assume, that the broker transaction volume did actually degrease, considering the actual low volatility (major-pairs) in general. That seems to me the reason, that in the meantime some broker did reduce the spreads and stop-loss-levels.
Definition of 'Scale Out' (ref: Investopedia)
The process of selling portions of total held shares while the price increases. To scale out (or scaling out) means to get out of a position (e.g., to sell) in increments as the price climbs. This strategy allows the investor to take profits while the price is increasing, rather than trying to time the peak price.
If the actual value continues to increase, however, the investor could be selling a winner too early.
Another definition:
Scaling out is the process of using multiple separate exits to exit a trade. For example, a trader that is trading 4 futures contracts might exit their trade using three different exits of 1 contract, 1 contract, and 2 contracts. These exits would most likely be at different prices, and may be in response to different exit signals, or even different trading systems.
Reducing Risk
When it is used correctly, scaling out can be used to reduce the overall risk of the trade. For example, if a 3 contract trade is exited using 3 separate exits, and the price only moved slightly in favor of the trade before moving against the trade, the first contract might still be profitable, and provide enough profit, if protected, to cover the loss of the remaining 2 contracts. This type of scaling out strategy, can significantly improve the risk to reward ratio, thereby reducing the overall risk of the trade.
Concerning these issues by using multiple orders, there are different points of views, because we have to consider also risk- and money-management within a dynamic process, resp. scenario.
Thanks to garyfritz for his explanations in other threads.
I assume, that this MM-process is not easy to follow for beginners, similar to the issue introduced in the “Automatic-Loss-Recovery”-thread to consider the noise resp. price fluctuation, but this is another issue resp. story.
In the past, I asked (I´m not a coder) for an “easy to use” trade-manager-EA (TM) in a similar way as suggested, using and operating multiple orders by the option of taken very fast partial profit and in addition with an open end trailing-SL-feature for each remaining resp. still performing order … setting a BE/SL- security stop and/or partial profit (PP) target.
Optional with an emergency- security-stop, especially in the starting period, after entry of the first order.
There are several ways and some similar trade-managers not only here in the forum, which provides scale-out/scale-in features, with or without recovering features.
But the handicap is, these EAs mostly operates with fixed settings/parameters during execution, not considering the actual price-action.
Therefore I seriously doubt using fixed parameters in a static, pure mechanical way concerning MM-management?
One of the basic MM-strategies deals with the aspect, to close or protect orders by a defined target-SL in TP, with or without scale-out, applied by partial profit or with BE-security stop.
Concerning e.g. the actual narrow targets, this will lead frequently to close an order too fast at BE.
FYI: for similar thoughts please refer also to
http://www.stevehopwoodforex.com/phpBB3 ... 144#p87144
In addition to work with a pending order for the first entry, I would prefer in addition the opportunity to go optionally initial, be it long or short. It depends, what the brokers will provide concerning stop-loss-levels.
It is not only my personal opinion, but actually daily targets (intraday) > 50 Pips are very hard to achieve. At the moment and concerning intraday scalping it is very difficult to generate and scalp at least 5-20 Pips, especially when the price action will remain as low as actually, considering also the fluctuation/oscillation of the price-action.
I did already suggest to open automatically (by EA) a new pending, if e.g. the first and/or second order (Grid) will perform in the right way on trendy days in profit, if the trailing-sl has been moved into the TP-area and did taken/hidden PP or TP, even the first or consecutive orders are still performing by scaling-in, protected by SL > BE and executed further on by trailing.
This kind of order-management with multiple scaling-in orders needs some calculation in advance and will need normally 3 orders in subsequence with different settings and permanent adapted adjustments for each order, if used without control on a daily basis.
Keep in mind, that when the price-action of the vola will be exhausted at the maximum in the area of the top or bottom of a range, the last executed order in price-direction will be either frequently a loser or will be closed nearby zero-sum.
That´s one of the reason, I talked something about an according dynamic MM- scenario, because each performing order after entry and during the order-execution in regard to the parameters/settings will change permanently, depending of price-fluctuation (with other words noise of price-action).
Such a dynamic feature will not support and provided by most of the TM-EAs without further improvements resp. according MM-calculations.
I know, that my thoughts will not be a great help for you, missing improvements.
But maybe it makes sense to try and to reduce the TP-targets (by demo account).
Will stay tuned.
Trade well my friend
Over60 |
. Others removed themselves after the allotted time interval which was great.
).
That makes sense - my brain is addled this morning ;-(