Ok, so i'm getting more trades right than wrong at the moment but I am noticing that often the retrace is getting close to my stop. Quite often on GU I am finding myself -25 pips before it goes positive (more so with GJ and GC.)
So, with that in mind, is there any benefit to placing orders in both directions at the same point? As an example if we have a 40 pip take profit and a 40 pip stop loss and we aim to make 20 pips from the hedge we have three possibilities:
1) Trade goes wrong, we lose 40 pips on the main trade but gain 20 pips on the hedge so -20.
2) Trade goes immediately right we lose 20 pips on the hedge then but gain 40 pips on the main trade so +20.
3) Trades goes wrong then right we gain 20 on the hedge and 40 on the main trade.
(I don't have a fixed take profit but often get to 40 or more hence the example.)
I think I'm missing something glaringly obvious but any advice / opinions appreciated.
Ta
Max
So, with that in mind, is there any benefit to placing orders in both directions at the same point? As an example if we have a 40 pip take profit and a 40 pip stop loss and we aim to make 20 pips from the hedge we have three possibilities:
1) Trade goes wrong, we lose 40 pips on the main trade but gain 20 pips on the hedge so -20.
2) Trade goes immediately right we lose 20 pips on the hedge then but gain 40 pips on the main trade so +20.
3) Trades goes wrong then right we gain 20 on the hedge and 40 on the main trade.
(I don't have a fixed take profit but often get to 40 or more hence the example.)
I think I'm missing something glaringly obvious but any advice / opinions appreciated.
Ta
Max
Gravity goes both ways in forex...