So you’re in a deal. What to do next?
1) Immediately put a stop order based on your risk management. Let’s say you decide to make no more than 3 transactions during the day, you assume a loss of 1.5% of the total of all transactions. With risk management 1:3, the expected profit for the day should be at least 4.5%. That is, let’s assume that in each of the three transactions we put a stop loss of 0.5% and a take profit of 1.5%. Or we put the first trade with a stop order of 1%, take profit of 3%. Of course, the size of the stop and take profit should fit into the current price movement. If the price has been standing for several days, then it is very imprudent to count on 3% profit. The market should be very volatile.
2) The price, breaking your dreams, rushes in the other direction and knocks out a stop loss. Options for further actions:
– stop trading for today;
– we put a new application at the same price as the previous application in order to enter on the reverse movement;
– buy at the current price with a new stop loss;
– we put a take profit sliding order, which will work itself when the price reverses (read the TRANSAQ documentation);
– turn over and put a stop on the other side. You were in long, now you’re in short.
3) The price is moving in the expected direction and is already approaching take profit, remaining. Variants:
– we are waiting further for the price to take a take profit;
– we immediately go out according to the market application;
– we move the stop slightly below the current price to take the already accumulated profit. – we put an inverted application. If you are in a long for 10 lots, we put a stop loss for sale for 20 lots.