Today I did a bit of research into orders. I think there are a couple of simple order strategies that might be easy to implement and they could pay off. Need to learn more about the different order types first though.
Could be used to trade the news or when there is high volatility. Basically here is the situation
- There is an overall trend (let’s say down).
- We have had some kind of small retracement but now the prices are back on track (or maybe 2 retracements for confirmation) …this could be limited to a certain time period, like the last 20 minutes or something.
- We create an entry order outside the lowest point reached on the expectation the trend will continue to this point.
- The stop is set just outside where the retracement was reached
- The limit is equal to the stop. Risk Reward of 1:1 perhaps?
If the price moves down, we enter and hopefully win.
If the price moves up, we cancel the order (check order types, I’m sure this can be done automatically)
Perhaps… if the price doesn’t move by a certain amount of time, we cancel the order?
Similar to the above strategy, however we do not have a directional bias. Probably works best when there is higher volatility.
- Entries could be placed 20 pips or so from the breakout points.
- If the price doesn’t move, orders should be closed out to prevent incurring rollover charges.