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Originally Posted by Merrygoround  I was referring to the pyramiding part only, to increase profit. The entry and exit logic will be different.
The ADX at +45 tells you it is time to place a trailing stop or just TP, not where to place the SL. See this for example: http://forex-strategies-revealed.com...tion-technique. I learnt a lot from this site.
SL could be placed at latest fractal, which acts as support or resistance once broken.
Say, if you have a master trade that has a 50 pip profit and you want to do an add-on, then you place a trailing stop on the already profitable master trade before entering the first add-on. The same for the second add-on: the first add-on should have a minimal amount of pips in profit. Once that amount is reached, you put trailing stop on the first before doing a second add-on. That way part of the profit gets locked in and only one trade at a time (the one without trailing stop) runs risks of turning into a losing trade. At least that is the way I would do it. |
Sounds like a lot of trade management,
There is also the issue of lost profit depending how much of a trailing stop is put on the trades.
I already only open the subsequent trades if the master is 60 pips in profit.
Rick