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Post by cicciospice on Jan 25, 2017 5:21:40 GMT -5
In Volman last book, Understandn Price Action, he describes use of bracket orders with TP=20pips and SL=10 pips. When he says "bracket" describes also that orders are O-C-O (once cancels other) and this confused me.
Is he talking about opening Limit order at TP levels and Stop order at SL level?
Or he describes ONLY one position opened at market and TP/SL leveles?
I sent him an emal, but unfortunately he was not clear in his explanation, so I would some clarification from whom read his book.
TIA
Francesco
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Post by traderAllen on Jan 28, 2017 21:25:52 GMT -5
You have to keep in mind the broker is not your friend. A limit order is placed for your profit targets this is done so you get exactly what you're asking for. There are many unscrupulous brokers that will often increase the spread to bump your order of say 20 pips of profit and your actual Phil will end up being 17 or less. On the flipside in your stop order as it it needs to be filled immediately to cut your loss.
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Post by cicciospice on Feb 1, 2017 17:55:09 GMT -5
You have to keep in mind the broker is not your friend. A limit order is placed for your profit targets this is done so you get exactly what you're asking for. There are many unscrupulous brokers that will often increase the spread to bump your order of say 20 pips of profit and your actual Phil will end up being 17 or less. On the flipside in your stop order as it it needs to be filled immediately to cut your loss. Unfortunately it's not clear to me, I don't understand how bracket setup is linked to the fact that brokers are our enemies. And in any case, I continue to be confused, if I have a stop order at SL level, I don't cut my loss, but maybe I try to recover from it. Same concern on profit side, if I touch tp, a new position will be opened as limit order? It seems that I never traded so far, I really don't understand if I'm confusing tp level with an order, or I never completely understand what take profit is. Can you clarify me please? Francesco |
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Post by traderAllen on Feb 2, 2017 11:50:54 GMT -5
assume all stops and targets are 10, targets are stop limit , protective stops are stop markets
trade 1 hits target +10
trade 2 hits target +10
trade 3 hits stop - 11
total = 9
assume all stops and targets are 10, targets are stop market , protective stops are stop markets
trade 1 hits target +7
trade 2 hits target +8
trade 3 hits loss - 11
total = 4
Your forex broker is the counter party to your trade. This is true unless you are trading 10,000,000 or more position size. They stack the deck,You need to realize that and control what you can. Their algorithms are not set in your favor it's in theirs. If you are a losing trade their algos take your trade 1 to 1 they know they will profit. If you are a winning trader and only about 1% is they still take your trade but hedge your trade 2 to 1 in there favor they still profit.
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Post by photize on Mar 9, 2017 23:58:31 GMT -5
You have to keep in mind the broker is not your friend. A limit order is placed for your profit targets this is done so you get exactly what you're asking for. There are many unscrupulous brokers that will often increase the spread to bump your order of say 20 pips of profit and your actual Phil will end up being 17 or less. On the flipside in your stop order as it it needs to be filled immediately to cut your loss. Unfortunately it's not clear to me, I don't understand how bracket setup is linked to the fact that brokers are our enemies. And in any case, I continue to be confused, if I have a stop order at SL level, I don't cut my loss, but maybe I try to recover from it. Same concern on profit side, if I touch tp, a new position will be opened as limit order? It seems that I never traded so far, I really don't understand if I'm confusing tp level with an order, or I never completely understand what take profit is. Can you clarify me please? Francesco Which platform are you currently using? If its like MT4 then tp and sl do indeed appear as levels there is no direct reference to orders which of course us exactly what they are. In Ninja to set either tp/sl you directly place the opposing order ss nescessary, with one closes the other as this us not automated like on mt4. I hope this clears up the confusion, try ninja on demo for clarity. www.investopedia.com/university/intro-to-order-types/conditional-orders.aspEnjoy Pho |
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