March 06, 2019 11:30 am est
by Tom Kadale, Contributor Market Analyst
for newsmovesmarketsforex
FYI: This signal came from one of our test systems and was not part of the subscriber deck. I chose to use it, since it offers an excellent training example.
As usual, I figured out my Trading Intuition Score using the guide in our online FX course. That number came to 37, which meant I could place up to 3 lots at the MARKET and 7 lots at the LIMIT.
Whenever possible, I like to place my first lot at the MARKET when it is at or below the LAST quote. I use this order to keep track of the price action. Should the price jump above the Take Profit then I know to close out any open orders. I then worked the other two lots to bring my average down, while also placing my 7 lot LIMIT order.
As you can see below, the price just missed my LIMIT order by a pip or two before rallying back up. In the meantime, my 3 lots pulled away with a profit.
This example demonstrates the advantages of placing a combo order, both MARKET and LIMIT. Once the Take Profit level was hit, the signal became invalid, so the next morning, I deleted my LIMIT order.
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From the RagingFX Trading Desk…
Tom Kadale, Forex Algorithm engineer RagingFx.com
and Guest Contributor Market Analyst
forNewsmovesmarketsForex
