No announcement yet.

How can I manage a losing pip area

  • Filter
  • Time
  • Show
Clear All
new posts

  • How can I manage a losing pip area


    I have developed a strategy (for which the exact details I like to keep to myself) that allows me to break even on one side of the trade and make profit on the other side. So I take 2 derivatives; I sell the lower and buy the upper. Unfortunately there is an area of about only 0.3 pip (or 3 tick) that is very dangerous. If the asset reaches that exact area upon expiration of the options I will lose a significant amount of money ( relative to the profit ). My question here is if there is anything I can do to "overlap" that small area somehow. Or otherwise use some sort of strategy. The time frame is 5 minutes because Im dealing with 5 minute binary options. Any ideas any one?

  • #2
    Originally posted by RenkoGuy
    No we don't care
    That shouldn't matter. You can answer the question regardless


    • #3
      Correctly placing of stop loss:
      It is unlikely you will have exact timing on all your trades, for example buying right before the price shoots up. Therefore, when you buy, you need to give the trade a bit of room to move before it starts to go up. But, if you are buying you are expecting the price to go higher, so if it starts to drop too much it should hit your stop loss because you were wrong in your expectation.

      As a general guideline, when you are buying, place a stop loss below a recent price bar low. Which price bar you select to place your stop loss below will vary by strategy, but this is a logical stop loss location because the price bounced off that low. If the price moves below the low again you may be wrong about the price going up, and therefore it is time to exit the trade.


      • #4
        Your strategy is known as a place 2 different order BUY and SELL on the same time.


        • #5
          If you made a claim for Personal Independence Payment (PIP) and you didn't get the award that you think you were entitled to, you don't have to give up. This guide will help you decide if you should challenge the decision. It, and the accompanying tool, will help you ask the DWP to look at their decision again. This is called a 'mandatory reconsiderationí. If they donít change the decision straight away, this guide shows you how to appeal the decision and win. (You must ask for a reconsideration before you can appeal). This guide is for everybody who thinks the DWP made the wrong decision about their application for PIP.