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How can I manage a losing pip area

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  • aditiukey
    replied

    Leave a comment:


  • irlyismail
    replied
    Your strategy is known as a hedging..you place 2 different order BUY and SELL on the same time.

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  • muktiagrawal
    replied
    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.

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  • Youss27
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    Originally posted by RenkoGuy
    No we don't care
    That shouldn't matter. You can answer the question regardless

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  • Youss27
    started a topic How can I manage a losing pip area

    How can I manage a losing pip area

    Hello,

    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?
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