12 ways how to Manage your Open Forex Trade strategies

 

12 ways how to Manage your Open Forex Trade strategies

 

Open Forex trade strategies

When a Forex trade in opened many traders just wait for the target to be hit or the stop to be hit. There are so many options available to Forex traders on how to manage open trades.

In the model below we show 12 of the options price action can take to reach a decision point at which the trader can make open trade Forex decisions and re-evaluate the market environment etc.

Open Forex trade decision points

Some of the options at these decision points are:

  1. Close the position
  2. Cash in part of the position
  3. Add to the position
  4. Hedge the position
  5. Leave the position to hit the stop or target
  6. Move the initial stop up
  7. Add a trailing stop
  8. Use a break even stop.
  9. Move the target
  10. Remove the target
  11. And any other option not mentioned jet

 

The need to automate Open Forex trade strategies

It is best not to make these decisions when in an emotional state (assume you are in an emotional state when a Forex trade is opened). So it is better to automate the decision making as much as possible. You can automate this using an Expert Advisor if trading EAs. Our you can automate your manual trading using:

  1. Pending orders
  2. Tralling stops
  3. Stops
  4. Targets

Except for point 8 to 10 all actions can be automated using the above trading tools.

 

Open Forex trade strategy model

 

 

A bit about the model:

Each arrow point in this model represents a decision point where any of the above tools and strategies can be used.

The arrows that results in a closed transaction also are decision points. They are psychological decision points that ask the question: Psychologically what are you going to do next?

Your decisions may also differ due to circumstances:

  1. Whether you have had 5 losers in a row
  2. If you have had 5 winners in a row
  3. the trade might be near an important announcement
  4. whether the trade is close to a weekend close
  5. Based on your emotional or physical status

Importance of Open Forex trade strategies

The importance of open trade management must not be underestimated. We recently created an EA that would be profitable in the long run no matter is which direction a trade is taken. You could even take both a buy and sell at the same time. This EA uses no more that the tools and strategies mentioned above.

Follow our series on open order management on YouTube using the “Open Trade Strategies” playlist > Playlist.

 

 

 

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