- EA. Closes short trades by bid price. EA must be running. Extremely useful for low timeframe (M1/M5/M15) traders, but also helpful to others who seek precision in their profit targets. I personally use it even for H1 profit targets.
- This tool allows you to squeeze out all of the possible pips from a short trade, without leaving money on the table.
- How many times have you seen your profitable short trade reach your target without your TP being triggered? And then price turns around and becomes a loser?
- It happens because of spread. In short trades, entry is made at the Bid price, while exit is done at the Ask price. BUT: the chart only displays the Bid price! On higher spread currency pairs the difference can be as much as 1-3 pips! It can totally ruin your profitability model.
- Yes you can simply calculate for spread when setting broker's TP in short trades, but the problem is that spread is usually variable and you don't know how much it will be exactly when price reaches your TP.
- Automatic SL: if enabled, it allows you to pre-define a stop loss value in points (pips) which will be automatically added once you enter into trade (within 300 ms). After automatic SL is placed, you're free to adjust it to wherever you want.
- This feature is incredibly useful if you're trading with 1-click trading with pre-defined lot sizes.
- It's also useful to prop traders because many firms require you to place stop loss immediately after entering into a trade, or within a maximum of 5 minutes. If you don't do it you can lose your account. Imagine how painful it would be if you just get distracted by a phone call and forget to place SL immediately. All your hard work may go straight to the toilet!
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Disclaimer: The information on this site is just a very basic understanding of price action Forex trading and is for entertainment value only. How I trade is very different to what you may read here. The information on this site is not a recommendation to trade Forex as I do not know your level of trading experience or your financial situation. I am not a financial advisor, and I am not qualified to give financial advice. Trading Forex profitably is a skill that cannot be learned from reading the posts on this site, and I cannot be held responsible for any trades that you may take as a result of the information on this site. So if you are trading, you are trading at your own risk, so please trade responsibly, and do not trade with money you cannot afford to lose. For help and advice please contact me, or for more information about what I do check out my Forex Trading Course.