Sniper strategy: how to manage your position correctly?

I think each of You knows that success in Forex is a very difficult task. In order to achieve this, it is necessary to constantly study the foreign exchange market. But, one way or another, few people know how to keep their position.

Hello, traders! My name is Jan Sikorsky, I am a trader-analyst at the Forex Academy. Today I would like to tell You about one of the most important techniques that every trader should know.

Position management technique is one of the most important skills that will really help you become a truly successful trader. Each of You is constantly asking the same question: "How do you know where to hold a position for a long time, and where to exit quickly?".

Agree, this is one of the most common and important questions that any trader asks himself. It often happens that You exit a position after 50 points of movement, and then watch Your position grow steadily by another 700 points. What happens next? You tell yourself: "Everything! I will hold the position until the end!"

What happens next? You enter the deal, the price goes in Your direction 50-70 points, and You continue to wait. But, then the price reverses and knocks You out on the Stop Loss.

Then the psychology of trading plays out: after such events, you begin to have a dissonance, You do not understand where You need to go out, and where you need to hold a position. How do I find answers to these questions?

The irony is that it is impossible to know in advance how many points Your currency pair will actually pass. The classic version of the strategy "Sniper" says that the potential must be looked up to the nearest level. However, if you have already had experience trading on the "sniper", you probably noticed that it often happens that the price does not reach the level, turns around, and then knocks out Your Stop Loss, or You go out before the level, and the price breaks it as if it was not there.

We have identified this problem. That is why we have developed a special position management technique that allows you to take what the market gives and at the same time hatch significant movements. This method is only suitable for trading from TIU or Tius, when trading from MRZ zones-transaction support will be meaningless.

The following is a clear algorithm for this method:

The minimum volume to enter the position is 0.04;
As soon as the price passes the value Of your Stop Loss, you close half of the volume;

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Then, after the price passes the distance equal to the value of 3 Stop Losses, you should close another half of the remaining volume;

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After that, we convert the Stop Loss to breakeven. Our goal for this part of the position is to catch a large movement of 500-700 points, or maybe even 1000.

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The logic of this option of transaction support is that, if you pay attention, you will notice that from the levels that we trade, almost any currency pair 1-3 times a month builds quite powerful movements of 500-1000 points. Thus, we, as day traders, get an advantage, which is that we can catch the monthly movement with an intraday Stop Loss. And at the same time, we get the most out of the market – we take everything that it gives.

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