Caught in gbpusd with large short position.
- Thread starter hanneswas
- Start date
I say you should mortgage the house, sell the wife and kids, and go all in on a YOLO trade. Maybe buy some crypto.
Thank to everyone (also @clockwork) for good opinions. I understand that everyone worked hard to find his/her individual trading style and I really appreciate every opinion.
So given the passed time, I would like to describe here what I did and how it worked out.
Here is the situation at the time of the forum post:
I decided to reduce the position size in a way, that if the price would have continue to go up, it would eventually drop at 1.4 (no idea how much it would be). And if the price would have reached 1.4, It would be max 50% drawdown.
Since I was travelng the beginning last week, it was forced to use my smart phone with the installed MT5 client to control the trade. Since Android-MT5 does not support partial close, I set the SL of one of the 2-LOT positions to 1.39100 and created an 0.2-LOT sell-limit order also at 1.39100.
I also set the TP to 1.38189 of both open positions and of the new sell-limit order. If the price would reach that value, I would be able to exit the situation with profit after all.
Summary:
- Pos1 (2Lot): SL at 1.39100, TP at 1.38189
- Pos2 (2Lot): TP at 1.38189
- Sell limit order of 0.2 LOT at 1.39100
As you can see (or probably know after this trading week), the plan was not that bad.
This was however my bad retailer-execution mistake and I was played out in some way by the market.
The ask price, reached exactly 1.39100 so the SL was triggered. The bid price was however under 1.39100 and the limit-sell order was not triggered. So I closed the larger 2 LOT position but did not open a new one.
After all, I lost approx 530€ on the trade. However, even after the retailer-SL-trap of my execution plan, I feel kind of released.
So given the passed time, I would like to describe here what I did and how it worked out.
Here is the situation at the time of the forum post:
I decided to reduce the position size in a way, that if the price would have continue to go up, it would eventually drop at 1.4 (no idea how much it would be). And if the price would have reached 1.4, It would be max 50% drawdown.
Since I was travelng the beginning last week, it was forced to use my smart phone with the installed MT5 client to control the trade. Since Android-MT5 does not support partial close, I set the SL of one of the 2-LOT positions to 1.39100 and created an 0.2-LOT sell-limit order also at 1.39100.
I also set the TP to 1.38189 of both open positions and of the new sell-limit order. If the price would reach that value, I would be able to exit the situation with profit after all.
Summary:
- Pos1 (2Lot): SL at 1.39100, TP at 1.38189
- Pos2 (2Lot): TP at 1.38189
- Sell limit order of 0.2 LOT at 1.39100
As you can see (or probably know after this trading week), the plan was not that bad.
This was however my bad retailer-execution mistake and I was played out in some way by the market.
The ask price, reached exactly 1.39100 so the SL was triggered. The bid price was however under 1.39100 and the limit-sell order was not triggered. So I closed the larger 2 LOT position but did not open a new one.
After all, I lost approx 530€ on the trade. However, even after the retailer-SL-trap of my execution plan, I feel kind of released.
Hi, what is the blue line? Is it SMA(50)?
This is good advice. At this point OP is trading on "Hope it'll turn around" which isn't a profitable strategy. You're already down on the position. Get out and reset your head while you analyze where to put your capital to gain. You can always get back in if your analysis suggests it and the market turns in your favor. Do not just ride your account into the ground.