How to Lock Up Forex Profits
It isn't easy to trade forex manually, says Warren Seah on CountingPips.com, but if you want to really be successful, using the partial close ea will help you expand your trading capabilities.
Forex traders make use of partial close ea in the scaling out of their trade positions based on profit levels that had been fixed prior to the start of trading. This is how the ea works: Once the market trading price gets to a stipulated take profit level, the trader would collect his initial profit by exiting a proportion of the total contract. The trader can then proceed to move the stop loss to the entry price in order to ensure that no matter what happens to the market trend, a loss will not be incurred.
Partial close ea is very easy to manage since they are only concerned with taking out part of a contract while letting the remaining positions to ride the trend till it dies out. The ea ensures that the worst case scenario that could result is a no-win and no-loss situation whenever there is trend exhaustion and the stop-loss level is hit at the breakeven level. This is termed pip protection mechanism.
Partial close ea is particularly good for day trading or short-term trading. It is very easy to take up several contracts in such a setting; part of which could be taken off the market once profit has been realized as determined by the short-term market behavior and market structure.
Longer-term market behavior also makes for a balance.