Step 5: Trade management
In the previous lesson, your pending order has been triggered and turned into an active trade. It is now time to manage your trade until it has completed.
Go to either of the following instructions, depending on whether you are in a buy or a sell position.
- Managing your buy position
- Managing your sell position
Managing a buy position
If you are in a buy position, then you will move your stop loss up to the tip of every new down fractal.
In order to move your stop loss, the fractal must be higher than your current stop loss, otherwise you should ignore the new fractal — you should never move your stop loss down when you are in a buy position.
The following charts demonstrate moving the stop loss up as new down fractals form. Note that the stop loss is moved to the tip of the fractal.
- Initial stop loss
- Stop loss has been moved up to new down fractal
Once either your stop loss or your profit target is hit, your trade will be completed and will automatically close. Any potential profit or loss will be shown in your account.
Managing a sell position
If you are in a sell position, then you will move your stop loss down to the tip of every new up fractal. Note that the stop loss is moved to the tip of the fractal.
In order to move your stop loss, the fractal must be lower than your current stop loss, otherwise you should ignore the new fractal — you should never move your stop loss up when you are in a sell position.
The following charts demonstrate moving the stop loss down as new up fractals form.
- Initial stop loss
- Stop loss has been moved down to the new up fractal.
Once either your stop loss or your profit target is hit, your trade will be completed and will automatically close. Any potential profit or loss will be shown in your account.
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