Geneva, Switzerland -- (SBWIRE) -- 01/28/2014 -- In this article we are going to talk about iFexx new strategy and I will teach you how to place your orders, set 2 targets and stop loss for each Forex signal. I also run through some of the great futures of this unique strategy to explain how the system generate absolute positive return over time.
Lets start with an example, how the does Forex signals look like?
Action: Buy Limit
Entry Price: 1.3500
Stop Loss: 1.3450
Target 1: 1.3650
Target 2: 1.3750
First we explain how to set a limit order. The difference between limit order and market order is the entry point, if you execute a trade at current market price that is market order and if you set a trade at specific entry price, that would be limit order. Here I attached a picture in Meta Trader 4 platform, which is the most common platform used by our clients for your reference. When you click on New Order this window appears and you can choose between either instant execution or pending order. First choose pending order and the additional option for pending order will appear. Choose either Buy Limit or Sell Limit, then adjust the price according to the Entry price you received as part of the signal. Then you can adjust your stop loss and target profit. Finaly the expiry of the order has to be unchecked and you can now place your order.
EURUSD Limit Order
How to set Target 1 and Target 2 at iFexx? Basically double target concept means when we enter a trade, we want to close half of our position at Target 1 and the other half at Target 2. This is how we boost the profit to the maximum level. For example in this trade our entry price is at 1.3500, and the Target 1 is at 1.3650, assuming the total contract size you want to buy is 0.4 lot, we want to close half of the position, which is 0.2 lot at the price 1.3650 and the other half 0.2 lot at the price 1.3750. In this case we maximize our profit with extended target. But most of basic trading platforms like MT4 do not offer advanced trading tools to close half of your position. Therefore at the time you set your limit order you have to divide your total contract by 2 and place 2 equal orders. In this example you place 2 Buy Limit order at 1.3500, each contract 0.2 (if the total contract size you wish to enter is 0.4). The stop for both contracts will be same at 1.3450. Then you set the Target 1 value (1.3650) as a target price for contract 1 and Target 2 value (1.3750) as a target price for contract 2.
What happens when Target 1 hits? This is part of the strategy, when the price reach the Target 1 the stop for the renaming contract has to be moved to break even (BE). That means we had one winning contract and we want to protect ourselves from the risk associated with the second contract, thus we move the stop for the second contract from 1.3450 to 1.3500, which is our entry price. In this case if the market plunge you capital is protected.