Splitting the position or not?

[Faghe]

Good Morning,

I want to buy 30.000 eur/usd at 1.3200

Is there a difference between doing this:

- Sell 10000 of the position at target 1 1.3250
- Sell 10000 of the position at target 2 1.3300
- Sell 10000 of the position at target 3 1.3350
- Stop Loss at 1.3200

And:

- Opening 3 different positions with each one a different Take Profit Target and same Stop Loss (as above)?

Thanks a lot for your help!!!

Niccolò

 

[Pharaoh]

MT4 (and many other platforms) permits a partial close. You just specify how much of the position you want to close now.

If you want this to run automatically in MT4, then you would need a script or else you would need 3 separate potions with a common SL, each with it's own TP.

 

[Faghe]

MT4 (and many other platforms) permits a partial close. You just specify how much of the position you want to close now.

If you want this to run automatically in MT4, then you would need a script or else you would need 3 separate potions with a common SL, each with it's own TP.

But financially and 'gainingly' speaking does this change anything of the profit?

 

[itkraze]

But financially and 'gainingly' speaking does this change anything of the profit?

Obviously it will. You will only gain partial profit on every take profit that gets hit, but on loss you will get full loss that you are risking. But it depends mostly on your trading style.

 

[Pharaoh]

Assuming absolutely no slippage and all entries exits happen flawlessly, the profits from closing 1/3 of the total at 3 different TP levels should be identical.

If you manually enter 3 trades to open, your entries could vary by a few pips. If you manually close 1/3 of a single position, you could miss your target close by a few pips. Either way, your end result could be off by just a little, but should be very very close.

 

[FringFX]

But financially and 'gainingly' speaking does this change anything of the profit?

I'm not a math wizard, but I believe you will gain more if you split your exit or take profit.
The variable you need to take care of is the management of your stop loss throughout the lifespan of your positions.

 

[Pharaoh]

If I were doing this, I'd want to move SL to BE at the first TP and then trail it if price continues in my direction.

 

[Whitesnake]

why so much of complex when you can have partial close directly.

 

[Faghe]

If I were doing this, I'd want to move SL to BE at the first TP and then trail it if price continues in my direction.

That's exactly what i do.
I normally use a winning/lose ratio 1:1 for the stop loss and the first take profit.
If the trade hits SL than lose.
If the trade hits TP1 than i move the SL at the entry point and i wait for the next targets.
In this case i can have a win/lose ratio higher than 1:1

 

[alanrox]

That's exactly what i do.
I normally use a winning/lose ratio 1:1 for the stop loss and the first take profit.
If the trade hits SL than lose.
If the trade hits TP1 than i move the SL at the entry point and i wait for the next targets.
In this case i can have a win/lose ratio higher than 1:1

Good strategy mate. Also you go use trailing stop if you think you can grab a few more pips.