[op_liveeditor_element data-style=””]

LESSON: Splitting Orders and Trades Into Positions

[/op_liveeditor_element]

[op_liveeditor_element data-style=””][text_block style=”style_1.png” align=”left” font_size=”16″ font_font=”Montserrat” font_color=”%237e7e7e”]

This is a Pretty Crucial Lesson – Take Close Note:

Inside the two price action courses we teach students how to manage their trades with a high probability method that emphasises protecting capital.

To do this you need a skill we use to Forex School Online called “splitting orders’.

This strategy / method is used on MT4 & MT5 platforms because of their restrictions in taking profits how we would like.

Pending Profit Targets

Why are pending targets great? Because we can set them and be sleeping, watching a movie or 1,000 other things and having profit taken out of the market at the same time. Cool, right?

However; MT4 and MT5 do not allow traders to take profit with “MULTIPLE” pending orders.

What this means for us is that if we enter a trade we cannot then split that trade up with a pending order to take profit, we could only take the whole position as profit.

For example; if I enter a 90,000 trade, I then cannot set a pending order to exit 30,000 profit at my first profit target and 30,000 at my next profit target. I have to exit that whole 90,000 trade as a whole trade.

That may be no good for me because I may have two or maybe even three profit targets, or I may want to take a little profit at the first area and then let the rest run into the next major support or resistance area or some other combination etc.

MT4 and MT5 do allow us to manually break up the trade, so if I had a trade order of say $100,000 EURUSD for example I could go in now and close 20,000 and leave the other 80,000 running, but I could not set a pending order for just a portion of it to be closed at a certain level. I would have to have the whole trade close as one parcel.

What we do

To use this method, traders need to know how to split their trades and use MT4 correctly if they are indeed using MT4 or just manage their orders correctly if they are using another platform.

So I can manage the trade the way I choose to, I ‘split’ my order before entering the trade.

This is done straight after working out my position sizing. After I have worked out how big my trade is, I will split my trade into either two or three trade positions depending on how many profit targets I want to take.

The amount I split the trade into is determined in my plan. The reason I have different amounts is because I manage trades differently in different market situations. When trading with the trend I like to have more positions because I like to leave the last position for a runner.

Please read more about this in the advanced course in the section about how I personally manage trades.

It is important to note that splitting the trades into multiple positions is not increasing the risk.

We are taking the same size trade and just splitting the trade into positions. We are not adding extra risk. We are also not paying any extra spreads. This can get confusing, but let me assure you, you are not paying any extra spreads or paying any extra anything.

You are making the exact same amount of trades as you normally would do, only in more parcels. For example; if you were going to make 1 x 90,000 trade, you are now going to make 3 x 30,000. This does not increase commissions or spreads because you are trading the same amounts.

Once you have split your trades into positions you can then enter your trade in MT4 / MT5. The stops will all be the same on all the positions.

You will now be able to manage the trade however you choose with the extra positions and set your targets and move to breakeven as you need!

[/text_block][/op_liveeditor_element]