فوركس ساتو

THE NETLESS STRADDLE TECHNIQUE
What you do is you place your two entry orders around the channel
consolidation WITHOUT either stops or limits!
Yes, you did read that statement correctly. Let me explain the benefits (and
the downsides) of doing this and you’ll soon see how good it really is… and
then later I’ll give you some specific AWESOME trading techniques to apply
this concept with.
Let’s continue using the above stated numbers for our example. You place
two entry orders, one to go long at 1.2200 and the other to go short at
1.2150. You DO NOT place any stops, but more importantly YOU MUST
NOT PLACE ANY LIMITS (it is ABSOLUTELY CRUCIAL that you don’t
use any limit orders as this can burn you bad. This is because if your first
trade were to exit for profit by a limit order, then the market reverses, picks up
your second trade, then reverses again before it hits your other limit order you
can then have unlimited loss potential since you don’t have a stop or the other
trade to cancel this one. Obviously this would be bad if this rarer scenario
would happen while you’re sleeping or away from your computer for a long
time.).
Let’s say that the price moves up (or down), your entry order gets triggered
into a trade, and it continues trending in that direction profitably. Obviously
this is a good scenario. At this point you would place a protective stop loss
order to ensure that you’ve lock in some profit, letting your trade continue
hoping that it continues to run for more profit (appropriately trailing your
stop). You would ALSO cancel the other entry order that hasn’t been
triggered (very important).
“What about if the trade goes bad? Shouldn’t I have a protective stop loss to
prevent unlimited risk?” It is not necessary! If the market were to move
sufficiently to trigger you into a trade then turn around to the other side of the
channel picking up the second trade then you have nothing to worry
about. When you have two active trades in the same currency pair each going
in opposite directions (one long the other short) then they cancel each other
out. Essentially the second trade IS a stop for the first. At this point no matter
what happens it won’t cause you to loose any more money (except overnight
interest if you leave it open through 5pm EST). Most brokers simply treat a
trade (of equal lots for the same currency pair) going in opposite directions as
simply a stop that cancels both trades out. Go ahead and try it in a demo
account by entering a trade in one direction (since this is not for real money
go ahead and make an arbitrary random trade since it doesn’t matter if the
result is for a profit or loss) then place an equal trade in the opposite
direction. For most brokers doing this will result in both trades being
canceled, leaving you with a net gain or loss.
forex sato
Though I don’t know of any broker that does keep both trades alive in this
situation there might be some that do. If your broker does this then simply put
stops/limit orders on both trades set at the same price about 10 pips away from
the current market price and sooner or later the market will move to trigger the
stop & limit orders to exit from the trade.
In the above stated example that resulted in a double 50 pip loss, totaling 100
pips lost, the result would have been different. In that example you would
have only lost 50 pips rather than 100 because once the second trade is
triggered it is “game over”, locking in the 50 pip loss, and no matter what
happens after that you can’t loose any more. Once you are in a double trade
you broker should just cancel out both trades, or if you have a weird broker
then you might have to use a special technique to exit both trades (which was
described above).
This “Netless Straddle” method can be used to straddle various types of
“opportunities”. Generally speaking, whenever you encounter times that the
market can move in either direction, and at times you are somewhat uncertain
about which direction the market might move then you may use this
technique. It can be utilized in any time frame, like trading the day high/low
breakouts, consolidation breakouts on your hourly charts, or for those
ambiguous “Bi-Directional In-Wave” you might encounter Surfing or
Scalping.
forex sato