Is there a way to place a stop loss order once the price reaches a certain point?
(This is for Forex, but it should be similar with stocks.) This is what I would like to do:
Place one market buy order with S/L at say 20 pips and T/P at say 20 pips.
Place a second market buy order with S/L at say 20 pips and no T/P with S/L to be adjusted later.
Once the price reaches +20 pips, the first order will complete. At that time, I would like the second order’s S/L to be moved to break even. This could potentially continue as the price continues to rise.
Is it possible? What kind of order would it be? From my understanding, it is very similar to a trailing stop, but a trailing stop would be more sensitive (with T/S of 20 if the price rose to +25 then dropped to +3 from the entry price, the T/S would be triggered, but my goal is for that not to happen).
Sounds like you want a trailing stop but only if the first stop market buy order opens your position upon confirmation of a upward break so you avoid any possibility of entering a short position. Basically a simple algorithm to establish a position on a trend break. You’ll have to call your broker for that, I’m certain that every broker and trading platform will be different in that respect.
I wouldn’t be surprised if the conditionals that are available become more complex in the future to the point of scripting algorithms and eventually becomes a cloud computing offering some day much in the same way that salesforce.com now dominates cloud computing because they scripted the data retrieval process from their database.
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LikeDislikeThis is really up to the platform with your broker. I know I can do this with my stock broker. Not sure which FX platform can do it.
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LikeDislikeYou have the right idea! When you buy, you put in your stop loss opposite order. Once you have gained your + 20PIP, you cancel your stop loss and replace it with a trailing stop loss.
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