How do you manage SLs?
As you know, entries are easy because they’re automatic. No decision whatsoever on your part. The difficult part (if you decide to manage your trades once they’re taken) is the exit.
The very first thing I do once a trade is in profit is I wait for it to be at a reasonable distance from my entry and then I move my SL to BE + 1 (Break-Even + 1 pip) BE because the trade is now secured and +1 simply because it makes me feel good to know that this trade will at least have made me a pip. Now, what do I mean by “reasonable distance”? This will vary depending on the pair - closer for less volatile, farther for more. For instance, for audusd I'd go with 15 and gbpjpy 30.The advantage of doing this is you rapidly secure your trade. The disadvantage is if you do this too early, price might come and take out your SL and then continue on its grand ascension to +300 pips leaving you sorry (but at 1 pip, not zero, let’s be positive now!)
Then a bit later, I’ll move my SL in this way:
First I look at S/R lines and often I’ll move my SL under or over these.
If I don’t have clear S/R lines (that happens) then I also look at the COG (Center of Gravity) to get a feel of general direction for that specific pair. You can see it instantly with this indicator. I check where the price is in relation to the COG and decide on an SL depending on various factors. Here in my example below, you can see I moved it directly on the pivot line (white) because I didn’t have any good S/R lines:
You can see by the COG that this pair is going up and it * might * come close to the pivot but there's a good chance it'll continue going up before it reaches this point.
So that trade has already put 123 pips into my pocket (it’s currently at +190). Support lines (blue) have now appeared (a few hours later) so what I’ll do it move my SL right under there at 1.7921 for a secured profit of +167 pips and then "let her fly" !
