Forex Festival

Where do you set them? Back testing your system can be helpful here. You can check thru the last months and years of markets that would trigger a trade under your system and figure out what would be the best setting for the limit order. Remember naturally that past results are not necessarily going to be repeated in the future. Testing in a demo account is also handy. This can mean that you only have to score a fifty percent success rate to be in profit. Setting the limit order at 2 times the pips of the stop loss, either before or after spread, might be appropriate. However , this is dependent on your system. Don’t skip over the testing. Using limit orders has another valuable benefit too. When you have both stop loss and limit order ready you can move away from the PC and get on with your day. There is not any need to watch each tiny fluctuation of price until one or the other one is triggered. This reduces stress and makes it less sure that you will panic and wander from your original plan.