Partial close is a technique that can convert some losing trades into profitable ones, reduce stress, and increase win rate. This technique of taking an early profit reduces stress while a trader is in a trade. The remaining positionss will be traded with less emotional stress such as fear and greed.
Partial-close is a form of exit strategy where the forex trader plan to exit his position in at several pre-defined take profit levels as opposed to closing the entire position at once. It also means that the traders must define an initial take profit level for one-third of position to exit. Generally, partial close technique will require at least 2 pre-defined take profit levels.
It is important to note that the number of contract size a trader trades must be taken into consideration while employing partial close technique. When using partial close, the trade size should be large enough so that the trader can take one-third or half of the position out of the market when the first profit level is reached.
The psychology of partial closing a trade is to reduce stress by locking in profit which should help the trader stay in trends longer with his remaining positions.
Programming this strategy into an expert adviser (EA) will greatly increase the trade execution and achieve consistency in following a trading plan. The expert adviser will ensure the forex trades are closely monitored to close for optimum profits. It works by managing the trader’s stop loss level or take profit levels and thereby locking in profits for the trader.
This partial close expert adviser may be already commercially available in the market. If you are not into programming language, it is suggested that you can purchase one in the market that has several exit strategies built into one expert adviser. The EA provides trade management automation.
Using an expert adviser, give it your set of instruction to partial close and the robot will run on it’s own and monitors the trade for the trader. This automates the entire process and further reduces trading stress, subjecting less emotional distress to a trader.
This is because the trader can outsource the work to the partial close ea and providing him more time to get a better perspective or analysis of the market rather than ‘marrying’ into the trade.
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