When to use Sell, TP/SL or Close Position
-
Hello,
I'm fairly new to fxDreema and am unsure when to use which of the three options in the title.If I use a buy block and set TP and SL, do I even need a Sell block? (My only idea, when a Sell block might be usefull, instead of waiting for TP/SL would be, if another indicator hints that SL is inevitable and one jumps ship preventively.)
What exactly does TP and SL in a Sell block mean? I'm already selling my position, why would I need a TP / SL?
Is there a difference between using a Sell block or a Close position for a specific trade?
-
buy buys, sell sells, as standard TP/SL means a distance from the opening.
-
I had hoped for a less superficial answer.
-
That is just the pretty obvious truth. Maybe you need to be more specific in what you need?
-
Well, I don't think my english is /that/ bad. My first question in regard to the usage of sell blocks vs. buy TP/SL didn't ask, what "sell" means. I wanted to know in which cases it is better to use the first or the second. A buy block with TP/SL already takes care of selling things, so why even use sell? In which cases does it make sense to actually include a sell block in ones strategy? I even gave a possible example and would like to hear about more cases.
I know what TP/SL means in a buy block, but what does it actually do in a sell block? If I buy a stock for 100 and set a TP 150 and a SL 80, I know what it does. It sells at 150 or 80, depending on which happens. But what happens in a sell block? In a sell block I'm already selling my stock, so what happens when I set a TP/SL for a sell block? Is it like a delay? Does it wait to reach 150 or 80 before it sells?
The last question was, if there is a practical difference between selling and closing a position. Let's assume I have a sell block without TP or SL (since I'm still unsure about what that does in regard to sell blocks). Is there a practical reason to use a sell block or can I just use close position or vice versa?
-
I am still a little lost on what you mean, your English is not bad (at all) a TP for a buy is above, SL is below, and for a sell TP is below, SL is above. You buy if you think the price is going up, and sell if you think the price is going down.
Yes, you close a buy with a sell and close a sell with a buy.
If you hit SL or TP regardless of buy/sell, you buy or sell your position, hopefully for a win, but sometimes a loss.
Stop or close position will buy/sell as soon as the broker can...sometimes with slippage
-
I'm still not sure of the function of the sell block. Let's make an example: I have an apple stock and want to sell it. I want to do this via a sell block in my EA. In that case my questions are:
a) If I don't add TP/SL does it sell immediately? If not, what would be the right block to sell immediately? Close position?
b) If I add a TP/SL does it wait until one triggers before it sells? Will it otherwise never sell?
c) What happens if I only set TP and not SL? When does it sell then? -
A fixed SL/TP is requested on the broker's system, so even if your computer is off or not connected the position will close. With a close block, your computer needs to talk to the brokers. The time difference is minimal, but hard SL/TP adds a layer of security.
-
Ah okay, that is an important distinction between Sell and Close.
But in regard to my questions about the Sell block, it is a rather implicit answer. Therefore correct me, if I'm wrong:
Without SL/TP the sell bock sells my stock immediately.
WITH SL/TP the stock will only be sold when SL or TP are hit.
With only TP the stock will be sold when that is hit and otherwise never.
Is that correct? -
Yes the TP/SL level will send the close signal when hit, but from within the broker's system.
-
What happens when a Stock is bought with SL/TP by a buy block and later sold with a sell block, which also includes TP/SL? Does the sell block overwrite the TP/SL from the buy block?
-
Whatever happens first will be what happens
-
Okay, thank you for your help ^^
