Foreign exchange ordering skills: Master positive follow-up and synchronous expert trading

Forex order trading, a smart trading method that allows traders to trade with the trading direction and signals of experienced signal providers (also known as “trading mentors”). Even if you follow, there are many skills in it, and positively following is one of them. By adopting a positive follow-up strategy, you no longer need to worry about market fluctuations. Just easily synchronize their trading signals and you can move forward steadily in the forex market. Next, let us explore in-depth positive follow-up methods of foreign exchange order trading.

Forward follow-up method

At present, there are two main positive follow-up methods for foreign exchange order transactions:

Follow proportionally:

Definition: Followers follow according to the number of single-handed numbers of the signal source.

Example: Assuming that the signal source has an order of 0.1 lot and the follower follows at a ratio of 0.5 times, the follower will have an order of 0.05 lot.

Precautions: The minimum order volume for a standard account is usually 0.01 lots, so when following the proportion, it is necessary to ensure that the actual order volume is not less than 0.01 lots. For example, if the signal source opens an order of 0.01 lots, the follower follows at a ratio of 0.1 times (i.e. 0.001 lots). Since the minimum order volume of the platform is 0.01 lots, the actual order will be opened at 0.01 lots.

Follow by a fixed number of hands:

Definition: The follower sets a fixed number of single-handed openings. No matter how many lots of lots the signal source opens, the follower will follow this fixed number of lots.

Example: The follower sets a fixed number of single-handed openings to 0.5 lots. No matter how many lots of single-handed openings are issued by the signal source, the follower sets 0.5 lots each time.

Applicable scenarios: suitable for following strategies for medium and long-term development, and fewer signal sources are used to increase positions against the trend.

Signal source billing method

There are many ways to open orders for signal sources, and the common ones are as follows:

One single end:

Features: Settlement is carried out after each order is issued, and followers can fix or follow in proportion according to the order quantity of the signal source.

Applicable scenario: suitable for following those more stable trading strategies.

Fixed order volume increase position:

Features: After the initial order is opened, the signal source maintains a fixed order quantity every time it increases.

Example: The initial order of the signal source is 0.1 lot, and the subsequent increase in positions is 0.1 lot. Followers can follow proportionally or in a fixed number of lots.

Applicable scenario: suitable for following trading strategies that gradually increase positions.

Martin adds positions (pyramid):

Features: After the initial order is opened, the order quantity is increased in a certain proportion each time the signal source increases the order quantity to form a pyramid-shaped position increase structure.

Example: The initial order of the signal source is 0.01 lot, and subsequent positions are 0.02 lots, 0.04 lots, etc.

Precautions: Martin’s strategy of increasing positions needs to be strictly followed in proportion, otherwise it may lead to inconsistent average holding prices and affect returns.

Anti-Martin increase in position (inverted pyramid):

Features: In contrast to Martin’s increase in position, the signal source reduces the order volume in a certain proportion each time it increases.

Precautions: The anti-Martin position increase strategy also requires strict follow-up according to the proportion, but the order ratio can be relatively loose.

Risk Control Settings

When conducting foreign exchange order transactions, risk control settings are an important means to ensure the safety of funds. Common risk control settings include:

1. Follow the opening setting:

Function: The following position opening function can be turned off to stop the position opening operation of the following signal source.

Application scenario: When the market situation is unfavorable or the signal source suffers continuous losses, the follow-up opening function can be turned off to control risks.

2. Net value protection:

Function: When the net value is lower than a certain level, the system will automatically close all positions and close the follow-up.

Application scenario: When the account net value is lower than the preset value, the system automatically closes the position to avoid further losses.

3. Single largest transaction:

Function: Set the maximum number of single lots to open for a single transaction.

Application scenario: Limit the maximum risk exposure of a single transaction and prevent the overall account security from affecting the excessive losses of a single transaction.

For example, suppose the signal source account funds are 100,000, and the follower account funds are 50,000. If the signal source has 1 order, the follower will follow 2:1 in proportion, and the follower will have 0.5 orders. If the signal source makes continuous profits, followers will also gain corresponding benefits. If the signal source suffers a loss, followers should adjust their strategies in time according to the risk control settings, such as turning off the follow-up opening function or reducing the follow-up ratio.

The positive follow-up method of foreign exchange order trading is a simple and effective trading method, but it also requires followers to have certain trading experience and risk awareness. When selecting a signal source, you should pay attention to the stability, profitability and risk control measures of its trading strategy. At the same time, followers should choose appropriate follow-up methods and risk control settings based on their own financial situation and risk tolerance to ensure the safety and profitability of the transaction.