How to Scale-out of Trades on Metatrader 4

TutorialsFebruary 24, 2022

Udemy.com – Top Online Cryptocurrency Courses from $9.99 Get now!

There are many ways to help manage orders in Forex trading, in which the Scale-out trading strategy is widely applied in the forex market. So, how is the Scale-out trading strategy performed on MetaTrader 4 ? Let’s find out in the article below.

To explain the Scale-out trading strategy, follow the following example.

Suppose we set up a trade with USD/CAD with the following parameters:

  • Trading volume: 1 Lot
  • Entry: 1.27924
  • Stop Loss: 1.27850
  • Take Profit: 1.28424, 1.28924, 1.29424

Apply for the Scale-out Trading strategy – partially close orders according to the expected Take Profit levels as follows:

  • Close 0.3 Lot when the price hits Take Profit at 1.28424.
  • Close 0.3 Lot when the price hits Take Profit 2 at 1.28924.
  • Close 0.4 Lot when the price hits Full Take Profit at 1.29424.

To follow this strategy, you have two ways:

  • Partial close by volume division.
  • Partial exit using MetaTrader 4.

1. How to exit winning trades by volume division

This method is commonly used by traders. You need to divide the volume into 3 parts and match 3 orders continuously with the following parameters:

Accordingly, the total trading volume is 1 lot but is divided into three parts with 3 orders executed at different prices. After matching consecutive orders with the volume according to the strategy, proceed to edit the Order with Stop Loss at the same point and Take Profit according to three expected Profit levels. As soon as the Rate touches Take Profit, part of the trade will be closed. Other trades are still operating normally.

The advantage of this strategy is flexibility, and there is no need to install Notifications from MetaTrader 4 on your phone and time your order to stop.

2. Tactics for Scale-out Trading on MT4

With the method of using default features on MetaTrader 4, it will take you more time to manage and install. The steps for you to partially close orders from the total order volume on MetaTrader 4 are as follows:

Step 1: Make a trade

At this step, when making a trade, you have to set up Entry, Stop Loss and Take Profit as follows:

  • Trading volume: 1 Lot
  • Entry: 1.27924
  • Stop Loss: 1.27850
  • Take Profit: 1.29424

It means that you have to set Take Profit for the trade at the furthest level.

How to Scale-out of Trades on Metatrader 4

Step 2: Set up a notification to your phone when the exchange rate hits the Take Profit thresholds

You can use TradingView for about $15 per month to be able to send rate alerts to your phone.

Or you can use a Forex VPS for about $5 per month, then install MetaTrader 4 on this VPS and proceed to set up an Alert so that as soon as the rate hits the Take Profit 1 area, MT4 will send a notification to your phone.

Then open the computer, run MT4 and perform the 3rd step.

Step 3: Edit the command

  • To edit orders on MetaTrader 4, you need to access Terminal by pressing CTRL + T or select View -> Terminal on the Menu bar. 
  • Right-click on the trade you want to edit, and select Modify or Delete Order. A command editing panel will appear as follows:
How to Scale-out of Trades on Metatrader 4
  • In the Type box, select Market Execution/ Instant Execution. Immediately, the partial order closing table will be displayed.
  • In the “Volume” section, enter the volume you want to close and select “Close #500526…”.

When you reopen the trade history and turn on the Comment option, you will see a trade order.

At this point, you have completed the partial close. You continue to wait until you reach a higher Take Profit threshold to close the next part of your Order.

Each order management strategy has its advantages and disadvantages. In the strategy of cutting orders by part by dividing the volume, you will spend less time on management and be much more flexible. In MetaTrader 4’s feature-based cut-off strategy, you either have to have a VPS to set up notifications, or you’ll have to sit and stare at the screen 24/5/286. Therefore, consider and choose for yourself the most effective strategy.

Investiki.com

Read more: Binance, MT4

guest
0 Comments
Inline Feedbacks
View all comments