There are many ways to help manage orders in Forex trading, where the Scale-out trading strategy is widely applied in the forex market. So, how is the Scale-out trading strategy executed on MetaTrader 4? Let’s find out in the article below.
To explain the Scale-out trading strategy, follow the example below.
Suppose you 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
Request the scale-out trading strategy – partially close orders based on expected Take Profit levels as follows:
- Close 0.3 lots when the price reaches Take Profit at 1.28424.
- Close 0.3 lots when the price reaches Take Profit 2 at 1.28924.
- Close 0.4 lot when the price reaches Full Take Profit at 1.29424.
To follow this strategy, you have two ways:
- Partial closure by volume division.
- Partial exit using MetaTrader 4.
1. How to exit winning trades by volume division
This method is commonly used by traders. It is necessary to divide the volume into 3 parts and continuously match 3 orders with the following parameters:
As a result, 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 volume according to strategy, proceed to change the order with Stop Loss at the same point and Take Profit based on three expected profit levels. As soon as the rate touches Take Profit, part of the trade will be closed. Other operations still work normally.
The advantage of this strategy is flexibility, and you don’t need to install MetaTrader 4 notifications on your phone and stop the order.
2. Tactics for scale-out trading on MT4
With the method of using the default features on MetaTrader 4, it will take more time for management and installation. The steps to partially close orders from the total order volume on MetaTrader 4 are as follows:
Step 1: Make a trade
At this stage, when making a trade, you need to set 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 you have to set Take Profit for trade at the farthest level.
Step 2: Set up a notification on your phone when the exchange rate reaches take profit thresholds
You can use TradingView for around $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 an alert so that as soon as the rate reaches the Take Profit 1 area, MT4 will send a notification to your phone.
Then open your computer, run MT4 and perform the 3rd step.
Step 3: Edit the command
- To edit orders on MetaTrader 4, you need to log in to Terminal by pressing CTRL + T or select View -> Terminal in the menu bar.
- Right-click on the trade you want to change and select Edit or Delete Order. A command editing panel will appear as follows:
- In the Type box, select Market Execution/Immediate Execution. Immediately, the partial closing table of the order will be displayed.
- In the “Volume” section, enter the volume you want to close and select “Close #500526…”.
When you reopen your trading history and turn on the Comment option, you’ll see a trade order.
At this point, you have completed the partial closure. Keep waiting 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 must have a VPS to set up notifications, or you will need to sit back and stare at the screen 24/5/286. Therefore, consider and choose the most effective strategy yourself.
