To follow on from my previous post, here are 2 classic examples of one of the forex market "taxes" I am talking about. This is one I see regularly because I use stop orders on a breakout trading system, which traders using a limit order based system may not see so much.
In the case of both trades from my previous post, a spike triggered my position entry before pulling back so my entry is immediately in a losing position of 10-12 pips - I find this happens often with my 12h strategy, so much so that I have decided to experiment with dual entries to take some profit from this phenomenon (eg. for a 12h buy entry at a high, include a sell entry at same level with take profit instructions set to several levels within a statistically defined range).
For me, this is about being aware of all the ways in which the market "clips the ticket" and skims money from us while we trade, and figuring out ways to take some of that back so instead of cost say 10% of our average net profits, reduce those taxes to maybe only 5%. Its all a cost of doing business and it all adds up.
View attachment 968563
View attachment 968566
Cheers, Sharks
