You're using a "lock" - page 2

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pips:

Everyone is extremely negative against using a lock, not just as a stop loss, but in using it at all.

Go into any exchanger and make two transactions at once: buy $100 and sell $100.

And tell the amazed teller that you have "locked in" and now you are not afraid of where the rate will go.

 
Contender:

Go to any exchanger and make two transactions at once: buy $100 and sell $100.

And tell the amazed teller that you are "locked in" and you are no longer afraid of where the exchange rate will go.

I agree, the situation you described does not look right. But we are not talking about an exchanger. Exchange rates can rise and fall, the main thing is patience.
 
pips:
I agree, the situation described by you - look inadvertent. But we are not talking about an exchange office. Exchange rates tend to rise and fall, the main thing is patience.

Want an example showing that locks are evil?

Forum on trading, automated trading systems and trading strategy testing

You are using a "lock".

pips, 2013.08.23 16:29

...

I just went into a lock on the advice of a friend - what not to lose (as he put it) and now I wonder if it is even right and why I did so.

Neither you nor your friend now know what to do about it.

PS To be fair, there are strategies where locks are a consequence of the strategy itself, but this is not your case, and don't get it in your head.

PSS What to do. Hone the strategy, bring it to 0 on another pair and close it.

Or just give up, close and do not make any more mistakes.

PS3 Three pros - score, close, forget... hmmm. Must remember.

 
A lock is good to use as a hedge on another instrument.
 
pronych:
A lock is good to use as a hedge on another instrument.
Hedge != Lock
 
pips:
I agree, the situation you describe does not look correct. But we are not talking about the exchanger. Exchange rates have a way of rising and falling, the main thing is patience.

I will have to explain to you the essence of the Forex market with a real-life example, like a student in my class:

Let us imagine that you have decided to do business in the currency market with 100 000 roubles in your wallet (this is a deposit). For the right to sell or buy currency you must pay the owner of the market (FC) a small fee, say, 100 rubles for 1 lot (this is the spread). The market has the peculiarity that you cannot leave the market without selling the currency you bought there. You start by analysing the market and conclude that the currency is getting cheaper, but you do not have enough currency to sell. The brokerage company will give you 1 lot of currency if you pay a spread (100 USD) for this service with the condition that you return the currency within an indefinite period of time and pay a deposit (1000 USD) for the obligation to perform one act of buying and selling. In addition, you will be asked to leave your wallet with an access to all remaining funds (98900r). You agree to the terms and sell the currency (pressed sell). Okay, if the currency will continue to fall in price, you will make a profit. But, if it starts to appreciate, you will suffer losses, and when, for example, they will reach 1000 USD, you can do something different: 1 - buy higher (Click Buy), return the currency to broker, and release from the captivity of your wallet with the remaining 97900 rubles. 2 - buy 1 lot of currency for 100p, as you have the right to do without paying bail, getting into another act of buying and selling, but not to transfer the purchased currency to the DC (you have locked). Now you are constantly in the capacity of both seller and buyer, moreover, you can perform acts of buying or selling independently of each other, because you have a paid mandate for both operations and you fall into the phase of seeming euphoria that you can perform the act of buying or selling at any convenient and the most advantageous moment, but you do not realize that the "unlocked" market participant has absolutely the same opportunities. Therefore, a trader gets no advantages from the locking operation by definition. The human tendency is to remember successful results, but unsuccessful ones are quickly "forgotten", that's why the "locking" phenomenon is so strong. It is true, they talk about the "benefit" of positive locking, i.e. locking the profit, not the loss. Let's consider this case (to be continued later).

 
pronych:
A lock is good to use as a hedge against another instrument.
What does this have to do with another instrument? Another illusion.
 
yosuf:
What does this have to do with another instrument? Another illusion.

Long thought and wanted to look at the wiki.

Completely agree with you and have written before that lock is purely a psychological disease like a drug addiction that one gets used to.

There is no loca, there is buying and selling.

 
yosuf:
What does this have to do with another instrument? Another illusion.
Well, someone trades by this strategy - locks while the price is in the channel, as soon as the price leaves the channel, the trading stops
 
server:
Well, someone is trading this strategy - locking while the price is in the channel, as soon as the price leaves the channel, the trade stops
Right, but at the price you have to pay for another, additional, act of buying and selling. It is better to immediately settle with DC with one of three types of stop orders: 1 - SL, 2 - TC condition, 3 - manual and re-enter the market, waiting for a convenient moment, without any hanging liabilities, because your funds are pledged locally. After locking you are active only to the extent of your remaining funds.
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