Quote:
Originally Posted by butterfly01
I'm can't find any mention of what "reverse- yes or no " means when you're adding a system
How does this choice affect how the system trades?
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This tool allows the users to take the opposite side of a trading signal. For example, Signal provider A sends a signal in the following format:
EURUSD Buy Market SL: 1.3400 TP: 1.4200
The system will reverse all the commands with the following trade being placed on your account:
EURUSD Sell Market SL: 1.4200 TP: 1.3400
The trade will be displayed in the positions tab of your account with the system name and (R) beside it to denote a reversal trade.
The reversal trade function is particularly useful for a number of reasons:
1) The client is trading 2 systems that are similar in strategy, thus it can be deployed to "hedge" one strategy against the other if market conditions are not optimal for that strategy.
2) The client can use reversal trades in systems that have performed poorly in current market conditions. i.e. a System that trades in ranges when the market is in breakout, etc.
3) Can be used as a hedging tool against their own manual trading.
If you add a system to your portfolio as a Reverse, then you can see how System's Equity Curve would be affected by selecting SECURVE for that system.
Feel free to post your successes with using the reversal feature here.