Understanding Multi-leg Trades
The ability to group multiple trades as though they are one combined, unified and integrated trade is one of the great hallmarks of the Forex Smart Tools Trade Log.
Why you want to use this
Let’s say you put on a trade for one lot and it starts to move to profit. You see 20 pips and want to close out half your position and move your stop loss. This is called ‘feathering out‘ or ‘scaling-out‘. If it goes another 15 pips and you close out more of your remaining position, you’ve just feathered out again. You leave the balance on and it closes out at a take profit you set or hits its stop loss.
Your broker will report this as though it were 3 separate trades – but you know it was really all just one trade, which you managed in 3 parts. The Trade Log calls each part a “leg“. If you really want to master your analysis, the Forex Smart Tools Trade Log is the only one out there to let your record that trade all as one.
The Trade Log lets you match your recorded journal to how you really conceived of that trade!
This is the ultimate way to record those multi-faceted entries and exits.
Here’s another example: Feathering-in or scaling-in. In this case, you put on a position and then decide to add to it. You may build up an overall position made up of many individual ‘legs’. Again the Trade Log can record all these as one trade.
And this is also the perfect way to record your trades using any of the various loss-recovery strategies, such as stop-and-reverse or cost averaging.