I am new to the forum and trading. I have been lurking around for about a month now taking in as much as I can to familiarize myself with strategies used by others and to be able to create one that works best for me.
Anyway, my question is on flatten and reverse orders (flatten/close and reverse buttons on trading platforms)
What are some of the situations where a flatten order can be used? I picked up from some post that it can be used to exit a trade, is this true? How efficient is the flatten method as opposed to a stop order or a profit target to exit a trade?
And what are some of the situations where a reverse order can be used? I think it can be used when you've entered a position only to see the trend reverse in the opposite direction; you can "reverse" the order to catch the favorable trend -- obviously this would be disastrous in a choppy period but say that the choppy zone has ended and the only thing I am not sure about is which trend the market will take next.
Also, is there a cost involved every time I reverse an existing position?
If your tested methodology does not call for "reversing", then I would advise forgetting about it. For most people it should never be used and is more of a psychological rookie mistake mechanism. This doesn't apply to everyone naturally.
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