In part 1 of this article, I have shown how to set pending orders on the InterbankFX MetaTrader 4 brokerage platform. This will definitely save students of FX1 Academy a lot of time and energy! Now for the final piece of the puzzle to complete the picture.

Ok, now we know how to enter pending orders. Do we enter whatever price we gotten from the strategy’s formula? Let me bring you through the cases individually.

Let’s say we are going long

Assume Entry Price: 100.20, Profit Target: 100.30, Stop Loss: 100.10

This is how we should enter our pending buy order:

(Please ignore the chart on the left, the prices I am using are arbitrary)

Notice I entered 100.23 instead of 100.20 for the entry price. The 3 pips is the bid-ask spread (specific to InterbankFX only, not all brokerages offer 3 pips bid-ask spread). Why do we need to add 3 pips to the entry price? The chart in InterbankFX shows the BID price (aka the SELL price). So for the buy order to be triggered at the price that we want on the chart (ie, 100.20), we have to set the pending buy order at 3 pips higher (ie, 100.23). Try it out for yourself!

Let’s say we are going short

Assume Entry Price: 100.50, Profit Target: 100.40, Stop Loss: 100.60

The reverse is true as well. When we are going short, we will sell at 100.50. We will be buying back at either 100.40 (profit target) or 100.60 (stop loss). So we have to add 3 pips for…that’s right - the profit target and the stop loss prices. See following screen:

Hope this is clear Happy trading!

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