switch Switching based on the meaning of the word changes. In forex trading, the switching strategy is to change direction by closing losing positions then opening new positions in the opposite direction from positions that have been closed in the hope that the second position will rise more than the loss in the first position. Closed.
This can be exemplified by:
At the moment the price of AUD / USD is 1.0300. I expect EUR / USD to rise to 1.0400. Therefore I opened a buy position.
After a few hours AUD / USD moves against my prediction, AUD / USD is down and currently at the level of 1.0270. Means long positions 30 pips loss
After re-analysis, it turns out that AUD / USD will increasingly fall to the level of 1.0200.
In order not to lose today, I decided to close my buy position by losing 30 points and opening a new sell position. After a few hours it is true that the market moved in accordance with the results of the second analysis of the fall, and now is at the level of 1.0200. Finally, after earning enough profit, I closed my sales position with a profit of 70 points.
From the accumulation of the above 2 transactions by switching, today I am profit 40 points, from 70 pips net profit loss of 30 pips