Fence Trading Strategy

fencing-example

We can use fencing strategies in two ways for double profits or for escape from trade which goes wrong and reduce potential OTM loss. The Ideal scenario for fencing is when price is bouncing up and down in a Support & Resistance channel, were we can manage to enter two opposite trades. PUT at the highest point and CALL at the lowest point of our S & R formed channel. I will make real quick calculation for you: If we entered fence trade with 2x 100$ on 80% payout which is considered as average. Our eventual profit will be 160$ and if we lose we are going to lose 20$ which is significant decreased loss. I advise using fence strategy with basic support resistance strategy or trend following strategy since there you have S & R lines to help you easy determine eventual entry points. Fence strategy long with good basic chart analysis can become a very powerful and high accurate strategy!

The second way of using Fence Strategy is when you have already taken trade, and based on your chart analysis your trade is looking bad and with high chance of losing it. You want to get out of that trade with minimum loss. What you do at this point is simply wait for good opportunity when price reach near your entry strike rate and you just open OPPOSITE Trade with same Amount of Money and same Expiry Time! Couple of micro pips (2-3) away from your strike rate is okay if you are in volatile market conditions.

If you want to try Fence strategy and you are beginner don’t forget to test it with demo account or use small trade amounts, you can check our trusted Regulated Brokers. Most of them offer demo accounts after registration were you can practice your new strategies. For further questions please contact me at binaryoptionsspot@gmail.com (Ventsi)