Of course, all traders know that you need to set a limit order or at least include a profit target or closing signal in your plan and keep to it.
Let’s look at how it’s explained by http://www.forexmachines.com/reviews/rockwell-trading/. There are several options for the positioning of the new stop and it’s a smart idea to back test these for your particular system. First option, if your stop was initially twenty pips out from your opening position, it now moves to twenty pips from the price at which you just closed half of the order. So if the trend now turns on you, you will have a decent profit on the initial half of your trade and break even on the second half. 3rd option, the stop moves to half way between the opening price and the prevailing cost. What’s best depends on the first position of your stop.
Equally, never be tempted to apply this method to a loss-making trade. It might be a giant mistake to only close 1/2 a trade when it hit your stop, unless you are testing different positions for the stop. Foreign exchange systems should maximise your profits, not your losses! .