Fading the entry

[amediaduM]

Just wondered who fades the entry into their trades and their experiences of positive slippage as a result?

[AndrewMr]

I've often heard this term, but don't know what it means. Care to define it?

[anastaq]

It refers to entering the market on a limit stop against the immediate direction.
ie
Buying the market below it?s current price.
Or selling above the current price.
It is the opposite to a breakout entry.
Advantages are:
1 Entry closer to your protective stop.
In fact your limit stop is usually calculated from your protective stop.

[Angelaodof]

One application of this technique would be trading the aftermath of, say NFP, as it appears that all eyes focus on the 1min chart and all the favourite set-ups. Without using limit stops, getting a decent price at these 1min set-up hotspots is often impossible. Having said that it does require a lot of confidence in your set-up to do this http://static2.trade2win.com/boards/images/smilies/icon_smile.gif