Switching strategy is to change direction by closing a losing position and then opening a new position in the opposite direction from a closed position.

Examples of Switching Strategies

At present the price of GBP / USD is 1.2720. I predict GBP / USD will rise towards 1.2800. Therefore I open a buy position.

After a few hours it turns out that GBP / USD moves against my prediction, GBP / USD drops and currently is at the level of 1.2685. This means that the buy loss position is 35 pips

After re-analysis, it turns out that GBP / USD will go down towards the level of 1.2600.

In order for this day not to lose, I decided to close my long position with a 35 point loss and open a new short position. After a few hours it turns out that the market moves according to the results of the second analysis, which is down, and is now at the level of 1.2600. And close my sell position with a profit of 85 pips.

By switching, my profit is 85 pips minus 35 pips. net profit of 50 pips.

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