Exit strategy
Dec 23, 2013 at 08:49
Vistas 722
5 Replies
Dec 23, 2013 at 08:49
Hi traders
I m starting a thread on the Exit strategies which on my experience an Exit is much more important than an Entry.
An entry could be just triggered from just two MA crossing or other indicator signaling or even a coin toss. The real trick that will bring in cash in your account is the way you ll handle your exits.
An Exit strategy could be anything from just using some major S&R or fibs levels to very good Money Managements using several TPs and handling lots carefully. Every traders got his own.
So lets share some exit strategies experience and knowledge here since this could really help & improve us all.
I m starting a thread on the Exit strategies which on my experience an Exit is much more important than an Entry.
An entry could be just triggered from just two MA crossing or other indicator signaling or even a coin toss. The real trick that will bring in cash in your account is the way you ll handle your exits.
An Exit strategy could be anything from just using some major S&R or fibs levels to very good Money Managements using several TPs and handling lots carefully. Every traders got his own.
So lets share some exit strategies experience and knowledge here since this could really help & improve us all.
Miembro desde Nov 21, 2011
posts 1718
Dec 23, 2013 at 15:29
I totally agree with you.
It doesn't really matter the trade you open in 99% of cases. Long or short... the position will be positive at least for a while even few pips.
The most important thing is what you do with trades.
https://www.myfxbook.com/community/new-traders/most-important-thing-is/626501,1
So when exit a trade? I have spent a lot of time here very recently to explain where and why to exit a trade from price action.
It's on Pullback / Potential Reversal Zone (PRZ) Step 3 of my pattern:
Ps:
You can't use it for every single trade because the pattern isn't formed each time... but when it does... TP area can be really accurate to maximize profit at the highest/lowest market price level.
Last example on USDCAD last friday on 1H.
We were in a bullish pattern and PRZ suggested to exit and reverse position @ 1.0726. The higest price was 1.0737 (9 pips)
More about my pattern into my blog.
How accurate to exit trades?.... What else?
It doesn't really matter the trade you open in 99% of cases. Long or short... the position will be positive at least for a while even few pips.
The most important thing is what you do with trades.
https://www.myfxbook.com/community/new-traders/most-important-thing-is/626501,1
So when exit a trade? I have spent a lot of time here very recently to explain where and why to exit a trade from price action.
It's on Pullback / Potential Reversal Zone (PRZ) Step 3 of my pattern:
Ps:
You can't use it for every single trade because the pattern isn't formed each time... but when it does... TP area can be really accurate to maximize profit at the highest/lowest market price level.
Last example on USDCAD last friday on 1H.
We were in a bullish pattern and PRZ suggested to exit and reverse position @ 1.0726. The higest price was 1.0737 (9 pips)
More about my pattern into my blog.
How accurate to exit trades?.... What else?
Dec 24, 2013 at 09:54
vic-123 breakout seems to be a good one
https://www.trade2win.com/traderpedia/1-2-3_formation
Can be use as exit, or entry.
https://www.trade2win.com/traderpedia/1-2-3_formation
Can be use as exit, or entry.
forex_trader_163226
Miembro desde Nov 19, 2013
posts 67
Dec 29, 2013 at 14:56
I believe that just as you wait for the market to move in a certain way (via indicators) you should exit the same way.
to be exact, let the market take you out. either via a SL for a loss, or a trailing stop loss for a profit.
Of course this only works for bigger pip trades, as scalping would not work with this situation.
however if you are entering a trend trade, let it breath, when your up 30 pips, move to BE+2, and then trail at 35 pips... this way your not too close so you let the trade float the waves, and yet you let the market decide how much you make, why close out after 50 pips if the market is going to give you 100???
to be exact, let the market take you out. either via a SL for a loss, or a trailing stop loss for a profit.
Of course this only works for bigger pip trades, as scalping would not work with this situation.
however if you are entering a trend trade, let it breath, when your up 30 pips, move to BE+2, and then trail at 35 pips... this way your not too close so you let the trade float the waves, and yet you let the market decide how much you make, why close out after 50 pips if the market is going to give you 100???
Dec 29, 2013 at 18:27
You can't set a general rule for exit. If you are a pure technical trader, then simply look for support/resistance levels on whatever time frame you are working. Always look in the past to find these level and you'll know when to enter and when to exit. Don't go in too early and always wait for the trade (use limit orders or stop orders) and use a pre-defined target at the next level.
Fibonnaci level can also help you to close partially your trade.
I don't believe that an MA cross will tell you the optimum to close a trade. If you wait for this kind of event, it will already be too late.
Fibonnaci level can also help you to close partially your trade.
I don't believe that an MA cross will tell you the optimum to close a trade. If you wait for this kind of event, it will already be too late.
A smooth sea never made a skillful sailor.
Miembro desde Dec 27, 2013
posts 42
Jan 02, 2014 at 07:37
i say enter with your ratios and stick to it... i've seen many trades go to winners when i thought theyve reversed.. ive also seen many trades go to losses when i thought they would hit target... it all balances out in the end.. if your at the end of the month and want a good track record then you might want to pull out of your trades on reversals.. but other than that.. stick to your guns and turn off the computer
When the waves are good- Ride them, If they are not, wait for the next set
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