What is your exit strategy?

[stockpro]

Re: What is your exit strategy?

 

I Use Weekly Pivot Points To Trade, And I Found it Most Profitable System :)

 

Close Above Pivot Point Takes only Long Position With Target of R1,R2,R3

Close Below Pivot Point Takes Only Short Position With Target of S1,S2,S3

[tmalone]

Re: What is your exit strategy?

 

An exit strategy can not be created in a vacuum. It must take into consideration the general profile of the system it is being applied to. How large is the initial stop-loss? What is the size of the average winning trade? How far into profit do trades go before the chances are greater

that you will give pips back rather than make more? All these are valid considerations. I've seen studies that prove, and my own personal trading experience confirms, that you will have a tough time achieving consistent profits unless at least some of your trades make a minimum of two times your initial risk. There are some that claim having a system with a very high winning accuracy can get you around that figure, but I've never found a system accurate enough to trades its way through consistently taking profits smaller than its losses. Those type of systems

may make money for a period of time, but the profits literally melt away at the first sign of a drawdown.

[te-foder]

Re: What is your exit strategy?

 

to exit a trade is simple, use any type of suport resistence areas, generaly the price breaks these areas or bounce from it, use monthly, weekly fibos areas, pivot points, sma's etc for daytraders, for long time traders using trend following system, shorten you stops using your own rules and ride the trend until you are stopped by the market usually with high pip gain just from one trade.

 

tmalone what you are talking is basically optimization

[maybe]

Re: What is your exit strategy?

 

It's a difficult question, and depends on what you're aiming for. I tend to leech onto forex systems and use whatever exit strategy they recommend, usually by an indicator. At the moment I'm using the black dog system, which recommends a take profit. However I like to ride the waves and stop the trade when the black dog points the opposite direction.

[johnkhoogw]

Support & Resistance(Traffic Light) for TP & SL. Price Pattern(Traffic) Trendline(Road Kerbs). Edited August 31, 2010 by johnkhoogw

[redline]

my exit strategy as intraday trader are volume with alogrithm and for long term trading i watch news. Edited June 5, 2010 by redline
sorry

[maybe]

I use the blackdog rsi indicator to know when to stop. It usually stops at the perfect time, before the retractment happens. However, it can also give a fair few false signals.

[tontontrader]

It depends upon your time-frame, strategy I have started to use fractal indicator as a stop.

As you need to move the stop manually (trailing stop) , probably 1, 5, 15 min Time-frame is practical.

 

If you catch the good trend, you don't have to close the position, as your position will continue until the fractional stop hits. This actually work as an exit too. That helps me to improve my stop/exit

[bob898]

There is a reason most people fail at position management,

 

1. your exit is important but even more important your money management (what includes your exit strategy too)

 

2. forex is not the easy way to make money (takes a while for people to realize it)

 

3. you need a strategy fitting yourself, the reward:risk ratio on any given strategy should be at least 1,5:1 when you enter the trade, if you lose more than 50% of the time it should be greater

 

4. your stop should be behind some levels of protection (not just one), e.g. formed s/r level, trendline + pivot

 

5. have more than one target (rr ratio still needs to be 1,5:1 total), spot s/r levels, pivots, fibo levels, news times before!!!! you enter the trade, exit when price reaches your predicted target OR when price cannot break the levels you should know (s/r ....)

 

As a result it is important to know price action.

 

As I said, there is no easy way to belong to the 10% in the long run, it is hard work and even harder than a lot of other jobs.

[johnkhoogw]

EXIT is when the market tells you. Chart tells the story

[dgab]

...or pivot point :)

[vinetime]

wordpress link does not work. requires 'invite' by lister. got wordpress logon; useless until 15 posts. Code link needs to be open and accessible.

[Zoltan]

After learning Forex trading for years and realizing that most courses and gurus are clueless I have developed a very simple exit strategy for myself; I have a goal of 5% return per day. I trade 1 standard lot for every $5,000 on my account, so I have to make 25 pips on the Euro. I don't trade the Euro but this is the easiest way to explain it. I trade the H1 charts so to make 25 pips is very easy. Do I make my 25 pips? Yes I do, every day when I trade. And yes I do make more than that. But I am happy with my 5%. I leave money on the table every day without regret. I am back the next day to collect more. Trading this way allowed me to double my account every 14-15 trading days for the last 15 month.

[piphead]

Zoltan: So I guess your account must be around 1,048,576 (2^20) times bigger than your initial deposit then? :D

 

I think having a plan before you start trading for the day is a good idea if you stick to it though. Setting a target limit and not getting too greedy is probably sound advice.

 

I do feel that your next trade is just as likely to be bad if it's the same day as the next one. What might happen with some traders though, is they start to let emotion come into the equation after a run of success, which can sway their judgement. Also, the more hours you spend staring at your charts the more likely you'll make mistakes.

Edited November 8, 2010 by piphead

[tronss]

First I place my SL, for example: 100

If I reach half in profit (100/2 = 50 pips) then I close 70% of my lot (if I used 1 lot then I am in 0,30 now and 0,70 closed).

Rest of the position I look for new fractals to change it, or sma5 (some pips above/below- sell-buy every new candle) until the position is automatically closed. Sometimes I even close the position when I double the profit from the SL: if my SL was 100 I close with 200.

[Pipananda]

Formation of a support/resistance....

[Lander]

Forex Strategy 80-20

 

Forex Strategy 80-20 - very simple and quite an interesting Forex strategy, trade in which is conducted only on the daily range (D1) and trading signals are only valid for first trading day.

Investigating the patterns of financial market, it was noted that if the price on the market closes at the top or bottom 10% -20% of its daily range, then there is a possibility and it is 80% -90%, the next morning, the price will continue to move in the same direction (i.e. towards the closing day candles), but eventually the price closes above or below this candle in only 50% of cases! That's a given fact (a chance to turn in the middle of the second day after the close of the first day candles), and allowed 80-20 strategy exist and be popular in the financial markets.

 

for more info read here forexcontestnews.com

 

http://forexcontestnews.com/forex-trading-strategies read more here

For more info you can visit this nice site http://forexcontestnews.com/forex-trading-strategies

 

So, let's look at how deals are made in Forex Strategy 80-20, an example of the transaction on the purchase.

 

Suppose we open a trading terminal MetaTrader 4 today and note that:

 

1) Yesterday's daily candle was discovered in the upper 20% of its daily range and closed in the bottom 20% of its daily range. I.e. if the daily candle divided into 5 parts, the opening price of yesterday's daily candle is in the top 1 / 5 of a closed candle. And the closing price is at the bottom 1 / 5 of the closed day candles.

 

2) Today's daily candle opens and the price at the market went in the same direction as the close of the previous daily candle - i.e. for sale, presumably for at least 10-15 points.

 

3) At this moment, when the price is already below yesterday's low and we have clearance to be placed pending order, we set the pending order to buy the type Buy Stop at yesterday's low price!

 

4) After the opening of trading positions in the purchase, we will establish a safety stop-loss orders below a few points (3-5) today minimum.

 

5) Next, use a trailing stop (Universal trailing stop, the standard in Metatrader 4, or a trailing stop on the first paragraph) to lock in profits and tightens our stop-loss at a safe distance that you define for themselves, depending on the chosen currency pair and the volatility in the Forex market.

 

For example, if the amount of daily candles is 100-200 points, the trailing stop should be placed at a distance 50-70-100 points. Candle 50-70 points - trailng-stop is 25-30 points.

 

6) If you prefer, you can put a profit target at a distance of at least 3,2 times the initial stop-loss (as required by Forex Money Management). Or record profits on the important Fibonacci levels, built by the first candle (38,2%, 61,8%)

 

7) Or you can simply rearrange the position of zero level as soon as you see fit and leave the deal by the end of the trading day, and then look to close it or leave open. But I personally believe that it is better to use a trailing stop to lock in profits.

 

For transactions on sale - the rules of the opposite!

 

Note: The transactions in this strategy are not as common, but if you observe the laws of several currency pairs, the probability of the conditions and the entry into the market will above!

Edited December 8, 2010 by Lander
forgot

[xef]

very well said... :)

[shunshi88]

I think a scale out method is always a good practice. Scale out half of the position when the price move in your direction and keep the second portion in the breakeven and riding for higher profit.

 

For cutting losses, I think as long as the entry reason is not valid anymore, we must close the position.

[myfxdiary]

How about trailing stop?

 

Thanks a lot for the many exit strategies!

 

My strategy is to find 4 lines (SL, Entry, First TP, Second TP).

First TP is the place I think the price will hesitate to go further.

I usually set at previous swing high or low depending on the market direction.

When the first TP is hit, I take 80% of the total order and let 20% still go.

 

Second TP is the 1:1 risk reward ratio between SL and Entry.

When the second TP is hit, I don't close any %, but move the SL to entry point by trailing stop.

 

I'm still a newbie on PA and trying to learn PA as much as I can, especially PB.

So if experienced traders would like to point out my exit strategy, please feel free to do so. I love to hear what I'm doing wrong and would like to learn more :D.

 

There's a favor...

I'm looking for an EA to do the job describe above.

I found very nice one on ibfx which is exactly what I was looking for, but it seems I need to be its member to use it...

http://www.ibfx.com/Tools/Partial-Close-EA

 

Does anyone know if there's an EA doing the similar job?

It would be very appreciated if you could share any ideas ;)

 

Thanks guys in advance and have a great day!

[WmWm]

when I got started I've decided ones forever to get profit every day. let it would be very small profit, but profit.

[srini]

I've been successful by setting the prior bar's (high-low)/2 as take profit from entry bar/candle always in case of a normal size candle and (high-low)/3 on prior bar's candle before the entry bar/candle in case of a long candle

[Guest maskumareshraja]

hello frends pls share this strategy's megsignals.com/index & Super Forex System.com this 2 systems very success formula so pls share me thanks

[ourincome]

This entry is very interesting.

 

http://www.earnforex.com/blog/2011/03/different-stop-loss-types-which-to-use/

[maddman]

This Thread actually is one of the most important ones in this forum in my opinion. To answer the question to this thread will vary depending upon what time frame your trading off of. I suggest everyone to study and use RISK MANAGEMENT, as we all know Proper Planning, Prevents, Piss Poor, Performance. Plan your work and work your plan.