So I've been trading since June 2006 and I've decided to share a little thing I've used.
It's the 3 candle stop loss.
Regardless of your entry, regardless of your signal method, try this SIMPLE exit strategy
For every entry, regardless of timeframe, use the high/low of the last 3 candles as your stop loss.
As a new candle forms, move your stop to the new last 3 candles' high or low, choosing the highest or lowest price as your stop loss depending if you are buying or shorting. You only exit when your stop has been hit.
I've found with backtests that this method allows your profit to run regardless of the system. Try it and see.
I'll posts some chart examples tomorrow
It's the 3 candle stop loss.
Regardless of your entry, regardless of your signal method, try this SIMPLE exit strategy
For every entry, regardless of timeframe, use the high/low of the last 3 candles as your stop loss.
As a new candle forms, move your stop to the new last 3 candles' high or low, choosing the highest or lowest price as your stop loss depending if you are buying or shorting. You only exit when your stop has been hit.
I've found with backtests that this method allows your profit to run regardless of the system. Try it and see.
I'll posts some chart examples tomorrow