Your success lies in your exit, not just entry

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

Hi
Thank you for the advice

Good strategy. Wait for your next post.

Regards,
Tom

Interested to see your elaboration.

Which TF did you test this on? Is this a technique you are using in live trading?

Yes this is a great method, I use 2 bar trailing stop. Works great!

My personal thought is success lies in your Stop Loss becos if you are stopped out then your trade is wrong and that you should flip your trade. The key is knowing exactly when you are right and when you are wrong hence to me its the stop loss. The exit should be as much as the market can give you until topping or basing signal is seen or your trailing stop is taken out and then you re enter into a new trade.

Just my trading thought and my way of trading.....

GS.