What is your usual approach? Aggressive? Conservative?
Not many people have mentioned scaling out. How do you find this? Is it mainly for psychological reason, a smoother equity curve, or does it prove more profitable?
Personally, I take only conservative trades, I have realized that the more trades I make, the more sloppy I get.
I took 27 trades this week, and a few were not the best setups, but overall I had 5 losses averaging +1 to -7. I have kept my losses small, knowing how much easier it is to make those back. Everyone of these losses were over 6 pips profit before going against me, but I am trying to stretch the gains a little, and in the process I have taken a few hits.
Overall this week, My total wins were 22 trades for 275 pips, minus commission and losses which still kept me at 190 pips.
I have been using a scaling out for some time in my trades, which must be done carefully.
What I do is target the +6/7 pips that Linuxtroll says to watch for, but I keep a couple lots in for the extension, the key is to catch the best rainbow breakouts, which usually keeps the trade from going negative on you, I have seen most of my trades this week go for 20-200 pips beyond my initial exit.
The exit strategy for my remaining lots is +2 on EFX (breakeven), so actually the majority of the lots are profitable, but never allow yourself to lose once you in the profits, which I did 5 times this week. LOL.
Overall, the 5 second rainbow usually triggers a good entry and exit point, but if your patient and careful, you can watch the rainbow for the exit point rather then just jumping out quickly.