Trade Management?

Hi all,

I have been demoing away and seem to be able to find decent entry points on the daily charts. However it seems that's the easy bit, the difficult bit appears to managing an open trade. I am testing a management system whereby 1/2 of the position is closed when reward : risk = 1. Then the stoploss is trailed beneath the previous daily extreme or at some appropriate sup/res level.

I percieve the benefits of this as a reduction in whipsaws if the market starts to range tightly and thus increased winning percentage. However the upside is surely limited in a big trending move. I have noticed that a 10 period EMA seems usefull for trailing stops and identifying pullbacks to keep on the right side of medium term moves. Could anyone share their thought on trade management and the method outlined above?

Maybe the topic was too boring, but surely somebody must have something interesting to say about it. I mean theres about a gazillion ma crossover variant threads out there but people still discuss them. Whereas this is the kind of aspect to a method that actually makes a difference (I think). So ,anybody, how do you manage open trades. Scaling? In, out, shake it all about!

care to comment mrelliot

try this thread on the aspect of scaling out, maybe will give you some ideas to think about

http://forexfactory.com/showthread.php?t=12273

there are others but I am too lazy to search right now


Best of luck,
Mike

Yeah. thanks for that, I had come across that thread before. Also is anybody out there using ATR to normalize the lot size, ala the Turtles (traders, not teenage mutant heroes.)

its great way..always try to minimized your risk.