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  • #21
  • Jun 4, 2009 10:34am Jun 4, 2009 10:34am
This thread is getting interesting, I am also looking for the perfect exit strategy...but havent found one yet...the oppinions of pros here are sure to come in handy
  • #22
  • Jun 4, 2009 10:48am Jun 4, 2009 10:48am
Quoting n000b
Dear All,

I am using a simple Trend Following System (trendlines mostly) which is giving me good entry points, but on pairs like EURUSD I gets a few hundreds in green, and then the trade reverses and most time leaves me with little or no profit . The exit strategy I am using (which evidently is not working) is to exit on closing above/below 75 EMA. I would like to hear from all of you, what’s your exit strategy?

Thanks for your time!
Here's an EA that Caveman wrote for me after this request.
*********
Hi folks,
As some of you know I have, only recently, moved to a MetaTrader Platform.

Therefore, I am now without a few of the Tools I used to carry in my toolbox. {funny how learning a different language can, sometimes, make you feel lost.}

This is not something that you would be likely to use on a Scalping Method but moreso on one of those Trades that take off & you are up 50P before you know it.

Here's how it works. Let's use a Long Trade as an example.

I Buy EUR/USD @ 1.3500 & before I know it I'm UP 50P.
Q) Should I Grab the 50?
Q) Should I Wait & See?
Q) Should I Move SL to BE?
Q) Should I Set a Trailing Stop?

My Response: Set a Trailer.
A) Lock in 40P by Risking 20% of Your Maximum Gain.
50*0.2 = 10.
50-10 = 40 LOCK.
New Risk = 10P

Here's where it gets interesting.
Notice that in the above example I risked 10P of my 50P Profit.

What happens IF I am Not Stopped Out & my Profit runs to 80P?
Same thing. Risk 20% of Max Profit.
Max Profit = 80P
80*0.2 = 16
80-16 = 64 LOCK
New Risk = 16P

yeah yeah; cut'n paste but that's how simple it is.
What happens IF I am Not Stopped Out & my Profit runs to 160P?
Same thing. Risk 20% of Max Profit.
Max Profit = 160P
160*0.2 = 32
160-32 = 128 LOCK
New Risk = 32P
So: In these three, simple examples, Our Risk jumped From 10P to 32P...
But: Our Lock went from 40P to 128P

NOTICE:
My Risk is Rising on a Pip Scale.
My Lock is Also Rising.
My Chart has now moved from the 1Min to {perhaps} the 15Min.
If this keeps up I could be on the Daily Chart before tommorow.
********
Attached File(s)
File Type: mq4 Bemac Trade Manager v0.1.mq4   8 KB | 688 downloads
  • #23
  • Jun 4, 2009 11:06am Jun 4, 2009 11:06am
Great for sharing..how come i never thought of that...?

I am looking forward to other methods
  • #24
  • Edited 11:49am Jun 4, 2009 11:35am | Edited 11:49am
Simplicity works for me. First move is to b/e and take partial profit from positions. I proceed by closing 75% of my profit at target level and let the other 25% ride till end of day or week. It all depends on how you trade.
  • #25
  • Jun 4, 2009 3:23pm Jun 4, 2009 3:23pm
Curious, are you nervous if you get out with 300 pips the market will continue to go up without you?

Curious, once you were up 300 pips are the 230 left after a retrace not satisfactory for you now?

Birdt was barking up the same tree with a couple of the things he asked, about milking the market and such.

Depending on how you feel about these scenarios, have you considered not "exiting"? Take 1/2 - 2/3s off of the table and set the rest with a SL to BE. Exit the rest when you don't want to be in the trade any longer. Usually this will be established by wanting to go the other way, right?


Until you get your signal to short (the same type you got for going long), there isn't a whole lot you can look forward to. You are essentially giving the most important part of trading, exiting, a second class status by focusing on the "entry signal" first, using an "exit signal" strategy not worthy of being your entry. Think of it this way, why is the exit strategy good enough to take you completely out of a market, yet not good enough to get you in the other way? :nerd:

This is why so many find exiting so difficult.
The market is my nation. Traders, my family. Hello, brothers and sisters!
  • #26
  • Jun 4, 2009 9:34pm Jun 4, 2009 9:34pm
It is better to close half of the position once half of the target is reached and then move sl to break-even for the rest half till target is reached or till reversal signal.is obtained.
we cannot succeed without a well defined risk management.
  • #27
  • Jun 5, 2009 3:45am Jun 5, 2009 3:45am
Quoting StockKJay
Curious, are you nervous if you get out with 300 pips the market will continue to go up without you?
Well, not really, but with my setup I've been getting quite a few 200 to 300+ pips move but my exit strategy is getting me out of that trade below +100 pips.

Quoting StockKJay
Curious, once you were up 300 pips are the 230 left after a retrace not satisfactory for you now?
Ofcourse they are, i just want to device a strategy that sort of a take care of sudden spikes (like a few 100 pips move and back) and getting me out at some reasonable profit & also letting me ride the trend even if it stretches to a few days.

Quoting StockKJay
Birdt was barking up the same tree with a couple of the things he asked, about milking the market and such.

Depending on how you feel about these scenarios, have you considered not "exiting"? Take 1/2 - 2/3s off of the table and set the rest with a SL to BE. Exit the rest when you don't want to be in the trade any longer. Usually this will be established by wanting to go the other way, right?
Well, for the time being I just enter and exit completely, I'll be starting to trade with not so much of an amount so for sometime, I wont be trading with that many lots to be split.

Quoting StockKJay
Until you get your signal to short (the same type you got for going long), there isn't a whole lot you can look forward to. You are essentially giving the most important part of trading, exiting, a second class status by focusing on the "entry signal" first, using an "exit signal" strategy not worthy of being your entry. Think of it this way, why is the exit strategy good enough to take you completely out of a market, yet not good enough to get you in the other way? :nerd:
Well, I am trying to improve my strategy step by step. I earlier had problems with getting in at the wrong time with most of my trades, now I have reduced it to some of my trades , also looking at ways to minimize the "losses" at the bad trades. I know I can't completely eliminate bad trades, but I am trying to exit early before waiting for the SL to get hit. Then comes this exit strategy for the winning trades, not to get out early. That's why opened this thread up, i need ideas from you people who are in this business a lot longer then me.
If it floats, flies, or f%^ks, rent it, it's cheaper.
  • #28
  • Jun 5, 2009 3:52am Jun 5, 2009 3:52am
Quoting Bemac
Here's an EA that Caveman wrote for me after this request.
*********
[i]Hi folks,
As some of you know I have, only recently, moved to a MetaTrader Platform.

Therefore, I am now without a few of the Tools I used to carry in my toolbox. {funny how learning a different language can, sometimes, make you feel lost.}

This is not something that you would be likely to use on a Scalping Method but moreso on one of those Trades that take off & you are up 50P before you know it.

Here's how it works. Let's use a Long Trade as an example.

I Buy EUR/USD...
Thanks a lot Bemac, I too was thinking along that lines, not as such deviced any specific formula, but doing something like trailing the SL in steps of e.g. 50 pips insteadof pip per pip, locking 50 for 150 & increasing the step size as we go deeper into the green.
If it floats, flies, or f%^ks, rent it, it's cheaper.
  • #29
  • Jun 5, 2009 3:57am Jun 5, 2009 3:57am
Quoting MackS10
Simplicity works for me. First move is to b/e and take partial profit from positions. I proceed by closing 75% of my profit at target level and let the other 25% ride till end of day or week. It all depends on how you trade.
Thanks Mack for your reply, I will be trading for sometime single mini lots because of my initial deposit, so for the time being exiting partially from a trade is not an option for me.
If it floats, flies, or f%^ks, rent it, it's cheaper.
  • #30
  • Last Post: Jun 5, 2009 8:35am Jun 5, 2009 8:35am
Quoting StockKJay
Curious, are you nervous if you get out with 300 pips the market will continue to go up without you?

Curious, once you were up 300 pips are the 230 left after a retrace not satisfactory for you now?...
Your comments address an area that I have always been very sensitive about. "Greed". Of course 300 pips is a good trade...to anywone, and yes 230 is also good after a retrace. However, when trading larger time frames, one MUSt allow the market to breath, therefore it is entirely possible to see your 300 pip trade reverse on you long before the next entry signal comes along.

Why not just exit? Sure...When? Underwhat conditions? Using which price pattern? On which time frame? These very questions are what n00b is attempting to answer.

I don't know about you but I HATE it when I exit with 125 pips and watch the market continue for another 200 or more in the same direction. Is this "greed"...yes in a way I guess it is. But more importantly it is just inefficient and bad management.

My personal method and style of trading is trend following. There are a mountain of methods used to enter markets...trends...however, exiting is a completely seperate issue and worthy of study. It is inefficient to say that you will use an opposing entry signal as an exit. i.e. a short entry signal to exit a long position...

That is why market volatility is so important. The market "breaths" in and out, and we can see that in chart movements. By keeping track of this pattern we can see that when volatility fades, price slows down or reverses...for me...this is a very efficient place to exit or at least lock in profit with a tighter stop.

How far price will travel is anyones GUESS...No one can predict the behviour of future markets and it is our job to manage our trades as efficiently as possible so as to gain maximum benefit. To say that 300 pips is sufficient is really quite arbitrary. You must qualify it by saying 300 pips in a 350 pip range is execellent! However, 300 pips out of a 1200 pip trend is poor management.

Using market volatility to "project" a price target will expand your target when the market is moving and shorten it when it fades. It is dynamic and allows the market to tell you when its time to take profit...

Again, just my opinion
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