Entry is easy, but Exit is really difficult | Page 2 | Forex Factory

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Entry is easy, but Exit is really difficult

  • #21
  • Apr 26, 2010 7:51pm Apr 26, 2010 7:51pm
There is no best exit strategy in the trading field. The type of exit depends on your trading system. It could be a support level or resistance level or it could be when the MA crosses the other side.

In order to derive an exit strategy that is useful to you, you need to first decide on your entry strategy and then from there figure out how to exit.
  • #22
  • Apr 26, 2010 7:52pm Apr 26, 2010 7:52pm
atr could really help.
  • #23
  • Apr 26, 2010 9:04pm Apr 26, 2010 9:04pm
Quoting CodeMeister
Excuse my rant. Every time this discussion starts, somebody comes up with this pearl of wisdom. So how do you suppose it will work if you are using a pin or inside bar as your entry signal?

Exits are separate and distinct from entries and have to be treated as such. The title of the thread says it best.
Your question comes from your coding background I suppose. Indeed for a bot to work, it has to be very well defined. Having an unusual entry technique is definitely not going to make a good exit.

To the OP: However, there are other methods which can clearly define an entry and exit. Read up richard donchian's method. Search out "the original turtle rules" on the internet and download it. It is a document about 30 pages that has the most comprehensive publicly available system that works.

But i agree with most of the posters here. Know your system. Here are my exit rules:
1)Stop: 2ATR
2)Exit: 5ema crossing a 10 ema. Bar must close exceeding the 10 ema line.

I'm using a trend following system.
  • #24
  • Jul 2, 2012 6:25am Jul 2, 2012 6:25am
Hello

Nice thread and i am 100% agreed with the name entry is easy exit is problem so if anyone have indicator which shows trend is finishing or reversing or kind of exit sign kidnly share that

Thnq in Advance
  • #25
  • Last Post: Edited 3:37am Jul 6, 2012 3:37am | Edited 3:37am
Quoting magnumfreak
There are 4 reasons why I will exit a trade:

1. The stop gets hit.
2. My system generates a signal in the opposite direction. Doesn't make much sense to stay in the trade when that happens.
3. Trend line break. Doesn't always result in capturing the most pips but in all reality do you need to get them all? No. You will see fantastic gains if you catch just 50% of most trends.
4. Hesitation or a pause at or near key support or resistance levels. This one is more of a judgement call that gets better with experience. Now the support and resistance...

Excellent reasons to exit. If I may add to #1...a Fibonacci retracement line has been chosen as a safe exit such as the 38.2 or 61.8%.
Everything easy was hard at first
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