A thread on Profit Exits

Profit Exits are an aspect of any trading system, and one of the most important. I'd like to open up this thread to discussion of the best profit exit techniques and discussion.


For those who do not know, a profit exit, is basically a set of guidelines for what to do when you have a trade in profit. This thread is not about how to exit trades that are losing. Techniques can range from the basic take profit order, to several different kinds of trailing stops, to hedging the profit, and on and on.


We seem here to spend a lot of time discussing how to create systems that can find opportunities for profit, but we spend little time discussing what to do once we are actually in profit, which is, in the end, more important.

I think that you may be better served if you change your thread title to something about Profit Exits for Scalpers or something similar.

I trade H4 and D1 only and my exit strategy may be totally different and not applicable to you at all. As an example Pipeasy (in another thread) has trades open with a couple 1000 pips in profit.

I'd like to hear everyone's ideas no matter how they trade. I think we'll find that regardless of scale, the prinicples remain constant. For example, I trade the M5. The difference in scale between M5 and H4 is (very roughly) 10 to 1. So you could use my exit strategy on your timeframe by taking the firt TP order at +40 pips instead of +4, etc. If this sounds like something you would never do, why? Perhaps your answer could illuminate ideas and priciples that I could use in my timeframe, or somebody trading H1 could use as well. That's what I'd like this thread to be about. The best reasoning and logic behind profit exits, and the most effiecient (in terms of price capture) way to execute them.