What is the best way to exit a trade? | Forex Factory

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What is the best way to exit a trade?

  • #1
  • First Post: Oct 20, 2012 1:16pm Oct 20, 2012 1:16pm
alot been writen about the exit while the most difficult think is to exit a trade...

thise thread will be dedicated to exit method from all kind of sys and generaly

you all wellcom to comment from your expirience or an idea you have been think about..


so what are the best ways to exit a trade white out to left much on the table and having a good r/r?


Iam just A pips on the rode :nerd:
  • #2
  • Oct 20, 2012 1:40pm Oct 20, 2012 1:40pm
How about this trade on 4h gbp/cad - I got some pips, took partial profit at 1 atr, and set to break even. I did have tp set to 2.5 atr, but was thinking of letting it run with a trail or close when it closes below 10 ema, and also was thinking of just closing it as it is hovering at the round number. Inputs are appreciated.
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  • #3
  • Oct 20, 2012 1:47pm Oct 20, 2012 1:47pm
its look very nice , is it work the majorty of the time?

were is your stop?
Iam just A pips on the rode :nerd:
  • #4
  • Oct 20, 2012 1:50pm Oct 20, 2012 1:50pm
Quoting -er-
its look very nice , is it work the majorty of the time?

were is your stop?
I initially had stop at 1.5 atr. I haven't done this type of trade before in recent memory.
  • #5
  • Oct 20, 2012 1:53pm Oct 20, 2012 1:53pm
Quoting jmag
I initially had stop at 1.5 atr. I haven't done this type of trade before in recent memory.
what atr do you use (14)?
Iam just A pips on the rode :nerd:
  • #6
  • Oct 20, 2012 1:54pm Oct 20, 2012 1:54pm
Quoting -er-
what atr do you use (14)?
i like the (5).
Iam just A pips on the rode :nerd:
  • #7
  • Oct 20, 2012 1:56pm Oct 20, 2012 1:56pm
do you think atr fit to the most of trading still?
Iam just A pips on the rode :nerd:
  • #8
  • Oct 20, 2012 1:56pm Oct 20, 2012 1:56pm
I had atr 14 I believe.
  • #9
  • Oct 20, 2012 2:04pm Oct 20, 2012 2:04pm
For losing trades, using proper stop loss orders is the obvious exit strategy. For winning trades, however, it's been tricky for me to decide how to come up with one. The one I'm currently using is to use trailing stop orders that vary according to current profit level. For example, I start with small trailing stops when I'm up just a few pips, and then I gradually increase it as my profit grows larger.
  • #10
  • Oct 20, 2012 2:06pm Oct 20, 2012 2:06pm
Here's another on nzd/cad I took about the same time. It hasn't reached first target. Was thinking about breaking even. What to do.
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  • #11
  • Oct 20, 2012 2:28pm Oct 20, 2012 2:28pm
Quoting fxmaster1972
For losing trades, using proper stop loss orders is the obvious exit strategy. For winning trades, however, it's been tricky for me to decide how to come up with one. The one I'm currently using is to use trailing stop orders that vary according to current profit level. For example, I start with small trailing stops when I'm up just a few pips, and then I gradually increase it as my profit grows larger.
hi fxmaster1972

what trailig stop do you use? what time fame do you trade?
Iam just A pips on the rode :nerd:
  • #12
  • Oct 20, 2012 2:30pm Oct 20, 2012 2:30pm
Quoting -er-
do you think atr fit to the most of trading still?
I really don't know. It was just something that popped into my head to work the trade on. I know we should be looking at s/r and round numbers because of those great neighboring threads.
  • #13
  • Oct 20, 2012 2:31pm Oct 20, 2012 2:31pm
what the best way to exit a trade?

at a profit
  • #14
  • Oct 20, 2012 2:34pm Oct 20, 2012 2:34pm
Totally depends on your trading style and personality.

Few effective stop examples

#1 Hard stop

- Easy method:
Trailing stop based on price action. For example the 3 bar+ method that puts your trailing just above/below the highest/lowest high/low of previous "x" amount of bars. Further trailing stops include ATR based stops, fractal stops, MA trailing stops.

Disadvantage with trailing is trailing amount either being too wide or to narrow. Too wide obviously causes you to catch most moves for 1/2 or max 3/4, killing full potential. Too narrow will often make you miss out some big moves.

- Hard method:
Normal stop above predefined level that is moved manually above important market levels when price is going further into your direction.
Will make full advantage of price action and will be able to grab moves closer to full potential.

Could be mind exhausting. Especially when managing multiple trades at once.
Also requires some good discipline because often your profit is not locked in yet.

#2 Mental stop

Only effective on bigger time frames in my opinion. Purely based on price action patterns. Close out the trade if your anticipated pattern is failing. Advantage obviously being giving the market room to move in. The market is spiking more and more last couple of years. It would make sense. However takes a very high amount of discipline and experience. Observed price action often gives false signals and there's a good chance you'll close what potentially could have been a winner.
  • #15
  • Oct 20, 2012 2:39pm Oct 20, 2012 2:39pm
Quoting jmag
Here's another on nzd/cad I took about the same time. It hasn't reached first target. Was thinking about breaking even. What to do.
i am not saying that every trade going to be a big sucsses but my main gool is to find exit arsenal method whide good mony mangment to cup thise issu

so far we have 2 ideas atr & trailing stop

did you try to use trailig stop? must say i didnt , so any info about the setting wod be nice

(i using the daily chart mayby 4h but not lower )
Iam just A pips on the rode :nerd:
  • #16
  • Oct 20, 2012 2:44pm Oct 20, 2012 2:44pm
Quoting -er-
i am not saying that every trade going to be a big sucsses but my main gool is to find exit arsenal method whide good mony mangment to cup thise issu

so far we have 2 ideas atr & trailing stop

did you try to use trailig stop? must say i didnt , so any info about the setting wod be nice

(i using the daily chart mayby 4h but not lower )
The thing about trailing stop is you can get stopped out early if too tight. On 4hr I was thinking about letting it run with a 2 or 3 bar trail.
  • #17
  • Oct 20, 2012 2:46pm Oct 20, 2012 2:46pm
Btw, we also lack information in this topic. The "best" way to exit a trade can only be given when one knows the exact entry procedure. It needs to be in synergy with each other.

One thing for sure, there's no perfect exit procedure. You will either kill potential from ongoing moves or will miss moves in general. I stopped searching for the perfect exit procedure some time ago. The closest thing to perfect is going hybrid. I leave the rest to you. gl
  • #18
  • Oct 20, 2012 2:49pm Oct 20, 2012 2:49pm
Quoting Robertk
Totally depends on your trading style and personality.

Few effective stop examples

#1 Hard stop

- Easy method:
Trailing stop based on price action. For example the 3 bar+ method that puts your trailing just above/below the highest/lowest high/low of previous "x" amount of bars. Further trailing stops include ATR based stops, fractal stops, MA trailing stops.

Disadvantage with trailing is trailing amount either being too wide or to narrow. Too wide obviously causes you to catch most moves for 1/2 or max 3/4, killing...
first thank you very nuch for thaking part in thise discassin end put her from your excpirience .

do you think setting trailing stop base an atr 5 wod be efective for taking large moves and over cam big pullbake?
Iam just A pips on the rode :nerd:
  • #19
  • Oct 20, 2012 2:49pm Oct 20, 2012 2:49pm
Dont trade your p/l.
  • #20
  • Oct 20, 2012 2:58pm Oct 20, 2012 2:58pm
Quoting ingmarforex
Dont trade your p/l.
i am sory

what is p/l (profit / loss?)?
Iam just A pips on the rode :nerd:
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