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Improve My EXIT

  • #1
  • First Post: Edited 5:42am Jan 30, 2013 4:56am | Edited 5:42am
Hi all.

Since I have a lot of time today, I decided to invest it in improving my exit strategy.
I have a good trading system made up of some MA's. My entry, MM, Psychology and discipline are OK (75%), but my exit is not satisfying. Note that I have not said my exit is NOT good/OK,.....but not satisfying.

If I have a trade making say 32pips, by the time I will get an exit, it will be around 24pips.

I am looking for how to improve this to say 28pips.

Everything you need to know are all in the chart attached.

Regards.
Attached Image (click to enlarge)
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  • #2
  • Jan 30, 2013 9:25am Jan 30, 2013 9:25am
Maybe you could try stochastic for exit. Or another good reference point will be support and resistance. Look for an area with SR with good RR. Price will move either in ranging or breakout SR.
  • #3
  • Jan 30, 2013 11:02am Jan 30, 2013 11:02am
The greatest growth to my trading was made when I realized trade management IS trading.

Everyone looks for entries and exits, understandably.

But it's equity we're all after. We're playing equity chess with large banking institutions (and each other).

I prefer now to build positions, work myself into free trades (holdings where I am positive and a portion of my position is cut and set to b/e +) and grow equity.

I want to accumulate wealth, not pips. Start from the scratch. Put your method on paper. Where can you reduce risk and grow potential wealth. Is it best through single entries and single exits? My math argues against this.

Just a few thoughts.
  • #4
  • Jan 30, 2013 6:25pm Jan 30, 2013 6:25pm
Why do you want to get out of the trade at that point?
Play the players, not the cards.
  • #5
  • Edited 5:54am Jan 31, 2013 5:30am | Edited 5:54am
@ bull.bear,

Quoting ~bull.bear~
Maybe you could try stochastic for exit. Or another good reference point will be support and resistance. Look for an area with SR with good RR. Price will move either in ranging or breakout SR.
The problem is that, personally, I don't like stoch apart from the fact that I don't fully understand the math behind it. It also gives too much false entry/exit signals (well, maybe I haven't done enough research on this or don't know a better settings/parameters).

As for SR, I have stopped believing in those as it makes my trading subjective and not objective. I also trade the 1min TF.

@ tradedly,

Quoting Tradedly
The greatest growth to my trading was made when I realized trade management IS trading.

Everyone looks for entries and exits, understandably.

But it's equity we're all after. We're playing equity chess with large banking institutions (and each other).

I prefer now to build positions, work myself into free trades (holdings where I am positive and a portion of my position is cut and set to b/e +) and grow equity.

I want to accumulate wealth, not pips. Start from the scratch. Put your method on paper. Where can you reduce risk and grow...
.

Thanks for your advice but I have long stopped swing trading since I decided to take this biz full-time. I scalp so to say (though not for the traditional 3-5pips definition), into the trend.

Why am looking to improve on my exit strategy is cos I am always trading in the direction of the trend. So, I want to make the most of the trend.

@Gnarlypips,

Quoting GnarlyPips
Why do you want to get out of the trade at that point?
Because I am a scalper sort of and trade off the m1 chart.
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  • #6
  • Jan 31, 2013 6:07am Jan 31, 2013 6:07am
This was the trade on the other chart. Closed out @ +11pips. This time, the exit was OK. Was @ 16pips but exit came @ 11 pips
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  • #7
  • Jan 31, 2013 8:37am Jan 31, 2013 8:37am
Quoting hefhem911
@ bull.bear,

The problem is that, personally, I don't like stoch apart from the fact that I don't fully understand the math behind it. It also gives too much false entry/exit signals (well, maybe I haven't done enough research on this or don't know a better settings/parameters).

As for SR, I have stopped believing in those as it makes my trading subjective and not objective. I also trade the 1min TF.

When market is trending, stochastic acts as pull back entry and high point exit; when market is ranging, stochastic acts as SR entry and exit within the range. When market is changing from trending to ranging or vice versa, the signal is incorrect.
  • #8
  • Jan 31, 2013 10:00am Jan 31, 2013 10:00am
Quoting hefhem911
@ bull.bear,



The problem is that, personally, I don't like stoch apart from the fact that I don't fully understand the math behind it. It also gives too much false entry/exit signals (well, maybe I haven't done enough research on this or don't know a better settings/parameters).

As for SR, I have stopped believing in those as it makes my trading subjective and not objective. I also trade the 1min TF.

@ tradedly,

.

Thanks for your advice but I have long stopped swing trading since I decided to take this biz full-time. I scalp so to say (though...
You base your trades off that? No reason for entering/exiting other than you're a scalper?
Play the players, not the cards.
  • #9
  • Jan 31, 2013 10:14am Jan 31, 2013 10:14am
Quoting GnarlyPips
You base your trades off that? No reason for entering/exiting other than you're a scalper?

No. I don't trade by using stochastic. I have my own way. Just to suggest this is a good indicator for scalping. Stochastic is more sensitive than RSI.
  • #10
  • Jan 31, 2013 10:22am Jan 31, 2013 10:22am
Quoting ~bull.bear~
No. I don't trade by using stochastic. I have my own way. Just to suggest this is a good indicator for scalping. Stochastic is more sensitive than RSI.

Well, the question was directed at hefhem, however, I'll ask you this. Why is the stochastic good for scalping? What does it show you? Are you just using the logic "price bounced off my imaginary line"?
Play the players, not the cards.
  • #11
  • Jan 31, 2013 10:30am Jan 31, 2013 10:30am
I think even as a scalper there is potential value in breaking exits.

I can't speak to the history of your trades, but what % of trades go your way? What % of trades extend beyond your goal target?

Imo, the market does one of four things:

(Assume this is EURUSD we're talking about. Ranges will vary depending on pair or stock, of course.)

1) Test zone and hover in 10 - 30 pip range and then drift in one direction or the other
2) Touch zone and immediately go for you 70 pips +
3) Touch zone and go through it like butter for 70 pips + because a ton of breakout orders propel existent momentum
4) Test zone, and get really volatile with a 20 - 50 pip range and then drift in one direction or the other

Frequency of occurence:

1 happens ~ 40% of the time. 2 happens ~ 10% of the time. 3 happens ~ 10% of the time. 4 happens ~ 40% of the time.

In EURUSD, if you're consistently picking decent entries, there's, according to the stats above (which are certainly haphazard if only because your entry point plays heavily into this equation) a pretty good chance at working 30-50 pips out of the market.

I break exits based on profit ratios. One entry has three exits (if +) and one exit (if -). My risk is fixed. I can only lose so much per entry. My profit is varied, but the system is designed to protect equity and get me into a free trade environ as quickly as possible.

If I'm boring you, just let me know. ;-)
  • #12
  • Jan 31, 2013 10:34am Jan 31, 2013 10:34am
Quoting GnarlyPips
Well, the question was directed at hefhem, however, I'll ask you this. Why is the stochastic good for scalping? What does it show you? Are you just using the logic "price bounced off my imaginary line"?

OK. I am not saying stoch is good but what i notice it gives pullback signal correctly most of the time. Of course, this couldn't simply depend on just a indicator for exit. It must combine with good RR and MM indeed.
  • #13
  • Jan 31, 2013 10:54am Jan 31, 2013 10:54am
Quoting ~bull.bear~
OK. I am not saying stoch is good but what i notice it gives pullback signal correctly most of the time. Of course, this couldn't simply depend on just a indicator for exit. It must combine with good RR and MM indeed.

I think I read you wrong. Are you saying you use stochs or not?
Play the players, not the cards.
  • #14
  • Jan 31, 2013 10:57am Jan 31, 2013 10:57am
Why don't you just use a trailing stop loss and ride the trend as long as you can. You will never get the optimum exit but you might get a lot more than 24 pips.
  • #15
  • Jan 31, 2013 1:16pm Jan 31, 2013 1:16pm
Quoting GnarlyPips
I think I read you wrong. Are you saying you use stochs or not?

NO
  • #16
  • Jan 31, 2013 4:07pm Jan 31, 2013 4:07pm
Very very similar to how i trade EJ is perfect..

Looks like its not broken dont fix to me.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #17
  • Jan 31, 2013 4:50pm Jan 31, 2013 4:50pm
Quoting hefhem911
Hi all.

Since I have a lot of time today, I decided to invest it in improving my exit strategy.
I have a good trading system made up of some MA's. My entry, MM, Psychology and discipline are OK (75%), but my exit is not satisfying. Note that I have not said my exit is NOT good/OK,.....but not satisfying.

If I have a trade making say 32pips, by the time I will get an exit, it will be around 24pips.

I am looking for how to improve this to say 28pips.

Everything you need to know are all in the chart attached.

Regards....
I would challenge you to show me ONE trader who has had LONG TERM success trading the 1 MIN chart.
Sure, it can be done. But if you're doing this for a career/living, do you really want to stress over every one minute bar for the next 10 or 20 years ?????

Comparison

I like to do other things..... get away from the pc and do whatever for a minute

but that's just me
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When the Joker is in the deck.. fear not and play it well
  • #18
  • Jan 31, 2013 5:07pm Jan 31, 2013 5:07pm
Quoting Slim Buffett
I would challenge you to show me ONE trader who has had LONG TERM success trading the 1 MIN chart.
Sure, it can be done. But if you're doing this for a career/living, do you really want to stress over every one minute bar for the next 10 or 20 years ?????

Comparison

I like to do other things..... get away from the pc and do whatever for a minute

but that's just me

It's not as bad as you think, you log on, see a setup trade them, log off and don't have to worry what your longer term positions are doing all day / night.

The amount you can make, from multiple traders per day can make you very rich very quickly so no need to trade for 10 or 20years.

Pick your best times to trade, currenly US Session for EJ is becoming a 1 direction easy game, sadly not been around to catch any yet.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #19
  • Jan 31, 2013 5:20pm Jan 31, 2013 5:20pm
Quoting Turveyd
It's not as bad as you think, you log on, see a setup trade them, log off and don't have to worry what your longer term positions are doing all day / night.

The amount you can make, from multiple traders per day can make you very rich very quickly so no need to trade for 10 or 20years.

Pick your best times to trade, currenly US Session for EJ is becoming a 1 direction easy game, sadly not been around to catch any yet.
Oh ! ...... I think I got it now.
So how's that really going for ya'?

btw... if you just log in, log off how can you make multiple trades per day ?? And..... if E/J is an "easy game" how come you can't just log in, place a trade and log out, knowing that you will have new riches when you again log in. ??
When the Joker is in the deck.. fear not and play it well
  • #20
  • Jan 31, 2013 5:32pm Jan 31, 2013 5:32pm
Quoting Slim Buffett
Oh ! ...... I think I got it now.
So how's that really going for ya'?

btw... if you just log in, log off how can you make multiple trades per day ?? And..... if E/J is an "easy game" how come you can't just log in, place a trade and log out, knowing that you will have new riches when you again log in. ??

Lack of time / personal issues ruining my focus so far this year, read depressed and just don't care, trying to sort my head out first.

You have to be around, to see which direction it's going, it's not like H4 where you just guess, use a big SL and set a TP and wait and let random chance sort it out, your actually live participating in it.

I see your bashing all M1 threads tonight also LOL

How's H4 Swing trading going for you, REALLY?? And can you prove it ??
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
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