hmm... I'd like to take a guess at this. Using profit targets and price action. Whichever comes first. Having a point set profit target that is statistically meant to capture majority of maximum moves. Or exit when price structure says it's time to get out. Such as a reversal setup.
Those described above would be ok for daily timeframe . Best universal methods are IMO those which identify start and end of a cycle . When cycle ends, get out on divergence or deviation . Advantage of cycle analysis is that you will know ahead of time when you will be getting out .
Really? I find these to not work very well on the SP. The link pulls up a curve with 90 markets, is this after costs and does it include the sp?
............ Like a parabolic stop principle much more than a parabolic stop and reverse.[psar] The latter always has you in a trade; including frequently short in a a bull market, or frequently long in a bear market-no thanks. Also if used consistantly it would have you frequently short the strongest stocks some; and frequently long the weakest stocks some- no thanks. But its a helpful indicator-thanks mr W Wilder; it gives you some hints on making sure you do not ''buy & hold forever''
Once you realize that this question is as hard as the question of when to enter, you are a long way to understanding it, which means you have a chance of solving it. Sorry I cannot say more. nitro
thanks for the hint. I never saw it that way. I always approached exit strategy as in trying to make the most money possible. What I got from your statement is that if I have to have a reason for entry, then I have to have a reason to get out of a trade as well. By doing that I have an edge getting in and getting out of a trade.
Ok this confused me more. Before you edited you said I was 90% there. My first thought was... there is no answer. Searching for the perfect entry is like searching for the grail, and searching for the perfect exit strategy is like searching for the grail.