Discussion in 'Risk Management' started by rcanfiel, Oct 17, 2007.
What is your Profit Target Strategy?
If you don't use a profit target what might be some of the exits you might use? I could understand time, what are others?
I use an ATR trailing stop as an exit.
Profit targets work poorly for my system as it is a longterm trend following equities system.
Though I should add that at a certain % profit, I do pyramid into the trade.
But there is no scaling out. All positions in the same stock have a common exit.
I exit on gut.
You can use the price-volume action on an intra-day 1, 3, 5, and 15 minute candle chart to get a feel for the strength of the current run, or lack thereof. Better to take tiered profits on the run up then tiered losses on the way down (reverse if short).
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