Whatever can be proven to work better, overall, than the other methods one tries/tests and is also reasonably practicable? For me, there isn't a "perfect answer" to exits. I accept that whatever method(s) I use, there will always be many specific instances where something else would have worked better on that occasion. I think a search for perfection is frustrating, too time-consuming and probably ultimately unproductive: you have to choose something that suits you, works well overall, and isn't perfect. People vary greatly in the relative extents to which "fear of losing profit already made" and "fear of missing out on more" affect them. For the moment, I close a proportion (almost always either one third or two thirds, depending on the entry-type) of my trades with a target (or two) determined by current volatility and let the rest run (if it will) adjusting its stop-loss manually, as it goes, above/below the most recently-formed swing-high/low on my chart. It's a compromise, of course, but for me, that's no worse than anything else and quite a bit better than most things I've tried. I still think about "exits" all the time, though, and would still like to improve them. (I've also done a lot of both backtesting and parallel forward-testing of various kinds of volatility-related automated trailing stops, and always done worse, overall, with those. That's not something I think about any more.)
i like the concept of a target range where if the price enters, you are obliged to look at the position and decide on a course of action.
I am trying to accept losses and not to get disturbed by it. Earlier I used to get disturbed by the losses but now strategy(actually my discipline maybe) is strong and I am making back what I lost. But still trying/practicing to take some losses (only on profits accumulated) and and not get affected by it. Also working on the exits where a little bit of greed gets slapped severely and it is a good lesson. Trying to automate (semi) so that I can avoid sitting at the PC.
Profits accumulated is a funny idea that I have been trying to actually get past actually. Should previous trades be given any consideration in deciding how to make the next trade? For risk management purposes, yes, but for decision-making, it can color our judgment how green or red we are for the day. I'm trying to trade each trade as the first trade of the day, my portfolio value being the only metric in that regard.
You took the words out of my mouth. Except I usually enter all in or mostly all in and exit all out or mostly all out with a trailing stop. If the trade triggered the stop and immediately reverses to a buy signal I can re enter the trade all in again. However, sometimes I still miss out on profits I could have made so like Xela said trying to "perfect that" is frustrating. The other thing I am working on is using options to minimize risk on trade entry. Still in first grade when it comes to options.
Am working on 1 old day trading system with some new twists and evolved into 2nd system for weekly options system. Want to be done in 30 minutes of ES, then automate it. Lost "fear of losing profit already made" and "fear of missing out on more" long ago, longer back in years one tests, these fears disappear at some point, you just don't care. I am good at reading charts most of the time and know patterns that show possible reversals so I can either reverse/hedged or hedge open profits. Have much more to backtest ideas, going to post less, that should make some all happy, health starting to feel much better, time to get selfish and get to the next level. Enough of same posts in this forum year after year. People get into pissing matches for what? King of the ant hill most likely.
%% Good ones.A study of plenty of price data[ bull + bear markets] may help; NOt a prediction. One Chicago trader warned '' the smarter you are, the longer it takes.LOL''