Exit is more difficult, because more emotions are involved. Many traders exit trades too early out of fear of losing profits (or greed in the hopes of earning more profits), or exit trades way too late, to the point of near capital destruction, all because of hope.
They can both be more important than each other given the context, you can't compare them in such a general manner.
So give us some context. Or allow me to throw one out there for ya instead. How would you enter without exactly knowing if this is a mere pullback or a full reversal?
QUOTE="schizo, post: 5951545, member: 105578"]So give us some context. Or allow me to throw one out there for ya instead. How would you enter without exactly knowing if this is a mere pullback or a full reversal?[/QUOTE] i never know if it is a pullback or reversal. but i adjust entry and stop after looking at context of the future i am trading as well as the market i am trading. for example today i took copper long on a pullback in the middle of a trend up and after that long trend up, i took a short on right after the reversal down. both were taken after looking at context. cheers toucan
%% Good questions . Peter Lynch loved a 10 bagger[bigger than 4 bagger in baseball] Also good , a MCD 1 bag with 2 regular burgers ; of course when we were kids/ we had to do bigger bags or more bags than that, bros + sis.....
From messing around in Tradestation years ago, the target will guarantee a slow increase in equity curve, assuming your entry is halfway decent. Stops do the opposite. In any case, a simple trend following exit was much better than a pure stop. This was on a volatility breakout trend following entry. About 50% of the code was for entry, and the other for curve fitting the exits.
interesting... my partially automated algo has about 80% for trade management and 20% for entry management... i have struggled for years to improve the entry but can't beat my eyes and brain. toucan
It's a fun puzzle to play around with, but when the candles start bumpin my blood starts pumpin Sim and backtesting is for betas. Real warriors are pure discretion, market orders all day long