What's your Exit Strategy

Discussion in 'Strategy Development' started by masterm1ne, Jul 26, 2012.

  1. I have been trying to figure out a way to exit a trade the best point.

    The way everyone teaches or explains is some sort of trailing method (for trend following), via visualization or close above/below moving avg etc. This works well at times, but other times will get you stopped out right before the market goes further in your direction (I realize this is a fundamental nuance of trading).

    Testing results for a trend following strat shows that using a trailing stop in the manner depicted, or moving averages is far better than using a set target or other exit methodology.


    The thing I don't like is the fact that you aren't getting out where the trade is most valueable to you in any trailing order case. Instead, you have to wait until price starts moving against you to know when to exit. Is there a better exit methodology?
  2. The simple way to take all the offer is to be looking for the next entry.

    BUT there is a caveat.

    The next entry is in the OPPOSITE DIRECTION from the hold you are now in.

    Just become a trader who just looks for one thing ALL OF THE TIME: The next perfect entry.

    This is what makes all ATS's coding so simple.

    Stay in the market ALL THE TIME and just KEEP DOING PERFECT ENTRIES.

    google EMG; she thinks its higher education. The above IS higher education.
  3. Worst advice ever. Please stop posting lest someone actually wastes their time trying figure out the shit you post.
  4. Care to disprove him?
  5. you can exit in 2 times
    first to pay for your losers
    and the second for the homeruns
    don't do this myself, but something to look into none the less
  6. that's actually not too different than the way I do it. Although, I trade a portfolio with a target, it doesn't matter to me what each individual trade is doing, when the account hits the target I get flat, but these trades can go on a long time, and many times, I switch sides in the middle of a trade before the target is hit.

    But man, it sure is nice to hit the target and get flat (which I just happen to be at the moment.)
  7. ocean5


    it is like to be an astronaut and teach folks to travel interstellar via internet.same sh1t.

    take perfect entries,son!i`m a guru now!
  8. dom993


    The best exit point is the one that maximizes your system long-term expectancy ... it cannot be optimum for any particular trade, and in the spirit of Mike Douglas "Trading in the zone" you shouldn't care about the current (or next) trade outcome, as long as you follow your system's rules.

    On the market & timeframe I trade (CL intraday), I have found that moving the stop slightly above the last LH (for a short, as in your example) is what statistically works best - but I do wait for a LL before moving the stop (or when the trend is "old" enough, I do that upon a DB or near-miss of that), so back to your example I would be stopped on the 2nd green line, never on the 3rd one since price didn't come close enough to a DB.

    I have in addition 2 other trailing stop mechanisms ... one is time-based (not from the entry, from the current trend-end), one is price-based (using a retracement level on the last leg when it exceeds a set size).

    I actually have a target for my runner, but it only comes to play for about 5% of the trades - again, that target was decided based on statistics.

    And for Jack - yes, I sometimes reverse the position, when I get an opposite side signal - but this is actually pretty rare for my system.
  9. If Hershey would provide actual data from his trades, rather than continually spew logorrhea about either his methodology's greatness or how great the unseen trade data is, it would be easy to disprove him empirically.

    As it is, we are stuck without the means to disprove him other than plain common sense, based on the fact that his claims of making "3-6X the daily range" lead to numbers so big, so fast that it would take anyone all the time in the day to figure out what to do with the money, leaving no time for posting on ET.
  10. 'always in' is not some imaginary idea. I don't think you can use Jack's previous incoherent babble as a way to discredit a statement such as that.
    #10     Jul 27, 2012