When to exit.

Discussion in 'Automated Trading' started by goodfellow, May 19, 2006.

  1. Cutten

    Cutten

    Your exit should be consistent with your rationale for entering the trade. For example; if you are using Bollinger Bands to buy oversold markets or sell overbought ones, then you should exit once the market has reverted to the mean e.g. hit its moving average or close to it. If you are using a breakout system then a proper breach of the last meaningful low should be your exit point for longs etc.
     
    #31     Jun 25, 2006