I did not explain much about the exits since everyone views them differently. My exits most of the time are done in two parts. The first part a very short scalp with half the contracts. The second part is the part I try to max out. The fact that you have locked in profits allows you to psychologically be at ease the rest of the trade. Even if it gives you a small pullback you can take some heat with comfort. I have also said that I exit when the reason for being in a trade no longer exists. I know this is a bit ambiguous but it will depend on the risk tolerance of each trader. I always keep in mind the low and the high of the last two to three candles. If the last three candles hit a resistance (what i call a flat top) then your probabilities in the trade have just changed, therefore that is reason enough for me to exit or to do a first scale. If you are not comfortable with scaling in halfs try thirds, although i find it easier to control halfs. I guess there is no definitive formula in terms of the exits and this is where trading as so many say is part formulas part art. ON the other hand, I belive you make your money when you buy, this method gives you precise and consistent entries. Like anything in life apply your own rules and considerations, make the method yours and adapt it to your trading and personality.
Good trading to you
P.
Good trading to you
P.
