Exit methods for trend-traders

Quote from Learner:

Very interesting. S77 could you share a bit more this idea. Please.
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hmm... I'd like to take a guess at this. Using profit targets and price action. Whichever comes first. Having a point set profit target that is statistically meant to capture majority of maximum moves. Or exit when price structure says it's time to get out. Such as a reversal setup.
 
Quote from Cutten:

A lot of people on here talk about trading with the trend. My question is what method do you use for exiting? The most consistent one seems to be a wide trailing stop, either a certain multiple of the ATR, or beyond a meaningful support or resistance level. Do any trend-traders use other exit methods, and if so could you describe them a little?
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Those described above would be ok for daily timeframe .
Best universal methods are IMO those which identify start and end of a cycle . When cycle ends, get out on divergence or deviation . Advantage of cycle analysis is that you will know ahead of time when you will be getting out .
 
Quote from horribilicus:



The most well known examples of reversal systems are the One Parameter Channel Breakout system and the Moving Average Crossover system. Both of them are incredibly simple and both of them are robust and profitable.
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Really? I find these to not work very well on the SP. The link pulls up a curve with 90 markets, is this after costs and does it include the sp?
 
Quote from Neodude:

Parabolic trailing stop explained:

http://www.transitionstrading.com/Parabolic.htm

Very nice and logical idea.


-Neo
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............

Like a parabolic stop principle much more than a parabolic stop and reverse.[psar]

The latter always has you in a trade; including frequently short in a a bull market,
or frequently long in a bear market-no thanks.


Also if used consistantly it would have you frequently short the strongest stocks some;
and frequently long the weakest stocks some- no thanks.

But its a helpful indicator-thanks mr W Wilder;
it gives you some hints on
making sure you do not ''buy & hold forever''
:cool:
 
Once you realize that this question is as hard as the question of when to enter, you are a long way to understanding it, which means you have a chance of solving it.

Sorry I cannot say more.

nitro
 
Quote from nitro:

Once you realize that this question is as hard as the question of when to enter, you are a long way to understanding it, which means you have a chance of solving it.

Sorry I cannot say more.

nitro
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thanks for the hint. I never saw it that way. I always approached exit strategy as in trying to make the most money possible. What I got from your statement is that if I have to have a reason for entry, then I have to have a reason to get out of a trade as well. By doing that I have an edge getting in and getting out of a trade.
 
Quote from Andy62279:

thanks for the hint. I never saw it that way. I always approached exit strategy as in trying to make the most money possible. What I got from your statement is that if I have to have a reason for entry, then I have to have a reason to get out of a trade as well. By doing that I have an edge getting in and getting out of a trade.
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You're 80% there, but 80% of the work is in the last 20%.

nitro
 
Quote from nitro:

You're 80% there, but 80% of the work is in the last 20%.

nitro
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Ok this confused me more. Before you edited you said I was 90% there. My first thought was... there is no answer. Searching for the perfect entry is like searching for the grail, and searching for the perfect exit strategy is like searching for the grail.
 
Quote from Andy62279:

Ok this confused me more. Before you edited you said I was 90% there. My first thought was... there is no answer. Searching for the perfect entry is like searching for the grail, and searching for the perfect exit strategy is like searching for the grail.
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ok i'm not confused, this is my final answer
 
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