Exit methods for trend-traders
- Thread starter Cutten
- Start date
Thank you Andy,
My strategy for a trade is -------eg. I entered a trade. "This trade might make me $480-$530 roughly". I always think money when i trade.......whatever the others say(CASINO says think of chips don't think of money
). As the mkt unfold, it was in my favour for quite awhile, when it kissed $490, it was hesitating abit then back down, oops. It alerted me. No good, it @$400 in a few minutes, i took the money in no time. (I never never let this bank note shrinking below $300! It was my bottom line when it reached $490). A few minutes later it down a bit more, say it worth $250( I was out at +$400), I think it still bullish, i took another bite ----re-entered.(1)Profit target=$500ish,
(2)Price action dropping from $490 to $250(i took $400 run, re-enter@$250).
Was I doing the right things? Andy and S77?
As your skills develop, differing methods will prevail. As you see, over the days, a lot of different skill levels have been represented.
Because trends overlap, there is a rich resourse available to those who annotate trends. This factor seems to slow the market down as well in the snese that your time is occupied with two sets of information (ending of a trend and the beginning of anopther). This plethora of information gives you a lot of information to work with.
If you want to focus on a particially rewarding moment in this process, chose to focus on one matter. One point in time.
Lets say you are a learner and you are assembling as much knowledge as you can. You base your efforts on "knowing what is going on" , perhaps.
Say you know about a 100 things by now. At this particular moment as a trend ends and another one is beginning, you will find that several or many things will be coming to mind that you know.
One might be: have you ever noticed when a retrace turns into a reversal?
Another might be: I think I can see point 3 forming now. you have recently seen points 1 and 2 form.
Still another may be: I've just come off the trend line and the traverse is failing because the volume won't push price past the prior value established on the left channel line..
Another. You might be concerned with how the DOM is behaving still. You could be observing that on the fifth level the former imbalance is no longer the typical imbalance.
There is after a while more to it than these gross measures of this one moment. After all it is the time, after which an expert has already reversed to be driven by the herd that will be showing up in about a few minutes or so. But the above described is the second best moment because it is a "confirmation" moment that is MOST important.
What it confirms is that you reversed properly a short while back and it also confirms that the overlap of the old trend and the new trend is coming to a close.
Someone said that there are four ways to tell. None of them were originated by the market and all of them were originated by the person. One small thing is for sure, however, people do not dictate ever when trends end; only the market does. In the partnership that a person has and maintains with the market, one thing is for sure, neither can do the other's job. Always check out what anyone is telling you by performing the test of whose job is it.
People who share responsibilities with the market do not buy and sell; they hold and reverse as an alternative.
Yes I do have ts2000i, but the only thing I know how to program is my microwave
I know my exit strategy isn't the greatest. It has it's strength and weaknesses. It does meet my trading objective, or shall I call it performance goals. So for now there's no need to fiddle with things. ATR's are good. I think its logic is very sound because it adapts to changing market volatility. I'm not the type that thinks a different system is the answer, I'm just trying to find ways to master my setup. I'm working on something new, and the entry seems to be pretty reliable. I just want to put more effort into the exit strategy this time.
Quote from Andy62279:
Yes I do have ts2000i, but the only thing I know how to program is my microwave
ATR's are good. I think its logic is very sound because it adapts to changing market volatility. I'm not the type that thinks a different system is the answer, I'm just trying to find ways to master my setup. I'm working on something new, and the entry seems to be pretty reliable. I just want to put more effort into the exit strategy this time.
Hey Andy,
You're ahead of me.....I have no clue how to program my microwave.
Here's a breakout system with a parabolic stop for the exit. It is very rough, but it is not optimized and the values were arbitrarily chosen. It simply shows the basic use of a parabolic exit in a mechanical system.
It's in TS 8 format; hopefully you can use it. If not, let me know and I'll try to fix it.
Enjoy.
Code:
input: F(.2), inc(.05), P(20);
vars: hh(0),ll(0),par(0),factor(0),mp(0);
hh = highest(high, p);
ll = lowest(low, p);
mp = marketposition;
if mp[1] <> marketposition then begin
factor = f;
if marketposition = 1 then
par = entryprice - avgtruerange(10);
if marketposition = -1 then
par = entryprice + avgtruerange(10);
end;
if mp[1] = marketposition and mp = 1 then begin
factor = factor + inc;
par = par + factor * (highest(high,barssinceentry) - close);
end;
if mp[1] = marketposition and mp = -1 then begin
factor = factor + inc;
par = par + factor * (lowest(low,barssinceentry) - close);
end;
buy next bar at hh stop;
sell short next bar at ll stop;
sell next bar at par stop;
buy to cover next bar at par stop;