Exit strategy - Scalping VS. runners

[ironchef]

Since I'm an intraday NQ trader like you, in case it helps/interests you at all, I'll set out - in outline - roughly what I try to do. I scale out. Typically (but not always) I'll close the first third of the trade after a fixed target which might be around the size of the stop-loss (or even - shock-horror - a little less) and the second third at some volatility-related distance after that, and then let the last third run, if it will, adjusting its stop-loss manually just beyond the most recently formed swing low-high. But all these decisions, about stop-losses, moving them, target(s) and letting trades run will always be volatility-related, for me. That's just a very superficial overview, and ignores the fact that I also sometimes scale in, adding more to winning positions, depending on what type of entry set-up it was, and what my current directional bias is, and especially according to my perceptions of levels/positions of recent support/resistance.

Last week a donkey with three heads could have hit plenty of big runners on NQ (this week not so much?). Don't imagine that that's characteristic or normal!

I appreciate you sharing your methods.

Last week a donkey with three heads could have hit plenty of big runners on NQ (this week not so much?). Don't imagine that that's characteristic or normal!

I wouldn't confuse the bull market with my trading skills. That is why I am here, trying to learn something so when another 2008 comes in the not too distant future, I am prepared.

Thank you for posting.

 

[ironchef]

And this forum is for posting threads and soliciting discussion.

In that case no need to get upset.

I posted a lot of stupid questions but in my case, I was looking for answers.

Your post helped me.

Best to you.

 

[TickSeeker]

I have not seen this discussion, but I apologize if the thread exists....

age old question,,, do you scalp your exit , or set a stop and move up/down as trade progresses..

Im 50 too and retired. I did my first stock trades in '88 and started to trade fulltime around 2010. Today I do intraday only by stock index futures. Dax is my favourite. I am profitable.

From this point of view I see this is an excellent question and topic. Thank you.

You also are right here and overall anywhere in the internet there is not much quality articles about how to plan your exists. Neither this one

But IMO the exits are not a trivial thing to do at all. To find the correct methods and parameters it requires a lot of work. Here is my quick points for this:

• Every trading system is different so nobody can tell it to you exactly. Princibles can be introduced of course
  
• You will need a lot of live samples from your trading system until you can start to analyze which methods is the best in your case. For the first time choose something obvious.
  
• You have to go through your trading manually trade by trade and analyze and calculate results from different methods you have.
  
• Learn to know the formula of expectancy. For example if you want to get better reward/risk (ie. let the winners run or cut losses quick or both) ratio it allmost allways means your win % will get hit so you have to analyze the best balance for the best outcome (expectancy) IN YOUR CASE.
• You propably will need more than 1 method and then also you have to find the methods how to decide in what market conditions you switch and what.

Edit: Haha I forgot to anwer the question I do my exits by short fixed targets (scalps) and when I give it to run by the price action. How exactly it is a several page rule book which I am not willing to do public domain.

Peace !