Exit strategy/trail stops

A

arzoo

I'm still new to e-minis and am trying to figure out a simple yet effective way to take profit.

I dont expect to get the best exit every time since that's impossible but am looking for a way to get the bulk of a trend on the average.

basically, I've been using trendlines and bars to see if the trend is continuing although I've been having difficulty figuring out if the slope of the trend is just decreasing but continuing the trend as opposed to a stop in the trend.

Also, I've been making use of the average trading range to get a gauge of how far more or less the mkt may go and tighten up when it gets there.

Thanks.
 
I am experimenting using the 3rd standard deviation on a bollinger band as an exit signal (on a NQ strategy I am developing) sometimes, is this a decent exit signal?

J-
 
Quote from arzoo:



basically, I've been using trendlines and bars to see if the trend is continuing although I've been having difficulty figuring out if the slope of the trend is just decreasing but continuing the trend as opposed to a stop in the trend.
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That's because it's impossible to predict.

Trailing stops are good, but you have to backtest to find a decent # of pts to trail. The devil is in the details. I know a good support/resistance trader who tightens up the stop and/or takes partial profits when he gets near the next level, as opposed to trailing a certain number of points.
 
Quote from peterfigliozzi:



That's because it's impossible to predict.

Trailing stops are good, but you have to backtest to find a decent # of pts to trail. The devil is in the details. I know a good support/resistance trader who tightens up the stop and/or takes partial profits when he gets near the next level, as opposed to trailing a certain number of points.
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Peter,

I like that idea of "tightening" as you approach supp/res area's, once you confirm a breakthrough of these are's does your friend *loosen* his stops afterwards THEN re-tightens as he approaches another Supp/res area?

J-
 
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