Exits-- targets vs. trailing stops

I prefer not to have targets and let my trades run untill proven differently by price action. However I do use a disaster stop which is volatility based.
An example: my most recent bullish swing trade in gold http://localsfoolsgold.blogspot.be/2013/11/this-is-what-multi-week-bottom-looks.html and how I am attaching a disaster stop to it: http://localsfoolsgold.blogspot.be/2013/11/overlooking-things-and-volatility-based.html all in all pretty simple stuff. Good trading doesn't need to be difficult.
 
Quote from cvds16:

I prefer not to have targets and let my trades run untill proven differently by price action
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so what price action must take place when you execute your stop ?
can you be more specific here, please ?
 
I am looking for a reversal to show up in my charts (plenty of those though, can't give you a whole manual here, I'd advise you to study turning points more closely) I personally look for a double confirmation at least: it has to show up in my 2H charts and then gets confirmed in my 8H chart somehow for swing trades, perfect circumstances (=where I expect big moves) get double confirmations in my 8H chart (so a kinda triple confirmation). My example was one of these last ones. I try to be in as much of the time possible. Since it's swing trading it's really quite relaxed. However if I somehow miss the reversal my disaster stop gets hit as a last resort ...
To translate this into a daytrading strategy would however be harder though, but not impossible. On how to do that exactly I'll leave that up to your imagination since I don't feel like getting stuck in front of a pc screen all day anymore. :) I'd work somehow along the same lines as described above ...
 
Quote from cvds16:

I personally look for a double confirmation at least: it has to show up in my 2H charts and then gets confirmed in my 8H chart somehow for swing trades...
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How do you go into the Regular Trading Hours with such lengthy frames?I guess a part of your trading model admits the early entry?

Thank you
 
I live in europe and I base my chart reading on 24/5 charts (I don't trade with them, but I use Alpara metatrader 5 for charts, since here you get the nice 5 days a week charts, which is how I want to see them), in fact this trade showed it's head up first during the Asian session, I somehow missed that (kinda was still too short biased), I only saw the second confirm clearly afterwards, I took the trade yesterday at 13:09 CET which was way before RTH were open. So in fact I totally don't care about RTH. In fact I think RTH are only important for daytraders, allthough sometimes you see real nice moves during the early London session. Asian sessions have a reputation for being extremely boring, only around the end of those you might see some (often very small) action. So I don't actually care about RTH. If I was solely daytrading I'd most likely stick to the first two and a half hours of RTH.
 
I think the solution is quite simple.For me,the exits is in the direct correspondence with the situation you trade.There can be two scenarios for the particular situation you trade.It either works out or not.Let`s say you trade the HH HL adjacent bars.If so,you`d want to make a leeway as soon as it stops producing the HH HL,and stick to it as long as it does.Same with the range bound folks.It`s easier.
 
yeah, the HH HL is a popular concept that has it's merits, but not quite the way I trade. I think everyone should try to find his personal strategy that fits best with his personality. Copying/replicating strategies from other people often doesn't work out in the end. I learned almost about everything I know by looking at charts for years. Even now I sometimes overlook things at times ... but I try to learn from my mistakes :cool: I got better at that last part over the years :) The way I trade is not for everyone, I am quite aware of this.
 
Quote from cvds16:

yeah, the HH HL is a popular concept that has it's merits, but not quite the way I trade. I think everyone should try to find his personal strategy that fits best with his personality. Copying/replicating strategies from other people often doesn't work out in the end. I learned almost about everything I know by looking at charts for years. Even now I sometimes overlook things at times ... but I try to learn from my mistakes :cool: I got better at that last part over the years :) The way I trade is not for everyone, I am quite aware of this.
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Yep....:cool:
 
acrary said:
It's a true or false statement. If doji(20) means the open and close must be between 20% of the high/low range for it to be true.

Ex.
O = 1000
H = 1010
L = 1000
C = 1008

h - l = 1010 - 1000 = 10 pt. range
abs(o -c) = abs(1000 - 1008) = 8

1 - (8/10) = .2 or 20% so the doji(20) would equal true
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Does someone know to what acrary was refering to when mentioning doji(20) ?
Was that >20% ou <20%.

I guess is the first one because <20% is a candle with very short tails.
 
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