Exits

Chuck Krug

Chuck Krug

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H/T nextSignals @stephenharlinmd
 
E tries have always been way more important in my trading, regardless of whether it's algorithmic or discretionary. With the right entry you can statistically reset your stop to entry plus account for execution related cost early on and transform the trade into a risk less position regardless of the exit.

But others maintain that for statistical relevancy across many trades the exit is the most important.

Both makes sense and makes both important.
 
M.W. said:
E tries have always been way more important in my trading, regardless of whether it's algorithmic or discretionary. With the right entry you can statistically reset your stop to entry plus account for execution related cost early on and transform the trade into a risk less position regardless of the exit.
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That is, to a large extent, true. With more precise entry, the lower your risk. However, nobody consistently gets into a trade at the right price at the right time. To say otherwise makes you a liar or a simpleton. That is why having a good risk control measure in place is paramount to achieving success in the long run. You must know exactly what you need to do if your trade doesn't pan out as initially planned.
 
Managing risk is so paramount to running my business that I don't even mention it, it's alike breathing air. Without proper risk management trading should not even be anyone's business.

schizo said:
That is, to a large extent, true. With more precise entry, the lower your risk. However, nobody consistently gets into a trade at the right price at the right time. To say otherwise makes you a liar or a simpleton. That is why having a good risk control measure in place is paramount to achieving success in the long run. You must know exactly what you need to do if your trade doesn't pan out as initially planned.
More...
 
deaddog said:
Sounds good but hard to do. There is nothing there that helps a trader to determin when to exit.
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yes and I don't even agree with 2, for instance just how are you supposed to know what you have to gain, unless you did a target order? It seems self- contradictory

5 is insanity in my opinion, I expect at least 50% of the time to be correct or why the hell enter in the first place
 
2 is fairly obvious. If you are in profit say 4x of your original 5x target determine whether you believe, by observing current PA, whether holding for full target is still prudent to get last20% of move versus losing a big chunk of current in hand 80%.

5 IMO is dead one. I anticipate being wrong 100% of the time ... and therefore protect my downside diligently. Chandelier Stops long/short adjusting with PA but never back-adjusting them to give trade "more room to breath".
 
M.W. said:
Managing risk is so paramount to running my business that I don't even mention it, it's alike breathing air. Without proper risk management trading should not even be anyone's business.
More...
Amen, Amen brother.
 
You would think that a subject as important as this would garner more replys.
The thread on the price of mayonaise started about the same time has over 200.

Maybe this should become Elite Shopper.

Anyhow on Exits.

An exit strategy should answer 3 questions.

1. What is my risk and how do I protect my capital?
2. How and when do I close my trade?
3. Where and when should I re-enter this trade?
 
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