Let Trade Run -- No Exit

I have talked to some pretty big traders who do this. They risk a small percent of capital and use super wide stops.
 
Quote from frostengine:

I am testing an intraday strategy that performs the best if all I set is a stop loss, then allow the strategy to only exit on market close (or some preset time). Obviously the strategy works by finding the right direction to get in, then ride the trend. However, most "trend following" exit strategies seem to degrade performance significantly.

I have tried specifying different set times other than market close, such as a few minutes before.. 30 min before etc.. In an effort to make sure it was not something specific to the close itself (such as bad data). All tests regardless of which pre-set time appears to perform great.

Any thoughts on ways to manage the trade better? Exit strategies to try?
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Ever try any volatility based stops?
 
I kind of have an idea:

how about just guess green bar and red bar.

before the opening, we guess it is a green bar day or a red bar day.

then based on the guess, if guess is a green bar, buy in the opening, sell at the closing. if guess is a red bar, sell in the opening, then cover at the closing

if day trade, use hourly bar, half hour bar to guess,...
 
RedTankEra said:
Intraday trends can be very noisy, therefore, if you use tight stops you will degrade performance.

I'm a big believer of letting time work in your favor yet if you are daytrading you are limited to the close of the day.

Have you tried a moving average cross or perhaps a certain number of green or red bar below a moving average of choice.

I don't think there is a perfect answer to your question, depends on the instrument and the price action at hand.
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I will ask this. In ES on the intraday. What would would be a profit target you can always take with open arms. For me it is 20 points. In CL it would be one dollar move. Lets me catch that once a day and close the trading platform then and there. You need to know where you are going. There is the desired profit and there is the profit target. They are not the same. In general you need to always have your eyes on the prize your profit target needs to move during your trade management. Trailing a profit target is just as valid as trailing a stop. Just like you put your last stand with a stop loss your desired profit is your last stand when it comes to profit.

When price moves strongly in your favor it makes sense to raise your TP, the closer it gets to your desired profit the slower it should rise.

With a stop loss. If price goes strong in your favor it should not rise as fast as TP, the more you get close to your desired profit, the faster it should rise. Its a dynamic dance of
two horizontal lines, TP and SL. Think of it as a diagonal elipse, with sl on one side and tp on the other. Most of the times it will hit one of the edges and you will rarely get your desired profit target but even a third of that is great. Let the market surprise you to the better and not just for the worse.
 
ELR said:
I have talked to some pretty big traders who do this. They risk a small percent of capital and use super wide stops.
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Its a laid back approach that one can use with a big account. If you have a million dollar account in stocks, it quite simple to make 2k everyday on average with 3 hours of trading. And yes I suppose some big traders do just that.
 
If you using size and hitting margin constraints, take profit EOD. If you position size to play monthly charts, than profit taking could be months to let the trend maximize profits. You need the large winners to compensate for many small losses trying to find the correct trend entry point.
 
In my trades also often put stop loss but without target and will cut profit if update analysis already confirmed price will move vice versa, I am ever reading quotation cut loss early and let profit run
 
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