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Agree, with position or swing trading;
its cut losses , let profits ride.
As far as BEing early or being late to take a profit;
thats another thread.
Moving Stoploss to Break Even
- Thread starter tommo
- Start date
Agree, with position or swing trading;
its cut losses , let profits ride.
As far as BEing early or being late to take a profit;
thats another thread.
I have a trading software that has go break even in it. It gives go long price, stop loss price, and go break even. Example a trade for thur aug 25 symbol SWKS go long 19.60 stop loss at 18.80 go break even 20.10 risk amount $80.00 per 100 shares 4.0% risk Just an example. Its basically used to minimize losses. The software is stock signal pro.
That's pretty slick.
One thing I do want to mention: backtest the break even strategy. No question it will smooth out the equity curve, but at the same time, it will reduce the slope as well. It will definitely lower the win percentage.
One other possibility is to use a chandlier exit at 20.10 which would continually move the exit stop up if the position kept moving higher.
It would be interesting to compare the two if you could specify some sort of profit exit in your strategy. Right now your position continues forever until the breakeven is hit.
These are short term trades. 3-5+ days capturing 7% . A rule to follow would be sell on either the 4th or 5th day using a limit order or follow each days price bar up with a tight stop just under the low of the day 0.05%. The other thing I did not mention to these trades are dont buy in the first 1/2 hour of trading, you can sell obviously but not buy especially if it going up past your entry always wait for the pull back. So actually if you would have looked to take that trade on thurs you would have entered at the go long price,and you would still be in the trade as of today with mon being the 3rd day. Your target would be the 7% from the go long price given not from the enter price if you would get in say .05 higher.