Having trouble letting my winners run

This is a discussion on Having trouble letting my winners run within the Discretionary Trading forums, part of the Methods category; Ever since i started trading i have had a problem of letting my winners run. It means overall i end ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Oct 15, 2010, 7:26pm   #1
Joined Aug 2010
Having trouble letting my winners run

Ever since i started trading i have had a problem of letting my winners run. It means overall i end up with far greater average loss per trade than average profit per trade. From review this is the only thing preventing me from becoming a profitable trader because my entries are pretty good.

I usually get out the first instance there is a weakness in following candle. Ive noticed that just before a big move the market seems to throw out a candle hinting to a reveral before it goes steaming in the direction you traded in.

Iam backtesting a system which means that when i enter i pull up a 2 minute chart and get out at the first candle in the opposite direction to my trade (Thats how bad i am at letting them run). This system would have meant i would made 45 point profit today instead of a 17 point loss.

What do people think? Have they any suggestions for a system. I dont mind having a few more small losing trades, if i can let thoses winners run.

Omar
Phoenix01 is offline   Reply With Quote
Old Oct 17, 2010, 3:07am   #2
Joined Oct 2009
Re: Having trouble letting my winners run

Without knowing what your doing exactly all I could recommend is go to a 5 min bar and put your stop under previous and trail
kbit is offline   Reply With Quote
Old Oct 17, 2010, 3:46am   #3
 
3 Posts
Joined Oct 2010
Re: Having trouble letting my winners run

I'm using a system/pattern for trading and so far more than 95% of the trades went the way it pointed me out. the main problem on the system was me not being disciplined ...and some more analysis maybe.
so maybe the same is happening to you
T.O.M is offline   Reply With Quote
Old Oct 17, 2010, 5:07am   #4
 
Shakone's Avatar
Joined Feb 2009
Re: Having trouble letting my winners run

1)Go back to demo trading and build some confidence in your system and confidence in letting winners run. Do you have a clear system for when to take profits? if not, get one.
2)When you get to the point that you are feeling edgy (the first down candle) take off 75% of your profits, and let 25% run or take off 90% and let 10% run, whatever amount you can handle, and then once you see how much that 10% can make, you'll start to want to let more than 10% run.
3)You're able to get out of winners early and cut you average winner down. Try to learn to get out of losers early, and reduce your average loss.
4) Make sure that when you do trade, you're not risking more than you can handle. If you're not following your strategy, lower the % you are risking until you canfollow your strategy
Shakone is offline   Reply With Quote
Old Oct 17, 2010, 10:51am   #5
 
barjon's Avatar
Joined May 2003
Re: Having trouble letting my winners run

first make sure that you're not imagining things.

look at all your "winning" trades and establish the maximum potential that was in the move before price came back to knock out your stoploss (or your trading timescale was exhausted). Express that potential in terms of your initial risks (R:R) and look at the distribution. Do the same for your actual R:R achieved and compare the two. That'll tell you the extent of your problem.

When you look at the potential R:R distribution you might find that you've got a nice Bell curve with the bulk sitting in the 1:2 (say) range. And that would give you a good expectation to work with (which you could use on a "set it and forget it" basis if you wanted).

'Course, as Shakey says, establishing clear exit criteria is the key.

jon
barjon is offline   Reply With Quote
Old Oct 17, 2010, 8:58pm   #6
Joined Jan 2008
Re: Having trouble letting my winners run

Automate your system
intradaybill is offline   Reply With Quote
Old Oct 18, 2010, 10:17am   #7
Joined Aug 2010
Re: Having trouble letting my winners run

Phoenix01 started this thread
Quote:
Originally Posted by Shakone View Post
1)Go back to demo trading and build some confidence in your system and confidence in letting winners run. Do you have a clear system for when to take profits? if not, get one.
2)When you get to the point that you are feeling edgy (the first down candle) take off 75% of your profits, and let 25% run or take off 90% and let 10% run, whatever amount you can handle, and then once you see how much that 10% can make, you'll start to want to let more than 10% run.
3)You're able to get out of winners early and cut you average winner down. Try to learn to get out of losers early, and reduce your average loss.
4) Make sure that when you do trade, you're not risking more than you can handle. If you're not following your strategy, lower the % you are risking until you canfollow your strategy
I think taking off most my position when the first candle goes against me and then letting the rest of the position run would work. Its just i trade futures and that would mean i would have to buy 2 contracts. Which on the FTSE100 would mean £20 every pip, currently only trading one contract. However iam cut losers quiet short so my 2 contracts would not be risky if it allowed me to run positions.

Thanks
Phoenix01 is offline   Reply With Quote
Old Oct 27, 2010, 9:50pm   #8
DHB
 
DHB's Avatar
Joined Apr 2008
Re: Having trouble letting my winners run

Consider using a fixed TP for a while until you get more comfortable letting winners run. Get out at the first sign of trouble like you do now, but as soon as you have moved your stop to BE and set your TP, your job babysitting the trade is over and you should get away from the computer and let the market do its thing. You can't lose anymore, you can only break even or win. Not a bad situation to be in eh?
DHB is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
i honestly think the hardest thing to do is let winners run Chartsy General Trading Chat 41 Aug 24, 2010 12:25pm
Time for a T Time poll! Which is worst-Being Let Down, Or,Letting Somebody Else down? JTrader The Foyer 5 Dec 4, 2008 6:07pm
winners ? dunlop T2W Feedback & Announcements 4 Jun 10, 2004 9:51pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)