Best Exit Strategies for Forex market ?

This is a discussion on Best Exit Strategies for Forex market ? within the Forex forums, part of the Markets category; Originally Posted by Joey25 To clarify, the filter rule exit is as follows: Example Long (The defintion of a "local ...

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Old Jun 30, 2011, 8:00am   #61
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Re: Best Exit Strategies for Forex market ?

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Originally Posted by Joey25 View Post
To clarify, the filter rule exit is as follows:

Example Long

(The defintion of a "local maximum" I use here is a price surrounded by lower prices to the left and to the right).

Buy at 100 on day 1
Day 2: price 101
Day 3: price 102
Day 4: price 101 ------- at this point a local maximum has been formed at 102

The filter rule exit is then a % fall from 102, so if we use 5% it needs to fall from 102 to 96.9 before the exit signal is triggered.

If a new local maximum is formed that is higher than 102 before 96.9 is hit then a 5% fall from this new higher-high is required.
theres a FIbo idea in here somewhere ?

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Old Jun 30, 2011, 1:06pm   #62
 
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Re: Best Exit Strategies for Forex market ?

The price action crowd have two exit approaches that I have found so far:

- put the first stop just below the signal bar of entry, then move it up to just below the entry bar when the market is clear above that bar, then move it up to break-even at the next bar which closes clear above that. I don't like this one so much because I think it's less performant on currencies, but most price action people I speak to trade the S&P or crude.

- alternatively, if you're in, you exit when price action starts to look flakey - in other words totally subjective and utterly dependent on what kind of price action you're keen on. while they seem to look for at least 3 or 4 price action reasons to enter, it seems they only need 1 price action reason to bail out.
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Old Jun 30, 2011, 1:36pm   #63
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Re: Best Exit Strategies for Forex market ?

I have also found very little regarding exit strategies. It is the final piece of the puzzle for me. I find that 95% of my trades go into profit and I should close them, but not having a clearly defined exit still holds me back. I am looking for something that is very objective, no discretion involved what soever and also something reliant on the the market trend and technicals. There are many but nothing that I am happy with yet.

It is amazing how wqithout this one piece most of the winners turn into losers asIsit there and watch my profits dissapear. As they dissapear, the old psycholgy kicks in..such aswaiting for the market to come back.

I think exits are by far the most important part. If you have this nailed then the rest will take care of itself.
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Old Jun 30, 2011, 1:43pm   #64
 
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Re: Best Exit Strategies for Forex market ?

Quote:
Originally Posted by Billy Gates View Post
I am looking for something that is very objective, no discretion involved what soever and also something reliant on the the market trend and technicals. There are many but nothing that I am happy with yet.
Why not make a list of half a dozen you think are promising and test them? Then when you have a clear winning performer, adopt it and stick with it.

Quote:
I think exits are by far the most important part. If you have this nailed then the rest will take care of itself.
The exit is irrelevant if you don't get the entry right first! Any resulting profit is defined by the positive difference between the two, so aren't they by definition equally important?
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Old Jun 30, 2011, 1:53pm   #65
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Re: Best Exit Strategies for Forex market ?

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The exit is irrelevant if you don't get the entry right first! Any resulting profit is defined by the positive difference between the two, so aren't they by definition equally important?
Yes I agree, but I think most people will enter a trade more easily than they will exit one. Many enter either on a whim, or an idea or just on the basis of greed or missing out. But when you get one right, you will start to focus more on the other anyway.

There is more involved with the exit in my opinion and that is why most traders struggle with this and profitability more.
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Old Jul 3, 2011, 9:35am   #66
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Re: Best Exit Strategies for Forex market ?

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Originally Posted by Vorbis View Post
Why not make a list of half a dozen you think are promising and test them? Then when you have a clear winning performer, adopt it and stick with it.



The exit is irrelevant if you don't get the entry right first! Any resulting profit is defined by the positive difference between the two, so aren't they by definition equally important?
hey V

I see your point - but lets be honest ..........with some decent research and common sense I think that most people can get to a pretty robust set of entry Rules........even if it is just enter on a standard MA crossover signalling

I think the rules and issues surrounding the exit are probably much more subjective based for most and therefore create the real problems for delivering consistent profitable trading

if you consider that you expect your entry system will give you say an anticipated 1:1 return most of the time then its the exit strategy that can get you the extra mileage and returns (or not)

purely mechanical Exit rules verses instinct and experience is an interesting discussion point

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Old Apr 16, 2012, 11:28am   #67
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Re: Best Exit Strategies for Forex market ?

NVP started this thread hey all

I wanted to rejuvinate this Thread as after being lucky enought to talk to a lot of good traders in the last few weeks - most agree that Exit strategies are very very important and what sort the professionals from the rest

c'mon experienced traders .......have a look through the offerings here and add any thoughts please

Hey - The newbies might even read it instead of the next "holy grail" Entry System thread !

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Old Apr 16, 2012, 11:38am   #68
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Re: Best Exit Strategies for Forex market ?

NVP started this thread just to summarise most things mentioned so far


hitting Key support and resistance levels
hitting Set Targets (pips,ATR , % range, etc etc)
indicator crossovers / activation (MA's or whatever floats your boat)
Candlestick / Price action signals
Market News !!
correlation / signals from other Markets
probablistic models

Scaling in and out are favourites with the experts here (ie splitting your trade down into smaller chunks and using different Exit strategies with each part).....this way you are not "all or nothing" and can allocate funds to B/E , Targets and even a little to running the trade if it takes off with training stops etc etc

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Old Aug 31, 2012, 4:00pm   #69
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Re: Best Exit Strategies for Forex market ?

NVP started this thread interesting article (thanks Lance)

Working on Exit Skills | Adam Grimes
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Thanks! The following members like this post: Adamus , the hare
Old Sep 1, 2012, 2:13pm   #70
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Re: Best Exit Strategies for Forex market ?

This wont work with every system, but the optimal exit for many systems is the new entry point.
That is assuming you can pick the tops and bottoms more often then not.

If you are exit before the price moves in the opposite direction you are not taking full potential of the movement.
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