Best Exit Strategies for Forex market ?

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Old May 19, 2011, 9:14am   #49
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Re: Best Exit Strategies for Forex market ?

NVP started this thread yep the Turtles did

jees thats a long time ago now

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Old Jun 13, 2011, 2:26pm   #50
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Re: Best Exit Strategies for Forex market ?

NVP started this thread actually some recent research and testing I have been doing reminded me of another factor I rate very highly in assessing Exit positions

Average True range of the Time period/pair(s) you are trading

if you are lucky enough to get extended (or whatever % of ATR you set) it may be a good idea to lock in some profits

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Old Jun 16, 2011, 11:29pm   #51
 
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Re: Best Exit Strategies for Forex market ?

Quote:
Originally Posted by NVP View Post
actually some recent research and testing I have been doing reminded me of another factor I rate very highly in assessing Exit positions

Average True range of the Time period/pair(s) you are trading

if you are lucky enough to get extended (or whatever % of ATR you set) it may be a good idea to lock in some profits

N
I find ATR can be great, simple and all you need but then at other times it just gets out of synch with itself and screws up every trade I try it on. So I start looking at it to see what's wrong - is the number of bars too low? 14 bars doesn't work but then 100 does. Or maybe instead of using the time frame of the bars I'm looking at, it seems more suitable to use a higher time frame with a bit shaved off.

I guess that's just the subconcious desire to be right all the time, driving me to complicate it all when I should be happy with what I've got and should KISS.
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Old Jun 17, 2011, 11:05am   #52
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Re: Best Exit Strategies for Forex market ?

NVP started this thread yep yep yep

the devil is in the detail......

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Old Jun 20, 2011, 6:31pm   #53
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Re: Best Exit Strategies for Forex market ?

'Momentum' strategy: Exit after i days

'Counter-trend' strategy: Exit after j days

i > j

Last edited by Joey25; Jun 20, 2011 at 6:40pm.
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Old Jun 20, 2011, 8:38pm   #54
 
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Re: Best Exit Strategies for Forex market ?

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Originally Posted by Jason101 View Post

I know a lot of traders do scale in, it is something I would like to find out more about. Could you describe the methods you use for this please?
Check out FTI's thread "Technical Analysis Fallacy" over on FF, he's a bit of a specialist at scaling in and out.

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Average True range of the Time period/pair(s) you are trading
This is my preferred method. I like 1XATR for SL and 2XATR and 3XATR for PT's. In my testing these performed as well as anything else except trailed Stops which entail longer draw-downs.

For very low drawdowns I found a 5-bar timed exit was ideal but not as profitable in the long run because you end up cutting off too many late-starters before they get chance to go.
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Old Jun 22, 2011, 8:21pm   #55
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Re: Best Exit Strategies for Forex market ?

In the article "Beating the Foreign Exchange Market" (Sweeney, Journal of Finance 1986), filter rules are discussed, in this case as entry signals, but I reckon they're potentially good as exit signals.

The idea is simple - a signal is triggered by a fixed percentage move such as 0.5%, 1.0%, 2.0% etc. off a recent high or low.

The definition of "recent high or low" has various parameterisations, as does the percentage retrace.
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Old Jun 23, 2011, 3:43pm   #56
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Re: Best Exit Strategies for Forex market ?

NVP started this thread
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Originally Posted by Vorbis View Post
Check out FTI's thread "Technical Analysis Fallacy" over on FF, he's a bit of a specialist at scaling in and out.



This is my preferred method. I like 1XATR for SL and 2XATR and 3XATR for PT's. In my testing these performed as well as anything else except trailed Stops which entail longer draw-downs.
For very low drawdowns I found a 5-bar timed exit was ideal but not as profitable in the long run because you end up cutting off too many late-starters before they get chance to go.
thats real nice V - and easy to follow...just out of interest have you done any work to establish what the 2X ATR equals say as a standard deviation of the ATR ?

I fancy something that say looks at the ATR and the T1, T2 etc related to the Standard deviation - eg 1Xsd , 2Xsd and 3xsd for those big tail trades

just a thought..I am not a methematician

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