What kind of exit indicators do peope use to exit when trend following?

This is a discussion on What kind of exit indicators do peope use to exit when trend following? within the Trading Systems forums, part of the Methods category; Originally Posted by nunrgguy Take near term volatility into account. ATR is a very blunt instrument . But tbh, if ...

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Old Jul 11, 2015, 1:16pm   #9
Joined Oct 2008
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Originally Posted by nunrgguy View Post
Take near term volatility into account. ATR is a very blunt instrument. But tbh, if we're talking calculated indicators, don't use any of them, all sh1te.
What would you suggest then nunrgguy?
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Old Jul 11, 2015, 2:56pm   #10
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I don't trust indicators though I use EMAs to help confirm trends, entry opportunities and best prices for these.

Initial stop for me is TA-based price at which the trend fails to confirm its direction. That gives me £x risked per trade, after that I use (best high achieved - £x) for trailed stop.

However, I like Ed Ponsi's FX-Ed trend-following strategy, and in that he uses ATR - entry - 50% of the current ATR, trailed. He doesn't say so but I believe his ATR used is 10-day. I don't like ATR and I don't want to start using it in prefernce to lower lows etc. so I would love someone to prove to me that relying on Ed's ATR stop won't work.
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Old Jul 11, 2015, 3:35pm   #11
Joined Oct 2008
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Originally Posted by tomorton View Post
I don't trust indicators though I use EMAs to help confirm trends, entry opportunities and best prices for these.

Initial stop for me is TA-based price at which the trend fails to confirm its direction. That gives me £x risked per trade, after that I use (best high achieved - £x) for trailed stop.

However, I like Ed Ponsi's FX-Ed trend-following strategy, and in that he uses ATR - entry - 50% of the current ATR, trailed. He doesn't say so but I believe his ATR used is 10-day. I don't like ATR and I don't want to start using it in prefernce to lower lows etc. so I would love someone to prove to me that relying on Ed's ATR stop won't work.
Ah, Tom, what I do is when I use ATR it is always in conjunction with the last swing low.
(Edit: I would not really class ATR as an indicator, more as a tool)
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Old Oct 3, 2016, 8:29pm   #12
Joined Sep 2016
Iím in the process of testing charts based on a Stochastic RSI Strategy for which I understood the basis for entering trades, but was not so clear on what criteria to use for exits. However, reading this tread reminded me of having seen videos on YouTube that described how to base exits on ATR, so Iím thinking Iím going to go back and have a closer look at those clips, now that I might actually find the information they contain applicable.
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Old Oct 5, 2016, 11:34pm   #13
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What kind of exit indicators do people use to exit when trend following?

Pick an exit, whatever rocks your boat. Then obey that exit, not because the exit is right but because it is right because it was created in conjunction with your money management plan.
The technically right exit in trend following is just a rabbit hole that will mess with your head which is not helpful. You need the head clear for the important things.
Pick an exit signal- ma's, lower lows, % trail, ATR, bolly.b..... whatever..
What's important is the "tag on" of the money management, account risk, correlated risk, trade capital risk, trade unprotected profit risk, account unprotected profit risk, pyramided risk, your p&l to date, your targets to date, notional accounts risk, news driven event risk, macro changes, your availability and most importantly your feelings, it is emotional leaving money on the table or giving back profits, how do you feel about it? You do not know what the market is going to do, all you can do is define your version of a trend, when it is trending be in, when it is not, be out.

Last edited by Jason101; Oct 5, 2016 at 11:40pm.
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Old Dec 4, 2016, 11:15am   #14
Joined Dec 2016
I don't use any indicators for the exit, nor the entry...Use price alone!

Hint: Use candlesticks because they tell you a lot about the market sentiment.
Going long: If you're trying to exit as near as possible to a top for instance then the price/candle type/formation will obviously tell you everything you need to know in order to respond.
And if the price is topping out then pull your stops up. If you fail to do that and price drops followed by the moving averages crossing (I use 10, 30) then wait, if your lucky enough for a pullback inside the 10, 30 and then pay more attention to candles/price. On this 2nd chance you exit...Pullback entry and exit is part of a bigger strategy obviously.
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Old Dec 6, 2016, 2:54pm   #15
 
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http://www.morpheustrading.com/blog/...setting-stops/ This is pretty helpful when looking at when to exit.
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