Best Exit Strategies for Forex market ?

NVP

Legendary member
hey all

I had a hunt around but its pretty thin on the ground out there regarding what is the best Exit strategy for a trade (let alone Forex specific)

so c'mon lets get to business and decide / Debate the area that is actually more important than the billions of threads on Entry points......any idiot can enter a trade ........but when to leave the party ? :whistling


Ma's ?
Targets ?
Price action Support / Resistence levels
Trailing Stop losses ?
any other indicators ? (eg SAR ?)
News releases ?

whats your favourite and why ?..or do you combine multiples ? :smart:
N
 

francisfinley

Established member
i use steve hopwoods mptm.

i can put a trade on a walk away/carry on coding without being glued to the chart watching a line and my life waste away. :clap:

that works for me.
 

wackypete2

Legendary member
If you are looking at 1h or higher and you are in profit then a good exit would be a break of the 20ma. I like the 20ma because it allows for some breathing room and gives nice re-entry signals if price breaks back in your favor.

Peter
 

NVP

Legendary member
If you are looking at 1h or higher and you are in profit then a good exit would be a break of the 20ma. I like the 20ma because it allows for some breathing room and gives nice re-entry signals if price breaks back in your favor.

Peter



yep .....I love the 20ma ..its a really good workhorse across the board

N
 

NVP

Legendary member
in theory I would say to people

following setting the intial S/L for the trade (based on a decent S/R level below the entry point)

then keep moving the stop as successive key Resistance or support levels are created in the advancing and profitable trade

in theory thats great...........but in reality .............hey reality is another kettle of fish as we all have lives to lead !! :p

N
 

NVP

Legendary member
yea !


thanks to who responded

another thread on exit strategies bites the dust..........thats why theres so few successful traders I Guess......:cry:

N
 

Shakone

Senior member
Well, there is a lot to it. First there's exiting when things are going well, separately is exiting when things are not. Then there's the case where the exit depends on the entry. If I enter on a breakout expecting momentum and it immediately pulls back and goes lower with no momentum, then I may exit immediately. If you enter on a pullback in a trend and it goes lower than entry, then that may not be an issue and you'd hold it. Then there's management of the stop just in case, and then there's multiple exits. There's a lot of thigns that you could discuss.

Are you looking for all of these? Or profit exits? Stop management midtrade?
 
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NVP

Legendary member
Well, there is a lot to it. First there's exiting when things are going well, separately is exiting when things are not. Then there's the case where the exit depends on the entry. If I enter on a breakout expecting momentum and it immediately pulls back and goes lower with no momentum, then I may exit immediately. If you enter on a pullback in a trend and it goes lower than entry, then that may not be an issue and you'd hold it. Then there's management of the stop just in case, and then there's multiple exits. There's a lot of thigns that you could discuss.

Are you looking for all of these? Or profit exits? Stop management midtrade?

Hi S

anything people want to talk about or share.......its far more important than the entry point (that sadly occupies 90% of all trading threads in the cosmos) :whistling

N
 

andycon

Active member
hey all

I had a hunt around but its pretty thin on the ground out there regarding what is the best Exit strategy for a trade (let alone Forex specific)

so c'mon lets get to business and decide / Debate the area that is actually more important than the billions of threads on Entry points......any idiot can enter a trade ........but when to leave the party ? :whistling


Ma's ?
Targets ?
Price action Support / Resistence levels
Trailing Stop losses ?
any other indicators ? (eg SAR ?)
News releases ?

whats your favourite and why ?..or do you combine multiples ? :smart:
N

I would agree that most people have far to much emphasis on the entry strategy and then seem to wing it on the exit, with either no strategy or a very lose one, and this is why they fall prey to the emotions of fear and greed either holding out to long (greed) or cutting it early (fear). I believe the exit strategy should be predetermined at the time of entry based on the risk / reward ratio and the win / loss ratio of the system being used. If the trade looks like it is going to fly past the exit then I will still exit as planned and wait for the next set up, the exception to this is if your entry criteria is generating a second entry signal which will allow you to push further out your exit point and if you wish add to your trade and tighten your original stop.
 

Pazienza

Senior member
Round numbers and s/r levels, prior highs and lows.

Or

Try a two candle trail, 1 candle with very sharp moves, tighten up sharply if you get a strong reversal signal. I do everything on the close.
 

futuresforex

Junior member
I use a few different potential exit strategies, depending on whether the market is trending or ranging or getting ready to breakout.

First thing you need to figure out is when do you get your stop to breakeven? Once you can figure that out and systemize it, then you can then proceed to figuring out how to exit properly or trail your stops properly.

Simpler is better. Don't clutter your chart with 10 different technical indicators trying to find your the perfect exit strategy as it will just confuse you. Stick with 2-3 helpful confirming indicators that will provide clarity for your exit strategy.
 

TheBramble

Legendary member
Entries are rarely made at technically significant levels. The pressure to move a stop to B/E is purely psychological and will work against you more often than it serves you.

Use of SR levels of all flavours, oversold/overbought inds, especially the CCI and failures to make new high/lows outside the extremes of Linear Regression Channels are all good places to start research to develop a exit strategies that suit any phase of the market.
 
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TheBramble

Legendary member
Round numbers and s/r levels, prior highs and lows.

Or

Try a two candle trail, 1 candle with very sharp moves, tighten up sharply if you get a strong reversal signal. I do everything on the close.
Good points. Wish I'd read this before wasting my time with the post above.

Just to underline the really important point Pazienza makes; only work on the previous bar - the one that is actually CLOSED.

Too many bods take action based on what the current bar is doing and when the smoke clears, it doesn't look anything like what it did when they exited on that doji that is now an engulfing flock of crows in a cloud of steam or whatever exotic dream name you've got for it.
 

obama6493

Newbie
yep .....I love the 20ma ..its a really good workhorse across the board

N
in theory I would say to people

following setting the intial S/L for the trade (based on a decent S/R level below the entry point)

then keep moving the stop as successive key Resistance or support levels are created in the advancing and profitable trade

in theory thats great...........but in reality .............hey reality is another kettle of fish as we all have lives to lead !!
 

BlackBison

Active member
Well with the decreased volatility and increased choppyness of most fx pairs over the last 2 years my targets as a level trader have narrowed dramatically. If we get some more significant market dislocations again and it starts kicking off then I will widen my targets accordingly and start trying to run winners again..
 
 
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