Best Exit Strategies for Forex market ?

futuresforex

Junior member
27 2
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
8,394 1,170
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
8,394 1,170
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
1 0
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
162 12
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..
 

Jason101

Experienced member
1,372 215
Big topic- For the initial stop loss, I like to scale out as it goes against me.

Having said that today I added to a losing position, which is the opposite to the above but the right thing for that particular trade.

I don’t think there is a one size fits all, just different probabilities for different situations in different market conditions.

Maybe the answer is more along the lines of being flexible within your parameters to suit your own needs in any given situation.
 

NVP

Legendary member
37,785 2,109
hey all !

thanks for the recent discussion points and big respect to some of the names who have posted so far - let me have a look at whats here (y)

N
 

NVP

Legendary member
37,785 2,109
hey all :smart:

saw an interesting Exit approach on a Bollinger Bandit system the other day (guy called Daniel Fernandez who rights for the Currency Trader magazine - this was in Feb edition)

the exit is triggered from a SMA that Reduces in number per day / bar etc etc

so on opening it would be say at 50sma, and then after x bars it would change to a lower ma 949,45 etc etc) until eventually the ma will catch up withthe real time price and exit

naturally there are other S/L's in place on Entry to extra protect the trade but an interesting approach to closing a trade in profit - or at least signalling that enough is enough

hmmmmmmm
N
 
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NVP

Legendary member
37,785 2,109
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.

agreed

Cant remember the person but a very sucessful coach was asked what was the secret of his consistent success across a lot of years and teams..........

The Secret to winning ........is not losing


Corny and hideously misquoted - but probably right

N
 

wackypete2

Legendary member
10,229 2,055
hey all :smart:

saw an interesting Exit approach on a Bollinger Bandit system the other day (guy called Daniel Fernandez who rights for the Currency Trader magazine - this was in Feb edition)

the exit is triggered from a SMA that Reduces in number per day / bar etc etc

so on opening it would be say at 50sma, and then after x bars it would change to a lower ma 949,45 etc etc) until eventually the ma will catch up withthe real time price and exit

naturally there are other S/L's in place on Entry to extra protect the trade but an interesting approach to closing a trade in profit - or at least signalling that enough is enough

hmmmmmmm
N

Very interesting. I do bollinger band set ups. It's a pretty powerful indicator. If you are trading with the trend you can use the opposite b band as a likely stop. If I'm in decent profit I'll move the stop to the 20ma and use that as a trailing stop. This will keep your losses small during ranging markets but will give huge profits during trending action.

BTW, I was reading your correlation thread and downloaded the FXCORRIE ea. I'm going to play with it for a bit.

Peter
 
C

cristiano

0 0
Very interesting. I do bollinger band set ups. It's a pretty powerful indicator. If you are trading with the trend you can use the opposite b band as a likely stop. If I'm in decent profit I'll move the stop to the 20ma and use that as a trailing stop. This will keep your losses small during ranging markets but will give huge profits during trending action.

BTW, I was reading your correlation thread and downloaded the FXCORRIE ea. I'm going to play with it for a bit.

Peter

Hi Pete,
Are you refering to the 20 sma or ema?
 

NVP

Legendary member
37,785 2,109
Very interesting. I do bollinger band set ups. It's a pretty powerful indicator. If you are trading with the trend you can use the opposite b band as a likely stop. If I'm in decent profit I'll move the stop to the 20ma and use that as a trailing stop. This will keep your losses small during ranging markets but will give huge profits during trending action.

BTW, I was reading your correlation thread and downloaded the FXCORRIE ea. I'm going to play with it for a bit.

Peter

hey P

i like envelopes a lot ............BB's , Keltners i'm not fussed (y)

be gentle on the FXcorrelator ....its just a humble strenghtmeter and i've laid a simple set of rules on it using 80ma and 20mas charts and waiting for the yen and usd to line up in the same direction to trade against them

I throw in some Dow correlation as well but sometimes it just adds to the confusion

N
 
 
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