Best Exit Strategies for Forex market ?

NVP

Legendary member
37,768 2,101
hey all

thanks again for this thread.............Exits are critical to success and are certainly the reason for failure

N
 

NVP

Legendary member
37,768 2,101
Hey all

Lance beggs is a price action trader and I am a big fan .......I will not reproduce verbatim his thoughts on exits but they are logical and practical as is all his work and involve

exit strategies must be based on the traders personality and objectives
utilising S/R levels (intially and as trade progresses)
Integrating Target based exits
Watching the market to ensure the entry signals still support the trade
considering multiple trades to blend the above approaches

I think this to me remphasises if traders spent as much time focussing on exit strategies as they do on the entries then they would enjoy a lot more success

N
 

forker

Senior member
2,688 500
it depends on the trade. if you in a trend then the best way to exit is by trailing your stop. on the other hand if you range trading you should have at least 1 set target.
 

Adamus

Experienced member
1,898 97
If you've read Al Brooks you'll know that he exits either on a stop placed 1 tick below the signal bar (the bar before the entry bar), or he exits half on a target about the same distance away, leaving the other half to run. He pulls the stop up to break even when the market moves beyond the high of the entry bar.

I think what andycon said in post 13 about moving the target with new signals is very good advice too.

Glad to find something on the forex markets - usually it's always the index traders these days.
 

NVP

Legendary member
37,768 2,101
it depends on the trade. if you in a trend then the best way to exit is by trailing your stop. on the other hand if you range trading you should have at least 1 set target.

1000% agree (y)

N
 

NVP

Legendary member
37,768 2,101
If you've read Al Brooks you'll know that he exits either on a stop placed 1 tick below the signal bar (the bar before the entry bar), or he exits half on a target about the same distance away, leaving the other half to run. He pulls the stop up to break even when the market moves beyond the high of the entry bar.

I think what andycon said in post 13 about moving the target with new signals is very good advice too.

Glad to find something on the forex markets - usually it's always the index traders these days.

hey A

good post.......If I had a Dollar for every newbie that pm's me on my other T2W thread re why I hav'nt provided detailed exit strategies for my systems i'd be a rich man :smart:

I think it has to be tailored to each traders approach and any generic advice is a cop out........hence I dont provide it

if I say "trail it" the market will range for 4 days.....If I say "target it" the market will then trend for 2,000 pips up !! :p

N
 

NVP

Legendary member
37,768 2,101
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.

sounds like a plan (y)

N
 

Adamus

Experienced member
1,898 97
I've been trying out the Al Brooks 50:50 target:trailing stop approach over the last few days and so far it appears to provide the best of both worlds.

Once you get the trade going well in your direction, then pull up the initial stop to break-even and set a target for half your lot size. If your target is hit, that was the easy bit - the hard bit is knowing how best to trail your stop on the remaining position.

I tried leaving it to run for ever (still trying that out ;) ), trailing 15 points, trailing a volatility based number of points, exiting when the 20 bar EMA catches up etc. This question for me is wide open.
 

NVP

Legendary member
37,768 2,101
hey A

agreed - splitting 50/50 (or whatever % suits) is definitely the best of both worlds and can also be applied to entry methodology as well of course

yes its advanced stuff and not suitable for newbies but these kind of Discussions alongside MM are for me where the holy grail is for profitable trading vs finding the next great indicator/signal

N(y)
 

barjon

Legendary member
10,705 1,809
Someone way back in this thread mentioned re-entry and I think it's worth pursuing that. It seems to me that in the same way that a goodly few have a well thought out entry strategy, but a loose (or non-existent)exit strategy, so do people not bother with a re-entry strategy and just bemoan the "what could've been" if they'd stayed in.

imo peoples' plans should encompass all three strategies - entry, exit and re-entry. You might think of re-entry as a new trade, but it may not necessarily be based on your primary entry set-up, so it's really a different beast. For example, if your entry was based on reversal and you've used a similar set-up for your exit, then your re-entry strategy may well be break-out based (maybe around where you'd be putting your stop-loss if the reversal based exit had been a fresh trade :))

good trading

jon
 

Fleming1

Newbie
4 0
Hi,One may attack after going a couple of steps back. I think this is the much risk managing step in Forex trading which i found in this thread.Good post.
 

Jason101

Experienced member
1,372 215
hey A

agreed - splitting 50/50 (or whatever % suits) is definitely the best of both worlds and can also be applied to entry methodology as well of course

yes its advanced stuff and not suitable for newbies but these kind of Discussions alongside MM are for me where the holy grail is for profitable trading vs finding the next great indicator/signal

N(y)

Hi NVP,

I am a big fan of scaling out. But I guess here you are talking about scaling in.

This is something I have never really done (unless you count a new entry on an instrument I still have a trail on).

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?
 

Jason101

Experienced member
1,372 215
As for the topic my scaling out exits are:

I have 5 lots and 2 targets into the longer term trend.
I exit 2 lots at 1:1, and bring the remaining 3 lots to b/e.

Then I exit 2 more lots at my 1:2 target and leave the last one as a runner, if a new entry sets up I will move this last (runner) stop to my new entry stop. (If longer term trend shows a sign of possible reversal I will exit this runner, without waiting for a new set up.)

(If my first 1:1 signal is generated at much less than 1:1, I will exit all at whatever the market has given, this for me is an indication the trend is now ebbing.)
 
 
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