Exiting a trade....

[deck24m]

Firstly let me say hello to everyone on here....

I have been a member for 3 hours and already i am asking questions :clap:. I have been trading now for roughly 8 months (with little success).

I have tried different systems and found one that i am quite comfotable with, i will explain the best i can. I basically trade using moving averages, i set them at 10, 20 & 50. I set my style to "Closed". I trade on on the USD/JPY market at set it to 10 mins. I enter a trade when all either the 10 and 20 are above the 50 (long) or when the 10 & 20 are below the 50 (short).

Now the question i would like to ask is when would be the best to exit the trade. The reason i ask this is because i managed to turn a 40 point profit (i left the trade to run for 4 hours) then it turned into a 40 point loss within 10 mins . I would like to avoid this happening again.

Any help on this would be greatly appreciated.....

 

[Masquerade]

What size stop are you using? It's all really down to risk:reward.

 

[shadowninja]

Trends on 10 minute charts don't last for 4 hours. If you see 40 pips, take it, if you sense it is turning. Move your stop to breakeven at minimum.

 

[TheBramble]

Deck, the ratios of the MAs in any MA-X system need to bear a reasonably close relationship to each other. They also ideally need to be tailored to the recent cycle action of the instrument you’re trading.

By the time the 10 and 20 cross the 50, you’ve missed most of the action anyhow.

You need to fine tune your MAs to current market/instrument action and bring them into a closer ratio. How would an 11, 19 and 29 period MA system look? Any better/worse?

Try taking your view closer (5 min) or further back (Hourly) and see what works best.

It’s not just the stops perse that are the issue, it’s the need to capture the meat of the move. Your TF will determine the absolute size of that chunk of meat. That will then give you a feel for the sort of leeway you need to give your stop. If you insist of ‘proper’ stops of course. LOL.

 

[deck24m]

Thanks for the info....

I have adjusted the MA's to 11, 19 & 29 and it does look a lot better. I will keep on observing the market for a while and try to get a feel to what i think may be happening...

Anyway, thanks again