Whats the best Exit Strategy?

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Hello all,

Im looking for a Exit Strategy for my system.

Actually i Enter at right Point but dont know exactly where and when to exit.

any useful comment or if is there any good pdf file will be helpful.

Thanks in Advanced,

 
Argonod:
Hello all,

Im looking for a Exit Strategy for my system.

Actually i Enter at right Point but dont know exactly where and when to exit.

any useful comment or if is there any good pdf file will be helpful.

Thanks in Advanced,

Thats one of the hardest issues in forex. Actually the exit is maybe more important than entries for a sucessful trade and will depend on your trading stile and the TF you are using. Scalping ? daytrader? long-term trader? How much is your SL?, How much is your TP?

 

Multiple lots, fixed initial TP, let the rest ride longer at break even. Down side, when you are wrong, you get hit for same amount on all lots. Alternative, enter on multiple lots, (scale in).

 

Thanks for the replies,

I believe that we can exit with using entry strategy. which means if we enter the market using a MA then we can exit also with a MA.

But the problem is the setting and the place of exiting with a MA. In one word the problem is experience. Thats why i need the best suggestion as anyone can help.

see the attached file please. I have coded my system. its still good but drawdown is high and i know that this system can be better than.

sorry for my bad english.

Files:
eurchf.htm  1707 kb
eurchf.gif  7 kb
 

hi

i must confess you guys are really doing a great job on this forum and exit startegy is one of the problems i have no convincing solution to yet.

 
beyo45:
i must confess you guys are really doing a great job on this forum and exit startegy is one of the problems i have no convincing solution to yet.

Hi Beyo,

There is no such thing as the perfect or ideal exit strategy.

It is a fault that many system devellopers make when they place their first steps in develloping a system. And they waste a lot of unnescessary time on that subject.

If you find yourself the "perfect exit" then automaticly this would lead to a new strategy that would be better then your original system.

Meaning if you can find yourself the "perfect" exit on a long position it would mean that this exit would be the "perfect" entry to go short.

So your exit strategy on your long would become a better or perfect entry strategy to go short (and maybe then you can start again to look to for a so called better exit on this new entry strategy).

I hope this makes sence to you.

regards...iGoR

 

fully understood

thanks ignor

i understand what you are saying,but i would like to ask if you can share your exit startegies with us.Thanks

 

The best exit I know of is to take the money and run.

But having read some of Abe Cofnes books, and hearing "scalling "over and over,

I created 3 of the same EA's, the first is if I only want to test the water, because I an not quite sure, it trades 1 lot, in and out for a small profit if 15 pips

The second is for if I feel good about the trade but want to limit my risk, it trades 2 lots, the first trade will exit at 15 pips, the second 45 pips

the 3rd ea is for when I feel it will be a trending day, it will place 3 orders, the first 2 will exit like ea #2, but the 3rd order will only exit when it is stopped out by a trailing stop. This ea is usually only used on news days

 

Trailing stops will never give you a perfect exit, targets sometimes do. In all my backtesting I have never found trailing stops to be more profitable than targets so I use targets.

Other than that its if I get a short signal or get stopped out.

BTW targets are a function of volatility.

 

hi

for exit just find bottom or top of the trend,that's ussually strong resist or support

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Forex Indicators Collection

 

I believe your exit is more important than your entry. While I do not believe there is a "perfect" exit, I struggle with what's "best".

I trade short time frames. I use take profit targets. However, it really bothers me when I leave money on the table because there was a strong movement. I am considering a couple of alternatives.

1. Scale out. Sell half my lots at TP and set my stop to break even. Then use an EMA stop (28 period seems to work well in my testing) for the remaining lots.

2. Use a trailing stop once I'm up a distance equal to my stop. Ex: If my stop is 10 pips, once I'm up 10 pips, adjust the stop on each new bar - again, using an EMA (or similar trailing stop).

I've used the previous bar as a stop, but do not think it's best overall.

I'd be interested to hear comments on this or any other methods.

--DRL

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