What Is Best Indicator For Getting OUT of Trade?

New comment
 

Hello everyone,

Please let me explain what I am doing so you will understand what I am needing help with.

I have developed a little trading system that is blowing me away. I know when to enter the trade. It works with EVERY pair and I do not need one single indicator to enter the trade.

The lowest time frame I use is 1 HR. I also use 4 HR and daily.

However, getting out of the trade at the right time is what I am having somewhat of a problem doing.

Here is what I mean.

Getting OUT of the trade with profit is not the problem but I find that I get out of a trade in to many cases way to early. I will take 15 pips to 25 pips when in fact I could have gotten in a lot of cases 100 to 300 pips on the same trade. On the longer time frames this is very common, especially with the PJ.

I remember the day when I would have killed for 10 pips a day. Back then I was always trading the 5 min chart. Those days are way in the past now and I am very thankful for that.

Of course, I am NOT trying to get every single pip, that is impossible to do on a consistant basis. I am only trying to get SOME of the middle section, whereas, right now I am on the low end section.

Since I use the longer time frames, we all know that MOST of the time there is a lot of movement within ONE single candle and this is what I focus on most of the time. I mainly trade the GBP/JPY because of so much movement in each candle.

I am looking for some kind of an indicator that can help me in getting OUT of the trade at the best possible time.

Since all indicators are lagging, I am not sure what to use.

I have tried MACD, Stochastic, and a couple of others with NO success.

If anyone has an indicator they feel would really help me with this, I would appreciate some help on this.

Thank you very much for reading and any help you may wish to offer.

Have a great day,

Vishal Gandhi

 

Vishal

If I am correct, Waren Buffet told on some occasion that he always exits a position too early, so, as long as you are profitable, you should not worry too much if the profit could be bigger.

 

how about

upon hitting Profit target, set stoploss to + 5 pips above Breakeven and let it run.

That is something i always failed to do.

 

I your system entry is made without an indicator, why should the exit use an indicator?

Some ideas for you:

If you know that you often leave the trade to early you should find a definition in words, a rule what means "too early"

For example you could use

1. manual/automated tailing stop, measure the size of the maximum retrancement on your pair (example 20 pips)

add the usual spread (2x) and you get for example 25pips

2.Or use Trendline break on a lower Timeframe (example 30min) to define a trendlinebreak exit rule

3. You could use the indicator "Hull Trend" , it is a fast double exponential moving average.

Measure the angle of the Trend, a powerful trend usually has 75 degrees, when the trend becomes weak it drops under 60.

Anyway you didnt post ypu entry rules, i am interested if you like to post them.

 

Common sense Once when you set the profit targets any indicator will do, but if your profit targets are not reasonable no indicator will help

New comment