I have been working on an automated algorithm for a few months and have finally reached a stable stage. I am happy with how its performing but I am looking for some advise on targets specifically.
Many times price goes close to my target (like within 1-5 ticks) and then goes back and hits my stop. If I were in front of the monitor, I would perhaps close the trade when it retraces more than a few ticks after reaching so close to the target.
How would I handle such a situation when doing things programatically? One thing is I can move my stop once price moves close to the target perhaps. Another option would be to move the target to a level in case if there is Support / Resistance, etc.
I was wondering if there is anything we can do other than moving the stop or target. Perhaps monitor price movement and take profits if price declines in a sequence more than certain ticks...