Nice thread about the trend trading & I appreciate you taking your time sharing your experience with others. I am testing a similar trend trading system with decent entries but I am not sure what to do about exits. My trades last little longer than a daytrade. Lets say my trades can last few hours to a day and many times I exit too early and PA keeps on marching the in the direction of the initial entry, other times trades go into my favor for decent profit but then reverse and become a loser.
There are many strategies to manage a trade, like pyramiding (or scaling-in), trailing stop loss, scaling-out gradually, exit on signal generated by an indicator etc. In your experience what seems to be the best strategy to manage a winning trade? I'd appreciate any hints or tips.
Exits are like deciding what kind of pasta one like's ... its completely dependent on the trader.... for your case i will assume you are a day trader and not a scalper as you said it last for few hours to a day .. So in such situations u have different options .. basic one is Risk/reward wad u can do is take out half at 1:1 and another half at 2:1 or greater..
other option which is use of fibs, ma, pivots or mp whatever u like take out portions at different levels u have on ur chart ... the third option which is common is take it out at fix numbers like 40ticks or wadeva is your daily goal...
but for day trading in ur case i would suggest go with risk reward that will force you to think which kind of trade you want to take and will filter out trades with lower risk reward. u can use fibs pivots or price structure to determine ur exit well in advance before u enter ur trade for example if u are using fib extension when u enter ur trade you already know that u will exit half at 61% extension and 2nd at 100% .. and as this all varies per price action u will be able to make a well informed decision if the trade is worth taking if ur targets are small then u shd pass on the trade . remember there is no need to take each and every signal .. only take trades that make sense . the best option for you to decide what will work is go to your charts and back test different methods say for last 1-2 months and see which exit makes sense and is too your taste... Hope this helps.. Please post some chart example that will make it easier to help you out more . Thanks hope you are having a nice day...
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Just wanted to convey a heartfelt and simple 'Thank You' for your effective but simple method. Your explanations in how to manage multiple time frames, using price action as the trading basis and then added stuff (presume largely from your own experience) related to money mangement, trader's mindset, etc. are all things that not only a beginner needs but also the ones who have gone the circle from simple to complex and then back to simple :-)
Wonderful thread - I wish newbies read it, put it to practise, believe in the KISS principle and not spend the $$'s on the bright lights and magical indicators (put the money in the trading a/c instead). Sincerely appreciate you taking the time and effort to share.
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Thank you all for your kind comments .. I will keep on posting whenever i find something interesting to share .. all the setups are there .. and they are still the same and works well .. Day in day out .. anyone want to share there setups from the day please do .. Those who have question's regarding trading the trend or with setups please post i will try to answer best to my abilities.. .!!! Hope you all are having some fine trading session's .. This are some lovely times to day trade.
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If any trader is facing difficulties in finding the base in trading and would like to work one on one on it .. let me know .. i will only be able to work with max 1-5 traders not more then that .. And yes it wont cost you a buck apart from ur dedication .. !!! Let me know if any one interested .. .. hope you all are having a great trading month..
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What a class act you are! Thanks for all the information in this thread, and your selfless efforts! I am yet to start trading with real cash, and still working through techniques using historical data, but I have read this thread through and through with great interest. I'm using 5r and 15r charts on CL (just data from the first 6 months of the year at the moment) with an 55 period EMA, and by just eyeballing the charts have found your simple methods seem to work really well. I'm interested in exploring some of the cases where A trades (ones from my understanding I think are A entry points) don't go so well to further refine my understanding. If you are ok with it, as soon as I get to that point (probably take me a week or so to get some examples together) I would like to take you up on your offer and post my examples for discussion.
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@jinhar, would you consider presenting a webinar for futures.io (formerly BMT) members?
Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.
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