NexusFi: Find Your Edge


Home Menu

 





Exiting Trend following winners.


Discussion in Traders Hideout

Updated
      Top Posters
    1. looks_one Mwenga with 2 posts (0 thanks)
    2. looks_two Quick Summary with 1 posts (0 thanks)
    3. looks_3 Brandenton with 1 posts (3 thanks)
    4. looks_4 iantg with 1 posts (2 thanks)
    1. trending_up 1,300 views
    2. thumb_up 6 thanks given
    3. group 5 followers
    1. forum 5 posts
    2. attach_file 1 attachments




 
Search this Thread

Exiting Trend following winners.

  #1 (permalink)
Mwenga
Nairobi, Kenya
 
Posts: 18 since Mar 2018
Thanks Given: 13
Thanks Received: 26

Once upon a time, I used to worry about losing trades. Presently, I worry about winning trades. Exiting them is very tricky. I am aware that it is a phase every trend follower goes through. Any trend followers here who can help me?

Reply With Quote

Can you help answer these questions
from other members on NexusFi?
Futures True Range Report
The Elite Circle
NexusFi Journal Challenge - April 2024
Feedback and Announcements
Deepmoney LLM
Elite Quantitative GenAI/LLM
The space time continuum and the dynamics of a financial …
Emini and Emicro Index
Exit Strategy
NinjaTrader
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
60 thanks
Funded Trader platforms
43 thanks
NexusFi site changelog and issues/problem reporting
24 thanks
GFIs1 1 DAX trade per day journal
22 thanks
The Program
19 thanks
  #3 (permalink)
 iantg 
charlotte nc
 
Experience: Advanced
Platform: My Own System
Broker: Optimus
Trading: Emini (ES, YM, NQ, ect.)
Posts: 408 since Jan 2015
Thanks Given: 90
Thanks Received: 1,147


If you are a manual trader then the most common way is something like this:

1. Set your initial profit target X ticks away from your entry: (This is usually more than just a scalp, and often unobtainable because of how far it is set). But the idea is to set a decent profit target for your self in a best case scenario.
2. Once you move into positive territory of Y, then you move your stop loss up to a break even.
3. Once you move into a further positive territory, then you move your break even into a small profit
4. Repeat step 3 each time to gain X amount of additional ticks.

At some point you will either hit your original profit target, or slide backwards and hit your stop which is now profitable. So it is a win win.



Mwenga View Post
Once upon a time, I used to worry about losing trades. Presently, I worry about winning trades. Exiting them is very tricky. I am aware that it is a phase every trend follower goes through. Any trend followers here who can help me?


In the analytical world there is no such thing as art, there is only the science you know and the science you don't know. Characterizing the science you don't know as "art" is a fools game.
Visit my NexusFi Trade Journal Reply With Quote
Thanked by:
  #4 (permalink)
 
Brandenton's Avatar
 Brandenton 
Virginia Beach, VA
Legendary Lost At Sea!!
 
Experience: Intermediate
Platform: NinjaTrader
Broker: TopStep
Trading: YM, MYM
Posts: 830 since Sep 2016
Thanks Given: 754
Thanks Received: 1,556

I use a predetermined area for my TP. Its usually a 1 to 1 completion of the swing price is correcting off of. In my pic, the main swing I am referencing is the AB leg. My TP would be at the end of the CD leg, an equal distance move. If you are having a hard time taking profit, have a predetermined area you will look to close the trade and book profits. Also, something I have been looking into lately, is that most of the times, the trend will have about 3 minor corrections before making a bigger correction correlating to the main swing. This isn't all the time because I have seen more than 3 minor corrections, but it does happen quite frequently. I have them numbered on the chart as well.

I know people don't like to leave money on the table by exiting early, but in the grand scheme, you hit your goal by having price reach your predetermined area and you are making money, even if price continues higher. Just my two cents.

Visit my NexusFi Trade Journal Reply With Quote
Thanked by:
  #5 (permalink)
Mwenga
Nairobi, Kenya
 
Posts: 18 since Mar 2018
Thanks Given: 13
Thanks Received: 26


iantg View Post
If you are a manual trader then the most common way is something like this:

1. Set your initial profit target X ticks away from your entry: (This is usually more than just a scalp, and often unobtainable because of how far it is set). But the idea is to set a decent profit target for your self in a best case scenario.
2. Once you move into positive territory of Y, then you move your stop loss up to a break even.
3. Once you move into a further positive territory, then you move your break even into a small profit
4. Repeat step 3 each time to gain X amount of additional ticks.

At some point you will either hit your original profit target, or slide backwards and hit your stop which is now profitable. So it is a win win.

Unfortunately, I am a manual trader trading using Donchian channel. The fact that I don't have programming skills or I don't know anyone who can help me automate makes me feel bad. Anyway, I have applied this advice but I am not yet comfortable with taking profits at predetermined targets. I guess I just want to let profits run or I am simply fearful of leaving money on the table, sigh. I'm thinking If I get a 1:1 (1R) move, I cut my position into half, taking partial profits and move my stop to breakeven then a 2R, I start trailing using a 5 period Donchian on the 4 hr TF.

Reply With Quote
  #6 (permalink)
 
lonestarAK's Avatar
 lonestarAK 
Anchorage Alaska
 
Experience: Intermediate
Platform: NT8
Broker: InteractiveBrokers/IQ Feed
Trading: CL, NQ, 6J
Posts: 15 since Jul 2017
Thanks Given: 168
Thanks Received: 17


Mwenga View Post
Unfortunately, I am a manual trader trading using Donchian channel. The fact that I don't have programming skills or I don't know anyone who can help me automate makes me feel bad. Anyway, I have applied this advice but I am not yet comfortable with taking profits at predetermined targets. I guess I just want to let profits run or I am simply fearful of leaving money on the table, sigh. I'm thinking If I get a 1:1 (1R) move, I cut my position into half, taking partial profits and move my stop to breakeven then a 2R, I start trailing using a 5 period Donchian on the 4 hr TF.

@Mwenga using the donchain mid-line is my preferred method for trailing my runners. I use 2 targets (50% of position at target 1, at least 25% of position at target 2) plus a runner. For this runner I will normally trail the donchain mid-line by about 5 ticks (tighter on index futures and wider on commodities).

These positions are intended to be a once a day trade though so my donchain period is between 60-100 (on ~600 tick charts) depending on which instrument I'm trading. If I have to step away from the computer much earlier in the session and want to give the runner even more room then I will trail and attach the order to the RTH VWAP.

It became much easier for me to let runners go once I got used to scaling in and out of positions. Just my approach, but hope it helps.

Reply With Quote
Thanked by:




Last Updated on November 28, 2018


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts