Frank Birch Veteran   Posts: 171 Joined: 3/25/2006 Location: UK  User Profile | This Trade Plan isn't about moving with the masses; it's about strategically positioning ourselves to capitalize on market shifts. Rather than merely reacting to market trends, we focus on anticipating their next moves, ensuring we execute at the opportune moment for maximum gain. Exits in trading: Many might consider it a yawn-inducing topic, but I'd argue that it's the unsung hero of any successful trading strategy. When crafting a new trading concept, I don’t just dive straight into the entries; I start with the exit methodology. If you ask me, the bigger picture in trading isn’t about making a grand entry but knowing precisely when to bow out. 1. Dual Fixed Loss Stops: The concept of having two fixed loss stops might seem peculiar at first, but there's a method to the madness. Vote Line Stop (4 ATRs): This is the primary stop that's tethered to our trading system. If the trade goes against us by a distance of 4 Average True Ranges (ATRs), we exit, protecting our capital from more significant losses. Broker's Emergency Stop (5 ATRs): This stop is sent directly to the broker upon entering the trade. Its primary function is to serve as a safety net. In the rare instance where we lose connection or face other technical difficulties, this stop, being 99% guaranteed, ensures our exit, preventing potential catastrophic losses. A crucial detail I've learned, thanks to Barry Cohen, is the importance of naming this stop. Without a proper designation, there can be issues with its proper execution. 2. Breakeven Stop: Pause and ponder this for a moment. A breakeven stop isn't just about ensuring zero loss. Its core purpose in our system is to cover slippage and commissions. If a signal doesn't pan out the way we anticipate, the least we can do is cover the cost of doing business, ensuring that we're not paying out of our pocket for a misstep. 3. Trailing Profit Stop: Once a trade moves past the breakeven point and starts venturing into profitable territory, this is where the trailing profit stop comes into play. As the market continues in our favor, this stop trails behind, locking in profits along the way. And if the market decides to make a U-turn? This stop ensures that we capture the gains and exit before they evaporate. Order Type: All orders in this plan are placed as Market Orders. This approach is crucial for real-time trading, ensuring timely entries and exits without unnecessary delays. In summary, trading isn't just about glamorous entries or the thrill of jumping into a potential profit pool. It's about a meticulous, well-thought-out exit strategy. Because, at the end of the day, anyone can enter the market; the true test of a trader's mettle is knowing when to make a graceful exit. In the grand tapestry of trading, while many are lured by the siren call of making the perfect entry, the real magicians are those who've mastered the art of exit. It's one thing to join the dance of the market; it's another to know the perfect moment to take a bow, leaving the stage with grace and profits in tow. For those eager to put this trade plan to the test, please find attached the SysTrade RT TP. Dive in, test it out, and most importantly, enjoy the trading journey it brings you on. Regards, Frank Birch  Attached file : 17-Sep-23 09-40-27 fixed loss stop.png (240KB - 117 downloads) Attached file : 17-Sep-23 09-41-09 broker fixed loss stop.png (240KB - 104 downloads) Attached file : SysTrade RT TP.ott (96KB - 116 downloads) |
