Exit Strategies

[andrewte]

Hi Jay and Jullie,
One of the question I, and I am sure a lot of junior traders, face is how to select a good exit strategy for wins. It's often said "let the profit run", but at the same time we have heard schools that also say "don't give profit back if you ...". I have had a few wins the past two weeks, all thru employing traling stops. While they were winners, the retracement took out the traling stops and continue with the desired movement. Had there not been the traling stops I would have reached 1:2 ratio but ended up only 1.2:1 or so because of the stops. In the long run I am not sure that's the desired outcome.

Now a win is a win, but to be able to keep the stats on ourside, we probably have to keep the risk-reward in check.

Is there any method you employ to ensure not giving back pips that go your direction, while enjoying the projected risk-loss ratio?

Andrew