Knowing when to sell.
Having pre determined initial profit objective I think helps, and at least gives you a statistically acheivable goal based on the testing of your system. Once that goal is reached taking partial profits of about 50% and moving initial stop loss to breakeven gives you a free trade. How long a trend can last in your favour is anyones guess, but if you can trail it sensibly and as mentioned earlier not cap your profits.
it is where to have the stop that is tricky ....
I think the timeframe you trade, size if your account and volatility of the market should dictate the size and placement of the stop.it is where to have the stop that is tricky ....
for that stock 2 weeks earlier it stumbled, but if ur stop got hit 2 weeks ago then you missed out on the $1 of last week.
if your stop did not get hit at all (or did not execute thru limits or vol or whatevs) then you are now $2.50 off highs (but maybe still in $2.50 in profit).
for me, stops for pilots are easy for capital management, but stops (or when to sell) for runs are really tricky.
i know nothing of TNE
yeah, i get that, my whole previous post was about the trickiness of determining that jump-off point.(Sorry folks, going off topic just to answer this)
Backtesting is how you find it HelloU
thanks (was doing my above rant when u posted)I think the timeframe you trade, size if your account and volatility of the market should dictate the size and placement of the stop.
Stop positiong is so important. Too close and you end up with nothing but a string of stopouts ( trade needs room to breathe), too far and you can endure excessive drawdown as well put a big hole in your account if stopped.
This may not be for everyone but it's what I do.
If trading the daily chart I look at the average movement (ATR ) of the last 14 days. The only exclusion to this if there was been a recent large spike up or down in which case I don't trade.
My initial TP is the ATR value when I entered the trade because I know that has a good chance of being achieved.
My ultimate SL is usually 1.5*ATR and is based on 1-2% of my account size.
This is worst case condition stop, there to protect the account in case something badly goes wrong.
My preferred SL price is dictated by the system exit indicator that is what usually exits the trade. This is dynamic and the order only goes in once the system triggers a sell.
thanksI think the timeframe you trade, size if your account and volatility of the market should dictate the size and placement of the stop.
Stop positiong is so important. Too close and you end up with nothing but a string of stopouts ( trade needs room to breathe), too far and you can endure excessive drawdown as well put a big hole in your account if stopped.
This may not be for everyone but it's what I do.
If trading the daily chart I look at the average movement (ATR ) of the last 14 days. The only exclusion to this if there was been a recent large spike up or down in which case I don't trade.
My initial TP is the ATR value when I entered the trade because I know that has a good chance of being achieved.
My ultimate SL is usually 1.5*ATR and is based on 1-2% of my account size.
This is worst case condition stop, there to protect the account in case something badly goes wrong.
My preferred SL price is dictated by the system exit indicator that is what usually exits the trade. This is dynamic and the order only goes in once the system triggers a sell.
(with fear of a derail)A trend following system with a 5% trailing stop is too close ,imho.
but i am trend trading ....... so all good (not sure what is going on there but i assumed u meant i was using a trend system - which i am)I wasn't implying that you were trend trading and I noticed you said was a warning to start looking more closely. I agree having an automated stop away from market is good insurance.
all good, pretty sure that me and redoraob both love assumptions ....... most things that me do involves ass .... only one bit missing ...... any idea what that is will?I thought you were but didn't want to assume.
which is sorta why i was trying stimulate a more detailed discussion ..... like when peeps say "let ur profits run".... great advice but what does that really mean? at some point u have to make a decision to sell. you either sell on impulse or u can pre-determine that decision with some sort of process that can be done again. (i got tired of watching profits go into the pot as i hid behind the label of investor saying "it'll come back")I thought you were but didn't want to assume.
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