Montag, 17. März 2008

my exit strategies

My entries are easy and so are my exits. I can describe them in one sentence:

I trade a 1:1 ration regarding to the stop and target and always trail the 1R. 

Lets see an example.
I went long the EURO today. I measure the volatility. The Green line is my entry and the red line is the space that the euro needs at this point of time.

So re dline: 158877
green line: 157954
difference: = 923 = 1R

My stopp 157954 – 923 = 157031
My target 157954 + 923 = 158877

If the trade is moving in my favor, I trail the trade based on the 1R. 
Yes the 1R (Volatility) can change and so do my trailing stops and target. 

It is that easy.
I know there are different ways to measure volatility but this is my way. Yes I change the exit some times based on some guts feeling or when I trade neutral positions but the basic idea behind my trades is the 1:1 ratio.

Some people say, that it is stupid to use target and never fight the trend. 

I don't care what other people think.

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