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Unemotional exits

Discussion in 'Trading Strategies/Systems' started by T2000, Jun 23, 2020.

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  1. T2000

    T2000

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    Hey all, new member, first post.
    Just joined to try to get people's opinions on exit strategies.
    I use EOD trading data to generate entries and have an equal weighted portfolio of 8 positions which are immediately re - invested if sold. Positions are held for up to a month or so if not stopped out sooner.
    I always use stop losses to exit positions as my trading is rules based to avoid emotional decisions.
    My stop loss levels are set at around -5% manually (EOD), and then tightened to around -3% once profit goes over 12% and these levels seem to be working OK but it is quite tedious placing and adjusting stops continually, so I have been toying with the idea of a once only trailing stop at the beginning of the position, set at around -6%. My broker (Etrade) only allows a trail by amount, not a percentage, so the stop will automatically tighten to some extent as the price rises.
    Obviously with the trailing stop the level will be dragged up with stock rises. The dilemma is trying to pick a level which will allow the stock to bump around a bit without getting stopped out prematurely while protecting the downside and locking in profits, both with manual and trailing stops.
    Does anyone have a similar exit strategy and to the one above and have you experimented with manual versus trailing stops and levels?

    Cheers and good luck everybody.
     
    frugal.rock likes this.
  2. tech/a

    tech/a No Ordinary Duck

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    Too conservative for me.
    Trading futures and shorter term I
    Want to get onto momentum and stay in it
    Until it stops. If a trade reverses on me long or short
    (futures) I’m not going to allow it to wallow between
    Buy and stop
    I’ll raise the stop If I can get to B/E then I’ll loosen a little.

    That’s me though a long futures trade is a few hrs.
     
  3. T2000

    T2000

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    Thanks for the reply. So you use manually placed stops rather than trailing? And adjust them based on feel or rules /sytem based? Cheers.
     
  4. Chronos-Plutus

    Chronos-Plutus

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    Sorry; I trade in the moment in the short term ~1 month. I don't use stops at all when I trade short movements and short timelines.
     
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