My average sl is about 85% of adr. My initial TP is 3 X sl, but I'll increase TP as a good trade progresses with no real limit. There isn't much manual decision. I'm taken out of trades by stops, preset rules defined above or a very large quick ...

Trend Trading

It's a Johnny Walker night for me. My new wife lets me have all I want. She's a keeper. This is essentially a trend following method. Well, it's actually pyramiding on trend following. I don't try to guess at the future. I simply try to get in an ...

Trend Trading

Hi Nefser. On a three trade stack for example, the obvious thing to do is when the top two trades on the stack retrace back to break even for both combined is to close them out and keep the base trade, hoping it will grow larger later. But hope is ...

Trend Trading

Hi AG. Well, we have to take profits or we will never have any. I close a stack during the week if it hits my TP or SL condition. I close a whole portfolio of trades if they hit my 5% loss limit (and stop trading for the week), and I close a whole ...

Trend Trading

Consider Tony Gwynn, who in 1999 became the 21st member of pro baseball's 3,000-hit club. That year, the former San Diego Padres outfielder finished the season with a batting average of .338. That means he was coming up empty nearly 2 out of 3 times ...

Trend Trading

OK, back to addressing exits. I'm essentially a swing trader who targets about 1 week holding time per trade, so my exits are tuned to that holding time. I'll go through them here, but if they don't meet your personality or methods, just adjust them ...

Trend Trading

The problem with this method and probably any successful method isn't making the pips, it's keeping them. This method focuses on entering trends and pyramiding or stacking trades as long as that trend continues. It can generate very large profits in ...

Trend Trading

Just make sure you enjoy the great fun of all this, so if price reverses at any time and you have to exit breakeven or with very little profit, at least you had a good ride. With practice it gets easier and putting on the additional trades comes ...

Trend Trading

Really, getting the second trade on without taking on too much risk is the tricky part. The third is pretty easy, once price is up above the second entry about the same distance as between the 1st entry and the second one the third entry can be ...

Trend Trading

So once the first trade is on, stop loss set and temporary Take Profit set, I'll look for another trend to trade. I'll repeat the process as many times as I can find good trends, or until I've hit my maximum margin usage limit (50%). I often wind up ...

Trend Trading

Now I'll discuss a broad category of techniques I'll call trade management. These are things I do as I trade. I'll try to discuss my logic and the reason I believe they work as I go. If they make sense to you, try them. If not, simply move on. The ...

Trend Trading

Your very welcome Nefser. If you get bored, find a good book to read. Market Wizards by Schwager, Trade your way to financial freedom by Tharp or Trading for a living by Elder are all favorites of mine. Well, those are all very old, like me. Another ...

Trend Trading

Before moving on, I'll point out again, this is the way I trade. Others may have more profitable methods or methods that better control their risk. I can't really evaluate those because I haven't traded them and every person is different. I'll just ...

Trend Trading

I once went to the very cluttered office of a stock trading computer systems designer to get a quote on automating my trading system. After talking for a while he handed me a blank note card from his disheveled desk and said, write down your entire ...

Trend Trading

I'll now wrap up my discussion of risk management. Initially I discussed the most damaging types of risk, those that can directly transfer cash from our trading account to those who probably don't need it. We can't eliminate risk from our trading ...

Trend Trading

Sayed, thanks for the kind words of encouragement. I regret that risk and money management are such dry subjects, but I consider this the single most important aspect of successful trading. I'll try to speed on through this section and wrap it up as ...

Trend Trading

Ficibald, that's exactly correct. Of course, what ever we have in our trading account is at risk, from black swan risk and from broker risk that I'll discuss later. Per my money management rules, I keep twice the margin in my account that I need for ...

Trend Trading

We have discussed many methods to identify trends to trade. Anyone who wants to post their favorite method of trend discovery is welcome to do so. The next thing I wanted to discuss was risk and money management. First off we discussed a very ...

Trend Trading

Hi PoetLaureate, glad to hear you are enjoying the thread. I'll continue to post as long as I feel I have something to contribute. This is really a simple method and I suspect I'll soon have posted everything I have to say about it. I never get ...

Trend Trading

Rescuenava, I'm just me, but it's quite possible that many of us wind up trading in a similar fashion. Many of the most successful traders in history trade trends. I could go through a long list of successful trend traders, many who have made ...

Trend Trading