By Warren Seah
Have you faced the following situations:
1) Feeling under pressure to let go of the trade when you are high on profits? 2) Do not know the ‘perfect time’ to exit your trade? 3) Hanging onto losing trade in hope that it might turn back in your favour? 4) Do not know that there is actually a trailing stop function on MT4 platform?
Well, if you have encounter of these situations, you are not alone. Many thousands of traders at some point do go through these situations even the seasoned traders. There is nothing to be ashamed of as the only shame about this is not finding a solution to your problem.
There a number of traders whom I’ve encounter do not know the existence of a trailing stop function on MT4 platform. Well I can tell you that it is a great tool to have if you want to trail your profits while keeping your stops tight.
But the downside is that you have to specify how many pips you want to trail at a time. Why is this not so good is that you do not know when the market trend might fade and that market condition is changing continuously, you might end up exiting the market prematurely.
The best way is to let the market decide when to move your stops and when to exit. Be reminded that I emphasize only on trending situations here. Trailing stops work well in such situation and save you the time of having to constantly monitor the market.
On the MT4 platform, the trailing stop function is insufficient to allow me to trail the market in the way I want it to be and that the trailing function might have its own hiccups during operations.
Therefore I have work together with a team of traders and bring up this idea of incorporating different exit strategies to allow me to pick and choose which are better to suit my trade for now.
As MT4 has its own programming language, I made use of the Expert Advisor to create an exit strategy EA suitable for manual traders who want to take control their trade and want automation for their trade exits without the need to constantly monitor.
With the development of 11 exit strategies:
1) Partial close 2) Break even stop 3) Time stop 4) MA trailing stop 5) ATR trailing stop 6) Parabolic SAR trailing stop 7) 2 Bar Low 2 Bar High 8) Equity stop 9) Channel Stop 10) N pips stop 11) BB trailing stop
The combination and customization of these exit strategies allows me to decide which strategies are suitable for my current trades and most importantly, I allow the market to track the trend and trail stops for me instead of me having to babysit my trade. Therefore, freeing more time and harvesting more profits.
About the Author
By Warren Seah
“Introducing 11 Exit Strategies, What Every Disciplined Traders Need … Go Without It You Could End Up Being A PIP VICTIM Just Like Thousands Of Traders Out There.”
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