Which is more important - the entrance or the exit? Is the entry point even important? Is the exit point even important? - page 13

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This is what Sever32 wrote about at the beginning of the branch: "Suppose entry 'A' makes profits and entry 'B' makes losses? In this case can we say unambiguously that entry "A" is better? The answer is "No" because the purpose of the entry is not to make profit, but to initiate the trade in the right direction. After that everything else depends on the quality of the trade.

We may find that entry "B" is just unlucky enough to make more money because of the particular exit term we have chosen. We can easily change our exit and find that entry "A" will make less profit than "B" because it initiates the trade in the right direction less often. To maximise profits, we need to combine the right entry with the right exit."

I.e. that "initiating a trade in the right direction" is very little for a completed transaction.

 
Roman.:
That's what I'm talking about (from the link above): "...Let's remember once again: the main purpose of making a transaction is to make a profit. No sensible trader would open a knowingly losing position. But every complete transaction consists of entering and exiting the market."
Entry is always phonatory (well, there may be exceptions when TP1000 is sl500)
 

Hello.

The reasoning about which is more important, input or output, is inherently contradictory, as it is one action. (namely!)


By opening a position(entry, no matter up or down) you agree with the following condition (axiom): you may exit at the place where you opened the position (depending on a certain coefficient - let's call it "width of opening", for example near the door")) or in any other place, but it will be a completely different door (exit point) with an uncontrollable "width of opening":)).


=> |----------------- "opening width"-----------------| <= ,................ or so =>|<=

opening/closing........................ opening/closing


So what we have.

a) If after the opening, the price goes back beyond the "width of the opening" (the value is theoretical, but has certain standards), then the opposite action has to be performed. (An important condition is the confirmation of the opening, namely the crossing of the "width of the opening")

b) If in the case of an opening, the price moves in our direction, wait for the opposite action, but in a different place.


Summary.

It is more important, in my opinion, to determine the "opening width" that allows realization of positive expected payoff when trading, since this value can be both positive and negative.

That's it:)

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