What's your most effective Exit strategy (SL/TP)?
Mine is dynamic SL based on indicator (atr, psar, etc) and trailing stop. Also reversed signal by indicators.
And we have to accept, no exit strategy is perfect and market is very dynamic.
"Give back too much profit" is a part of the game, the important thing is, the startegy is gaining overtime.
Looking to buy at the lowest and sell at the highest, based on my experience, will lead us to overoptimizing and failure over time.
Obviously you'll keep refining it but don't have to do it at once.
And we have to accept, no exit strategy is perfect and market is very dynamic.
"Give back too much profit" is a part of the game, the important thing is, the startegy is gaining overtime.
Looking to buy at the lowest and sell at the highest, based on my experience, will lead us to overoptimizing and failure over time.
Obviously you'll keep refining it but don't have to do it at once.
I'm learning what works best mechanically (for automation). It's an adventure of discovery.
ATR based exit signals are interesting...there is the chandelier exit among others, and Kivanc Ozbilgic (clever Turkish developer) developed a few.
Even more simply, a full slope change of a smoothed moving average on a low period of 7 to 10 works as a clean exit signal.
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I tried simple fixed percentage stops, then moved to ATR-based multipliers, trailing stops, and even dynamic structural stops (like swing highs/lows).
Some worked well in strong bull runs, but they all seemed to get chopped up or give back too much profit when the market turned sideways.
So, what methods do you guys use? Let's share some insights, Thanks!
(P.S. I'm focusing specifically on trend-following strategies.)