Something I’ve been trialing is splitting my trades in 2. So for instance if I usually risk 2% per trade, this would be 1R (risk). Then:-
Trade 1: risk set at 0.5R and I would trial my SL behind the low of the next candles (in a long position) until it closes.
Trade 2: risk set at 0.5R but a TP set at a multiple of R (1.5, 2, 3 etc). I will also trial the SL behind the lows of the subsequent candle lows.
In theory, trade 2 will catch more of the highs in price that you normally miss out on when using a trialing SL as an exit. This is all done on a D1 chart while following trends.
I record in my journal the R value I achieve from trades but I also record the ‘max potential R’ for each trade so I have a record I can review after each month to see which potential TP R value would of been best. Hopefully that all makes sense!
I close in partials. Meaning I TP at a variety of resistance/support levels. Like this I secure money into my account, while letting the rest open on BE for a potential bigger move. I am however a day trader/scalper, so I am ok with this.
That entire move is ~250 pips on the D1 chart. If I’m going to capture the whole move I’d have to have a 67 pips trailing stop to see I don’t get stopped out. Then again, having a tight trailing stop would ensure I get out on 20SEP (start of the 55.6 pip retracement). Would make sense to re-enter the trade after the close of the bullish candle near the SMA10 area
If I’m taking the route of the wider TS I’d probably want to adopt a hybrid approach. First instance of a significant slowdown in trend momentum (signified by the high tick volume candle after the exhaustion) I’d probably want to tighten that SL to prevent giving away a lot of pips.
There’s probably a better method if I observe the underlying H4 TF.
*Bollinger bands on SMA10 - Might be able to get a cleaner exit on the Bollinger 20 instead
Entire move ~440 pips. An indicator/PA based system might not work for this trend, where price volatility is higher. S/R zonal entry/exits on the surface appear to make more sense in this instance.
