Trade Management: Open Discussion

[dctommy]

Fellow MTP Traders:

I have noticed that some of my trades, while moving in the anticipated direction, will not reach the WPT targets, but will touch or close within the 2-3 risk box area. I have also noticed that a "good" trade typically will move within 2-4 days from setup bar.

How would you manage these types of trades? There is money to be taken if you exit at least part of your position.

Yes, I know we preach "you must let your winners run to make real money", but in cases like this, it seems the trades simply are not going well. Do you bail or ride it out?

How would you "repair" these & preserve your capital to move onto other opportunities.

Steve: perhaps a training video on trade repair may be helpful?

Thanks to all for your input. I have attached example charts.


dctommy

[dctommy]

Fellow MTP Traders:

I have noticed that some of my trades, while moving in the anticipated direction, will not reach the WPT targets, but will touch or close within the 2-3 risk box area. I have also noticed that a "good" trade typically will move within 2-4 days from setup bar.

How would you manage these types of trades? There is money to be taken if you exit at least part of your position.

Yes, I know we preach "you must let your winners run to make real money", but in cases like this, it seems the trades simply are not going well. Do you bail or ride it out?

How would you "repair" these & preserve your capital to move onto other opportunities.

Steve: perhaps a training video on trade repair may be helpful?

Thanks to all for your input. I have attached example charts.


dctommy


Here's another example. How do you manage this trade?


dctommy

[jtrade]

Challenging stuff, dctommy.

I would take off half the position at the 100% (+1R) point and move my stop to b/e, so I would have a minumum +0.5R trade. Better still, trade in 3 lots and scale out along the way.

Warning : Van Tharp does not agree with scaling out. Extensive strategy testing has shown me time and time again that whilst scaling out reduces total net profit, it also typically reduces drawdown and increases the winning %, which can make a method or system less uncomfortable to trade.

So a personal decision in the end (& one which ideally should take into account one's emotions and the possibility of "self-sabotage").

My 2 pips.

J.

[Steve Griffiths]

Hi J.

Yep, I agree, and that is exactly what I talk about in Part 2 of the Trading Course :)

DCTommy, please see Part 2 of the Trading Course - where I discuss the use of the 2-3 profit target. That is exactly why I included in the software because many trades will reach this level at the very minimum.

Steve