General Exit Rules for Forex Strategies
Forex Strategies: Exit to position
A. Taking profit at major support/resistance line
Exit at major support resistant line. For intra-day trading, in the morning, yesterday’s high, low, midpoint, and close could be today’s major support or resistance line. In the
afternoon, morning’s high, low and midpoint could be support or resistance line. For position trading, weekly or monthly major support/resistance line will be good place to exit.
B. Exit half of the positions, let the other half run
You may take profit at support/resistant line for half of the positions, and let the other taking their chance. This method taking care of the losses first, and let the profit grow with no concerns. Normally, you can hold a good position much longer and more objectively.
C. Exit when the market turns side ways without profit
After entering the market, if the market goes sideways for 3-4 bars, and you hold a position with no profit or even a small loss, exit.
D. Trailing Stop Exit
Here is a highly used effective exit strategy and the choice of many professional traders. It allows you to take advantage of the market movement by continually placing your stop behind the market, constantly locking in your profits if the market continues to trend.