Managing a trade…Dilema

• 04/13/2018 at 6:58 AM #68230
  Inertia

  Hi there,

  I would need your advice/expertise please.

  Attached is a screenshot of my current live trade.

  Strategy is on dax 30, daily candle.

  Account size : 1700EUR.

  Potential gains : 180/190EUR

  This trade is secured by a breakeven code already triggered: 4.9EUR

  The stop is the superTrend BUT still very far below…

  Q:

  • Who would cut this trade before the week-end ?
  • Who will let go this trade over the WE and let the strategy work ?

  Thank you all 😉

   

  

  Inertia

  Participant

  Topics: 40

  Replies: 223

  Been thanked: 52 times
  04/13/2018 at 7:26 AM #68237
  jebus89

  Hi!

  I have had the same question 100 times 🙂

   

  I found the easy answer tho!

   

  Backtest it!! 🙂 You can code in really simple something like

   

  Weekendclose = 1

  If weekendclose = 1 then

  If day5 (aka friday) AND TIME = 22.00 then
  Close the position

  endif

  endif

  (obviously not a working code ^)

  Then you replace Weekendclose =1 with a variable and run the backtest between 0 and 1.

  The backtest would then auto-close all trades on fridays 22.00, or it wont. The backtest will show you the easy answer if you “should or shouldnt” do stuff like this!

  If it turns out that you get much better returns NOT closing, then dont close. if you see great results from closing on fridays, then close it!

   

  personally i have strategies that DO close on fridays, and i have more trend-following strategies that DOESNT close on fridays.

  From your exit being supertrend im gonna guess yours is a trend following strategy as well, usually what i have found is that keeping them Open is better, incase monday continues to rally.

   

  Edit: would like to add: you shouldnt be having these questions, if you catch my drift 🙂  Before running them live you need to be 100% confident in your strategy. Let it run if the backtest tells you to let it run.

  Also, dont you have some sort of trailing stop?? 🙂 Would HIGHLY recommend you looking into that.

   

  Edit2: i have stopped my systems manually like 3 times now, every time i have done it i have gotten burned 😛 “press play and stay away” is the hardest part of algo-trading

   

  edit3: Search for “mfe trailing stop loss” on this site. or TSL stop loss. 2 different trailing stops. (for example: If 50€ in profits, start trailing stop loss from 50 pips. or something similar, backtest it and find the most optimal values 🙂

  1 user thanked author for this post.

  Inertia

  

  jebus89

  Participant

  Topics: 118

  Replies: 586

  Been thanked: 238 times
  04/13/2018 at 12:11 PM #68261
  Despair

  I like trailing SL myself a lot but on intraday timeframes it is often not optimal. There are many studies out there showing that and it also fits my experience. On short timeframes a trailing SL often results in cutting your winners short while the looser go all the way into your initial SL with the result of a very bad CRV.

  On daily timeframes (this means that the SL is just moved once per 24h period) I have very good results with trailing SL. I think on the shorter TFs there is simply too much noise.

  1 user thanked author for this post.

  Inertia

  

  Despair

  Blocked

  Topics: 97

  Replies: 1034

  Been thanked: 218 times
  04/13/2018 at 2:50 PM #68271
  GraHal

  You might like to consider a manual  exit to secure some gains, the recent DAX uptrend has ‘topped out’ IMO … at least until it starts going back up again!? 🙂

  1 user thanked author for this post.

  Inertia

  

  GraHal

  Participant

  Topics: 214

  Replies: 8827

  Been thanked: 2198 times
  04/13/2018 at 3:59 PM #68278
  Inertia

  Thank you ALL for your kind reply.

  
  @jebus89 => Edits are very well noted. (VERY true for the press play and stay away)

  
  @Despair => yes, I am sure that letting it go would have been more profitable BUT I try not to look into it to limit the potentials regrets ;).

  @GraHal : I finaly just pressed stop manually for 200 pts…

  OK, I decided  to trade my equity curve on this one and not that the strategy itself….the 10% profit got me…

  Thank you again, much appreciated.

  

  Inertia

  Participant

  Topics: 40

  Replies: 223

  Been thanked: 52 times
  04/13/2018 at 7:53 PM #68318
  Inertia

  Solution found for the next time = Supertrend optimized (1.3/10)… I usually never touch the default parameters but yeah…. that is the exception…

  Thank you again.

  1 user thanked author for this post.

  GraHal

  

  Inertia

  Participant

  Topics: 40

  Replies: 223

  Been thanked: 52 times
• Author
  Posts