There were two exits on this position - the first was using the Uniform Risk Exit principle discussed in my e-book, which gave a return of + 16.81R on 50% of the position, with the balance finally giving a +21.33R return.
As you can see, the exit today was triggered before price rebounded to finish up on the day. Can't do anything about that. By focusing on the process, the profits would be banked, and your equity risk per trade recalculated, per your risk parameters. Then you move on.
No doubt some people will say why didn't you exit the trade at the top - that's easy with hindsight. I don't have a crystal ball, and I don't know many traders who do. The simplest and best thing to do was to place the trailing stop as per the system rules, and see what occurs. There is always an element of giving back of some of the profits before an exit is made.
NEXT!
Hello,
ReplyDeletea very nice trade. I´m also a trendfollower from Germany.
Greetings
René
Thanks René - yes a nice trend to have caught. Remember most trades don't end up like this. More often than not you end up with a small loss. It is these type of trends that help generate the overall positive expectancy.
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