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Takeprofit

Risk Management: How to set a Take Profit (TP) for your trades Hello everyone: Today let's dig into an important topic of setting a Take Profit (TP). While many traders will often have different strategies and methods on a TP, let's take a look on my approach and style on this. ITs important to understand there is no right or wrong when it comes to setting a TP. ITs what you have in your plan and what makes sense to you as a trader. It should align with your strategies and trading style also. Some may take profit quicker and move on, while others hold for longer term. Understand that both methods can have drawbacks, it's what trading is, double edge. So, make sure we follow our plan and executive accordingly to our management. Otherwise we are just making emotional decisions again. Let's look at a few scenarios on how I would set a TP. Directly tie in TP is a SL. I usually will only enter a trade if I have 3:1 RR. Meaning risking 1% to gain 3% or more. Therefore my TP will almost always be 3 times of initial SL amount or room. Few TP scenarios: -Beginning of the the previous correctional structure -Double Bottoms/swings low area, watch for LTF reversal price action and correction When price breaks ATH, monitor the price action on the LTF for bearish reversal. I would want to see a trend change, rather than a pullback. Few things to consider: -Understand you will never enter at the lowest point, and exit at the highest point Make sure you have a plan before so you will not get into an emotional decision. Always know what you plan to do before it happens. No Right or wrong as long as you follow your original plan. You can of course in time modify your plan based on market conditions. Any questions, comments or feedback please let me know :) Thank you
OANDA:XAUUSDEducation
by jojofang0901
27
I LOST 70% OF MY CAPITAL WITH THE SAME MISTAKE => OVERTRADINGHello Traders, today I want show you a point of my live, that I constantly overlooked. I want sensitize you for it and also make me so a reminder for the future! 1. OVERTRADING It's the truth: In the past I lost 70% of my capital with overtrading. If you find yourself there then I would be sensitize you to rethink your approach of trading. On the chart above you can see how I take at the beginning all rules what I learned before: Only 1% of my capital I choose for risk with using StoppLoss Support and Resistance are STOPPLOSS and TAKEPROFIT, depence on trading direction I choose a Takeprofit more then 2 times of my risk => I lost the most time with this rules But the rules are not the problem! The problem was my overtrading. I see only "ONE" signal to take action => then it overcomes to reaction buy, no no, sell... dame, better buy and so on => always if I was in loss I tried to rethink my trade 24/7 hours in front of the screen. 2. SUPPORT AND RESISTANCE: THE WORST ENTRY POINTS EVER, BUT GOOD STOPLOSS AND TAKEPROFIT AREAS Another thing is, that support and resistance areas are good reverse moments. Every greedy trader like I used to be, try to catch the early trade to make more money than anyone can imagine. Then back to reality: you get stopped. The market takes your money and you don't realize why! On this moment, you have your own opinion of the market and this your mistake to believe you are right. You hadn't wait enough! 3. BE PATIENCE - TRADE LATE AND RIGHT THEN EARLY AND WRONG (MULTIPLE) The headline above in point 3. is since my realizing the importast rule. Trade late and right! Because the other thing of trading you can: the right risk, the winning opportunity. Sometimes it helps to look in deeper timeframes, to get enough win-risk-ratio. Hopefully it helps you! Kind regards NXT2017
EUREX:FDXM1!Education
by NXT2017
5
Three Drives Harmonic Chart PatternThe three drivers chart pattern is a well known harmonic chart pattern that acts as a trend reversal. The pattern consists of either three higher highs or lower lows which is an indication of a potential trend reversal. There are two different types of three drives pattern: Bullish Bearish Bullish Three Drives Pattern There are three different waves in the pattern as the name suggests, three drives. With the subsequent drives, there are lower lows that are being formulated in the pattern with three different bottoms. Once the third wave is completed and the low point has been observed, a buy signal can be created with formulating the Fibonacci levels and generating the buy signal with a Fibonacci extension of 1.27 or 1.628. For the stop-loss and take profit levels, you can formulate a new Fibonacci level with the start and end of the pattern and keep 161.8% as the stop-loss level and 61.8% as the take profit level. The important point that confirms the drives is a similar time period between the uptrend after the 1st wave and 2nd wave also a similar time period between the 2nd wane and 3rd wave for the downtrend. The bearish three drives pattern is completely opposite of the bullish three dives pattern and can be spotted in a similar manner. The three drives pattern belongs to the family of harmonic patterns and thus makes use of not just chart patterns but also technical retracement levels to validate the pattern. A three-drive pattern that does not meet the retracement criteria can be discarded. The pattern is therefore qualitative as well as quantitative in nature. ---------------------------------------------------------------------------------------- If you find the post useful, please like and share our ideas with the community! - Mudrex
COINBASE:BTCUSDEducation
by Mudrex
5
Introduction to the BEST Trade ManagerHello traders Let me highlight what the BEST Trade Manager can do for you. The Trade Manager adds another layer to your own systems, enabling custom user-defined stop-loss/take-profits and real-time analysis with risk-to-reward ratios. We made it as such the visual rendering is also very nice on mobile devices. Reviewing: - How to connect your own indicator(s) - How to read the graphical elements - The 8 Stop-Loss options - The 4 Take-profit options - The alerts and dynamic alerts for trading automation Links are in my signature for more information about it Wishing you all the BEST for your trading using it. Dave
Education
by Daveatt
8
BTCUSD 1H WILLIAMS %R MOMENTUM STRATEGYStep #1: Wait for the best Forex Momentum Indicator to get oversold (below -80). Then rallies above the -50 level before Buying . Step #2: We’re going to use Williams %R, the best forex momentum indicator in a smart way. In an uptrend, we buy after the best forex momentum indicator has reached oversold conditions (below -80). And then rallied back above the -50 level. Note* If the %R momentum indicator continually stays in oversold territory (below -80 level), it signals a strong momentum and conversely a strong trend. Inversely the same is true in a uptrend. Step #3: Place Your Protective Stop Loss below the Recent Higher Low. We want to hide our protective stop loss. It is below the most recent higher low level that formed right before the best momentum trading strategy issue the buy signal. Alternatively, you can also trail your stop loss below each most recent higher low. This strategy will allow you to lock-in the potential profits in case of a sudden market reversal. Step #4: Take Profit once we break below the Previous Higher Low A trend in motion can stay in that state longer than anyone can anticipate. And since we want to maximize our potential profits we let the market tips it hands before liquidating our trades. In this regard, we look for a break in the trend structure. Respectively a break below the most recent higher low. Alternatively, you can take profit once the best forex momentum indicator breaks below the -50 level. Note** The above was an example of a BUY trade using the Best Momentum Trading Strategy. Use the same rules for a SELL trade. Summary The best momentum trading strategy (%R) leverages the tendency of a market’s price to continue moving in a single direction. This is where the momentum might be upwards or downwards. In essence, market timing is crucial for a momentum indicator strategy. And in this regard, we incorporated the best Forex momentum indicator (Williams %R) in our momentum strategy. Here are some of the trading conditions you want to avoid in the forex market. Timing the market can be a daunting task. But our team at Trading Strategy Guides believes that using a pure price action can get you a long way. Check out our Price Action Pin Bar Trading Strategy.
COINBASE:BTCUSDEducation
by Tradingstrategyguides
4
EURCAD 4H SHORT TRADETSG MONEY MANAGEMENT RULES. 1 - Enter 2 trades @ Sell Limit @ 1.4554 - 1% Trade Balance each. 2 - 4H ATR = 25. 3 - SL = 1.5 x ATR (1.5 x 25 = 37.5 = 1.45915) SL for both trades. 4 - TP = 1 x ATR ( 1 x 25 = TP = 1.4529) TP is for 1st order only, 2nd order no TP let profit run. 5 - When 1st TP hit move 2nd order SL to breakeven. 6 - Trail 2nd SL behind previous fractal highs. Price moved up to retest a previous Sup/Res level. Sell Limit made @ 1.4554 for 2 trades. 1st TP hit @ 1.4529, move 2nd trade SL to breakeven @ 1.4554. Price had a bullish pullback and hit 2nd trade SL Price stayed below the previous Sell Limit level of 1.4554. Price re-setup short trade and re-entered another Sell Limit order @ 1.4554. 1st TP hit @ 1.4529, 2nd SL moved to breakeven. Price created a new current fractal low support of 1.4513. Moved Trail SL to current fractal high @ 1.4537. Price created a 2nd current fractal low support at 1.4483. If Price breaks that level then Trail SL to 1.4505 current fractal high. Continue to trail SL if Price continues its bearish move. This current EURCAD 4H Short trade was found by DACapitalTrading Jan 13th. We added to this short trade our TSG money management trade plan.
Education
by Tradingstrategyguides
ATR MONEY MANAGEMENT FOR GBPAUD & EURUSD 4H & 1DUsing a set amount for SL and TP for different pairs and time frames is not effective money management. Using the ATR for a specific pair and time frame lets you custom yur SL & TP for what that pair actually moves. ATR 1D takes the last 14 candles and adds up then up together and then divides that figure by 14. Now you have an average of how much that pair moves in a day. GBPAUD 1D ATR moves 133 pips GBPAUD 4H ATR moves 47 pips EURUSD 1D ATR moves 42 pips EURUSD 4H ATR moves 15,6 pips This helps me determine a more accurate setting for my SL and TP for the pair I am trading and the time frame I am using.
Education
by Tradingstrategyguides
Trailing Stop or Trailing Take ProfitCase scenario: Short Position based on a moving average crossing Stop Loss 0.50% Take Profit 0.50% Trailing Stop 0.41% Trailing Take Profit 0.41% Using a Trailing Take Profit of 0.41% that gets activated at the Take Profit level of 0.50% results in locking in the profit with minimal risk of closing the position too soon. A Trailing Stop used with the same 0.41% trailing distance results in a high risk of closing a potentially profitable position too soon. In this example, the position was almost closed at a loss by the 0.41% Trailing Stop . Both TS and TTP are good tools to close a position. Using a Trailing Stop with a higher trailing distance, as well as a Trailing Take Profit , should improve our odds of getting that profit.
BITMEX:BTCUSD.PEducation
by KryptoNight
How to connect your indicator with the Trade ManagerHi everyone On Today's tutorial, I wanted to highlight how you can upgrade your own indicator to work with the Trade Manager Let's take the dummy example of the double MM cross Step 1 - Update your indicator Somewhere in the code you'll have a LONG and a SHORT condition. If not, please go back to study trading for noobs (I'm kidding !!!) So it should look to something similar macrossover = crossover(MA1, MA2) macrossunder = crossunder(MA1, MA2) What you will need to add at the very end of your script is a Signal plot that will be captured by the Trade Manager. This will give us : // Signal plot to be used as external // if crossover, sends 1, otherwise sends -1 Signal = macrossover ? 1 : macrossunder ? -1 : na plot(Signal, title="Signal") The Trade Manager engines expects to receive 1 for a bullishg signal and -1 for bearish . Step 2 - Add the Trade Manager to your chart and select the right Data Source I feel the questions coming so I prefer to anticipate :) When you add the Trade Manager to your chart, nothing will be displayed. THIS IS NORMAL because you'll have to select the Data Source to be "Signal" Remember our Signal variable from the Two MM Cross from before, now we'll capture it and.....drumb rolll...... that's from that moment that your life became even more AWESOME The Engine will capture the last signal from the MM cross or any indicator actually and will update the Stop Loss, Take Profit levels based on the parameters you set on the Trade Manager I worked the whole weekend on it because I wanted to challenge myself and give you something that I will certainly use in my own trading Please send me some feedback or questions if any Enjoy Dave
BITSTAMP:BTCUSDEducation
by Daveatt
19
FIB-Extensions and why you might use them wrong!#Cypher-Pattern!Hey guys, here is my last video about FIBONACCI and its extensions. :-) No offens to those you use it in a wrong way -I did the same mistake! I just wanna show you how you should do it and wanna help you to improve your trading. :-) If you don`t really understand why, just check the first Video of my Fibinacco-series. Peace and good trades Irasor Wanna see more? Don`t forget to follow me. Any questions? Need more education or signals? PM mw. :-)
Education
by Trading2ez
Example of a Downtrend Parallel Channel on PFFPFF formed a downtrend parallel channel. A downtrend parallel channel (bearish channel) is a continuation pattern that slopes down and is bound by an upper and lower trend line. The upper downtrend line it is called main line and marks resistance and the lower downtrend line it is called channel line and marks support. For a bearish channel, the main line extends down and at least two bounces highs are required to draw it. To draw a channel line ideally needs two bounces lows, however, some traders draw it using only one bounce low. In a bearish channel the target is to short when prices reach main line resistance and take profit when prices reach channel line support, then, wait for prices to reach resistance again and repeat.
NASDAQ:PFFEducation
by heco08
Example of an Ascending TriangleGBPAUD formed an ascending triangle. We could see a horizontal upper line (that would be a resistance) and a lower uptrend line (that would be a support). Prices moves with equal highs, and lows higher than previous. Then after a few attempts, the prices finally break through resistance. The ascending triangle is a continuation pattern. Prices come from an uptrend then prices bounce inside the triangle before breaking higher. To confirm the breakout, the price should close above the resistance line, if so, make a long. The profit target is the distance away as the back of the triangle.
Education
by heco08