Dear St Da & Other senior traders.
As experience traders says, most of the traders gets entry right but exit is important..
we have discussed lot of entry points..but Exit is also as important even more important..so please put some light on exit plan..as when to hold & when to fold..how to decide our exit strategy..
suppose we have a method which can give 50% success rate..so can we take our exit at 1:2 reward & dont mind if market goes more ..if we wait,sometimes it gives more reward but most of the time , it takes our double reward also..both conditions are happened ..& when what happened, we can not say..even if we backtest it, we cant say exact percentage wise happening of both of events..
same happened if we decide, we will not exit till my 1:2 reward will not get..in that way, we escape lot of unneccesary exit & market noise..but again, sometimes, we can see trade fails but we wait to hit stop & doesnt do early exit..so here same problem...both events can heppened..
so what should be a good exit plan for discreationary price action trader..
thanks