Potential Exit Strategy

[Bingy]

Throughout my strategy building journey I have realized that the exit strategy and stop loss areas are paramount to whether or not a strategy is practical. Some strategies require far to much risk or draw down.

With this in mind, I've always got my feelers out there to see what others are doing. In doing so, I stumbled across this gentlemen who has a very interesting approach to exits. With this particular exit strategy, I believe creating the exit FIRST would be beneficial and then creating an entry strategy that fits within the framework of the exits.

@samer800 @MerryDay - I believe one of the two of you has the ability to code this. It's a little beyond my capabilities, especially with the recent degradation in ChatGPTs performance.

Cascading Entry/Exit Strategy by EcoEngineering (The thumbnail is clickbaity, but it really is an interesting concept)

 

[halcyonguy]

need to know what condition is to be used to trigger a buy

this is similar to what is discussed in this book. instead of scaling out, buy more.
https://www.amazon.com/Best-Loser-W...VXa3zvBoSML7FmrrZy_g3_4IiXA8uwj0aArpQEALw_wcB

 

[jhorton56]

Currently reading this excellent book. Among many good points, the author posits that most traders err by entering a trade and only then deciding where their exit point is. The far better strategy is to only enter after you decide based on what you see on your chart where your exit should be. That way you can decide if your entry makes sense, or if you should wait. Another good point he makes is that you should never trade based on what you think the market is about to do, or worse, "ought" to do. Instead, trade based on what it is doing. https://www.amazon.com/Learned-Million-Columbia-Business-Publishing/dp/0231164688

 

[Bingy]

need to know what condition is to be used to trigger a buy

this is similar to what is discussed in this book. instead of scaling out, buy more.
https://www.amazon.com/Best-Loser-W...VXa3zvBoSML7FmrrZy_g3_4IiXA8uwj0aArpQEALw_wcB

Honestly any strategy, even a super losing strategy can be used as a place holder, to then be changed later down the line, but allows for the exit strategy to be developed.