Hubert Senters here.
Got a question from Rolando.
I think I have a decently good grip trading Forex. What’s keeping me in profit are my entries. But I’m leaving too much money on the table when it comes to exits. I’m using volume indicators to set the exit target with mediocre results.
How can I improve my exit strategy?
That’s a good question. I would highly recommend using the parabolic SAR. Let me show you what I mean. So since your using Forex I’m going to use currency futures. It would be basically a one on one relationship. Let’s find something that’s trending well here on a currency future. Let me hyperlink this chart. Let’s find one that’s got a decent ADX. A lot of them are just kind of sideways in the currency future side so you may be developing the same thing in currencies right now.
So in this situation. There’s another couple of decent looks here. Let’s go with this one. Let’s go with Canadian dollar. It’s not trending great but it’s a worthwhile example. So the parabolic SAR and you can jack with settings to make it tighter. But basically you’re going to be long as long as the parabolic got its below the price action. And once it shift it’s time for you to leave.
Now, this is a daily example. You could shift to a 240-minute chart, 120-minute chart, 60-minute chart. So let’s say that you are long here you would stay long all the way up to this day. It’s not a great exit. Here’s an entry. Here’s a better exit so you would short on this bar. Be short there and you’d hold until you got right here. I’ll show you what that looks like.
So basically, it would look like this. You’d be short here at the close of that. And then you would close there so you’d make from 0.761 down to 0.753. Not a bad little trade. Now, if you want to get a little bit more complicated or a little bit more tweet
And just hey, this is a daily, this goes 60-minute and here it’s going to pay you better because it’s a smaller timeframe.
You’re going to be able to get more turns out of the trade. Long here. Long. Exit. Long here. Long. Exit.
So that’s why I would look at it plus the parabolic SAR is FREE in most platforms and freely available to back test so you can test it out. Obviously I would tweet the parameters to make it work better.
Mark Helweg is going to be doing a special webinar on ”How to Take Super Small Risk and Target Massive Winning Trades” It’s going to be Wednesday, October 21st at 8PM EST. I will HYPERLINK you to the registration page.
Good luck. Hope it helps. See you on the next video.
Hubert.
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