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Exit Strategy: Stepping Stops vs. Trailing Stops
I have moved this discussion over to the MT4 section from the General Discussion. Here is the last message I posted, along with Igor's Breakeven EA attached.
Thank you for the quick post of this EA Igor! It is Saturday so I cannot test this Expert Live, but I have viewed the properties and its Input Value is 30. Does this EA move the Stop to Breakeven once my trade has moved 30 pips favorably in my entry direction? If so, that is awesome! I will test out Mon. on a demo trade. I have planned an exit strategy like this:
1) Enter MANUALLY based on my entry criteria
2) MANUALLY set initial Stop 30 pips behind entry
3) Once trade moves 20 pips in my favor, the EA will automatically move Stop to Breakeven ( I assume I will hae to change the Input Value in code to 20)
4) Take profit at +60 pips
I have a slightly more complex exit strategy that goes like this:
1) Enter MANUALLY based on my entry criteria
2) MANUALLY set initial Stop 30 pips behind entry
3) Once trade moves 10 pips in my favor, automatically move Stop to -15pips behind entry point.
4) Once trade moves 15 pips in my favor, automatically move Stop to -10 pips behind entry point.
5) Once trade moves 20 pips in my favor, automatically move Stop to Breakeven.
6) Once trade moves 30 pips in my favor, automatically move Stop to +10 pips after entry point.
7) Once trade moves 40 pips in my favor, automatically move Stop to +20 pips after entry point
8) Once trade moves 50 pips in my favor, automatically move Stop to +35 pips after entry point
9) Once trade moves 55 pips in my favor, automatically move Stop to +45 pips after entry point
10) Take profit at +60 pips.
It would be so cool to have a flexible EA that a trader could change the exact #'s in the EA to move stops in a stepping ( not trailing) fashion. I prefer moving stops in steps as opposed to trailing stops because I feel stepping stops allow more room for the trade to breathe, Examples:
Trailing Stop: I enter a L cable trade with a trailing stop of 20 pips. The trade moves +38 pips and then retreats 24 pips, lstopping me out at the 20 retreat level and leaving me with a profit of +18 pips.
Stepping Stop: I enter a L cable trade with a Moving Stepping Stop similiar to the 2nd one I listed above. The trade moves +38 pips and then retreats 24 pips. Because my Stop was moved by the EA to +10 once a move of +30 occurred, I am still in the trade L. After the bears have exhausted their power and the retrace has ended, the bulls continue their charge. My Stops are Stepped along the way, and I take profit at +60 pips (or whatever level you desire, depending on Timeframe preferrence) I like 60min chart trading.
Igor, or any other coding geniuses, are you willing to help me on my mission to find a more effective exit strategy? I am willing to share my manual entry criteria, I have backtested it visually & it is VERY PROFITABLE if it could be used with my suggested Stepping Stop Exit EA.
-Stu
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