Trade Management Strategy i.e Risk Mgmt Strategy

[niclas]

Hi all, I would like discuss more on trade management part, how to handle a trade it. I felt it's the virtue of trading but most traders forgot how to exit and when to reduce risk the initial in a systematic manner which leads us to max draw-down

IMO: Risk mgmt strategy is based on any one of the below method
Set and Forget:
Exit entire Position in profit or loss or Break-even or reduce to initial risk to half
In this type of handle one may get based on fixed risk reward like 1:1.5, 1:2, 1:3 etc

Set and Monitoring in intervals:

A) Scaling out(i.e Scaling out certain Percent position size and put it in Break-even rest)
In this case risk reward varies but success rate increase quite good, one key thing Break even trade get with nice profit because half position size booked profit also it reduce beginner trader psychological stress giving all back to market.

B) Scaling in (i.e Scaling in position and put it in Break-even previous order)
In this case risk reward doesn't varies as every trader as single trade but success rate decrease often get Break even trade.

C) Scaling out and in(i.e Both A & B )
In this case doing Both A& B give combined success rate and higher reward.


Let me know which is better
Personally, I like to start with scaling out technique the main reasons as a trader we should increase confident's gradually with our setup and forecast.

[oldmate]

For me, I have a fixed TP target based on a percentage. In general I'll look for a 4% TP. This works with my strategy and may not for others.

I'll move to break even when profit is at 1%. This is done automatically by an ea. So it's pretty much set and forget but with trade management.

I love the idea of scaling or trailing but I've found that taking profits at a fixed reward gives better returns and minimal trade management required.

[MichaelEmale]

its annoiying that 4 of the most obvious trade-ins are playing tommorrow in pendles, swan, judd and murph means ya gotta hit the button pretty prematurely if you want one of those