[Infinity_Tom]

Hi Guys,

I have seen a lot of stop loss, trailing stop, and other exit strategies used. I have used many exit strategies my self when i was trading in the dow pit.

I have found while trading my own account (years ago) and watching others trading now that one of the biggest problem traders have is not letting their winners run. I agree that being too aggressive moving stops will only get you stopped out before you get a chance to catch a big run. Markets are very volatile and big runs happen often.

Don't use a trailing stop. Use a multiple bracket order strategy. Lets say you set up a 3 lot multi bracket stragegy with a 10 tick stop, one lot limit profit order at 5 ticks, one lot limit at 7 ticks and one lot at 10 ticks.

Once your entry order is filled lets say in the ESZ7 you buy a three lot at 1570.00. You will immediately have a 3 lot sell stop working at 1567.50. You will have a 1 lot sell limit at 1571.25, a 1 lot sell at 1571.75, and 1 lot sell at 1572.50.

Ok, you are definitely protected by your sell stop. What you do is cancel the highest sell limit at 1572.50. What will happen if the market breaks is you will be stopped out, but if it rallies your 2 limit sell orders will be filled leaving you long 1 lot with an unlimited upside potential and a 1 lot stop. Now move the stop where you want to lock in a profit etc. If you catch a run you will maximize your profit.

Just my 2 cents.

Tom