I received this question on the BTA Youtube channel last week:
“What are the different types of exits that can be used on breakout strategies to improve profits?”
This is a great question and it’s one that traders don’t often ask.
Many traders focus on entries instead.
They want to know the best indicator…
Or the best settings to use…
But in my experience, exits are just as important as entries, perhaps even more so (which often triggers some traders when I say that, which I’ll explain in another email).
Better exits equal bigger profits.
Anyway, I’ll probably go into the topic of exits much deeper in a future Youtube video, but for now, I’ll give you the short answer.
Here are some of my favorite exits for breakout strategies right now:
- Bars Since Entry and Profit Targets: my favorites, especially together,
- Trailing ATR or Chandelier exits: more advanced, work really well for some markets,
- RRR (Reward Risk Ratio) exit: fix the Profit Target as a multiple of Stop Loss, around 2:1 is ideal.
If you haven’t added these exits to your own trading strategies yet, they’re worth checking out!
