Top stop exit

By Volker Knapp
A robust exit is generally trickier to create than a good entry. Not only does an exit strategy determine how to close a losing trade, but also how to set profit levels. When a system developer searches for a good profit-target approach, he’s usually faced with the dilemma of preserving a high percentage of winning trades without bailing out of meaty moves with only a fraction of the possible profit.


For the complete article, see the September 2008 issue of Active Trader magazine. Click here to subscribe.

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