1. If the trade went well ( You are in profit ) , When Reward / Risk Ratio hit 2:1, Close Half position. (You can also close all, if you feel good enought to take all the Floating Profit, but you will have the opportunity Cost of not be involved in the next trend , Hard to decide? Then Close Half! )
Why? Coz by doing this, even the market goes back and hit your SL, you are still winning?
0.5 * 2R - 0.5 * 1R = 0.5 * R , If R is set as 2% of your capital,
then Minimum Result it 0.5*2% = 1% (Congratulations! Now you have a 100% Winning Trade with 1% Result, and you are still holding half position with RiskFree)
2. If trend is in your favor, and price hit 4:1 or 6:1 , or maybe 0.618 pull back, or opposit Resistance or Support , Feel free to close another half , which is 1/4 position.
3. If hit 8:1 RR, close all profit, or Move SL to the latest to trail your profit.
You can use 8ema or 21 to trail as well. or close all profit when you see price action shows reversal pattern .
and if this is something you need, or maybe if this is something can solve your problem, take it, for free, but please leave your comment, and tell me about your thought.
By applying this rule
You won't be panic about the price up and down ,
A lot of people has nothing to do with the market price up and down
and watch their account Keep changing Color from Blue to Red
Are you one of them?
If the market is in your favor , GO GO GO!
If the market is not your favoc, NO NO NO!
What to do? should I close? or should I wait?
maybe next candle can let me win more?
OMG, All my profit is gone ! I should have closed all just now!
OMG, Why did I close the trade so early! I should have kept it , now it rally so much!
Come on, are you fighting with the market? or are you doing a business?
Focus! the floaing profit and loss is not what you shoud look at, but the RR ratio is!