Exit strategy indicators for long trades on 10m timeframe

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  • #232741 quote
    AlexMarlier
    Participant
    Average

    Hi guys,

    I am posting this post to share ideas about the best indicators/strategies to use to exit from a long position on timeframe 10m is relevant.

    At the moment i use the MA crossing strategy + trailing stop but I feel like i am leaving to much money on the table.

     

    thanks in advance for your comments and posts

    #260013 quote
    Nicolas
    Keymaster
    Legend

    The core problem is that MA crossings are lagging by nature, they confirm the reversal well after the top. Here are the main alternatives and complements worth exploring on a 10-minute timeframe.

    Momentum-based exits, these react faster than MAs :

    • RSI reaching an overbought threshold (70, or even 80 in strong trends) and then turning back down
    • MACD histogram flipping from positive to negative
    • Stochastic crossing back below 80 after being overbought

    Volatility-based exits, these adapt to market conditions :

    • ATR trailing stop : instead of a fixed trailing stop, you set the stop at N x ATR below the highest high reached since entry. This breathes with the market and avoids getting stopped out on normal noise while still locking in profits during real reversals
    • Parabolic SAR is essentially built for this use case on trending instruments

    Structure-based exits, these are closer to pure price action :

    • Exit when price closes below a significant swing low on the 10-minute chart
    • Exit on a break of a rising trendline connecting the lows since entry
    • Exit when price fails to make a new high (higher high) after a pullback, signaling momentum exhaustion

    Hybrid approaches that tend to perform well :

    • Keep your trailing stop as a hard safety net, but add an early partial exit (say 50% of the position) when RSI crosses back below 70 or the MACD histogram peaks and turns. This way you capture a good chunk of the move near the top while letting the rest ride with the trailing stop
    • Use a higher timeframe (e.g. 1h or 4h) MA or support/resistance level as your primary exit target, and manage the 10-minute noise with the trailing stop in between

    The partial exit idea is arguably the most practical improvement over a pure MA crossing exit. It directly solves the “leaving money on the table” feeling because you are no longer dependent on a single exit signal — you scale out progressively as the trade matures.

    Below some good indicators found in our indicators scripts library:

    ATR-based trailing stops

    Another ATR Trailing Stop

    United Volume ATR Trailing Stop

    SwingARM ATR Trailing Stop

    Price structure trailing stop :

    Williams’ 3 bar trailing stop

    Trend quality / slope :

    Moving Average Slope

    Volatility regime :

    Double ATR trend indicator

    TTI ATR Extreme


    robertogozzi thanked this post
    #260061 quote
    justisan
    Participant
    Senior

    …try exit “end of the day”, means like 10min before the underlying real market closes for the day.

    #260063 quote
    Nicolas
    Keymaster
    Legend

    Also, exit after X bars (if in profit or not).

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Exit strategy indicators for long trades on 10m timeframe


ProOrder: Automated Strategies & Backtesting

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has 3 voices, and was last updated by Nicolas
1 month, 2 weeks ago.

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Forum: ProOrder: Automated Strategies & Backtesting
Language: English
Started: 05/16/2024
Status: Active
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