Systems Exits

["Markus Stolz" <Markus.Stolz@xxxxxxxxxxxxxx>]

I usually test  multiples of exits for any given system and end up quite
often using a combination of exit techniques.
I work strongly with MAE/MFE but use them differently depending on the
nature of the system. I agree with Chuck to apply exits in a different way
for short/medium/long term systems.
For example, MFE can be used as a profit target level or as a add-on point
for positions. MAE can be used as only a stop level. Depending on the nature
of your system you might be able to figure out a point just before your MAE
stop level where you might add to a position. Or, check out if it makes
sense to use the MAE stop level as a stop and reverse.
The real power of exits is twofold: A trader has to use them on the
unprofitable and the profitable side. Different concepts need to be applied
as the goal of the exits is not necessarily the same. In addition, the
nature of different systems calls for different exit strategies. In my view
it is valid to test different exit combinations as long as each single one
is based on a valid approach.

Markus