QUAD exit financing process

Like so often in trading to properly fiance a trade is complex, counter intuitive and a skill that needs to be acquired. Typically trader are unhappy about financing to early or too late and furthermore these emotions creep up on individual trade examples. The culprit in 99% of the cases is psychological in nature. Greed when its too early financed but the trade runs further or "I wish i would have financed" when financing was missed trying to hold on longer but the trade had turned sour and instead of a breakeven or even profitable trade it had become a losing proposition and all the many various scenario's. The solution as always is a principle based one where the necessary proper execution method needs to be acquired as a skill and as such tightly bench-marked against set rules and conditioned. The process: -find a community of like-minded traders or ideally a mentor.(buddy system, accountability is a key feature for sustainable progress in the otherwise ego nourishing lonely sport of trading) -isolate within the group a couple excel "programmers" (possibly incentivize them to serve the community)to streamline procedures and make them measurable. -back test MAE your personal entries of trades who had the potential to become winners and measure MAE (maximum adverse excursion) numbers (exclude the few trades with measurements outside the mean)from your personal entries to figure the best average stop size for your trades by adding a few (depending on your instrument and volatility) ticks to your avg MAE value for your avg stop value. -Add between 10 to 50 % (for a 1:1 to 1:1.5 risk reward ratio between your stop and your financing target) to this value to determine your financing target (add another 30-40% to that value for determining a mechanical 2nd target exit value) - streamline a process to calculate these values quickly in the event of a trade execution scenario -proceed with the commitment to trade smallest side possible after a period of paper trading to condition a new response on how to execute financing targets properly based on the principles mentioned in this previous article: -condition the new appropriate behavior until it drains the energy of the old unwanted execution behavior (rinse and repeat) - refine this process by creating MAE based stop and target values for your various systems for various market conditions (trending markets, sideways markets, contracting markets, leading markets, lagging markets, creeping markets, highly volatile markets, news driven events, the FED play, asf) - once old unwanted behaviors are extinct one can expand on this automatized system to improve performance values -