📂Position Management

Position Management Strategies

1. Full Position Exit

   • Entire position closes at the first exit point (TP1, TP2, Bias Switch, or SL).

   • Simpler to implement in live trading.

   • Results in “all-or-nothing” outcomes for each trade.

2. Partial Exit Strategies

   • TP1 Only: Exit a percentage at Take Profit 1; the remainder goes to stop loss.

   • TP2 Only: Exit a percentage at Take Profit 2; the remainder goes to stop loss.

   • Both TP1 and TP2: Splits the position between two different profit targets.

   • Bias Switch Only: Close the position entirely when bias changes.

   • Combined Strategies: Mix various take profit and bias switch exits.

Impact on Statistics

• Partial exits typically increase the total trade count.

• Win rates can improve (securing partial profits), but average profit per trade may decrease.

• More balanced risk profile by locking in gains early.

Partial Exit Strategy Guide

Below is a detailed look at each partial exit option and how it affects your trades:

1. Full Position Exit (formerly “Disabled”)

   • What it does: Closes 100% of your position at the first exit point (TP1, TP2, Bias Switch, or Stop Loss).

   • Best for: Traders who prefer simplicity and all-or-nothing outcomes.

   • Trade impact: Each trade has a single exit point and a straightforward P/L calculation.

2. TP1 Only

   • What it does: Closes a specified percentage (e.g., 50%) of your position at Take Profit 1, with the remainder going to stop loss or a different exit.

   • Best for: Traders who want to lock in partial gains early.

   • Trade impact: Often improves win rate by securing some profit; reduces position size (and thus risk) on the remainder.

3. TP2 Only

   • What it does: Keeps the full position open until price reaches Take Profit 2, then closes a set percentage. The remainder is left to run or be stopped out.

   • Best for: More aggressive traders targeting bigger moves.

   • Trade impact: Potentially higher profit per trade, but a lower win rate than TP1 Only because gains are not locked in early.

4. Both TP1 and TP2

   • What it does: Divides your position to exit partially at TP1 and partially at TP2 (e.g., 50%/50%).

   • Best for: Traders seeking a balanced approach with multiple profit-taking levels.

   • Trade impact: Tiered profit structure that reduces risk while still participating in extended moves.

5. Bias Switch Only

   • What it does: Closes 100% of your position when the market bias changes direction.

   • Best for: Trend-following strategies that exit only when momentum shifts.

   • Trade impact: May hold positions longer than fixed TP levels, adapting exit timing to market conditions.

6. TP1 + Bias Switch

   • What it does: Closes a portion at TP1, then closes the remainder when the bias changes.

   • Best for: Locking in some profit early while letting the rest ride the trend.

   • Trade impact: Blends partial, predetermined profit-taking (TP1) with a dynamic trend exit (Bias Switch).

7. TP2 + Bias Switch

   • What it does: Closes a portion at TP2, then closes the remainder when the bias changes.

   • Best for: Traders who want to capture larger gains before reducing the position.

   • Trade impact: Potential for bigger initial profits with an adaptive exit on the remainder.

8. TP1 + TP2 + Bias Switch

   • What it does: Divides your position into three parts: exit at TP1, TP2, and bias switch.

   • Best for: A comprehensive approach that maximizes profit-taking flexibility.

   • Trade impact: Pyramid exit structure offering multiple profit points while still adapting to market shifts.

Advanced Strategy Optimization

• Analyze Trade Sequencing Look for patterns in how frequently trades reach TP1 vs. TP2. Identify which trade types consistently hit extended targets.

• Evaluate R-Multiple by Exit Type Compare risk-reward ratios across different exit strategies. Adjust position sizing based on expected returns (R values).

• Fine-Tune Take Profit Levels Adjust TP1/TP2 percentages in line with market volatility or trade type.

• Risk Management Techniques

  • Stop Loss Placement: Optimize to balance winning percentage and drawdowns.

  • Break-Even Strategies: Move stop to break-even at TP1 or TP2 to reduce risk.

  • Correlation Analysis: Identify patterns between specific exit types and market conditions.

Comparative Analysis

• Comparing Multiple Backtests Run multiple backtests over the same period but with different settings. Identify optimal setups for specific market conditions.

• Performance Over Time Check if the strategy remains consistent or if it’s sensitive to certain market phases.