Hello Theo,

What about a time stop (inactivity stop)? If the trade is triggered but simply does not move beyond several pips from entry, will you close out the trade after several periods or simply leave the trade alone to either hit a profit objective or protective stop?

Pepe

Hello Theo,

Okay, so you let price action tell you if things are not working out, but if the trade does not go your way immediately, you let the trade stop out rather than close the trade before the stop is hit, is that right?

In your second post, you say, "My IPS is for when a trade does not go my way immediately and at a point where, when reached, I was wrong in my analysis."  What do you mean by immediately, the next one, to how many candles?

The trader in an article entitled 'The Phantom of the Pits', and a trader named Mike Reed (www.tradestalker.com) say that a trade should be closed out if it does not go your way immediately. I read that to mean that the trigger candle should close in profit, if not close out the trade. Both also suggest that if a profitable trade is showing signs of stalling, that the profit target should be moved toward the stop, rather than the stop moved toward the profit target. This implies to me active trade management rather than passive trade management.

Do you advocate active or passive trade management?

Pepe.