Before you read
This post is fully understandable only if you have previously read the article containing the development and testing of the following trading system: MNQ Range-Bars(144tick) Breakout.
Introduction
On the path to creating an effective trading system, one of the most interesting challenges is to understand when to continue trading and when, on the other hand, it might be more advantageous to “leave the table” after reaching a particular goal. We will use as a starting point the “MNQ 144tick-range Breakout” strategy, a system that operates during the entire range of Regular Trading Hours, to explore how different operational decisions can affect system performance.
This decision has no universal answer, as it depends not only on the trading system we use, but also on our personal inclinations and financial goals. The goal is to help you understand whether your current strategy allows you to make a sufficient financial return and, more importantly, whether it is in line with your standards and expectations. We will understand together how this decision can affect not only your trading results, but also your personal balance and risk management.
Preview
Trading is an activity in which there is no right or wrong choice all the time. Some traders prefer to remain active continuously, trusting their system to generate profits in the long run. Others, on the other hand, choose to set a profit goal and withdraw temporarily once it is reached, to consolidate their results.
In this article, I will guide you through an analysis of how these two strategies-operating continuously or “leaving the table”-can affect the performance of your trading system, using the “MNQ 144tick-range Breakout” as a case study. We will examine various scenarios together and provide you with useful tools to understand which approach might best suit your style and goals. The goal is to get you thinking about how important it is not only the strategy you apply, but also the awareness of when it is time to stop and evaluate your achievements.
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