Leave a Runner??

Watch my video about leaving a runner and vote!


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  • terry

    Nathan very good analysis. I myself trade longer term and when the trade goes in my favor anywhere from 20 to 30 pips I take half off and move the stop on remaining lots to B/E Then if it continues to run in my favor another 20-30 pips I move the stop on the remaining lots to the first target where I dropped half off, so the remaining lots are profitable no matter what and let the remaining lots run till a resistance or support area depending on which direction you took the trade or a certain fib area on a higher time frame.

  • James Mah

    No , no runner. Wait for next entry.

  • Anonymous

    Hey, thanks for following along and leaving a comment! I agree that 20 pips is certainly a lot of work to get, which is why I do not think that we should let half of our trade fall down ANY pips.

  • Anonymous

    Hey, thanks for the comment and following along. Have you seen my trailing stop video? I think that may be the best way.

  • Gil

    Hi Nathan, I have tried both (leaving a runner and also taking full  lot size at target), both strategies have worked, but as I have not back-tested it I still don’t know which one works better in the long term. I’m looking forward to watch your video on the subject as it is very important one for us traders

    Best regards

    Gilberto

  • Jose

    Hi Nathan, I think that leaving a trade to run for a while is very good some times you get better result than with the main one, people who use the scalper system know that, the only thing you need is a software that catch the move until the trade change direction. But anyway I think your idea is good enough keep working on it and keep us informed.
    Thanks
    Jose

  • Johan

    I believe the answer to your question depends on the type of system you are aiming for – either you look for entries with high probability of giving a move of a certain distance, and then there’s no room for trailing stops. Or you have entries with lower win-rate, but use tight stops and allow for runners to go the distance. The essence is having a positive expected outcome over a reasonably large set of trades…

  • peter

    The trailing stop position for the runner is crucial, too tight and the trade could be closed prematurely for a potential loss of 200-300 pips in a trending market. A trending market may retrace as much as 57% before trending on another 200-300 pipsa.  This 57% also happens to be close to a Fibinnaci retracement level which is no coincidence , so, allowing a little more wobble room than this would be an excellent distance for trailing a stop in a trending market.  You can see this by drawing an OUTSIDE trend line in a higher time frame. I hope this helps.

  • Anonymous

    That is very reasonable, Johnny, and it is hard to argue with; however, I might try to argue with it in my next video so please check it out when I send it to yo…

  • Anonymous

    Husker, you are on the same page as many other traders with this logic. I think that there is some truth to what you are saying, but I am doing a lot of research that makes me second-guess the whole idea of ever leaving a trade on to run…. check out my next video on this subject when I send it to you and tell me what you think.

  • Anonymous

    That is an interesting point, my friend. I think my upcoming videos might be really helpful to your trading, so please check into those…

  • Anonymous

    Well-sai, Art. by the way, I am one of those people who is in an office 40+ hours a week on my computer so I agree ;)….. I think that you will enjoy some of the research I am going to release in my future videos about this topic so watch out for those!

  • Anonymous

    Very impressive analysis, Barak! I think that the research you have done is VERY evident of how successful or unsuccessful runners can be, I hope you check out the next video I release about runners because I think you will enjoy it..

  • Anonymous

    Thanks Jose, appreciate the comment. Please stay tuned for more on runners!

  • Anonymous

    I’m sorry for not being clear, Rob. When I say leave a runner, I mean that you if you trade a certain lot size and the trade goes in your favor, that you close out A PIECE of  the trade and not the whole thing, in the hope that the piece that you left on will continue to go for a long period of time and make you some extra cash….

  • Anonymous

    Hey, thanks for the comment! I appreciate your response. Please please stay tuned for when I release more info and research I have been doing about the runners–it is some pretty interesting stuff…

  • Lionel

    Below is my experience,
    – When I started to trade, I used to enter one solid lot  and  when the trade show profit, then I move the stop loss to break even and hope for more profit to hit the profit target. Unfortunately, there is many time of stop loss trigger then I get nothing ( thus, my account still survive till present but not growing much) 
    – Runner is a way to ensure profit or the win to loss ratio above 0.5 and let the compounding ( along many trades made) work to grow your account.

  • Hal

    what’s a runner?

  • Gary

    If you take out half of your money you are then in a trade making half as much and cannot get into another trade setup because your stuck in a trade making little.  Your trade is complete when you can move your stop to 1-1 profit target and the price is at 2-1 profit target.  Then let it run with all the money in the trade. You made your profit 1-1 profit and your runner is fully funded and then who cares about another set up appearing. Your in a free trade and no setup could be better than a free trade. 

  • Rusty

    It is my tendancy to get out if I have reached my profit target. I bank what I have and don’t risk losing half my profits. But, if my target is up against a weak support or risistance I will consider letting it go. Since each and every trade is different, the decision has to be nade at the time of reaching the target. I just hate to give back what I have earned. Bird in the hand and all that.

    Good question Nathan.

  • Sarbelio Jaime

    A runner, I think is a trade that is in the correct trend and is making profits. But the thing here is how long time and how far?.

  • Jacorn

    In a specific case of a strong uptrend with long bars, I will take one-third off the table at the first sign of red bars. If the fall-back deepens, I’ll take the other two thirds off, but as so often happens, sitting on my  hands will reveal the uptrend continuing for far longer, even though it’s gone beyond the next fibonacci level.

  • Harryabbit

    Whether a runner is more or less profitable depends on the stategy. In most cases it seems that a trending market would be better for a runner than a shorter term sideways market where the target should be taken, then wait for the next trade… My experience anyway.. 🙂

  • Paul

    i am happy to take 2/3 of my position at take profit target equal to 1:1 ratio then leaving the rest to run till i see reversal coming. stop loss moved to break even at the first target.

  • JohnnyL

    If the market is trending then a runner is a way to improve your trading profit.  If it is stuck in a sideways market trying a runner is a tremendous waste of time.

  • Husker

    For every half profit you take, you give up a larger profit or avoid a larger loss.  If your original trade was affordable, well-reasoned, and had a properly determined profit number, let it run.  Only if adverse news breaks would you have a reason to shut it down before it has a chance to run its expected course.  The trade should be longer-term and stop losses should be fairly wide so you don’t get whipped out on a short-term reversal.

  • Guus van Goethem

    Hi Nathan, I think if you have the time and are focussed you make more money just manually manage your trade with full lots following price three candle behind.  As I am lacking both I split the trade after PT 1, and let my trade manager do the rest. You have to balance profit/ time.

  • frank

    being in it @ 0.14 i would stay in it to save the $10.00 to $ $14.00 spread cost. if i see that it goes the
    other way, i still have time to change direction.

  • art

    Of course that method would be more profitable. I think it would mostly benefit those who like longer term trading and not being on the computer constantly. Once a runner is in profit, a person can look at another currency and set that one up, and so on.

    Now, what about holding runners while hedging, no hard stops, only mental stops? This would probably be for scalpers, or at least people who LIKE to be on the computer. This idea that being on a computer all day is not a life, is bull. What about people in an office who are on it 40-60 hours a week for their job? I get energized when i am on: research, blogs, forums, reading books and aricles, emails, friends and of course, trading.

    Have i made money yet? no. Each time i try someone’s method i lose, and, i end up back scalping, because i am active (the orange personality: http://www.personalitydimensions.ca ) ( a little green also, so some aspects of the bigger picture to take into account while scalping).  So, what to do?

    I am into a system (for me, not someone else) where i leave danglers and when i make 10% or higher on the account, i take off some of them. I trade both directions, like an animal. Lots of action=more energy not less (understand yourself according, as to yourself, not some guru psychologist). I think my account is about to turn around, for good……art

  • Barak Sekeles

    For each entry and exit of a specific strategy I use, I back-test and look what the market gave in pips starting from the entry point regardless of my original wishful exit. I collect this measure and sum it up on the go (similar to a moving avg. measure) and create a simple distribution that actually counts how many times a typical range of pips occurred. For example if I discover that for this specific asset using a specific strategy for say a sample of 156 trades..the market gave 90 cases of the entry events up to 20 pips or less (even though my strategy aim to get around 80pips), then 40 cases of the events between 20 and 40 pips, then only 15 cases between 40 and 60 pips, 5 cases between 60 and 80pips and only 3 cases between 80 and 100pips.. and only 2 case of more than 100pips… it gives me an idea of how to plan the size of each part and how to calibrate its take profit point and trailing stop. It simply means that I’d like to put more size on the part that occurred 90/156 cases (that is 58% of the cases) and gradually decrease the size of the partials up to a minimal size for that last runner that occurred only 2/156 that is only around 1.2% chance to happen. Having said that in order to determine a statistic based decision on the size of the parts and the amounts of pips to get per each partial, I will create an ongoing monitoring process for this statistics measure and change the size and amount of pips progrematically as a dynamic money management process, per each next set of “moving trades” due to the fact that the market may change this empiric distribution on typical changed in volatility, ranges, or strong main trend periods.  Bottom line as I see it, one cannot maximize the profit of partial and long runners decision making with constant fixed numbers like half a position or third of a position or a specific number of pips to move a stop to a break even… if you want to maximize the benefit of the typical market movements you should measure such a distribution of what the market tend to statistically give per your strategy entry points. If such a distribution shows that the event of a long runner is rare there is no point of leaving there too much money in a long runner, while mean time you can leverage  and collect more winning cases from the short an mid runners. Practically in such money management procedure I do not break the trade into more than 6 partial parts.
     

  • JoseSolaro

    I say no depending on your trading style. If you use less than half as a runner, then yes. If you use equal amounts no.

  • Friesen_rob

    What’s a runner?