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Taking Profit When Trading $BTC Or ICO?

For those of you who have been following along for a while now, here's a thread on Taking Profit when trading BTC or crypto

This is super short & simple, but it's worth it

From Module 1, Market Structure

We'll cover intro profit taking & a kicker too

As a recap, within the linked tweet is the setup we're using to reference the profit taking regime.

These are the ICT fibs that I've been using for a very long time now

- Mindo on Twitter

Another example of the same fibs are shown here

Using the method shared in the Module, you have a suite of options to take profits on.

Capital preservation is key to surviving in the trading world.

You've got to learn to lose like a pro to trade like a winner after all.

It's you against you before anyone else.

Bullish Set Up

If we break down this chart, and the fibs, you'll see that you can take profits per the below:

10% at 0.28 25% at 0 20% at -0.27 20% at -0.618 25% at -1

When you execute a trade like this for the first time, it's amazing trust me.

Bearish Set Up:

If it's not broken, don't fix it right - same deal again

10% at 0.28 25% at 0 20% at -0.27 20% at -0.618 25% at -1

I want to stress though, that if you're just starting out, this profit taking regime is superb for getting the hang of things.

..but!..

...There can be an eventual issue to this kind of profit taking as explored in this thead below

- Mindo on Twitter

As a recap to the above thread, you can run a take profit regime as shared, but in the long run, if executing more trades is what you're after, then it can make more sense to simply aim for the -0.27 fib level with no profit taking at all

Examples below:

(recap)

Take a look at these two fib set ups, using the ICT classic fibs that he introduced a lot of us to

Which one would you rather net? The bigger one is 5.68R, the smaller one is 3.2R

You'd go for the larger one right; but what if you TP all the way up?

(recap)

First, let's assume a few things:

- Acct size of 10k - Risk size of 1% / 100 - Leverage of 20 (doesn't matter in this case)

You can see the position size worked out per the below (irrelevant in this case)

Note the 5.68R / 568.03 potential gain (no TP's)

TP's next:

(recap)

Truth is that if you use a TP regime like the below:

- 10% at 0.28 - 25% at 0 - 25% at -0.27 - 30% at -0.68 - 10% at -1

Your initial 5.68R will turn into the smaller trade of 3.2R.

Sequential results excluding fees shown on the far right

(recap)

Here's the comparison of the original figures of letting a trade run, vs the combined figures if you sequentially took profit:

If you took aggresive profits as shown above, you're actually worse off.

You R value is almost halved!

After taking profits sequentially, you'd be able to work out that the net result is 3.2R, which the red line in the image below represents.

Sometimes the time spent managing a trade like this isn't worth it if you want more opportunities faster.

Less can be more as shown.

But it's totally fine to run with the sequential profit taking regime, and it's totally fine to aim lower for quicker trades / not as tightly managed trades.

There is no right or wrong, but it does help to put these things on the table with the evidence

Link to my pinned tweet also for this full, free course:

- Mindo on Twitter

If the above helps, @johnnie_jacks

& I share the MindJacked brand, where all of our channels are free

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Cheers

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This post is based on this twitter thread.

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