Exit Strategy
A predefined plan for closing a trade, whether at a profit target, stop-loss, or based on changing market conditions.
Explained Simply
Most traders spend too much time on entries and not enough on exits. A good exit strategy defines exactly when you'll take profits, cut losses, and adjust positions. Common approaches include fixed targets (sell at 2x risk), trailing stops (let winners run), time-based exits (close after N days), and signal-based exits (close when the original signal reverses). The best traders decide their exit before they enter.
How Tradewink Uses Exit Strategy
Tradewink's DynamicExitEngine uses ML to adapt exits in real-time. The system combines fixed targets (scale-out at multiple levels), ATR-based trailing stops, time-based exits (max hold period), and AI-driven regime-shift exits. When the intraday regime flips from trending to choppy, a bull/bear AI debate decides whether to hold or close.
Related Terms
See Exit Strategy in action
Tradewink uses exit strategy as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.