Exit Rules
Practical Turtle-style exit rules for closing trend-following positions without emotional profit-taking.
Exit rules decide when a position is closed. They protect the trader from taking profit too early, holding after the system has failed or inventing reasons after the fact.
Common exit structure
A long position may exit when price breaks below a shorter channel low. A short position may exit when price breaks above a shorter channel high. The exit window is often shorter than the entry window so the system can react when the trend weakens.
Exit is not prediction
An exit does not prove the trend is permanently over. It says the position no longer meets the system’s holding condition.
Review questions
- Was the exit rule followed?
- Was the exit price realistic?
- Did all Units exit according to plan?
- Was profit giveback expected by the rule?
- Did the trader change the rule because of emotion?