When considering the IQstrat, the best place to put a stop after entry into a position is at the opposite line of the channel. In other words if you have a buy signal and an actionable candle breaks through the top of the channel and a position is entered, then a stop order should be placed at the bottom (red) line of the channel immediately. This is your fail safe (referred to as stop order A in Rules for Exit section).

The next thing to consider is where to take profits and when to let it run. A trader always wants to be sure that there is more positive on the table than negative. One way to determine this is to look at where other highs and lows have occurred relative to current position. If there is a high or low relatively close to where you entered your position you may want to consider taking some profits at that level especially if the market has already moved considerably in that direction. You may also want to move your stop up at this point so that if price hits the key level and bounces back after you have taken profits, you are not caught off guard by a quick move against your position.

Other good places to take profits are at levels of support and resistance as marked by the Pivot Point indicator that should already be on your chart.

After taking profits it is key to manage the rest of the trade. To do this a trader using the IQstrat should follow closely the rules of exit and always have their stop orders positioned correctly even when letting the trade run. There’s always an optimal time to exit entirely and for more solid exit management rules as well as risk management/exit examples please see the next tab, Rules for Exit.