Perhaps the exit strategy is one of the tough parts for the traders. However, we should not over-complicate it, but we should start with simple exit methods and principles. But sometimes it is such simple techniques that bring unexpected effects.

The exit order is often influenced by psychology such as greed and fear. Many traders close their orders early, and there are traders who have no exit plan. That's why you need an exit strategy or plan for yourself.

There are 2 things that you must understand and accept, that is:

- you can never profit and earn every pip from a single trade. So aim to get partial profits.
- Sometimes you have to accept losses because it is part of the trading.

This article has an exit plan called 2R, which helps you to exit effectively and professionally. In which R is the value reflecting the margin of the transaction management strategy. The formula is very simple, it is the total profit divided by the loss.

For example, if you made $ 100,000 in a trading year, but lost $ 50,000, your profit margin or “R” would be 2 or simply “2R”. (100,000 / 50,000 = 2).

That means the profit margin is 2R, which means that for every 1usd loss you can make 2usd.

Below is a simple 2R exit plan divided into 4 steps for traders:

**Step 1: Determine your 1R risk. And do not exceed this amount.**

The determination is also quite simple. If you're risking $ 100 per trade, say. Then 1R would be 100 $. Then, determine the RR ratio. Since our exit strategy has a profit of 2R, the RR ratio will be 1: 2.

**Step 2: Determine stop loss position and trading volume**

Locate your stop-loss reasonably and firmly. Based on 1R stop loss and reasonable volume calculation.

**Step 3: Calculate the risk: reward 2R**

Once you have determined your 1R risk amount and properly placed your stop loss, you can determine an RR ratio of 1: 2 based on a 2R return ratio. Then consider whether key support and resistance levels around 2R or better are feasible for profit taking here. If you can determine this, then a strategy with an RR ratio of 1: 2 is feasible.

At this point, you also need to decide whether you will set your profit target at 2R or if there is an opportunity with a 3R or even higher rate. But aim for the 2R more in a trending market.

**Step 4: Do not move the stop loss until the order becomes 2R or more profitable**

At the moment of 2R profitability, you need to make two decisions and this is when you have to use your intuition and personal decisions. Depending on the market conditions at that point you can either exit your profit at 2R or move your stop loss up to the breakeven point with the expectation of a greater return of 3R or more. If you anticipate a strong trend continuation or a high probability of a strong breakout, then it is time to use this approach.

If you hit a 3R profit, it's time to make sure you make money from the trade and move up your stop loss to take that 2R profit.

If you have a stop loss, don't be disappointed. Don't let the loss of one order hinder your vision and ability to analyze the big picture on subsequent orders. Stop loss is normal in trading.

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