Learning a repeatable Bull trade exit strategy is essential for maximizing income. In this post, John Locke breaks down a rules-based approach that prioritizes defined risk limits, trade discipline, and then adds practical entry/exit mechanics so you can protect capital and build confidence.
Click here or on the video below to learn more!
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Why a rules-based exit matters
- Preserves capital and prevents emotional decision-making.
- Builds trust with yourself — follow your plan and avoid revenge trading.
- Makes performance measurable and repeatable.
The core rules from the video
- Exit trigger: close trade when the next cycle reaches 65 days to expiration (non-active approach).
- Defined risk limit before entry: set a maximum loss you will tolerate per trade.
- Checkpoint time: decide not to watch the market all day; use a daily checkpoint (example: 3:30 PM ET) to evaluate exits.
- Position sizing: trade small (1 lot) while learning; scale only when you consistently follow rules.
- Credit target example: aim for $2.50 per lot (10-lot example = $2,500 credit).
- Exit ladder (advanced): raise exit triggers as price patterns break higher; exit on pattern break.
Managing losses vs. holding to expiration
- Stopping out may cause missed wins, but preserves mental capital and prevents catastrophic drawdowns.
- Holding till expiration can win more dollars but risks larger single-trade losses (e.g., $7,500).
- Choose strategy based on your risk tolerance, account size, and psychological ability to recover after larger losses.
Common trader pitfalls and how to avoid them
- Revenge trading: accept losses, wait for your next planned entry.
- Overlapping trades: increases maximum loss exposure — avoid until disciplined.
- Scaling in during losses without a plan: can promote worst-case blowout behavior; stick to predetermined reasonable position sizing rules.
Practical checklist before placing a bull trade
- Have a written trade plan with exit and risk limits.
- Determine lot size or trade size that are aligned with account and mental tolerance.
- Set credit target and acceptable drawdown (example: $2,500 checkpoint).
- Select checkpoint time and commit to honoring it.
- Decide whether to use active ladder exits or the simpler 65-day rule.
Next steps to become consistent
- Practice stage one: build discipline by following rules on small trades.
- Learn Market Outlook and price patterns to improve entries and exits.
- Gradually move to more active management (exit ladders) as skills improve.
Use the bull trade exit strategy to build consistency: protect capital with defined risk, honor checkpoint exits, and only scale when you consistently follow your plan.
Ready to trade smarter?
Watch the full video and implement the checklist on your next trade.
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