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How can your exits channel help you to make money? Well, in a random entry system the first thing to consider is that when you exit, you’ll enter back into a trade again and lose another money for slippage and commissions. When you want your initial exit to be large enough to make sure that you don’t exit very often.
At the same time, you don’t want to enter into a trend in the wrong direction, which would cause you to pile up huge losses. To make the random entry system work you must have an stoploss that was big enough to keep you in the market while it was just making random noise type movements or moving sideways.
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