We are at our greatest risk when we 1st initiate a trade.If possible we need to reduce our exposure or reduce our exposure when the trade has either moved in our favour or the chart tells us to do so from a technical point of view.
The stop i initiate on this system is carried out when a technical situation occurs.this happens BEFORE the 1st target is hit.
Signal
We go short 2 contracts and set our stop to 1 or 1.5 points,our long term chart will have already given us our trigger and will look some thing like this
We now have our trigger, look at this classic chart pattern because this is what will be used to reduce our stop on our live contracts,(I do not bring my stop to break even untill the 1st contract has hit its target) ...its this risk period before our target is hit that i am trying to reduce.
Compare this to the real chart you can see how the pattern is the same,luckily for us we had a good outcome but in case we didnt our loses would of been 50% of our initial stop
The stop i initiate on this system is carried out when a technical situation occurs.this happens BEFORE the 1st target is hit.
Signal
We go short 2 contracts and set our stop to 1 or 1.5 points,our long term chart will have already given us our trigger and will look some thing like this
We now have our trigger, look at this classic chart pattern because this is what will be used to reduce our stop on our live contracts,(I do not bring my stop to break even untill the 1st contract has hit its target) ...its this risk period before our target is hit that i am trying to reduce.
Compare this to the real chart you can see how the pattern is the same,luckily for us we had a good outcome but in case we didnt our loses would of been 50% of our initial stop
1 comment:
I like it, if price breaks that point its no longer making lower highs and time to get out with a lesser loss
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