Good Afternoon Traders,
I wanted to stress a key point and example of a classic trade I made in the Trading System Model last week and was able to close it out this morning.
Recall I entered into a long side trade in OPEN last week. I had two Profit Targets set with a great risk to reward entry in my system. See the chart below for the sequence of events:
- System Entry long triggers in OPEN at the Pivot point on a day chart at 66.99.
- Volatility is then measured and the size of the trade is matched next to the risk : reward levels.
- Risk : Reward is automatically read as a set up with a high probability trade.
- The PT1 and PT2 levels were set and I double checked the stop loss based on the volatility.
- PT1 was hit last week at 68.89
- Range expansion off the breakout continues for two days as today we see an explosive move. and I hit PT2 at 71.55 today.
- Think Tank adjusts the last PT2 to included a PT3 above 74 and looking for more gains. I nailed 6 % today alone on PT2.
These events I record as they happen or as best of my ability on this site as they occur: See the Decision Making tab to this
See all this real time along with live alerts, real time messages and real time trades here:
http://www.marketfy.com/store/item/use-technical-analysis-to-capitalize-on-trends/preview/
Bottom Line: It’s obviously great to have a trade work as perfectly designed as the $OPEN trade did from entry to exit.
The key is risk management and having the structure in place to mange every trade and work the initial strategy to its fullest, or close to fullest, profit targets as your time line is calculated to.
Nick Pirraglia
TradersThinkTank
