TradersThinkTank Nails The “OPEN” Trade

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:

  1. System Entry long triggers in OPEN at the Pivot point on a day chart at 66.99.
  2. Volatility is then measured and the size of the trade is matched next to the risk : reward levels.
  3. Risk : Reward is automatically read as a set up with a high probability trade.
  4. The PT1 and PT2 levels were set and I double checked the stop loss based on the volatility.
  5. PT1 was hit last week at 68.89
  6. Range expansion off the breakout continues for two days as today we see an explosive move. and I hit PT2 at 71.55 today.
  7. Think Tank adjusts the last PT2 to included a PT3  above 74 and looking for more gains. I nailed 6 % today alone on PT2.

OPEN2

 

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

About Nickolas Pirraglia

Nick Pirraglia started his career in trading in 1991 after returning to the US as an Army Officer deployed in Iraq. He began as a bond broker and worked his way into trading. Expert mentoring, hard work and a disciplined approach to the markets has allowed Nick the ability to maintain a very successful career in Capital Markets and Trading for over 20 years as a professional OTC Market Maker and independent trader. Nick has also managed the trading desks for a two Dallas based capital management companies and traded equities for a Dallas based hedge fund. Nick has trained and mentored thousands of customers in the rigors of trading, technical analysis and risk controls. Recently, Nick had broadened his market experience through the design and product management of two automated trading platforms. He has the pleasure of working with some of the brightest minds in the trading community and has collaborated with experts in data, design, engineering and trading psychology. An avid long distance runner, Nick completed several marathon events, qualified for the Boston marathon, completed several long distance Triathlons to include finishing a full Ironman triathlon.
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