Using R/R Module for non MTP Set-up

[d-day]

This wasn't an MTPredictor set-up, but MTPredictor made it a great trade nonetheless.

I saw a small bear flag forming right at the level of recent prior lows, so I quickly engaged the risk/reward module to size the trade and away we go ... 11.1:1 right now, not even an hour later.

I love this set-up as it is very reliable. The ease with which to quickly calculate for maximum size given my risk parameters have made these set-ups gold. In the past I'd almost always short 1-3 contracts, but with the R/R module, it is much easier to calculate for a larger trade size with a controlled risk, and still have time to enter the order before the market moves away without me.

By the way, I am out, and I don't care where it goes from here.

Have a good weekend, fellows.

[timo4sho]

This wasn't an MTPredictor set-up, but MTPredictor made it a great trade nonetheless.

I saw a small bear flag forming right at the level of recent prior lows, so I quickly engaged the risk/reward module to size the trade and away we go ... 11.1:1 right now, not even an hour later.

I love this set-up as it is very reliable. The ease with which to quickly calculate for maximum size given my risk parameters have made these set-ups gold. In the past I'd almost always short 1-3 contracts, but with the R/R module, it is much easier to calculate for a larger trade size with a controlled risk, and still have time to enter the order before the market moves away without me.

By the way, I am out, and I don't care where it goes from here.

Have a good weekend, fellows.


GREAT TRADE!!! CONGRATS David!

What made you take this trade, if I may ask?

[d-day]

GREAT TRADE!!! CONGRATS David!

What made you take this trade, if I may ask?

The "technical reason" is simple: Price broke beneath yesterday's prior lows and then formed a flag underneath those lows, i.e. having penetrated those lows, which should have been support, price now met them as resistance. It's a pretty basic trade based on the pattern you see on the chart - a decline with increasing momentum, a small area of consolidation, and then price continuing in the direction of recent momentum.

About half of my day trades are Elliot Wave or MTPredictor set-ups, the other half are based upon just watching price action around support/resistance areas, and simple chart patterns such bull and bear flags. In fact, until I started using MTPredictor, I didn't even have any indicators on my charts - just bars/candles. I do you the STF for DP Divergence set-ups.

Another set-up I like is when price meets a what should be a support area, and it just so happens that it is also a DP area, and then, lo and behold, there is oscillator divergence as well! I've attached a screen shot of a gold trade set-up from this morning - price testing a recent low, at a DP support area, with STF divergence.

I will say this though, as important as the technical set-up is the fact that I was psychologically prepared for the worst case scenario - I might be stopped into the trade only to see price reverse and I'll be down 1%.

I had a good day today. Over the course of a year, I hope to average 1R profit/day. It's days like this that make up for the days where there weren't any set-ups, or, egads, those awful days when I find myself down 3-4R. But it sure is easier to keep my head in the game since I started using MTPredictor's RR module and position sizing on all my trades - whether MTP set-ups or my own. I've only been using MTPredictor for about seven months now. I wish I had found it years ago. I'd probably have days like this more often!