Another great trade !!

[Steve Griffiths]

Hi Everybody,

My last post was how we turned a $300 Risk into a $800 profit, now, a little later in the same day, a $400 Risk into a $2,200 Profit :) :)

Please see below

And the decline is not over yet as the market is still declining (and porfit rising) as I type ............ I just love this stuff :)

Steve

[traderken]

Steve, I agree this was a great trade. I am beating myself up a bit right now because I let myself get caught in the oldest game in trading - floor traders making a run on the stops during lunch.

I loved the setup on this YM trade. I was watching for good shorts today and although the TRIN was blue, it was sloping up well, and the longer term YM trend was definitely down. So I saw the setup and took it right away. As it lingered slowly dropping lower, I moved my stop just below Breakeven above the EMA and a pivot highm about 20 pts above the current price.

It had just occurred to me that this might be a bit close during lunch but I didn't move it. Right then, the price spike up, took out all those tasty buy stops sitting above the pivot and dropped right back down. Then it immediately starting dropping like a rock.

Arggh, Lesson learned.

Ken:mad:

[NHN123]

I got stopped out too, by trailing my stop using ParSAR.

Tell me. You mentioned Pivots; I've never liked pivots, mainly because I have never been able to work out a good way of using them. Have you used them much? Got any tricks up your sleeve to avoid these premature stops happening too often?

Thanks

[traderken]

Steve may have better counsel than I do but I have used the EMA and pivots very successfully in the past for trailing a stop and staying in the action. The only issue I have ever had is exactly the situation that happened today.

I had left my stop just above the quadruple top on the 5 min chart at 11034 for a long time before moving it down. That is a pretty secure technical position historically. If price rallies above that, you can usually count on it being a reversal.

The key to me for finding good pivots is to see them really rise above the action and stand alone for a few bars. Then they usually will hold, particularly if they are above the EMA.

Ken

[Steve Griffiths]

Hi Guys,

That is what the standard tarde mangement guidelies are for - here a $400 risk into approx $2,600 as we pause at the first projected profit target.

A perfect trade with a profit of 6x the initial risk, straight from the Trading Course :)

Steve

PS, we may still have further to fall as the main trend is down.............so lets wait and see, but 6x initial risk is a great place to take some Porfit off the table !

[Steve Griffiths]

Sorry $2,500 profit not $2,000............... sorry

[Steve Griffiths]

Sorry, I need to type slower - $2,500 profit not $2,600

Steve

[Steve Griffiths]

As I suscpected, we had further to fall.

Now at 10x intial risk - what a great way to turn a $400 initial risk into a $4,000 profit............. what a great days trading :)

Steve

[spp]

Hello Steve
Yes indeed, that was a terrific move in YM.

I went short at the signal. YM then made an initial move downwards, after the 100% Initial Risk level was reached I moved my Stop to breakeven & then the minor retracement stopped me out @ breakeven. Hey, that'll happen. But I thought I'd use the occassion to check in on it - are you still finding this breakeven tactic, per the MTP trading course, is the best course of action?

Obviously, there are subjective decisions to be made when forumulating ones trading plan & this is one of them. Is your subjective decision on the matter to still move your stop to breakeven at the 100%I.R. level?
Thank you sir
Sean

[timo4sho]

Hello Steve
Yes indeed, that was a terrific move in YM.

I went short at the signal. YM then made an initial move downwards, after the 100% Initial Risk level was reached I moved my Stop to breakeven & then the minor retracement stopped me out @ breakeven. Hey, that'll happen. But I thought I'd use the occassion to check in on it - are you still finding this breakeven tactic, per the MTP trading course, is the best course of action?

Obviously, there are subjective decisions to be made when forumulating ones trading plan & this is one of them. Is your subjective decision on the matter to still move your stop to breakeven at the 100%I.R. level?
Thank you sir
Sean


VERY GOOD QUESTION!!! I think this would be a great topic for a in depth look at this in your daily reports! ;-)

[Steve Griffiths]

Hi Guys,

If you read the Chapter on Day Trading in Part 2 of the Course you will see how I duscuss the differences between using Daily bar charts and short-term (3 and 5min) charts. Here I say that the one guideline I would amend is the use of the 100% initial risk. Because, as you have seen today, short-term charts are more volatile than daily shart, subject to short term stop running. This is why I suggets that you do not use the 100% guideline for short-term trades.

Again, this is in the Day-Trading Chapter of Part 2 of the Trading Course.

I hope this helps ?

Steve

[pauli134]

Steve ...great trade ..i passed because my $Trin was not at this point indicating a decline ....can you tell me $Trin settins for Trade station ...mine don't seem to be functioning as yours do....

Thanks

paul

[ADM]

about the TS3 signal, would that have been a TS2 signal if using overnight moves?

a 1 2 3 down and A B C correction is what i show for the YM using overnight charts as well.

im trying to catalog which setups have been more profitable risk/reward wise TS1 TS2 TS3 etc

[spp]

Steve ...great trade ..i passed because my $Trin was not at this point indicating a decline ....can you tell me $Trin settins for Trade station ...mine don't seem to be functioning as yours do....

Thanks

paul


Hey Paul
I remembered seeing a thread on this in past & thought I'd post it here for you. You may have already seen it but thought I'd make sure in case it had what you were looking for:
http://www.mtptrader.com/showthread.php?t=517
Regards
Sean

[spp]

Here I say that the one guideline I would amend is the use of the 100% initial risk. Because, as you have seen today, short-term charts are more volatile than daily shart, subject to short term stop running. This is why I suggets that you do not use the 100% guideline for short-term trades.

I had read Part 2 of the MTP Training Course but had forgotten about this suggestion not to use the 100IR level for intraday trading. I just reviewed it - thanks for the reminder Steve.

In Part 2 there you say to experiment to come up with an intraday replacement for the 100IR Stop tactic - is there a recommendation you could make as to when to move ones Stop to breakeven on intraday trades that you use?
Appreciate whatever insights you might have Steve
Sean