8x profit on the AB

[Steve Griffiths]

Hi Everybody,

A great trade here on the 3min AB (Russell Index) using the eSignal efs's.

Yes, it got off the a slow start, but you were nicely positioned short to take advantage of the sharp fall later in the day :)

The standard tarde management guidelines would have kept you short untill the close where the profit would have been over 8x the initial risk (ignoring slippage and commission). Or put another way, this would have turned an initial risk of $300 (2% risk on a $20,000 account) into a profit of over $2,500.......................

Steve

[dctommy]

Steve:

Would you have been stopped out on AB using your trade management rules
between 1500 & 1600 time period? It is my understanding that you use a
trailing stop of the high of the previous bar as stop. If so, I see at least 2
stop outs prior to the 8x profit target.

Please clarify & if my assumptions are incorrect then point me to the
section in part 2 of your trading guide which would correct me.


Thanks,

Tommy Powell

[Steve Griffiths]

No,

Becuase the stop "stays" above the bar that first closes beyond the WPT, so the stop would not have been at the level you indicated when the minor rally happened, therefore keeping you short.

The position would have then been closed on the close.............

I hope this helps ?

Steve