Hi Everybody,As the 15min trend was uncertain, in the early part of the day yesterday (more on this in the next post) you could have decided to take trades on both sides of the market. So I want to take a look at what would have happened on the 3min YM yesterday (this is only a sample of 1 day as there was a lot of trades on this chart yesterday, but may not be representative of everyday’s activity).
As you can see, we had a few trades, the first was a TS1 sell that made +4.7R Profit (ignoring slippage and commission). Note the small green triangles, these are failed trades. BUT not always filled, the first is a good example as this was invalidated (as the market went below the prior bars low “before” being filled), so the long trade was not entered. Then we had a -1R loss, then a nice +3.7R Profit, then a break-even TS3 sell later in the afternoon. So overall a possible +7R (+4.7 plus -1R Plus +3.7R Plus 0R) day yesterday.
Again, I have to stress that I do not suggest taking “all” the trades every day, but on a day when the larger degree trend is unsure and you use the 100% initial risk guideline, then Advanced Traders could consider it. But again, I stress that it is always best to trade “with” the larger degree trend and when in doubt, stay out.
Thanks, Steve
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