Now for the Advanced Traders............

For the more Advanced Traders among you, there was a nice high volume (VSA) spike trade off the low as the 3min ES reversed at DP support on a high volume red bar. The ES then rallied to the opposing DP for a nice +2.9R Profit (ignoring slippage and commission)

A nice extra trade yesterday for the more Advanced Traders among you....

Thanks, Steve

Then the ES

As I said, I deliberately chose the worst example for the 3min YM in the last post, for example, the 3min ES was much better, with 3 trades, -1R, +0.9R and +3.6R, see chart

These signals are in the new MTPredictor v6.5RT, so may be slightly different (we have improved the routines slightly) than the old RT add-ons.

Again, I do not suggest taking all the trades blindly without due consideration of the larger degree trend....

Thanks, Steve

The importance of correct position sizing...

Hi Everybody,

In the first example today I would like to stress the importance of using correct position sizing in all your trades. Here I have deliberately found the worst run of trades on the US e-minis yesterday to demonstrate this. There are not many Gurus who deliberately use bad examples, but then very few are truly interested in showing you how the markets really unfold.

Here we had 4 automatic trades on the 3min YM yesterday, 3 were losers and 1 a profit. The amateur traders will look at that and say, that is not good, but the amateur does not understand correct position sizing and how by keeping the losses small, at only -1R each and the profits large, at +4.2R in this example that even with more losing trades they should have made money overall.

Losses can and do happen in the real world, this is why it is so important to keep these inevitable losses small and under control....

But this was the worst example yesterday chosen just to show this point, I do not suggest taking all the trades without consideration of the larger degree trend.

Thanks, Steve