3min FTSE – Advanced Trade Management

Hi Everybody,I am often asked about trade management, so I thought I would take a look at the current TS3 sell on the FTSE.

Standard Traders would have managed with the ATRStop, as the STF was strong, and as such ended up with a very nice +9R Profit (ignoring slippage and commission), which is a HUGE Profit and one any trader should have been happy with...........

But as an Advanced Trader, I always keep an eye on the “pattern” of any swing, and here the decline unfolded as a “minor” 5 wave decline. All of you who have read and studied the Trading Course will know that the 5th swing in an Elliott Wave Pattern is usually the last swing. So with this in mind, protecting a massive +13R Profit (ignoring slippage and commission) would have been a good idea...

What a brilliant day for the European traders

Steve

Dax this morning Part 2

Then we had a -1R loss as a good looking TS4 sell came in. There was only 1 loss here even though there were two history triangles as the second was a “double top”.

The next TS4 sell then nailed the high perfectly, just before a sharp decline came in................. This short trade is currently on a very nice +9R Profit (ignoring slippage and commission)

Thanks, Steve

Dax this morning

I though you would all like to see how a Professional Trader looked at the 3min DAX this morning ?

The day started with a nice 5-wave decline, with the low unfolding at a high volume (VSA) bar at the minimum Wave 5 WPT. The trade here was into the DP (from the prior Wave 4 high).

The result was a nice +2.4R Profit approx. (ignoring slippage and commission) as a good looking TS4 sell came in

Thanks, Steve

NQ – 3min Long

If you were a standard trader and just looking for long trades yesterday then there was also a nice good looking TS3 buy on the 3min NQ that resulted in a +2.9R Profit on the close (ignoring slippage and commission)

Thanks

Steve

3min ES for the Advanced Traders...

Carrying on from the last post, ironically the clearest “ABC” patterns were in the two sells that were against the larger degree trend yesterday....

This is where the more Advanced Traders could have considered these short trade, BUT (and I always say this), if you are unsure of the trend, or you are against the larger degree trend, you must always protect yourself quicker by using the 100% initial risk guideline.

This would have resulted in a break-even, then a +2.4R Profit (ignoring slippage and commission) for the more Advanced Traders among you yesterday......

Thanks, Steve

3min ES longs Part 2

Over the past few days I have been talking about only trading the “most obvious” and “cleanest” setups. The long trades yesterday were a good example of this. Particularly the way there was no obvious and clear minor abc in the two trades early in the day.

Compare these to the DP buy, where we had the added confirmation of a very clear high volume (VSA) spike as well as the clear swings going into the low.

This made the DP buy the best and “most obvious” long trade yesterday....

Thanks, Steve

3min ES longs

OK, now we know that the trend was up let’s take a look at the buys on the 3min ES.

The day did not start well with 2 -1R losses. As all professional traders know, losses can and do happen, but the trick is keeping them small.

Then we got a lovely (more on this later) DP buy that nailed the low of the day. With the STF strong, standard traders would have swapped to the ATRStop, which help the long trade into the close for a nice +3R Profit (ignoring slippage and commission)

But do you all see the important point here, even with two losses you make money overall, because the losses were kept small at just -1R each and the profit was much larger than this at +3R. This is the trick to successful trading – keeping the losses small and Profits larger, and that is what MTPredictor does for you :)

Thanks, Steve

Larger degree trend

After a few easier days at the end of last week, the Cyclical Nature of Trading is beginning to push round to the harder part of the cycle, and that was evident in the larger degree trend yesterday, which was not as clear as I would have liked. This does happen and is something we must all be aware of.....

For me, the biases was to the upside yesterday, so longs were to order of the day for the Standard Traders among you.

So with that in mind, let’s move onto the 3min ES chart in the next post

Thanks, Steve