TS4 buy nails low on the YM !

There were no such questions on the 5min YM, where we had a lovely TS4 buy setup that nailed the low of the day for you !!

As you can see, the YM rallied nicely off the low. Although the market did not have time to reach the first target, there was a nice +2.2R Profit (ignoring slippage and commission) available on the close.

Thanks, Steve

When to use the 100% initial risk guideline

Hi Everybody,.

I am often asked when Traders should protect their trades with a “initial” stop loss adjustment. With Daily Charts we use the 100% initial risk guideline, but we normally give Intraday charts more “wiggle room”. However, when a trade is “uncertain” or “against” the larger degree trend (15min Charts), then this 100% initial risk guideline can help avoid a otherwise losing trade.

A good example was the TS1 buy on the 3min ES from yesterday. As you can see, this ES reached the 100% initial risk level before declining. So raising your protective stop to break-even would have meant a “break-even” (or flat) trade, so no loss, which is always good........

But why do it on this trade, and not others ? Well it is all about the larger degree (15min ) chart, so for this please take a look at the Advanced Blog.

Thanks, Steve