Post by traderAllen on Nov 25, 2014 0:52:36 GMT -5
Let's talk about trade management and how to keep things simple. If you use ninja trader you have the ability to set up ATMs to assist in your trade management. If you use a different software hopefully you can find something similar. You need to have a minimum of 4 ATMs, five if you going to trade the news.
The first three are very similar:
High volatility: Position size 1 profit target 10 stop loss 10
Medium volatility: Position size 1 profit target 6 stop loss 10
Low volatility: Position size 1 profit target 3 stop loss 10
These are your basic entry methods you will use the most. As you are watching the charts for your entry you're also looking at the current volatility the market you then select the ATM that matches the volatility. It should be locked and loaded and ready to fire off the moment you get a valid trade set up.
The next ATM is used primarily in first break, second break or other pullback entries. It can also be used anytime you are comfortable with market conditions. But it gets better results with the pullback entries.
Pullback ATM: position size 3 profit target one 3 profit target two 6 profit targets three 9 all stops are set to 10 however profit targets three moves to break even +1 or two once the market move seven pips.
Each target gets one position size. The last position size can be drag-and-drop for more pips if needed but the stop loss cannot be changed once it auto moves to break even plus.
News trade ATMs be will discuss it another time.
The first three are very similar:
High volatility: Position size 1 profit target 10 stop loss 10
Medium volatility: Position size 1 profit target 6 stop loss 10
Low volatility: Position size 1 profit target 3 stop loss 10
These are your basic entry methods you will use the most. As you are watching the charts for your entry you're also looking at the current volatility the market you then select the ATM that matches the volatility. It should be locked and loaded and ready to fire off the moment you get a valid trade set up.
The next ATM is used primarily in first break, second break or other pullback entries. It can also be used anytime you are comfortable with market conditions. But it gets better results with the pullback entries.
Pullback ATM: position size 3 profit target one 3 profit target two 6 profit targets three 9 all stops are set to 10 however profit targets three moves to break even +1 or two once the market move seven pips.
Each target gets one position size. The last position size can be drag-and-drop for more pips if needed but the stop loss cannot be changed once it auto moves to break even plus.
News trade ATMs be will discuss it another time.
