Future Trade of the Week : Jan 3, 2014 Four time frame Ichimoku Buy Platinum

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  • Future Trade of the Week : Jan 3, 2014 Four time frame Ichimoku Buy Platinum

On Dec 31, 2013, we received an Ichimoku 4 time frame buy email alert on Platinum futures from www.ichimokutrade.com.     Here is the email alert:
The highest time frame is 60m so we will setup the trade on that time frame.     The entry would be 1384.19, initial stop of 1362.44, and a preserve mode of 1401.14.    The max risk is 21.75 and the min. reward is 16.95.    Since this is a breakout entry setup, we look for a 1:1 reward/risk.    This is below the 1:1 reward/risk so we will NOT PLACE the order.  It does not fit our trading plan.      Here is the chart setup:
If you look at the chart above, the trade did work.   However, we did not take the trade and we are OK with it.    We know our trading plan works for any instrument and any time frame.   For breakout trades, we look for 1:1 reward/risk.   If it is less than that, the probabilities of success is low.   Some cases work out but most fail.    We are trading probabilities and the probability of success for this setup would be low.
If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com
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