Future Trade of the Week : May 23, 2014 -> 6 time frame Ichimoku Buy Nasdaq 100 Future

On May 19 2014, we received an Ichimoku Forex 6 time frame Buy email alert on @ND, Nasdaq 100 futures currency from www.ichimokutrade.com.     Here is the email alert:

weekly_future_5_23_14_email

The markets are at have been making new High’s.   Also, the nasdaq has been lagging compared to the SP500 and the Dow.   Therefore, we are going to setup for a 240m pull back trade to keep our risk low.     The entry would be 3582.36, initial stop of 3569.99, and a preserve mode of 3623.93.    This is roughly a max risk of 12.12 pts and a min. reward of 41.79.    The min. reward/risk would be 3:1 i.e. 300%.     Here is the chart setup:

 

weekly_future_5_23_14_chart

Unfortunately, the trade didn’t triggered.  The entry was missed by less than 2 pts.    There are going to be some trades that we don’t enter because the entry was missed by a couple of points.  We are ok with that.    The reason is that if we had our entry 2 pts higher.    Our risk would be 14.12 pts and the min. reward would be 41.79.  This would be less than 3:1 reward/risk.    We don’t want to trade a system unless it gives us a min. 3:1 reward/risk.

 

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EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and Options Trading has large potential rewards, but also has large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provided on the Blog is for educational purpose.

About the Author Manesh Patel