On July 2, 2012, we received a 5 time frame Email Signal Alert to buy Soybean Meal Futures. The email is shown below.
Below is the trade setup,entry,and exit for the trade. We are showing both possible entries for educational use.
The breakout entry was 429.30 with an initial stop of 415.20 and a preserve mode value of 437.80. Preserve mode is where we tighten our stops to protect our profits. This would give us a reward/risk of 8.5/14.1 i.e 60.285 profit. We like the min. profit potential to be 100%+ so the breakout entry did not fit our trading plan.
The pull back entry was 421.50 with an initial stop of 415.20 and a preserve mod value of 437.80. This would give us a min. potential reward of 16.3/6.3, 259% min. profit potential. This was a good reward/risk ratio
From the chart, you can see we entered the trade and quickly go to preserve mode. Once we tightened our stop, we got stopped out for a profit at 442.30. We gained an extra 4 pts on top of the 16pts+ to our preserve mode.
To learn more about how to trade like institutions or to learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com
EDUCATIONAL USE. Commodity Futures Trading Comission, Forex, Futures, Equity and options trading has large potential rewards, but also 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