On May 2, 2013, we received a 5 Ichimoku Time frame Buy Day Trading Signal on Dollar Futures. The email is shown below.
We looked at the 60m chart for a possible trade. The entry would be 81.935, initial stop of 81.788, and a preserve mode value of 82.416. This would give us a min. reward of 0.481 and a max risk of 0.147. The min. reward/risk ratio is 3:1 i.e 327%. Here is the chart setup:
This is a day trade since their was no signal in the 120,240, or daily timeframe. In order to have our probabilities high, we are going to make sure the higher timeframe supports the direction of our trend. Here is the daily chart:
Since price is in the cloud which indicates the daily time frame is consolidating, we are not going to enter this trade. The trade has a good reward/risk ratio and it did work out well. However, this is only one trade of many. If you look at many trades, you will see you will lose overall. Therefore, we will “walk away” from this trade because we want to setup good habits and trade high probability scenario’s only.
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
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.
