On May 14, 2013, we received an Ichimoku 7 time frame Buy Email alert on the stock PBCT , People’s United Financial Inc. The email is shown below:
The trade was setup on a 30 minute time frame. The entry was 13.57, initial risk of 13.50, and preserve mode value of 13.73. The min. reward would be 0.16 and a max risk of 0.07. This is a 2:1 reward/risk ratio. Here is the chart setup:
Since the trade was only min. 2:1 reward/risk ratio, we DID NOT take the trade. Our money management rules only allow us to take 3:1 reward/risk ratio trades. If we had entered, we would have exited the trade at 13.75. The trade did win but they don’t always.
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