The email alert was for a break out of the stock on the bullish side. This breakout setup was emailed through the automated email alert system, as shown above. As soon as the price broke on the bullish side, it had a strong momentum supporting it. There was an ideal opportunity to take a break out trade. The entry was at Rs 2483.64, Initial stop of Rs 2432.75 and a preserve mode of Rs 2633.13 was set. That gave us a risk of Rs 50.89 per share. The Entry, Initial Stop and the Preserve Mode were based on proprietary chimoku strategy. As soon as the price started to move in the direction of the trade, a trailing stop method was applied, again based on proprietary ichimoku Strategy. The price hit the anticipated preserve mode and we traded out half the lot of our traded quantity. The Stop Loss has been adjusted to the new value and we are waiting for the price to hit the final target. If the price does not go to our target and goes back, we will still be making a good ratio of profit, as shown in the chart. If the price hits our anticipated target, we will be trading out the other half of the quantity. The half lot of the quantity which has been exited, gave us a profit of Rs 149.49 Per Share. This trade gave a Risk to Reward Ratio of 1 : 294. Here is the chart setup:
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 cannot 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.