Ichimoku Future Trade of the Week 1-4-13: Natural Gas Futures

On Dec 31, 2012, we received a 4 Ichimoku time frame Buy on Natural Gas Futures.  The email alert is shown below.

The trade was setup on a 1h time frame.   The entry was 3.424, initial stop of 3.411, and a preserve mode value of 3.488.  This would give us a risk of 0.0013 and a reward of 0.0064.   The reward/risk would be close to 5:1 i.e. 500%.

Here is the chart setup:

The trade was stopped out for a LOSS.   In Trade of the week, we always publish the winning trades but never the losing trades.    However, we are trading a trend system which will HAVE LOSSES.  The key a trend system is to min. your losers and max. profits on your winners to a point the winners take care of all your losers and you still are profitable.

Also, this was a pull back trade.  The probabilities on a pull back trade are lower than a breakout trade.   The breakout trade for Natural Gas never triggered.    The advantages of Pull back trading is they give you a min. reward.

 

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

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