Ichimoku Future trade of the Week : Coffee 8-31-2012

On 8-24-2012, we received a 5 time frame Ichimoku Email Alert Sell on Coffee Futures. Here is the email:

The chart is shown below. The entry was 163.40, initial stop of 164.45, and a preserve mode value of 161.22. This is min. reward of 2.18 and a max risk of 1.05. This is a 2:1 reward/risk ratio i.e. 207% return.

We typically look for a 3:1 reward/risk ratio so this is a trade we would not enter. If we did, we would enter with 1/2 our position size to keep our risk the same. You can see from the chart, this trade was a loss if we entered it.

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About the Author Manesh Patel