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Yesterday’s results: Buying 5616.25 was only good for a 4.25-point bounce. The short didn’t trigger.
Today’s Best S&P Futures Turning Points: Buy 5469.75 stop 5465.00. Short 5581.25 stop 5584.75.
The World Index: (+100/-100) drops from -21 to -64 with all major world markets increasingly Bearish.
Catalysts: Trade Balance @ 8:30. JOLTS & Factory Orders @ 10:00. Beige Book @ 14:00.
Quick Tip: Add-Ons Part 1
In the Aug 30 edition of this blog the subject was maximizing winners. One way mentioned was to add size to a winning trade. That is simple to execute but when to do so is critical.
If you think of the add-on as a separate trade with its own entry, stop and target, you’ll get the rules you need. Let’s explore the entry.
If your strategy is looking for trend and your initial entry is based on a defined trend in place with entry at a pull-back (retracement) you may use the same or similar rule for the add-on. Re-enter on the first pull-back opportunity. This could be repeated until you have your full position live.
If your strategy is a range breakout using the same rules would require you to wait for the initial entry to stall or range before adding on the next breakout.
You could also add-on once momentum in your direction is solid using a fixed price distance or an indicator like average range.
Finding which performs better will require back-testing or practice in real time using simulated mode.
The obvious benefit you’ll get from this research is your average loser will be much smaller since your starting size was minimal. Get to work!
Our trading teams focus on day trading futures and swing trading options. Maybe you'll fit right in. You can try either or both risk-free.
Trade Fearlessly,
Mike Siewruk
P.S. Feel free to pass this along to your trading buddies. Share in the wealth!
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