Es long . Trend reversal trade. EZ trading system.
Long ES
Entry price 3553.50
Stop loss 3498
4 hour EZ system.
Rules of this system. Basic strategy. Highly profitable with clear signals. Good for beginner traders. Don’t stray from the rules and you will make money. Trade is over when you are stopped out. No profit targets used or needed. Stop loss is adjusted based on volatility of price every 4hrs . Confirmation of trade is on candle close. You can be aggressive at your own discretion by entering a trade prior to candle close. This is higher risk, but potentially more profitable. By Following stop loss rules any losses will be minimized.
Indicators:
1.5 ATR (Blue dots)
2 ATR (White dots)
2.5 ATR (red dots)
All ATR periods set at 9
Rules for long entry
1. 4h candle closes above blue dots. (Can be more aggressive based on your analysis. See above)
2. Set buy limit 1 or 2 ticks above blue dots. May also just enter at the close of 4h candle if you want to assure entry.
3. Place initial stop loss at white dots or red dots depending on risk tolerance. Do not use blue dots for initial stop as this Is presumably your entry point.
4. Every 4h period adjust SL to either red, white or blue dots. As trade moves in your favor I usually keep stop at blue or white dots. But you may adjust your stop every 4h period to the red, white, or blue dots. You can also place your stops BETWEEN any of these ATRS. You may tighten or loosen your stop in any new 4h hour period as long as you stay at any one of these 3 ATRs. Do not adjust your stop WITHIN any 4h period once it has been set. I usually place my stop a tick or 2 below whichever ATR I’m using . *** Note: adjusting your SL like this is contrary to most opinions about SL’s. However my backtesting shows no statically significant difference in profit/loss ratios over time. Just always place your stop at or between any one of these ATRs and you will be okay.
Stay in trade until you’re stopped out. However you can always end the trade early if you see the tide starting to turn. But I would usually only consider doing this in the following 2 scenarios; 1. if your P/L is at least 2 to 1. 2. If your profit is in negative territory you may exit your trade prior to being stopped out at your discretion for a small loss. Between these 2 scenarios always try to stay in the trade.
Those are the basics. I will show the rules for a short entry when my next short trade presents itself. As you can guess it is the corollary of a long trade.
I will also discuss in the future where you may want to add to a position. This is also very rules based.
Beware: different futures instruments may need different ATR bands. But the rules are otherwise the same. We will go over CL GC and NQ in future trades.
Entry price 3553.50
Stop loss 3498
4 hour EZ system.
Rules of this system. Basic strategy. Highly profitable with clear signals. Good for beginner traders. Don’t stray from the rules and you will make money. Trade is over when you are stopped out. No profit targets used or needed. Stop loss is adjusted based on volatility of price every 4hrs . Confirmation of trade is on candle close. You can be aggressive at your own discretion by entering a trade prior to candle close. This is higher risk, but potentially more profitable. By Following stop loss rules any losses will be minimized.
Indicators:
1.5 ATR (Blue dots)
2 ATR (White dots)
2.5 ATR (red dots)
All ATR periods set at 9
Rules for long entry
1. 4h candle closes above blue dots. (Can be more aggressive based on your analysis. See above)
2. Set buy limit 1 or 2 ticks above blue dots. May also just enter at the close of 4h candle if you want to assure entry.
3. Place initial stop loss at white dots or red dots depending on risk tolerance. Do not use blue dots for initial stop as this Is presumably your entry point.
4. Every 4h period adjust SL to either red, white or blue dots. As trade moves in your favor I usually keep stop at blue or white dots. But you may adjust your stop every 4h period to the red, white, or blue dots. You can also place your stops BETWEEN any of these ATRS. You may tighten or loosen your stop in any new 4h hour period as long as you stay at any one of these 3 ATRs. Do not adjust your stop WITHIN any 4h period once it has been set. I usually place my stop a tick or 2 below whichever ATR I’m using . *** Note: adjusting your SL like this is contrary to most opinions about SL’s. However my backtesting shows no statically significant difference in profit/loss ratios over time. Just always place your stop at or between any one of these ATRs and you will be okay.
Stay in trade until you’re stopped out. However you can always end the trade early if you see the tide starting to turn. But I would usually only consider doing this in the following 2 scenarios; 1. if your P/L is at least 2 to 1. 2. If your profit is in negative territory you may exit your trade prior to being stopped out at your discretion for a small loss. Between these 2 scenarios always try to stay in the trade.
Those are the basics. I will show the rules for a short entry when my next short trade presents itself. As you can guess it is the corollary of a long trade.
I will also discuss in the future where you may want to add to a position. This is also very rules based.
Beware: different futures instruments may need different ATR bands. But the rules are otherwise the same. We will go over CL GC and NQ in future trades.
Trade active:
Now since price has moved up. I have moved up my stop loss. My SL is now at 2 Atr or white dots.
Comment:
Added long at 3529 with a tight stop.
Trade closed: stop reached:
Trade closed. Stopped out at 3524