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brylnel
Jul 31, 2018 2:30 PM

ES 200 SMA LONG (2018) Part 5 Education

E-mini S&P 500 FuturesCME

Description

The entry of 2614.00 is based on the previous day close of the 200 SMA
Stop loss is 2 ATR from the entry.
Profit target #1 is 2 ATR from the entry, giving you a reward to risk ratio of 1:1.

Trading Plan:
1. Set Stop loss(2531.50)
2. Sell half at Profit target #1(2696.50)
3. Once Profit target #1 hit, shift stop loss to 1 ATR above your entry. (2655.25)
4. Sell the remaining half at the resistance.
closing of the red candle on 21 March 2018 (2716.25)

*Final Note:
Hello everyone!!
If you notice the 5 instances, the stop loss do not have to be 2 ATR.
With just 1 ATR, you will not get stopped out in any of the 5 trades.
Therefore it easily increases your Reward to Risk ratio by 2 fold.

I hope you managed to learn a pointer or two out of it.
Always trade with a plan and have your stop loss in place once you are in the trade.

Goodbye, take care and God Bless.
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