Okay so remember when we started this trade we put in 3 contracts, and we quickly reached TP1 (see attachments) and banked about 22 points? The other targets TP2 (50 points) and TP3 (78 points) remained open. A few days later we put our trade on breakeven and price started retracing back towards our breakeven level. Today's close was significant in that it showed that our ascending triangle formation is still in play,the bulls defended the diagonal boundary of the triangle and price seems to be bouncing. This is more evident on the weekly chart. In fact on the weekly our previous breakout shows to have been a fake and we retraced down and now we expect price to shoot back up for a proper breakout.
Now back to the 22 points we already banked. Since our bullish thesis is still valid and we had a retracement,its only shrewd to maximise our returns so we use part of that 22 points as risk and open a new trade with a target at the same level as TP2 ( 438). After which we will now have 3 contracts open:
Old TP 2- 50 points-risk free
Old TP3 - 78 points-risk free
New TP - 40 points - 16 points risk
Total Gain- 168 points
Net Risk- 16
RR 10.5
So essentially what we have done is create a super trade with an unbelievable RR. Even that small risk we are using we got from the market,so our account remains untouched yet we stand to gain 168 points on a $110 per point futures contract (il let you do the math:-).
Entry : 1 position @ 396
SL : 379
TP: 438
Hope we are still together...:)
Now back to the 22 points we already banked. Since our bullish thesis is still valid and we had a retracement,its only shrewd to maximise our returns so we use part of that 22 points as risk and open a new trade with a target at the same level as TP2 ( 438). After which we will now have 3 contracts open:
Old TP 2- 50 points-risk free
Old TP3 - 78 points-risk free
New TP - 40 points - 16 points risk
Total Gain- 168 points
Net Risk- 16
RR 10.5
So essentially what we have done is create a super trade with an unbelievable RR. Even that small risk we are using we got from the market,so our account remains untouched yet we stand to gain 168 points on a $110 per point futures contract (il let you do the math:-).
Entry : 1 position @ 396
SL : 379
TP: 438
Hope we are still together...:)
