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Exit Strategies and Trade Management

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FIGURE 7.11 Second Unit Stopped Out Near 61.8% Retracement on Tr-1BH

In this case, the initial capital exposure per futures contract would be $1,212.50 (24.25 × 50). Two contracts (units) totaled $2,425. You would have to have $80,800 available capital to take a two-unit futures trade ($2,425 divided by.03). If this is larger than your account, no worries. Take the position with the SPY (S&P ETF) which trades tick for tick with the S&P. On an unleveraged SPY position, the first unit returned approximately 2% in two days. The second unit returned approximately 5.3% in less than two weeks. The initial capital exposure was less than 1.8%. If these returns don’t impress you, you shouldn’t be trading because they are impressive returns over a very short period of time on a very low-risk, low capital exposure trade. If you are a futures trader you are no doubt freaking out about the wide stop, probably because you are focusing on the capital exposure per contract instead of the far more important maximum capital exposure per trade. No worries. You have a solution to take advantage of the probable Wave-5 reversal on November 26. Move down to the 15m data for trade execution. More than likely, you will have an execution setup with much less capital exposure. Figure 7.12 is the 15m data for November 26 and 27. The 60m

Profile for ERIC  Hunt

(wiley trading) robert c miner high probability trading strategies entry to exit tactics for the for  

(wiley trading) robert c miner high probability trading strategies entry to exit tactics for the for  

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