Hubert Senters here.
One of the common questions I get when I’m trading bonds and notes and stuff is how you do a trailing stop loss. So in this example, I’m going to show you a 60-minute chart, I have a Parabolic SAR which is pretty colored dots above them below the chart there on the price action.
So in this you would say your short here. Here you go when you stay short and then when it pops right here you cover the situation. So I’m currently short the 10-year note from right here at $136’22.
And then I’m going to trail my stop down to the most recent and the closest little purple dot which is going to be $135’27 so right there at $135’27 while I lock in $843.
And at one point, I was up $11.56 so I’m giving back a little bit but I’m locking in profits with my trailing stop loss.
So you can see now I got a buy stop at $137’27 and I can move that up or down. Just grab it and let it go and you can see it’s asking me if I want to move the stuff.
I usually have all of those safety taking off my account. So I need to re-do that but there you go. Now, if this thing continues to bounce up I will be stopped out with a small profit of $843.
Now, it could continue to drop more and I might make a little bit more. This is how it works. So I’m doing the stop loss. I kind of want to eyeball the chart and see what looks like it’s been working lately.
So one hour trailing stop loss looks like it’s getting me the majority of the most to the down side. If I say when I do a 5-minute chart that thing looks a little messy to my eye I’m like I might choppy a little bit like you’re going to have to be short, cover.
A little bit too active and usually when you’re trading bonds you just want to like let them marinade in the profit and just perculate throughout the day and not worry about them too much.
So I like to use a little bit wider trailing stop on those creatures. I initially have a five tick stop loss so on this trade, we were only risking $156. That was a risk on the trade to make at least a thousand dollars.
But when it went to a thousand I got to liquidate it there because I liquidate it there but I didn’t. i was trying to squeeze as much profit as I can out of it that thing.
And it looks like it’s going to cost me a few hundred bucks but I can’t live with it because I’ll live another day and you never know that thing could drop and the more it can be up $3,000 you never know.
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Good luck. Hope it helps. See you on the next video.
Hubert.
