Hubert Senters here.
Let’s take a look at another risk reward ratio trade. Symbol is ANSS, S as in Sam. I’ve got a thick Kentucky accent so I hope you translate a little bit.
If you look back here on the previous trades, a nice little runner where it was long at $156.55. ATR is $.089, target 1, target 2 and then trail the stop all the way up here. And then that little magic number that you’re looking for is when you want to do a little low duct tape back testing.
I mean this is a simplified version of just looking back and see how it’s done in the past. So it had a $26.3% X. That’s good. I like that. So obviously the next trade we wouldn’t take because that one did well.
Long at $163.44, target 1, target 2, trail the stop-loss, risk reward. There you go for this amount of risk we were awarded $6.7 times our return. Now, in this right here, loser, that was $0.9. If you had $26 back here and you had $6 plus there. Let’s just say that’s $30.
It’s more than 30 but let’s just say it’s $30 and then you’re down minus $1 there so it would be $29 X on three trades. They don’t all work this way so I don’t what you think it. They all work. But this is just what I’m looking at.
And if you look here, there’s another new trade here at the end of the day. It initiated the long $166.10 stop-loss. This is only a hard weather zone care. I got to move these sometimes. It’s hard work and I’m telling you it’s hard.
Long at $166.10, stop-loss right here at $165.85 and target 1 has not been hit neither has target 2 so this stop-loss is going to stick at $165.85. Long at $166.10, stop $165.86.
Mark Helweg and I are going to be doing a special webinar on “How to Trade Minnow Risk to Target Whale Profits.’’ That’s going to happen this Friday at 12PM EST.
Good luck. Hope it helps. And I’ll see you on the next video.
Hubert.
