Hubert Senters here.
Let’s talk about the art and science of trailing a stop-loss. Now there’s definitely science to it and there’s also art. Like I can tell you scientifically you can figure out what a great stop-Loss is. But if you can’t physically get yourself to do it every time. That’s where the art comes in. So I’m going to walk you through this bund trade I mean where I’m up $2296 on a one line at some point today I was up $2665. I’m not sure you kind of turn this type of trade.
Starting out as a smaller trade into a larger trade like this which is called crockpot trade so this is a one lock and I’m up like $2200 on the on the 10 year note. I’m not up that much because I just entered it today on this one. I was up $671. Now I’m only up $406. And initially when I did this trade I had a risk of $156.
And then in the intra-day trading that went with me in other words in my direction profit, right. Then I put my stop really close to break even. And then when it started rolling I put it to break even and then I moved it up to $62.50. Now, on a swing trade what I would do is if this was a swing trade I would base it upon this range right here on the 10 year, I would move my stop-loss to two ticks below that range so today’s range minus two ticks.
But since it’s an intra-day trade I’m just going ahead and locking in some money there that way if it comes back and gets me. I know I’m still okay. I made some profit. Now, the problem with this strategy there’s always good things and bad things for every strategy. There’s pluses and minuses. The plus to this you’ll get a lot of runners. The minus to this if you trail your stop to tight you’re going to choke the trade out and you’re not going to make as much.
You can also have where you at one point I was up $671.88 this could come all the way down and stopped me out and just make a hundred dollars. If you’re not used to that it can kind of mess with you psychologically you’re like man, you want to make a $199 you were up $680, $671 today and that’s one of the downfalls of that strategy but if I’m able to take that $150 of risk and turn it into $2,000 or more I’m willing to take that risk of me only making a hundred versus $600 in order to make the $2,000 hopefully that makes sense.
It’s kind of weird to describe how I do that but that’s the process that I go through. Now, we’ll be having a special webinar on risk reward ratios and how to do this stuff on Wednesday at 8PM EST. I’m going to hyperlink you to the webinar registration page, read that page and click the CLAIM MY SPOT NOW on that page.
Good luck. Hope it helps. And I’ll see you on the next video.
Hubert.
