Hubert Senters here.
I’m going to walk you through how to hedge a position in the bonds or the notes. Now, I’m using two different contracts the 10 year and the 30 year because I couldn’t trade the December contract because it’s already long.
Let me show you what I’m trying to accomplish here. In this trade right here you can probably see it on the screen. I’m up $421.88.
My trailing stop loss right now is currently locked in at $171. At one point in time during the day I was up $562. That’s up a little over a grand.
I’m trying to turn this into a $2,000 or more dollar trade. I may get stopped down on it if I do that’s ok. That’s my plan.
So I saw this and I’m sitting here ok, coming this one and I go ok let’s take a look at the markets.
The markets on the bond market they are above the cloud on the daily. They are below on the 60 when I trade this creature this morning right in here and on the 10 minute they were below it too.
So I was like the intraday timeframes are short, the longer timeframe, the daily timeframe was long. I was already long with 10.
So I was like ok I can do an intraday short on the 30 year bond. I’m going to have to take the profit fairly quickly because it’s the day before the fed meeting.
So I relied upon the sneak attack. Sneak attack is a very simple trade if you take bond trading bootcamp if you want to know about it.
And here is the outcome of that. I was able to short the 30 year bond here with a 5 tick stop loss and it hit my first targets. I was able to take that.
I was able to make another extra about $200 from that money that I was losing as the 10 year and the 30 year were going down because I’m long the 10 year. Let me get you a visual here.
If I’m long this one if the bonds and the notes are going this way it’s eating into my profits so I can either jump out which is not my plan I’m not trying to hold this for at least $2,000 gain.
And if worst case scenario I’ll lock in $171 I am fine with that. But then I want to take advantage of some of the movement that’s going against me so I could do it in a different account and trade the same contract which is the September contract.
Different contract all together but different month but a different product. Instead of doing the 10 year note I could do the 30 year and that’s why I did this morning and I make another $200.
So as it was eating in this $200 I made that $200 on short. Now, I know that sounds really complicated. It’s really not. I can only talk about so much of it in about a 2 minute video so.
I’m going to be doing a live webinar tomorrow at 2PM EST June 16th on How to Make $1,000 or More Risking Only $156.25.
I’m going to HYPERLINK you to this page. If you’re interested in this type of information click that button right there. First name, email address and mobile telephone number.
Good luck. Hope it helps. See you on the next video.
Hubert.
