Hubert Senters here.
In the last video we talked about how to go with the markets instead it going against it and fighting it because heads up, it’s not going to work. You’re going to run out of money before you’re right on a lot of situations so you’re better off just going with the market. So now I’m going to walk you through since we’ve decided now and this trading like okay, I still believe in the bund going higher.
I think it’s going to go higher over time. But right now, it’s in download so I want to take advantage of some of that pressure and play it for the next one, two, three days maybe in four or five days. Now, unfortunately, it’s Friday so I’m not going to have enough time to hold it over the weekend unless I get a nice little run out of it and it might be like what I’m doing this video it’s 11:02 AM EST.
I might get lucky later on this evening and maybe I’ll keep on dropping off or so for right now, I’m short one contract on the bund and I just love saying bund. It just sounds sexy when you say it. I like it. Intra-day at $164.94. And as you can see over here I’ve got a five minute parabolic SAR.
So what I’ll do here I usually start out with a three and I’ll just do a good old-fashioned country boy optimization which just means I’m going to curve fit this bad boy and curve fitting can be a positive or a negative. Don’t try to over optimize it because you just go make yourself do worse.
But you can see these dots as long as the purple dots are above the price. I should stay short and you can see the blue on the bottom says get out, get out, get out so I’m just going to modify it and I’m going to go okay, it’s a three minute. I’m going to do a four minute.
Now, it looks a little better not as jumpy and then we’ll go five minute looks a little cleaner. Okay. And all I’m looking for when I’m doing this is a way to trail a stop-loss. That takes a lot of emotion out of my hands. I don’t know if you’ve noticed before but usually when you lose money it’s because you’ve either tighten the stop up too tight or too loose and it’s a highly correlated to the emotions that you are in once you’re in the trade so try to stay level headed and make a clear cut data driven decisions so your emotions don’t get the best of you.
So in this case scenario I can see. I can move my stop now the $164.82 which should be about right there so I could lock in $135 and then if it continues to go lower $400, $500 $600 $800 bucks I can then hold that trade over the weekend until Sunday and then see how I fare over the weekend when the market opens up 6PM EST on Sunday and actually the bund it won’t wait until 2AM EST on Sunday. So that is my plan.
I’m going to go ahead there and do that right there in front of you so I’m going to grab this and I’m going to move it to $164.82. You can see my initial stop-loss is $158 so I’m going to go $164.68. I mean proper down in here. It should see $164.82. It should be like I almost got it within a tick right there so I’m going to lock in $135 I know I’ll make that unless just something crazy happen.
And then if the market continues to drop then we could open up the floodgates for further profits down in here and it’d be nice if you drop a lot more but the range looking at it what can you realistically expect on the bund and we’re going to talk about that in the next video. Now, I am going to be doing a special bond trading boot camp live session 2019 version and I will start at 6PM Sunday for bond trading boot camp. I’m going to HYPERLINK you to the order form if you want to buy a ticket to that.
I usually teach this class once or twice a year. I will HYPERLINK you to that page so that you can order a ticket and show up. It takes me about two and a half three hours a teacher by how to trade bonds how they work and my set-ups that I like to use. I’ll HYPERLINK you to that page and I’ll see you on tomorrow’s video about how to figure out how far this thing may go in a day.
Hubert.
