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Showing posts from October, 2022

2nd Fill Level

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 Our Cycle Trader Pro trade models all suggest not to go all in on anyone trade entry.  We found it is vital to scale into and out of trades because no one knows for sure where the market is going to be in 15 minutes from now.  The models suggest to always reach for your first entry price which is a key component to your exit price.  The 2nd model is your 2nd entry and how to price this level in using the Prophet Target moves and again reaching X points above or below these moves.  Once you get your 2nd fill Price Advantage filled order, this would create a 50% better 1st entry price level.  We trade the same QTY for 1st and 2nd entries. You can change this around and the percentages will change with the different QTY submitted if filled each time. But, we like to keep it simple and using the same QTY on each order is simpler to figure out.   https://cycletraderpro.com

Fade The Swings

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 Fade The Swing model happens more times than not.  Have you notice that the market creates a swing high/low and then on the next move in that direction it does all it can to take them out and then bounce out of there?  This is how the floor traders would trade and still do if there was a floor. Think about this, there is a swing low developed and all the retail traders were taught to put stops there. This would be they were trying to buy the market with sell stops at the swing low.  Here, the floor traders are selling hard into this level, meaning they are short into the move.  If there are sell stops there, the opposite side of the trade is a long buy order,  Go back to the floor traders being short, they need to buy to exit.  Go back to the see stops above, this is the perfect set up for the floor traders. Lots of stop order to sell to exit which means lots of buy order to buy those sells stops.  The take out the swings also sets up the following models - Divergent Lows Stab Buy/Sel

Price Advantage

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The Price Advantage model suggest to be able to buy low and sell high on a set number of contracts while maintaining a core position.  Why would you want to do this?  Simple, to lock in profits and greatly improve the average price of a current position.  How do you do this? Once you have you first Price "Fill" Advantage order in place, then wait for the market to make the move, Ball Bounce out of this move, then place you 2nd entry above or below that move plus X points. Normally 3 to 15 points depending on the market being traded. The ES would be around 3 to 5 and the NQ would be around 10 to 15 points. Get a feel for how far the market moves and pick a level you feel is reaching, but attainable.  What happens now after you get your 2nd set of filled orders? Now, place an automatic exit for the 2nd set of filled orders. This is usually the same point value that you reached for. For example, if you reached 10 points and got filled at 3350.00 to buy, then the auto exit can be

Price "FILL" Advantage

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Cycle Trader Pro's trade models suggest to never go all in on your first entry level and at the same time reach for the first fill to start the trade. The first fill and how you find this price level is key to your exit price level(s) and the 2nd entry. If you have a contract limit of 20 contracts for example. The the models suggest to start with 10% of you set limits, and at the same time use the same number of contracts at each consecutive entry level.