Price Advantage

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 3360.00 for those contracts. 

What happens now if I get filled at 3360.00?

This sets up your first Price Advantage trade, simply place an auto re-entry back at 3350.00. If you get filled again at 3350.00, you just set up your first Price Advantage. Meaning, you just created a 10 point advantage by performing this model. 

Then again, sell the 3rd entry at 3360.00 for example and again, work to buy those back at 3350.00/.

The more you do this, the better your True Average Price will be and this will set up your final exit order above the market which would be moving down each time you are able to create a Price Advantage. 

The Scalper EX trade app does all this mostly automatically. 

https://cycletraderpro.com


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