Day #22: the 'twin trade' execution process

Tuesday, October 1st, 2019

So this week I have been very much into executing PriceTrap trades; each morning, I’ll check the latest mark-ups on IML GoldCup, and I’ll then markup my charts using Chris Derrick’s analysis. Then, I’ll set appropriate ‘alerts’ for the day on the CallLevels app, so that when a zone (a ‘floor’ or a ‘ceiling’) is reached, and I can look for a test and re-test.

If this test (candle breaks zone) and re-test (the next candle leaves zone but wick touches inside zone) happens, the trade is on!

I execute a twin trade, setting the correct SL and TP values (#goodriskmanagement #smarttrading), and I then set CallLevels alerts as the trade proceeds (at 10pips, then 30pips, then every 20pips after that; until the trade taps out, and keeping a 20-pip gap between SL and the trade price).

So here’s what it looks like (based on what I’ve been taught at Amey Finance Academy, aka AFA):

Test and re-test has happened…

1. Enter trade, twice.
I’ve discovered that the quickest thing to do to enter the trade is to just hit ‘buy’ or ‘sell (depending on what the appropriate action is), but ensuring that the lot size is correct*, and then straight after I can go in and put in the appropriate SL and TP values. (SL for both trades being 30pips in the ‘opposite’ direction to the way you want the trade to go in; TP is just put in for the 1st trade, and this is 30 pips in the direction you want the trade to go in)

*I’m currently practising with a lot size of 0.01 on my demo account

2. Set a CallLevel for when trade has moved 10pips in the direction you’d like it to move in; adjust the SL on both trades to ‘breakeven’ (i.e. the price you entered at).

You are now trading risk-free. The worst-case scenario is that you’ll break-even, so you’ll lose nothing. Great!

3. Set a CallLevel for 30pips; at this point, Trade 1 taps out and your 30 pips are secured, hooray. For the 2nd trade, AFA advise to set the SL (2nd trade) to 2 pips in profit. (i.e. 2 pips above/below the price at which you entered the trade - depending on whether it was a ‘buy’ or a ‘sell’ entry).

You have now bagged 30pips. Result! The worst-case scenario is that you’ll have secured 30 pips on the first trade, and 2 pips on the 2nd trade; so, as a minimum, this twin-trade has earned you 32pips.

4. Set a Call Level for 50pips, and then once the value is hit the SL (2nd trade) is moved from 2pips (in profit) up to ‘30pips in profit’.

You have now bagged 30pips (1st trade), and another 30pips (2nd trade). Result! The worst-case scenario is that you’ll have secured 30 pips on the first trade, and 30 pips on the 2nd trade; so, as a minimum, this twin-trade has earned you 60pips.

5. This carries on; you keep setting a CallLevel every 20pips (so, after 70pips, then 90pips, and so on…), and you keep then moving the SL (2nd trade) up by 20pips each time, to secure more and more pips on that 2nd trade. You keep on going until the trade will eventually ‘tap you out’, due to a reversal in price; the market will always reverse eventually, in won’t keep moving in that direction indefinitely.

So, this is what I’ve been practising. I’ve been using Chris Derrick’s (GoldCup) markups for now, but I’m also starting to try and spot my own floors/ceilings; in the coming days, I’ll be starting to (demo) trade on my own markups, so that’ll be interesting.

Tomorrow, I’ll share with you the Trading Journal I started this week, and you’ll get to see the results of the PriceTrap twin-trades I’ve executed this week so far.



Month 1, Day 22

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