After trade entry, this area gives you our recommendation for where to place your stop. This protective stop will limit your losses at a reasonable level. As the trade matures, the Management field indicates where to place your protective stops.
After an Entry Signal, new Management Bulletins will be issued as price and time combine to either take us out at our management stops or until an immediate Exit Signal is broadcast.
This field recaps your open position for an assumed three contract set. Also, other notes and trade management tips are included here. (See Profit Taking).
Our guiding principle at the Daytraderís Bulletin is finding low risk ideas to trade. The first number shown is the relative risk associated with the current trade. We rate our trading ideas on a risk basis from 1 to 6. One is a very low risk idea and 6 is a very high risk idea.
We take only those trades with a risk factor of from 1 to 3. Our risk factoring is relative and is based on volatility, volume, and proprietary noise evaluations. If noise is above certain weighted values, we do not issue recommendations. We cannot stress how valuable it is knowing when not to trade. During these noisy periods, only floor traders are making money ó probably yours.
The second number shown is the estimated reward factor based on how far our software indicates the market will move in a favorable direction. The factors involved are market acceleration, volume, support and resistance values, cycle timing and the tendency for the market to reverse at identifiable price levels.
Our Holding Period shows the time range (in minutes) that we anticipate holding at least one contract of our contract set. This time range will vary from 5 minutes to 60 minutes. We do not imply that you should automatically exit your trade at the maximum time period shown. Testing shows it is far more profitable to allow the market to take you out of a trade. Weíll discuss trade exit in depth in the Trade Management section.
To determine the maximum number of contracts in a set, divide our Account Size Per Contract dollar figure into your account size; then, round down to the nearest whole integer to give you the maximum number of contracts in your contract set. This Account Size Per Contract figure reflects the interaction of the estimated maximum drawdown amount, current volatility, the Bulletinís profitability parameters, and a risk of ruin factor.
The Account Size Per Contract value is optimized for two standard deviations (95% statistical probability) that you will not risk ruin.
We strongly urge you to abide by this guideline; our parameters assure that you will be able to continue trading and be with us when we participate in the big moves.
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|Copyright 1997-2009 Daytraderís Bulletin There is a risk of loss in futures trading.