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Monday Morning Setups
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Monday Morning Setups

by ScottJanuary 4, 2015

I am very cautiously short in in the stock index futures this week (via NQ) but I don’t see much of an edge there. The trend is up, until proven otherwise. There are several very nice setups this morning, I particularly like AUDJPY (weekly basis).

mondaypost1

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`Scott Phillips


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Scott
  • http://evilspeculator.com molecool

    Thanks Scott.

  • Scott Phillips

    De nada

  • MK Ultra

    Scott, wouldn’t the setup on the AUDJPY also be a (RTV) buy?

  • http://gerb-reloaded.blogspot.com/ Gold_Gerb

    Motivational Video

    ..it’s not easy, if it were in fact (easy) everybody would do it

    https://www.youtube.com/watch?v=26U_seo0a1g

    -GG

  • http://gerb-reloaded.blogspot.com/ Gold_Gerb

    “Bidless Euro Crashes To Level Not Seen Since March 2006

    LOL.
    looks like that weekly lower support EUR/USD level was tagged. 1.187

    I swear, Mole is Tyler Durden.

  • Malcolm O’Mara

    I took 10 days off as suggested, and bought 1/4 position of UGAZ @ 4.28 Friday.
    I have a strong negative bias on financials, but I’ll wait for Monday 10:45 to decide.
    My position sizing will be incremental going forward.

  • Billabong

    Scott, in one of your articles you mentioned a Chandelier stop … it wasn’t really explained how it works, would you elaborate on how it works and if you use it. Thanks.

  • Billabong

    CL making new lows.

  • Scott Phillips

    It is axiomatic that most traders place their stop too tight at the start of a trade ie “fearful of being stopped out” and too loose at the end of the trade ie “too greedy”

    What you want to do is work out how many of each sort of winners you have. If you only get 1 in 100 winning trades getting to 10R it makes no sense at all to optimize your system for that rare event.

    The SQN/sharpe ratio of your system will improve as your consistency improves, as you get more results that are similar.

    The Chandelier stop I used with Gabriels systems is “When my trade becomes a 4R winner, trail a 1R stop behind the highest price” So that trail would start at 3R, and then if price goes to 5R the stop would trail at 4R, etc.

    I recommend using Chandeliers this way, after you get a winner that you would be happy with. 4R is a good place to start for trend following systems, for scalping systems and range trading systems this will not be a good technique

  • Scott Phillips

    Correct, which adds to the attraction of the setup. The failure of the RTV buy will trigger the short setup. RTV is an unusual setup in that it is a lower odds outcome producing occasional massive winners

  • Billabong

    Now it makes sense. I already do a form of this of in going to neutral at 2R and then staying behind 1R behind. As a side note, it was hard moving my bias from worrying about missing the next big win to being more concerned about protecting my capital.

  • Billabong

    Now it makes sense. I already do a form of this of in going to neutral at 2R and then staying behind 1R behind. As a side note, it was hard moving my bias from worrying about missing the next big win to being more concerned about protecting my capital.

  • http://www.ProfitFromPatterns.com/ Ivan K

    B’bong – Partial exits work a treat … especially on the subC level.