Tuesday, 5 July 2011

Tuesday Morning Hybrid Trades

Below is the DAX chart showing the trades for the European morning.

You can see Flo's auto entries and I have annotated how I managed them. The power of entering a trade exactly the way I have written it in my trading plan cannot be overstated.

Managing those trades provides a lot of options. As you can see from the chart, I trade "within" the Flo trade. If I exit before Flo, I can manually re-enter the trade at a better price, as long as the trade picture supports it. My overall profitability can be multiples of what I otherwise would have made. Of course there are trades that don't work and you can see an example of one below. The benefit of hybrid is that I don't take a full stop on a trade as I stop myself out manually at a more advantageous price as soon as I see the trade is unlikely to work.


  1. This is the best chart you've ever posted. It shows your reasoning as the trade unfolds.

    Many thanks.

  2. Hi,

    How do you estimate when a "trade is unlikely to work"? Is it intuation or mechanical?



  3. YW, neither. I'm watching what is happening. Eg, if Price bounces off support and then fails, I deduce it will go lower.