Track 'n Trade Bulls 'n Bears Trading System
Adding a Position and Market Re-Entry
In this Bulls 'n Bears training video, I want to quickly discuss two advanced strategies we have available to us, while trading the Bulls 'n Bears system. The first- Adding an additional position to our existing trade. The second- How we re-enter a market that we might have gotten stopped out of. Both of these strategies are basically the same signals, and can be used in either situation. Depending on your position in the market, of course.
Sometimes while trading, there are times where the market will rebound off of the trend and stop us out of our trade. Yet, we still feel like the market has some additional upside potential. When this happens, Bulls 'n Bears system provides us with a couple of different options and strategies that can help us know whether or not to try and re-enter the market.
The first re-entry strategy pertains to the color change of the actual price bars. Notice in this example that the markets uptrend slowed after the initial rise in price. Price bars actually turned Yellow, or Neutral. Also, notice that they didn't make a change all the way back to Red. In this situation, notice that we now have a new Buy signal generated. Which is a Yellow price bar, followed by a Green price bar.
Now, you have two scenarios that could be taking place in this situation.
First, if we are still actively in the market from the initial entry point and have not yet been stopped out of our trade, this is an opportunity for us to add-on an additional position. This would be done by placing an order to enter the market, possibly by placing a stop entry order, just above the first Green price bars high. If the market continues to break higher, we would then enter the market or add-on an additional position to our trade.
The second scenario would be - that had the market rebounded far enough to hit our stop loss order, which would exit us from the trade altogether, this same signal would be an opportunity to re-enter the market.
One more advanced trading trick that we can use while trading with the Bulls 'n Bears system, is to use the Blue light system to help us re-enter or add-on to our existing position, on a pull-back. Now traditionally, generally only use the Blue light system for exiting the market. As our mathematically calculated trailing stop placement point. But you'll notice that the Blue light system will sometimes switch sides of the trend, during the pull-back stage of an advancing or a declining market.
As the Blue light follows the market pull-back against the prevailing trend, we can, if we so choose- Place a re-entry or add-on trailing stop order, to the Blue light system. If the market once again decides to continue in the overall longer term trend, you're trailing entry would be hit and you would be in the market, once again.
This advanced strategy can be used in an attempt to try and maximize our market re-entry profit potential.