Track 'n Trade Bulls 'n Bears Trading System
Trading Demonstration: Using Stop Orders with the Blue Light System
In this Track 'n Trade training video, I want to take you through the same trade, one more time. Only, this time, we're going to add one more feature. We're going to take a look at this market, using the Bulls 'n Bears Blue Light System, to help us exit the market. The Blue Light System, is a mathematically calculated stop placement Order area. We're going to use the blue light to exit this market this time.
Let's come in here and place our order. We're going to wait for our buy signal, and yellow, yellow, green. We got our buy signal. We're going to come in, and we're going to place our stop order right above the high of the day. Buy 50, we're going to buy 50 shares. Let's confirm that order, step the market forward and the market, the order fills.
Now, we're going to come in here, and we're going to place our Stop order, just like we did before, behind the previous Price Bar. We're going to sell 50, if we're wrong. We're going to go ahead and we're going to say Confirm. What we're going to do now, is go ahead and come over to the Bulls 'n Bears Settings, and we're going to turn on the Blue Light System. I'm going to turn it on, Bullish/Bearish. What that does, is that's going to put our blue light stop loss order entry position, right here. See that blue light? That's where it says we should have our stop. Well, I have to decide whether that's what I want to do. Whether, I want to have my Stop there, or am I traditional behind the previous first Price Bar, or behind the yellow. Since behind the yellow is further back than the blue light, I would choose the blue light.
These are my 3 to 4 different locations that I can put my stop. Behind the previous, behind the order entry Price Bar, which is too close for me, at this point. Behind the previous Price Bar, which is my favorite point, at this stage. Or behind the yellow, the yellow is also further back than the blue light. So, I could choose the blue light or the yellow. Those are my different locations, of putting my stop.
Different scenarios will dictate different placements, depending on how the Price Bars fall, and how much Risk and Reward vs. Ratios that you have. Or how much risk you're taking, if you're wrong and how far the market is going to come back and how much money you're going to lose.
Different scenarios will play out differently.That's why it's important that you use Track 'n Trade, to go back and practice these different scenarios. That's why we have multiple locations. In this scenario, putting it behind the previous Price Bar, seems to me, to be the best location.
What I'm going to do is I'm going to put it behind the previous Price Bar, step the market forward and notice as that blue light starts to catch up to me. What I want to do, is I want to come in, and I'm going to tell it that I want to follow the blue light system. I'm going to go in and I'm going to Edit my Order. I'm going to say I want this to be a Trailing Stop, based on the blue light system. I'm going to hit Confirm. Now, as that market moves forward, it's going to automatically mathematically calculate my stop placement based on the blue light system. The blue light system is going to follow up that market. Notice that it pulls it up in there, and it protects our position. As that market moves higher, that blue light system is mathematically calculated point, where it's going to put our stop. It's going to automatically trail for us, everyday, and tell us exactly where we should have our stop.
It's mathematically calculated against the other three mathematical formulas of the Bulls 'n Bears, to pull those stops up in, tight, to give us a maximum profit potential of our trade. You'll notice how it follows in there very nicely and tight and then when that market reverses and comes against us, it gets us out and we take our profits.
You can see on this trade we were up, looks like about 4.15%. So, about 5% gain in about one month.
That's the magic of the Bulls 'n Bears Blue Light System. Helping us automatically calculate a mathematical point for our stop loss exit.