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Track 'n Trade Bulls 'n Bears Trading System
Trade Demonstration: Applying Advanced Multi-Stage Stop Orders
Video Transcript
In this Track 'n Trade Training video, I want to take you through that same scenario that we just went through in the last video, where we had multiple contracts running and trailing the markets simultaneously. But I want to give you a little bit of a different twist. You'll notice that when we came in here, let's come in here and do this scenario one more time. Let's go ahead and get into the market, place our order to get into the market. We're going to Buy 3 and we're going to Confirm, step forward. Now, we're in the market.
Remember last time, we broke our stops apart at the very beginning. We put one stop here, behind the first green, we put one on the blue light, and we put one on the red light. That kind of a nice strategies in the sense that what it does is it reduces our risk against our position. We would actually eliminate one contract each time, as the market came against us. That's still, maybe for some us feeling like we're letting our losers run. Because those blue lights and that red light starts quite far back from our initial entry order, right?
Let me show you another scenario that we can do. It takes a little bit more work, but it's a pretty neat little strategy. We can come in here, and put our order in, right behind the very first green, where we want it. We're going to say okay, we're going to sell all 3 contracts out. This is cutting our losses short, and letting our winners run. We're not going to wait for the market to retrace back and go all the way down and stop us out on the blue light and the red light, until those lights catch up to our existing stop loss placement.
This is the key, they will catch up to it. We're going to come in here, and we're going to sell 3 contracts. We're going to say Confirm. We're going to go ahead and we're going to say Okay. Step forward, Step Forward, Step Forward, and we feel good about this. Maybe even at this point, we might even want to move one of our stops up here, okay? We're going to come in here, and we're going to Edit this order. We're going to say maybe 1 stop, we're going to sell 1 out here, and Confirm. So, we've moved 1 stop, real close. That leaves us with 2 more. We can come in and we can say okay, I'm going to put 1 back here on the green light, which actually is at the red light, isn't it? I mean, on the blue light. Behind our previous green, looks like the blue light has already caught up to our initial placement. We could just go ahead and say, we're going to, at this point, say Trailing Stop on the Blue Light System. Confirm. We're going to put the other one, now watch this, this is a neat little trick! I can put this one at the same spot, right under here. I'm going to say, I'm going to sell 1 stop, trailing, based on the red light system. Based on the Parabolic SAR. I'm going to put that on there, and Confirm.
Now I've got 2 orders, basically on top of each other. But they're broken apart. Now, as the market moves forward, the one that's attached to the blue light system, will continue to trail with the blue light system. But this one is still sitting behind our area, our initial stop area, behind the previous Price Bar. Yet, it's trailing on the right light system. It will just sit there, and it will wait, until the red light or the Parabolic SAR catches up to where it's at. This is a way that we can hold our stop close, but yet, also have it trail on the red light system or the Parabolic SAR. It'll do this on the Blue Light, as well.
Once the red light, or the Parabolic SAR caught up to our initial placement of that order, it starts trailing. This is a way that we can actually set the orders up to trail on these different blue light and red light systems, and they will automatically start trailing. Once the order catches up to it, or once the Parabolic SAR or the blue light catches up to where we where we put our initial order placement. This way we don't have to risk all the way back to the red light system initially. We can put it on our initial placement and then the red light, when it catches up to our place, will automatically begin trailing with it. It will continue higher as we did before. Of course, this one we can move manually and now we're back in the same scenario as before. We had different starting area, a different way of protecting our initial capital, but yet, still being able to trail the blue and the red Parabolic SAR's.