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Track 'n Trade Bulls 'n Bears Trading System
Trading Demonstration: Splitting Stop Orders Apart
Video Transcript
In this Track 'n Trade, Bulls 'n Bears Trading training video, I want to take you through one more scenario. Using the same strategy, and we're going to build on it, one more time.
What we can do is we're going to look for the opportunity to get into the market, which is the green Price Bar. We're going to go in here, and we're going to place our order. What we're going to do, instead of just buying one contract, we're going to buy three contracts.
We're going to buy three contracts on a stop. Now when we get filled we have three places that we need to consider for placing our stop loss order.
The first strategy, of course, is that we can just go long and come in here, place our stop loss order, to sell 3. As the market rallies, we can come in here and we can go Settings, we can say Trailing Stop, based on the Bulls 'n Bears system. Just like we did before. Notice that this is the same scenario, only we just did 3 contracts. But there's a better way of doing it, once we have multiple contracts. Let's backup, again........ and that's the great thing about Track 'n Trade, is we can do all these different scenarios. We can move things around. This time I'm going to put my Sell 3 behind the previous Price Bar. Step forward, as that market moves forward, now I can start breaking my stops apart. I don't have to have them all in one location.
At this point, see where the market has moved forward, pulled back, made a little area of resistance. I can come in here, and I can place another order. Let's place a stop order, right here, to sell 1 on a Stop. We're going to leave that one, okay, there.
Now, what we need to do is change this one's Settings, so that it's only 2. Because we're long 3 contracts, we want to have 3 Stops. We have one set behind the initial area of resistance, we have another one set behind 2 more still set behind the initial entry point. As the market rallies, notice that the blue light has now caught up with this. So, now if we wanted to, we could come in here and go Settings, and we can change this over to 1 contract. We can come in here and set 1 on the blue light system. Say Okay, Trail 1 on the Blue Light System. As the market begins to rally, notice that the blue light system automatically is moving. We're calculating our stops with the movement of the market. We've still got one that we need to have back here, right? We forgot to put that one back in there, so we'll put that in there, sell 1 stop. That's back behind our entry point. But we can move that one up to our break even point. So, we'll just leave that one at break even. We've got one that's moving with the Bulls 'n Bears system, and we can move one manually, up with the market. Notice, now, that we've got multiple strategies, based on multiple Stop Loss placements. If this market starts to come back against us, we can lock in some profit tightly, with our first stop. We can then have our mathematically calculated stop. Then we can have one that holds way back a little bit further, just in case this market goes to the moon. If this market goes to the moon, we're still in, and the we're not losing anything. We're just protecting ourselves from having any loss, at all.
Once this market begins to rally, again, you'll notice that we can move this one up, and put it behind areas of support and resistance. Continually locking in profit.
Another thing I like to do sometimes, is sometimes I like to come in and turn on the Parabolic SAR. The Parabolic SAR is also a mathematical calculated Stop Placement order. But it holds a little bit further back than the blue light system, sometimes. You can modify that and change that. But if you want to, you can also set your Order, Settings, to come in here, Trail on the Parabolic SAR. Now, as that market moves forward, each day, you're automatically re-calculating having a Sell Stop, that was here at break even, now moving forward slowly, more conservatively, back here. You've got one that's up here that's a little bit tighter, the blue light system, you've got this one that you're moving manually. You're controlling three contracts on the same market all at the same time. You're locking in profits, if the market drops again, you're going to take that one out. As it continues, you can see.
Now, that one dropped hard and dropped back both of our positions, but yet, we're still in the market. Because we still have one position back here that's holding back a little bit further than all the rest. It gives us staying power, in the market.