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I trade breakouts of congestion areas in which the breakout can be expected
to cross a support/resistance zone, either real or artificial. The
risk/reward of the trade, based primarily on the distance between
support/resistance zones, must meet my discretionary criteria, generally at
least 3 or 4 to 1. I use a couple of indicators as negative filters. IOW,
100% discretionary and not all that complicated.
I generally use tight stops, which is one reason to employ my stop strategy.
JFB
Shaven Heads Trading NYC
-----Original Message-----
From: Sigstroker@xxxxxxx [mailto:Sigstroker@xxxxxxx]
Sent: Sunday, September 27, 1998 9:49 PM
To: omega-list@xxxxxxxxxx
Subject: Re: System Exits
Out of curiosity, which formations do you usually base your entries on?
In a message dated 98-09-27 09:50:02 EDT, jfb.nyc@xxxxxxxxxxxxxxxx writes:
> I trade the S&P's using a variation of Joe Ross's technique. It requires
> trading at least 3 contracts. The first contract is exited during the
> initial positive move and "pays the overhead and cost of the trade." The
> second contract is exited at the first congestion area or beginning of a
> retracement. The third contract is left to ride with a wide stop after
> moving the stop to break-even.
>
> While it probably has a lot to do with my trading style, I make most of
my
> money from the first two contracts.
>
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