This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

But I still had only a 33% win rate! It’s my own fault since I forced a late day trade, but I still ended up +0.65R for the day. After discussions with StreetSmack from Wallstreak yesterday, I decided to only trade gappers after 10:00 am ET. I also decided to crank up my $ risk per trade to 1% of my equity instead of 0.5% as I have done so far. I’ll crank it up further as (if?) my reliability increases.

As always, Orange is my entry, Red my stop in effect, thin Blue is a partial exit, thick Blue is full exit, Green is a target. I’m using targets less now, just trying to take a partial and let the rest run until there’s some kind of big reversal sign or formidable resistance. I like to have at least 1R between my entry and the first probable resistance level, though, to avoid taking too much risk for any potential reward.

I took SMDI long as shown below: Read the rest of this entry »

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

Wallstreak user StreetSmack has sent some charts that illustrate good entry points for trading gaps. I’ll be trading this style today. I traded 13 positions for a breakeven result yesterday, so today I’m trying something different. Like Trader-X style trades, the idea is to trade in the direction of the gap after a candle close very near or above a high watermark. X used the OR high as that mark. StreetSmack elaborated on his watermark a bit over on Wallstreak.

Here’s the charts showing example entry setups: Read the rest of this entry »

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com