An example of an actual trade
Email: “Enter 2% position $QLD Market On Close – 2x leveraged $QQQ”
– which we accomplish at 113.01
“Add 3% to trade for a 5% position on the Close”
– which order is filled at 110.32
“Add a final 5% to the $QLD trade for a full 10% position”
– which is filled at 109.00 giving us an average price of 110.18
“Exit $QLD Market On Close”
– which we do at the closing price of 114.79 for 4.2% profit in 4 days
This is an example of an ACTUAL trade, where we methodically build a position over several days, until an Exit signal told us to take our profit.
This trade was based on an Entry signal for QQQ – the Nasdaq 100 ETF. We took the trade using QLD – the 2x leveraged version of QQQ. We allocated 10% of our trading portfolio (1 “slot”) to the trade – then built the full position methodically with a 2% entry, then adding 3% when the trade moveagainst us, then a final 5% for a full position.
40% of the time our first Entry moves on to a profit. The rest of the time we add to the position whenever it moves against us – in a very specific, disciplined manner.
Note that each time we added to this trade, we improved our entry price.
Until the ETF finally popped back from its oversold level, giving us a solid profit in just 4 days – and then our money was safely back in cash!
- Staging into trades in this disciplined manner greatly increases win rate
- Progressive building trades means our timing does not have to be perfect to be profitable
- Clear rules for adding to trades provide us with a rational strategy when the Market surprises us
- Market On Close orders for Entry improve performance, and ensure we all get the same entry price
- Exits are provided as Market On Close orders – but astute traders can improve profit by exiting intraday based on their discretion
- YOU get to go about your day without worrying about the market
- You rarely will have even 30% of your portfolio allocated to these trades – so the remainder can be in cash or some other trading/investment approach
- With close to 90% win rate, you can acquire a comfor level with this approach that will allow you to gradually allocate more trading capital to it, improving your profits
See Performance for actual trade history…