The Tradesy: Scaling in (3rd Entry)Drawing my bespoke fib from the high of the previous entry to the new low allows me to scale in with a third entry at the 50% retracement level.
Following the same process as the previous entries I now have 3R profit secured with more than a full sized risk free position running.
ENTRY 1:-
ENTRY 2:-
Bearish Butterfly Main Entry:-
Thetradesy
The Tradesy: Scaling in (2nd Entry)Drawing my bespoke fib from the high of the previous entry to the new low allows me to scale in with a second entry at the 50% retracement level.
Following the same process as the initial entry I now have 2R profit secured with a full sized risk free position running.
The Tradesy, my Holy Grail of entry systems in StocksBacktesting my 50% retracement system for Apple stock is a perfect example of how it works.
Drawing my bespoke fib levels from the previous low to the new high gives me my entry point, stop and initial target.
ENTRY 50%
STOP 25%
TP1 100%
Closing (selling) 50% of the initial position at TP1 allows the remaining 50% of the position to be risk free.
There are two methods to manage the trade beyond the initial target:-
Scaling out (conservative) = Closing 50% of the remaining position at each TP.
TP2 (4R)
TP3 (8R)
TP4 (16R)
TP5 (32R)
etc,etc.
Balls deep (aggressive) = Moving the stop to the previous entry price as each new TP is hit, accumulating a large risk free position which will eventually close out as structure breaks down.