Identifying a Gold trade using the 180 minute chart resulted in a 99 tick profit while only risking 30 ticks per contract in the live trading room with Rick and Gail. We were joined this morning, 8/28/12, in the free live trading room by Rick Fraenkel. Rick is a futures trader that is joining TradersHelpDesk on September 1, 2012. Rick began as a part-time trader in 1985. He started out in the Commodities markets and soon expanded to stocks and options, mutual funds and, finally, futures. In 2012, Rick decided to retire from his full-time job and become a full-time trader.
Rick has attended numerous training sessions, including ones by Ken Roberts, Investors’ Business Daily, Investools, Larry Williams and Dr. Van K. Tharp. Rick eventually settled on the TradersHelpDesk methodology because it incorporates a strict business plan and trading methodology that utilizes a low risk – high probability trade setup with built-in risk to reward and money management guidelines.
Identifying a Gold Trade Using the 180 Minute Chart
This morning Rick and I were talking about Gold, specifically how to enter a trade using the 180 minute chart. We showed that price was approaching the Average True Range stop from underneath and Gold should actually bounce to the downside once price reached the average true range stop (also known as the ATR stop). Now, using a methodology that is taught at our Seminar, the trade came in shortly after noon.
The trade results were:
Reward: 99 Ticks
Risk: 30 Ticks
While some traders may feel that the 180 minute chart results in a larger risk, and it does, the profits are also larger. The 180 minute chart is not as noisy as the smaller timeframes so actually you have a better chance of having a successful trade versus trying to limit your risk by using a lower timeframe. The techniques that Gail and Rick used in this trade are taught at our live seminars and our online training sessions, as well.