We’ve introduced a new type of stop into the Power Emini Alert Software that can help reduce risk in certain situations and can also be used to lock-in gains faster.
Check out the video below to see how the new Aggressive Protection Level works.
As you see in the video, there are 3 different types of stops in the Alert Software.
The Parabolic Stop is fairly rare and will only appear when the price has quickly surged and has made a “parabolic move”. This stop is designed to let you lock-in the majority of the gain after the price has surged to an unsustainable price level.
The Wide System Stop is the default stop that attempts to keep you in a trade for the primary directional move of the day. It’s calibrated so that you won’t get knocked out of a trade on normal price fluctuation and is dynamic based on the ATR’s and current ranges in the market. Once price makes a move away from the Dynamic Trigger Range, the system Trailing Stop will begin to ratchet-up automatically as the session progresses.
The NEW Aggressive Protection Level (aggressive stop) adds flexibility to the Power Emini Momentum Target System and can be incorporated into your trading strategy in several ways. If the opening Dynamic Trigger Range is extremely wide, you might considering using the Aggressive Stop initially when you get an Alert and enter a trade. Also once a trade is moving in your favor – say you’ve hit Target 1 and price is on it’s way towards Target 2 – you can choose to protect the remaining contracts using the Aggressive Stop rather than the wider system stop.
There are a couple different ways you can incorporate the Aggressive Protection Level into your trading strategy when following the Momentum system. The first is to use it on your entire position to reduce the potential draw-down on the initial trade. Basically you’re going to cut your exposure by half as the Aggressive protection Level is typically at the mid-point of the Dynamic Trigger Range. (The wide system stop always starts off 1-tick past the opposite side of the Range).
The Aggressive Protection Level can also protect some intraday gains that you might otherwise give back in a trend move that fizzles.
Keep in mind that the wide (default) system stop is based on the ranges in the market on any given day, and is always relative to the potential gains. It’s designed to keep you in the trade through normal price fluctuation so that you don’t get knocked-out on normal price wiggles so you can stay in the trade and capture the points on the primary trend of the day.
Once a trade gets moving in your favor, the Aggressive Protection Level will ratchet up under a recent pivot low and protect the position at that level. It’s incredibly intuitive and detects the perfect level that you’d want to move your stop to based on what you see on the chart. In other words, you are in a trade with the idea of riding out the primary trend of the day – but on the way from point A to point B there will almost certainly be counter-trend price moves. When a counter-trend move occurs, once price reverses direction and the primary trend resumes, the Aggressive Protection Level will ratchet-up to just under the low (in the case of a long trade) protecting that level.
I’ll let you in on a little secret about using the Aggressive Trailing Stop…
The trading strategy that’s been working best with the Momentum System since the beginning of the year goes like this:
Start off with 2 contracts and just shoot for Target 1 and Target 2 on each Alert – using the main System Trailing Stop. Sell 1 contract at Target 1 and 1 contract at Target 2 and then just wait for the next alert. There will be some alerts that will get stopped out and some that hit T1 but not T2, but the win rate pencils out and is profitable over a series of alerts.
Trade that strategy on Sim for a week or so just to get the hang of everything and experience how the system behaves over multiple market sessions. You can trade with the system purely mechanically and even set up an ATM strategy that sets the stop and targets – so all you have to do is “enter at market” when an alert triggers-in.
If you start off just trading that strategy and follow it it purely mechanically on Sim, after the first week or so you will have the confidence to trade live – and then just trade the MES micro contract when you decide to go live.
But here’s the trick…
Once you get familiar with everything and see for yourself how well that works, you can get a little fancier and pro-active using the Aggressive Protection Level. All you have to do is wait for Target 1 to get hit and then instead of using the wide “system trailing stop”, you move your stop to the Aggressive Protection Level as you’re shooting for Target 2. So you’ve already locked-in a profit at Target 1 and now you are using the tight stop and going for an even bigger point gain on the second contract.
I think you’ll find this strategy works great, is easy on the nerves and very simple to follow. Down the road you can get fancy with adding contracts and shooting for “Runners” but if you start off and trade the system exactly as I described above for a while (keeping it simple) I think you’ll be pleasantly surprised at the points you will score.
You Won’t Find An Easier To Use Trading System Anywhere
The Power Emini Alert Software gives you an easy to follow – highly accurate trading system.
Entry Price – Trailing Stops – Dynamic Targets
PowerEmini Automated Alert Software For Day Traders