Examples trades
Flip-And-Reverse
It is not too often that my stoploss is hit (i.e. my win-rate is pretty good), but when it does get hit – I usually recover my loss right away.
How do I do this?
I flip my position and take a trade in the opposite direction – taking profit at the same amount I initially risked.
So for example, if I took a short trade, risked 100 pips, and my stoploss was hit – I’d then enter a long position right away and set a take profit of 100 pips also.
I obviously set a stoploss on this second trade too – typically at 100 pips again, but I don’t really focus too much on it as it never usually gets hit. Let’s take a look at an example:
![](https://image.jimcdn.com/app/cms/image/transf/dimension=510x1024:format=gif/path/s2e2ea4a9b3965dd1/image/ic82bec35d3bbc0dd/version/1316099137/image.gif)
Staying Out
Sometimes you have to have little rules that help keep you out of trade setups that don’t seem quite right.
The following trade is one that I never entered – even though all the criteria was met (red below blue, pullback into red, close below lower red etc.).
![](https://image.jimcdn.com/app/cms/image/transf/dimension=510x1024:format=gif/path/s2e2ea4a9b3965dd1/image/i4fd1a2d1e3cf486a/version/1316099196/image.gif)
MAs At Wrong Angle
Remember our rule about waiting for the MAs to be angled in the right direction?
Here’s an example of a trade that we miss - because the MAs are angle upwards instead of downwards.
This is the way of trading. We miss this winning trade by sticking to our rules – but next time our rule will keep us out of a losing trade too!
![](https://image.jimcdn.com/app/cms/image/transf/dimension=540x1024:format=gif/path/s2e2ea4a9b3965dd1/image/i7e1c0d69ff24cfd0/version/1316099254/image.gif)
Deep Pullbacks & Shallow Pullbacks
You will find that you typically get two types of pullbacks: Deep and Shallow.
They are both valid.
However, you will instantly recognise that the Shallow pullback is going to typically have a much smaller stoploss than the deeper pullback.
While not essential it is preferable as this means, while our take-profit will still be 1.5 times the initial pips risk, it will be smaller in terms of number of pips – and so more likely to get hit!
Take a look at this example of the two pullbacks in action:
![](https://image.jimcdn.com/app/cms/image/transf/dimension=540x1024:format=gif/path/s2e2ea4a9b3965dd1/image/i227f525cb8749d75/version/1316099344/image.gif)
Lower Timeframes
Now, the standard exit method (taking profit at 1.5:1) works well – but on lower-timeframe charts such as the 5-min and 15-min I will quite often just take what I can.
I do this by trailing my stoploss behind the last two candles. For example, see these trades taken intraday on the 5-min chart:
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