I wanted to show this example because it illustrates a typical SSTFX sequence of trades. It doesn’t matter if it is a 12 pip rangebar on the GBPUSD, or a 233 tick chart on the EURJPY. It could be a long term position trade on a USDCHF weekly chart, or any other chart. Some might not be comfortable with a 12 pip range, which can take time to evolve. Using the ‘trade management console’ for MT4, that comes with the SSTFX makes a timeframe like this far more attractive. One could also use Tradestation alerts to text your cell phone, as another way to do it, for example. Quasi swing trades (longer term daytrades) are very profitable. But that’s not the point of this example.
Think of this example as any ‘ole bars on a chart, with the SSTFX identifying precise, self-contained, complete trades. Notice the exact entries. Notice the high percentage fixed target levels (the third dot). Notice how the stop quickly moves to cut risk, then puts each trade into a risk free position. Then notice how the stop continues to trail, locking in more profit, and getting the most out of each trade. This is the classic SSTFX trade style.
GBPUSD 12 pip Rangebar; 2/22/11, + 294 pips in three trades after spread!
Trade +1 is a ‘reversal’ short trade. Notice how its fixed target is perfectly placed and picks up +51 pips after spread.
#2, a couple bars and 20 minutes later, increasing price momentum is identified and an add-on trade profile is presented. Again, the fixed target is perfectly derived and gets another +38 pips. The downside move runs out of steam and the trailing stop gets us out at the perfect place. Our trailing positions get partial profits, + 35 and + 15 pips, repectively.
#3 is a ‘reversal’ long trade. SSTFX got us out of the short with a handsome profit, and then quickly gets us into a long trade. The fixed target is again achieved for + 26 more pips. This time the trailer gets a little more and we exit our trailer with + 30 pips. Not until …
#4, another case of increasing price momentum. This time, it was the real deal and our fixed target is again achieved for an additional + 28 pips. Ironically, the trailer can’t get on track due to othe SSTFX’s aggressive desire to get to risk free positions and begin locking in. So the trailer on this one gets stopped out a little too soon, but still gains +6 pips after spread. It’s a fine line between too much risk vs. not enough risk and the SSTFX skirts on that razor’s edge masterfully yet not perfectly. We do have a fallback plan though. It’s call the ‘reentry’ trade setup.
#5 gets us back in the long move with the yellow ‘reentry’ trade setup. SSTFX was correct in the prior trade. Price momentum was increasing and it did try to take advantage of it. No problem. We were able to get the most out of it anyway for another +65 pips.
It is the combination of excellent trade setups, flexible acknowledgement of price action, real time self-adjusting (like when it reversed to short but then reversed to long) both for attractive gains, smart rules that mitigate chop and churn, tight and concise tradeplans.. in fact, all the seven summits to successful trading are encapsulated in this typical, SSTFX, 3 trade sequence.