The title of this post says it all. We ‘got back on board’ a couple trades yesterday and as a result, we were able to get to power of quitting (poq) on a day that demonstrated two important things that have worked for us for nearly a year and a half on the Russell eMini and over a year in general for ALL our SST trading.
- The importance of getting to a risk free position as often as possible, and..
- The ability to ‘get back on board’ a trade that gets prematurely stopped out.
Getting to risk free is GREAT but the drawback of course is that when you eliminate the risk, you can also be eliminating your profit potential. There is a give and take for EVERY trade decision you make. Risk is an essential part of profitable trading but it has to be the ‘right amount of risk’ and this is very difficult to discern.
The SST does an awesome job mitigating the proper amount of risk, dynamically, on a trade to trade basis. It is constantly retuning itself, bar by bar, to recalibrate the perfect amount of risk needed for the trade (and ultimate tradeplan) to succeed in the end. It is all about probabilities though and nothing is perfect, but like this, we keep the odds working in our favor.
The risk free position is a result of a trade progressing a certain distance towards our target AND the changing, fickle volatility of the price action. It makes the statement that “I have worked hard to get to this level of profitability and I have earned the right to eliminate the risk from my position.’ Then, if the price moves against you, you can get out of the way and avoid a loss.
Sometimes though, the market experiences some momentary noise and it stops you out at ‘break even’ before it turns back and goes to your target objective. To the untrained trader this can be very frustrating. Heck, even to the experienced trader! Remember though, as I said, with trading, there is a consequence to every decision. There is give and then take. You can not have your cake and eat it too! Umm.. Well.. Actually, in a way, you can!!
GetBob! What makes this such a powerful ‘tool’ for us is that it actually allows you to have your cake and eat it too. You can put on the risk free position and if you get stopped out prematurely, the GetBob will allow you to ‘get back on board’ and actually capture the profitable move. Consequently, it has proven to be a very high percentage winner and has been a major improvement to our overall results, often getting us to our power of quitting goals.
Take yesterday’s Russell eMini session, for example. After what has appeared to be a mad dash from our +300 point milestone to the ever creeping closer +400 point milestone, we had a minor hiccup last week, mainly do to a tough options expiration Friday. We started this Monday back on track, ending the session just a few points below our all time profit level of 383.3 points, and we are poised to reach the tough +400 point level somtime very soon.
Then yesterday, after getting bumped out of two trades prematurely, one for a 1 tick gain and another for a partial profit of +1.1 points, the GetBob setups that followed each of those trades made all the difference for us as the session ended up with well over +3 points, depending on how aggressive one was when one of those GetBob trades got to within 2 ticks of its full target.
I’ve prepared a brief video recapping the session and discussing the GetBob setups (see below).
While all the other Russell eMini SST trade setups are winning 67% of the time (for over 2000 daytrades), so far this year the GetBob setup is winning a full 10% MORE, 77.63%!! It has won 59 out of 76 trades this year with the Russell eMini and has been a big reason why we are quitting with POQ more often, as seen on the bigger Session win rates and Weekly win rates, 78.45% and 78.38% respectively. These are the stats that really count!
GetBob works equally as well on forex, stocks and other futures too. Even if you don’t currently trade the Russell eMini (one of our longest running, most successful tradeplans ever), I would encourage you to watch this video so that you can see how the Getbob works and how it allowed us to have our cake, eat it too, and ultimately get to Power of Quitting goals as we continue to trek to new all time profit levels and get within striking distance of the big +400 point summit.