Avoid orange E?

#1

Hi,

The only way I know to protect against orange E is done through proper risk mgmt. Is there another way to spot these ahead of time, or is there something else I could have done on this binary short to save myself apart from buying a binary further away from the price action?

2013-10-18_1117 - Doppelrock’s library

Thanks!

Rob

#2

Avoiding a orange E would mean avoiding non-entries (obviously this is done through the entry filters and is easy) -

But for those not filtered - ie did break 3 ticks below E on a short powerline with no bmx - to avoid this would mean you avoid all losing trades…which would be nice but not possible

So obviously risk management is paramount you will have losing trades expect them and a risk accordingly As you can see below simply managing risk would have paid off quite well.

10.18.2013-12.15.png1915x1047

The major issue on this trade was the strike selection

This trade lost as you chose the wrong strike - you should have chosen a strike at 3333 - high of the P was 3331.75 + 5 ticks =- 3333 or higher (as it should be 5 ticks above the P) (you may have to choose a further out expiration time to get an appropriate premium (when the market subsequently oscillated have been able to close it out for a majority of profit (with both time and price moving in your favor)

10.18.2013-12.23.png1919x1077

Other Tips - i noticed your doing a us indice -

are you looking at the choppy market warning - ?

are you looking at the other 3 us indices - ?

are you watching BMI - ?

all these should be used when trading the us indices

#3

Thanks ,

The 5 ticks past the P is a rule that I had not been as strict about, and I had missed that being a firm rule, thought it was more style - good to know that the timing is not as sensitive as the 5 tick from P rule. Definitely watching BMI and other indices, choppy is great too. As DM just said in the chat room, all about putting odds in my favor. In looking over at this chart at the present moment, I see it would have been stopped out regardless, hence the importance of risk mgmt.

Thanks for the prompt feedback, and reminder of importance of 5 tick past P.

Have a good one,

Rob

#4

it may not have stopped out - depending on where you had the take profit set as a lot of time went by

#5

What exactly are orange E bars? I had one this morning on the GBPUSD with the trend catcher elite system. It looked like a good entry and it went 3 pips past the E bar, but then turned into a orange E after I got in. How do you avoid these?

#6

Hey Josh, check out the step by step training course on the Elite MVP system for full details http://apexinvesting.net/apex-elite-mvp-course/