I have already posted this to YouTube, but just to make sure we have a separate copy of it and to make it easier to find in the future, I am also uploading it to the website.

This live trade example was a higher low entry, following a 2nd entry long in an uptrend. Prices had just created a convincing close outside of the trend line, but the gap on the daily chart was not yet filled, nor was the measured move fulfilled. That would lead one to expect that prices would at least make a retest attempt of the high, so that was my big picture thinking on this entry.

You could have entered a few bars earlier on the second entry, but I felt it was better to wait on the higher low to confirm that prices were indeed going higher. The trade triggered so quickly I could not get the recording started in time, so you do not get to see me place the order before it is executed. The scalp took maybe 30 seconds at most, then I exited my runners after a 5 point move in only seconds as well. That single trade made 40 points or $2,000.00 minus commissions in less than 90 seconds.

Just to describe the entry, I placed my buy stop one tick above the signal bar where you can see the order entry location prior to exiting all contracts. I was barely able to get the order placed and it was filled almost instantly. The rest you can watch in the video. I hope you enjoy the trade and can learn something from watching the video.

Live Day Trade Example of a Higher Low.

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Comments

diggs June 18, 2020 at

Hi Mack,

Thanks for the trade example, but I don’t get any video controls come up to play it? The right click does not help.

Cheers

Reply

    Mack June 18, 2020 at

    I have corrected the issue, so it should play now.

    Reply

Dan June 19, 2020 at

Thanks Mack. Love to see those live trades.

Reply

Knortzsch June 19, 2020 at

These kinds of videos help so much Mack! I wish you could it do more often like it.
You said it is hard to record during trading, you could start recording at the beginning of your session and at the end of the session you just cut and edit the video so you just got the material for the entries. This won’t distract you from your trading. Bandicam is good for this. Thanks again for sharing this video.

Reply

stjames1745 June 19, 2020 at

Thank you Mack. Inspiring.

Reply

smylanakis June 19, 2020 at

Excellent !!! We need more of that Mack ! Maybe you could try to live it open to record and just after checking when your trades were, you could cut only those little second videos of them ! Maybe you could also have a guy do it for you ! This would help tremendously our community !!!

Reply

Sam June 20, 2020 at

I’ve been struggling with the concept of stop placement vs. scalp target in this market. You needed a 5.5pt stop to get under the signal bar, due to volatility, but didn’t raise your scalp target to compensate (like you suggest in the FAQ section of the site). This means, you need an 85% win rate just to breakeven. I know that hitting 1pt on a good signal is pretty easy, but shouldn’t we try to scalp 2-3pts to compensate for this volatility, just like we have to adjust the stop for the same reason? Getting stopped out once, would wipe out like an entire day’s gains (assuming 5ish wins).

Any insight is appreciated!

Reply

    Mack June 22, 2020 at

    That is why we use runners too. The runners really change your math. I actually tested a more neutral risk/reward strategy and it lowered my win percentage. I went back to trading like normal and my win percentage went right back to normal. Don’t believe me or anyone else though. Test for yourself on the simulator so you know for certain.

    Reply

Saif Mahmood June 21, 2020 at

Thank you for the great video again. I am new to ninjatrader, and my chart was showing completely different. I just realized I was trading on ES 06-20. and yours is ES 09-20. Can someone tell me when I am suppose to change that. No wonder last few days the bars was moving extremely slow and things I see in your chart I didn’t see in mine. Ninjatrader is so complicated in my opinion, I lost a lot in last 3 days due to this. Mack, do you have a video on how you set up your chart.

Reply

Samuel Carlson June 29, 2020 at

Hey Mack, have you thought about recording your trades and then going back to do voiceovers later, so you can focus better?
Thanks for sharing this trend!

Reply

Blazin5381 July 2, 2020 at

Thanks for that great video, mack. In your daily lessons, you often mention this type of trades, higher lows and lower highs, not only in trends but even in ranges, but it´s not in the manual. What exactly are the rules for taking those trades, especially in ranges? The only thing I can assume for myself is, that these are second attempts to go lower / higher that fail. But you always mention as well, that it is not safe to take trades in the middle of a range, so what is a good condition to take a lower high in a range for example? Let´s say, the EMA is flat and there is enough room to scalp one point down to the EMA from that lower high. Does this make an entry valid, if the signal bar is bearish enough?

Reply

    Mack July 7, 2020 at

    There is no one stop answer for that, as every situation might be different. This is where traders get confused and lost, as we are not pattern traders. The pattern just sets up the entry, nothing more. The key is where did the pattern form and what was the context of the chart at the time.

    Reply

      Blazin5381 July 9, 2020 at

      Ok, thank you

      Reply

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