This was a trade forwarded to me by one of our students name Shaun. This is a short off of the range highs. Notice that Shaun waited on the double top, which is simply a lower high. You can treat a double bottom as a higher low as well. This is a basic set up that we look to trade during ranges and Shaun plays this one perfectly.

He has a nice runner too, although this one ran all the way to the other side of the range, so he left a lot on the table with this one. We walk a fine line on these runners, as I hate to see them back up as well, and I very likely might have close my trade exactly when he did. You hate to see it run without you, but the next time you try and hang on, guess what happens? Yes, you get stopped out at breakeven and walk away with nothing on your runners.

Nice trade Shaun and thanks for sharing it. If you would like to see me post one of your live trades, record your trades and and forward to me. If I think you followed the rules well enough, I will post your trade as well. There is no sound, so do not try and adjust your volume looking for sound.

This was a live trade submitted by a student trading range rules.

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Comments

Jorge August 10, 2020 at 7:40 pm

Nice one Shaun! I’ve just saw Mack’s YouTube lesson and he marked that exact same trade.

I see prices went exactly to the 1st location of your runner (to the tick!) but it wasn’t filled. Bummer!

Thanks for sharing!
Jorge

redneck4Christ August 10, 2020 at 7:40 pm

Nice job — many thanks!

Steve McCullough August 10, 2020 at 7:40 pm

Nice trade!! I am trying to manage my runners very similar. When my first contract closes, I then move up 3-4 ticks and then slide up the stop to t+1. As it moves up, I will move stop 1 tick at a time. I usually get stopped out rather than upper order, but it is profit either way.
Thank you for sharing! It helps me know I am moving in the right direction!

inboil August 10, 2020 at 7:40 pm

Awesome timing. But I thought we weren’t supposed to trade breakouts, but rather buy the bottom and sell the tops on range days? Is that double top always such a significant signal?

mikew August 10, 2020 at 7:40 pm

@inboil, if you consider it a breakout then it would be a failed breakout to the upside with reversal right? It tried to breakout higher once, then twice. When it failed the second time he got a good bearish bar for a signal bar, put his sell order right below that bar. If he’s considering this range area the he’s at the top of the range as well. I’m not sure I would have considered it a range day at this point in the day but I’m new. It certainly was within the premarket range so that was another + for the setup.

Nice work Shaun! $$$

thevmackwin August 10, 2020 at 7:40 pm

Impressive job of trading and it looked so natural and effortless.
About 30 seconds into the video I forgot this was a Student’s trade.
The manipulation of the orders in placement and timing looked like Mack’s numerous live trade examples!

olufemig August 11, 2020 at 7:40 pm

thanks for this. does this mean that as the stop is moved up after breakeven, profit is further locked in? if it is, i ‘ve been leaving money on the table!

inboil August 11, 2020 at 7:40 pm

This was such a great tutorial, I just took the exact trade. It did not fill as fast, but it was a scalp. Great stuff here.

Vittorio5927 August 11, 2020 at 7:40 pm

I’m working on a runner strategy where I adjust a trailing stop based on the ATR. Hopefully this will give me more ticks with the runner by using what the market will give me at that point in time according to the range. Anyone else using something similar? If so, I would like to know what conclusions you have come to.

Mack August 14, 2020 at 7:40 pm

There is no real rule on how to handle your runners. You can experiment with what works best for you and what you feel most comfortable with overall. Personally, I hate to see prices back up on me, so I probably exit too early, but I just look for another entry. Some prefer to enter less and stay with their runners and treat them more like a swing trade for longer term, and that’s fine too. Just figure out what your comfort zone is and find what works for you personally.

Mack August 14, 2020 at 7:40 pm

For those that like stats and numbers, this is a good strategy. You can do the math and find out what the average bar is for the day or even the average move and and use that math to help you find your targets. I am not sure how well it will work, but it is worth the effort for those of you that like that kind of challenge. I’m not a number cruncher and don’t have the patience to do it personally.

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