T2W Trading Community

The above chart illustrates the targeting out of our last unit (the third one) at 4990 level (target n°2) during the last hour of the day. Thus, our trade was terminated. We should emphasize here, the merit of the pre-arranged exits, especially the second one, which helped us to get the most out of this trade. Without this, we would have not been able to optimally manage the trade.

Profit & Loss – P/L Statement
Now, that the trade has been concluded let us see its outcome:

1. We have taken three trading units, all of them traded following an automatic pilot mode with pre-arranged orders, even if the market forced us, to exit manually. We should emphasize that all three units were governed by the three-pawn technique.
2. We have risked per contract four DAX points representing 100    euros ($127).
3. The reward per contract pertaining to the R/R ratio of 15.75, initially calculated per contract, was 63 Dax points. As we know, we have traded three units: two at the initial entry and one add on. Their exits were as follows: two units at 5032 level, and the last one at 4990 level.

Therefore, we have obtained the following results:

• Firstly, for the two trading units, we have per contract a reward   of   93 Dax   points:
  [entry level (5125) minus exit  No 1  level (5032)], 
• Secondly, for the third trading unit, we have per contract a reward of 135 Dax  points:
  [entry level (5125) minus exit  No 2  level (4990)],

The total financial result per contract (all three units) is 321 Dax points (2x93 + 1x135)   a total of  8025 euros ($10191). The total time spent in the trade was two days, from the second hourly bar of the first day to the last bar of the next day.

Trader’s  Journal  -  Keep Your Records
We write in the journal the main topics and also the unusual events or missing opportunities due to either the respect of the rules, or to the occurrence of new lessons pertaining to the learning curve.

Let us proceed further:

• We fully respected the rules, especially the three pawn technique rules. 
• The trade reward is excellent, above the average results. 
• We have comfortably detected the first add on opportunity which we traded and also the second one below 5032 level, right at the opening of the second bar of the second day. We chose not to trade the latter because of the large required stop loss. 
• Once again, we realized the importance of identifying the types of gaps and their relationship with: 
  • The median line and its contextual pitchfork acolytes, 
  • Money management of the trade. 
• We took note of the role of the scanning of all five times frames, in order to reveal a low-risk high-probability trade, thus giving us an increased confidence in our tools and techniques. This is one of the best remedies for treating and healing the trigger-shy syndrome. 
• We noticed also the role of the failures, their detection and also the best way to trade them. Their concomitant occurrence in the already mentioned multiple times frames enhances, several times, the classic trade potential. Always look for them… they are great money-makers!