E BTE: Short Term Alpha With Defined Risk And Return

The chart illustrates the potential course that can be taken on this position. the bottom channel is where the stop loss will be placed with an 7 cent buffer to account for intra-day noise. The most important aspect of any trade is to define your risk. currently risk sits at 10% and will be reduced as time and the trend line move.upward. A trader can initiate the trade either on a breakout or when it pulls back. how one manages their trade is their business, but flat top triangle breakouts have a greater than 50% chance of pulling back to retest. The target is the upper trend line and a potential gain of 90% if we reach 9. that is nine units of return for one unit of risk.

Happy Trading