As several of us already pointed out, you are missunderstanding the rule. The target is not 10 points. Actually, there is no target. The strategy is just an ENTRY signal. Giving up 8 points gain and ending up with a 3 pts loss is just bad strategy...
11:24 ET Are you not in the short right now from 81.25? (LOD 71.25 +10) This seems to be the current trade for the system, and it is working. Edit: my question is for jagmot
I get the swing low as 1271.75 which occurred around 9:36 EST? I have the entry at 1281.75 with 1284.75 as a Stop; Objective 1271.75? Jag?
Thank you Pek for contributing. I am not misunderstanding the r10 rule. I am of the belief that you need a minimum of 3 to 1 rr in order to be profitable over the long term (if you do not employ any money management), that is where I got the 10 point target. Since I am using 3pt stop and using .25 for average slippage and commission, we need a minimum target of 9.75, and I just rounded to 10 to keep it simple.
Tortoise, by all means I would be happy if someone else were to setup a different r10 system and keep score with me the same way. Please keep a running tab at the end of your posts. 0 for 1 1 for 2 etc +3 points
I am by no means an expert but am happy to answer all questions. If I miss anything and you feel like it was not answered in another post feel free to post it again or send me a pm. Thanks, Jag Need to get back to trading wheat! (for a bit) We are still in the short at this time.
Here is an example trade that I took today. Price broke down 1280 which to me means that support did not hold. Stop was above the recent peak at 1283.75. It fell like a rock in the first few minutes after the open and I was slightly late at covering. But overall 1270 acted as support in this case (1271.25 to be precise).