Learn the rules of the Trade Scalper system
Spoiler alert – the outcome of this video is not a winning trade. Watch to see how John Paul makes the best out of the situation.
To begin with, notice how there’s a Dbl Wick Short signal on the E-mini chart. This standards for Double Wick, and it’s entirely based on wicks / price action; not moving averages, MACDs, etc. With the Trade Scalper, you’re often going for a three-tick target with a six-tick stop. It’s scalping, so the goal is smaller. Like our other trading methods, the ATR is used to assess conditions. Slower markets mean smaller profits. The inverse is also true. Correct price action trading is always relative to current market conditions. The video speeds up and you can see price try to move toward the target, but ultimately failing during the allotted time. It’s never good to stay too long in the market, certainly when scalping. Remember that one of the stop loss rules is based on time. This trade is taking too long, and therefore has met the conditions for that rule to apply. To get out at the trade at breakeven (excluding broker fees), the profit target is moved to the entry value, 2181.00. Remember, it’s not possible to get out of every losing trade this way. This is just an example of a time-based stop working as intended.
