Read the page 153 and page 154 in the 101indicators On Futures Trading book again, we will get 63 stop and reverse trade signals in the first 6 months for year 2015 according to our data collection. Find yourselves the total of the stop and reverse trade for July until September. Here, we make an assumption that we will get 10 to 30 stop and reverse trade signals in the 3 months.
If we get more than 30 in the 3 months (October until December), it is definitely a bad result!?
- Check the multiple losing trades and find out how much was the accumulated losses generated for the past 9 months in year 2015. For example, 10 multiple losing trades 150 ticks accumulated losses.
- Check what was the maximum profit range on a single trade if right on trends after a stop and reverse trade signal was triggered for the past 9 months. For example, the recent long 1963 had seen the cpo futures price reaching high 2207 with profit range 244 ticks.
If you have done all the above criteria, you will be able to find the fear and greed - the fear of 150 ticks and the greed of 200 ticks, get it!
Be a disciplined trader.