Kardec Trader shows how to trade the 80/20 reversal when you miss the initial entry. Watch for a price tap and close below it, then short with a 10-point stop. Scale multiple contracts, take 15 points on the first batch to cover risk, then hold for 40-60 point moves when trapped buyers capitulate.
Kardec Trader has achieved over $5 million in payouts, and today we're going to go through his exact strategy. So let's break it down into just the steps. So let's say you missed this 80 buy, it's going higher, it's going to 20, and again you're looking for that reaction. So it taps it, then it closes under, and you see that reaction. Okay, this is going to be your entry short, and I always use a 10-point stop. That's how I keep my risk under control, because if I'm wrong by 10, most likely I'm probably wrong by 50. So this would be my entry short, and I would have, you know, my first take profit 15 points, cover my risk, and Always 15 points at the first initial one. Yeah, it's going to be a 15-point take profit just so I cover my risk. I don't trade a single contract, I trade multiple contracts. So I would have, you know, my initial risk covered and then I'm going to see how much I can squeeze out of this move. More likely than not, sometimes if it's a capitulatory move down and then you see that sellers got trapped or buyers got trapped and you're moving back up, well, you can squeeze, you know, 40, 50, 60 points just because you get all that late longs or late shorts trapped into that move.
