A trader explains how to protect winning positions by trimming half your contracts at local lows and moving your stop to breakeven, turning the rest into a risk-free trade. He uses daily and 4-hour charts to find direction, enters on 15-minute gaps, and targets risk-to-reward ratios of 1:1.5 to 1:2.
Daily sweep, 4-hour inversion, tap back into a 15-minute gap. We wait for an even lower timeframe inversion, and that's my confirmation. That's where I enter the trade here. My target would be down here where the current sell side rests from before. My stop loss for the day trade would be above the current 15-minute high. So that is my risk to reward here. And normally when I'm trading, I go for a 1:1.5, 1:2, and I let my runners go from 1:5, 1:10R trades. My initial position, I always trim at the local lows. So let's say I have 4 contracts here. The market moves down in my favor. I take 2 off, I move my stop loss at breakeven. So this stop goes right here. Now I'm risk-free.
