A short YouTube trading commentary by Kosta Ouzas describing a bearish consolidation trade that profits from price declines by using safety orders to average down entry price. The speaker cites specific trade parameters and explains the logic: building inventory through safety orders, averaging down, and taking profit as the market rebounds.
4 safety orders
118
116
114
We're not a trading system that takes millions and thousands of trades every single day. This particular trade is looking really nice at the moment. We've got at the moment 1, 2, 3, 4 safety orders that have bought really great local bottoms which is averaged down this price. It's given us an entry of 118, a take profit of 116 and a break even of 114. So another interesting point is that we're able to actually generate returns from the price going down. What's counter intuitive is we actually make more returns when the market goes down. Why? Because just like the market makers are doing, they're building inventory so we're building that into inventory here in these positions. As you can see the first base order in this one took profit right away whereas this one here, the market went against us. So we're now entering with these safety orders and just like the market makers were preparing to take that move up, take profit.
