#1 System - Home

THE BUY SIGNAL - STOP IF WRONG

Just after June 28 Lumber put in a 10-8 band buy signal
The stop if wrong is the price low made just before June 28

THE SELL SIGNAL - STOP IF WRONG

On this chart of Corn there are three 10-8 band sell signals
Just before April 19
Right After May 3
Right After June 14

On each of these sell signals
The last price high was the stop if wrong

ANOTHER POSSIBLE - BUY SIGNAL - STOP IF WRONG

If we get a 10-8 buy signal, another place that would work for the stop
If just below the low of the lower band (8 day)

Most good signals will not trade back to the band low just made
As the bands were rolling over from downtrend to uptrend

The advantage to using the moving average low for a stop
Is that it will normally give you a closer stop if wrong

The disavantage to using the moving average low for the stop is it
Will take you out of some good trades, that the last low stop wouldn't have

So you have to decide which one you like best
I like the idea of the last price low, it gives the trade more room to work out

ANOTHER IDEA IS

Just using a set dollar amount for each trade
Depending on which market your trading

For example if trading mini Corn you may decide to use a $300.00 stop
If you are trading Lumber you may use a set amount of $1000.00 to $2000.00

You may just decide to give every trade no matter which market a $500.00 stop
The big thing is to have a limited amount of risk
Set in stone before you take

And if you get a good trade
Hold it for a big profit

#1 System - Home