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Phase 1 – Begin Trading LIVE with 2 Micro Contracts And Take Profits At Target 1 and Target 2
To keep things real basic and the initial risk low we recommend EVERYONE get started following the Opening Range Strategy with only 2 Micro contracts and take profits at Target 1 and Target 2 – using the main wide system Trailing Stop. You will enter 2 micro contracts (MES, or MNQ, or MYM) at the entry and then a sell limit order to exit 1 contract at T1 and a limit order to sell the other contract at T2 (this is done automatically by the strategy). The stop starts at the other end of the range then moves when T1 is hit. (Note: If you notice price getting super close to target 2 you have the option of discretionarily deciding to move your stop to Break-even or even Target 1 at that point). Follow this for 4-weeks and this will complete your first month. Turn the strategy off after you get T1 and T2 profits for the day.
Phase 2 – Graduate To 3 Micro Contracts and Still Scale Out Your Exits At T1 and T2.
At the start of your second month you can graduate to 3 Micro Contacts and follow the same exact approach except that you will now Sell 2 Contracts at Target 1 and Sell the remaining contract at Target 2 (or the trailing stop – whichever gets hit first.) Do this for another month. Turn the strategy off after you get T1 and T2 profits for the day.
Phase 3 – Scale-Up To 4 Micro Contracts – Scale Out Your Exits At T1 and T2 (same as above) but hold the final Contract for a “Runner”.
Once you’re ready to take the next step and unleash the full power of the opening range, you can scale-up to 4 Micro Contacts and follow the same exact approach except that you will now Sell 2 Contracts at Target 1 – Sell 1 Contract at Target 2 – and hold the 1 remaining Contract as the “Runner” and just manage it using the Trailing Stop. The advantage to this will become apparent on the occasional “long-range day” where the price hits both T1 and T2 and just keeps trending in the same direction for a massive move.
Since the trailing stop will be right around your Entry by the time T2 gets hit, there’s literally no risk of holding any additional contracts once you’ve locked in gains at T1 and T2. With the “runner” contract in place, you will typically see the price tag the trailing stop somewhere between T1 and T2 but on occasion – on certain occasional “long range days” in the market – the trailing stop will surpass T2. This is going to be a function of the market itself. Turn the strategy off after you get T1 and T2 profits for the day.