THESE ARE SHORT
You always enter your short BELOW
the distance of the SGB and COVER if the stock trades
above the SBG signal or zone.
Once you have profits
building, then place a $1.00 GTC trailing stop on stock
trades with low volatility and open the stop on high
beta stocks. Taking profits on a daily chart bar-by-bar
move is best but you have to decide when to take your
If you play options on
these, then buy ITM and more time for Puts and place
stops at 55%.
If you sell Bear Call
Spreads, then stops at 55% or you roll out to the next
month the week of expiration if the stock
trades back above the SGB more than the distance of the
initial SGB short signal.
If you trade weekly
options, then you always trade for ALL OR NOTHING—NO
STOP LOSS and take profits as you see fit...but DO TAKE
NOTE: If you get stopped
out, then short again if the stock trades back into the
These can and will fail,
so proper money management and trade every signal and
you will aggregate profits over time. Once you get
profits going, increase your size conservatively.