It was a good trade with excellent R/R, 9.75pt gain with a risk of 2pt initially. As I was trailing my stops up, Jeremiel did highlight to me of a better method than trailing my stops, with better performance, getting money in the pocket first.
It is consolidating my positions.
Since I bought at 882.75, I should take profit at 886.50, double top, first. Since the plan was to trail the stop to 883.50, I should buy again at 885.00 to 884.25 and my stop placed at 883.50 where I originally intended.
There is a risk to this, it is if the buy failed, I will get stopped out with a loss. But get this, I have taken money off and bought again at a discount. My nett gain is still better than a trailing stop.
The other way is to put a buy order at the break out of 886.75. This is a safer way, you don't know if the retrace stops you out but you want to reach your objective of 891.50. So buy from 886.75.
I have calculated that if I buy the break out and my usual 2 contracts, I would have gained 10.50pt, +0.75pt better. Safe with 4pt in the pocket should it not break out. If I were to bought at 885.00 SL at 883.50, I would have gained 11.25pt, +1.5pt better with a potential loss 3pt with a nett gain of 1pt from the consolidation. In other words, risking 3pt for 7.5pt gain for the latter.
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