Professional Documents
Culture Documents
STP2 Step 4 Execution PDF
STP2 Step 4 Execution PDF
4. EXECUTION
market without error, as execution error is generally reducing exposure should a position move against
the most costly of all trading errors. Practice you. These techniques are designed to provide
flawless execution of your strategies for each and consistency, reduce risk exposure, and offer
EXECUTE THE STRATEGY every trade.
flexibility while in trade.
4.1 1x3 Entry Technique In this step, you will learn how to scale into positions Your goal is to be able to execute entries and exits
according to the level of exposure that you’re wiling in any market by using, and combining, the following
4.2 1x2 Entry Technique to take at the outset of a trade.
entry and scaling techniques:
4.3 11 Scaling Technique Scaling into trades is the process of building a Techniques for Scaling Into a Position:
position by first testing the trade with smaller size,
4.4 111 Scaling Technique and then adding more exposure as the position — 1x3 Entry Technique
4.5 211 Scaling Technique begins to work in your favor. This approach is quite
effective, as traders have the ability to reward — 1x2 Entry Technique
winning trades with additional exposure, while
limiting losing trades to smaller losses due to Techniques for Scaling Out of a Position:
smaller starting size.
— 11 Scaling Technique
You will learn two entry techniques that will give you
the ability to scale into positions, thereby giving you — 111 Scaling Technique
4. EXECUTION • 1st Entry (33% of Trade Allocation): Execute a starting position by scaling into a third of your
maximum allowable trade allocation.
EXECUTE THE STRATEGY • 2nd Entry (33% of Trade Allocation): Look to add 33% more exposure should price move in your
favor, or if you want to defend your trade.
Taking Profits:
After building a
1st Entry (33%): Start an initial successful position
position by executing an entry with during the first 4
33% of trade allocation during the days of rejection
last hour of a rejection day and absorption,
look to pay yourself
on the first major
pop in your favor,
taking either full or
partial profits.
3rd Entry (33%):
Reserve the last
33% of trade
2nd Entry (33%): Add to the allocation to defend
position by executing an entry at/ your position should
1x3 Entry Technique: Allows traders to
near the absorption zone on Day a failed new low
conservatively scale into a position using 33% of
2 with 33% of trade allocation develop on Days 3
allowable trade allocation. Winners get rewarded
and/or 4.
with additional exposure, and trades that
underperform do so on smaller position size.
1x3 ENTRY
EXECUTION:
1x2 ENTRY TECHNIQUE
SWING TRADE PRO 2.0
1x2 Entry Technique: A 2-part technique used for scaling into a position by halves.
Each scale-in splits the maximum allowable trade allocation by 1/2 and can have
multiple contracts/shares per scale-in.
Taking Profits:
After building a
successful position
during the first 4
days of rejection
and absorption,
look to pay yourself
on the first major
pop in your favor,
taking either full or
partial profits.
1x2 ENTRY
1st Scale-In:
Execute 50% of
EXECUTION
trade allocation ENTRY EXECUTION TECHNIQUES
during the last hour
1x2 ENTRY Choose an entry execution technique
2nd Scale-In: Execute 50% of that aligns with the probability of profit
of rejection day
trade allocation at/near the
3rd Scale-In: rejection day midpoint
for a given opportunity. For example, use
Execute 33% of the 1x2 or 1x3 entry technique for
trade allocation countertrend trades, while entering high
after failed new
odds trades more aggressively.
low develops
11 Scaling Technique: a 2-part technique used for scaling out of a position by halves.
4. EXECUTION Each scale-out can have multiple contracts/shares, but ideally there are the same
number of units for each scale-out.
4.3 11 Scaling Technique • 2nd Scale: Scale out of the last half of the position at your second target (T2).
11 Scaling Technique:
1st Scale (50%): Scale 1/2 the position after the After building a position
first expansion day in your favor. It is important to within the Rejection Day
pay yourself on partial profits after successfully sequence, look to take
building a position within the rejection sequence partial profits after the
in order to reduce risk and improve well being. first major pop in your
favor, and again after
price reaches your
forecasted target zone.
EXECUTION:
111 SCALING TECHNIQUE
SWING TRADE PRO 2.0
111 Scaling Technique: a 3-part technique used for scaling out of a position by thirds.
Each scale-out can have multiple contracts/shares, but ideally there are the same
number of units for each scale-out.
111 Scaling Technique: After building a position Add Back (33%): After scaling 1/3
within the Rejection Day sequence, look to take partial position the previous session, you have
profits after the first major pop in your favor, and again the option to add the 1/3 scale back to the
after price reaches your forecasted target zone. position upon a retest of the secondary
absorption zone the next day
EXECUTION:
211 SCALING TECHNIQUE
SWING TRADE PRO 2.0
211 Scaling Technique: a 3-part technique that is used for scaling out of a position by
half at first, and then by quarters. Each scale-out can have multiple contracts/shares,
but ideally the first scale has twice the size as the second and third scales.