Page 177 - ART® Study Manual html5 - flash

® “Home-Study Course” Study Manual Page 177

________________________________________________________________________

“Rules Of Engagement”

1. The trade must currently be PROFITABLE
2. The fifteen minute chart must indicate a solid trend in place
3. You must set a new stop loss based on the DAILY chart
4. Reduce “Trade Size” so that risk remains no more than 2% of

your trading account (based on the new adjusted stop from the
DAILY chart)

These same rules apply when going from a 5-minute chart to a 15-
minute chart. “Trade Size” must be adjusted.

Timing Entries & Exits

Another way to use different time frames is to time entries and exits.
This is tricky because this technique will sometimes take you out of
positions too early and into positions too soon. Then other times it
works just right by getting in before other traders or out before other
traders.

If you are going to use multiple time frames in this way, you must
accept the fact that you may get out and need to get back in. Or you
may get in too early and be stopped out. Again, your personality and
psychology will determine what works best for you.

________________________________________________________________________________________________

Copyright © 2012 TradersCoach.com, Inc. All rights reserved. Any reproduction and/or electronic
transmission of this document is prohibited without the prior written consent of TradersCoach.com

and is a violation of international copyright law. AR-1021-04-06.