YMH2, (3, -1) formula, 1.618% Stretch fade, 21 December


Hi,
22 December: Basis intra-day trading YMH2 (March e-mini $5 Dow futures) the (3, -1) formula strategy from unchanged and fading the first move, i.e., (-1) of (3, -1) as a calculation of the Stretch (61) or 1.618% Stretch. The first move was follow through up from the previous session, hence this continued strength following a 300 point rally would indicate that a 1.618% of the Stretch fade would reduce risk. This first rally was contained at 1.618% of the Stretch, i.e., unchanged + 1.618% Stretch = 12031 + 98 = 12129 (12158 = high).
12129 - Stretch - Stretch - Stretch = 12129 - 61 - 61 - 61 = 11946 (11928 = low for 21 December). This completed the (3, -1) formula Strategy.
Maximum risk = $145.
Target profit projected (and achieved) $915 (+183%)...
6.5 : 1 reward : risk ratio (industry average is 3.2 : 1)
Intra-day margin: $500
Namaste