A MacGyver is when you "get better prices" with the anticipation of removing the original position and running the trade from the new level. This is not averaging down or "adding to a loser".

Example: You short at 1215.00 and the market continues to move up. You short again at 1216.00 and immediately put in a buy order at 1215.00 to remove the original position and run your position from the new level.

Notes:

• JP sometimes puts on 2 or 3 times the size at the MacGyver level.


• The number of contracts that JP puts on at the MacGyver level will be determined by his conviction of the move from here.


• Stop remains X number of points from our original entry. Say our stop was 1.5 points then our stop would be 1216.5. This stop applies to the MacGyver level as well as the original level. You do not add 1.5 points to the MacGyver level.

1chameleon did some math work on how much you should MacGyver and this is what he posted in the room today:

quote:

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(3:56 PM) 1chameleon: JP i did some math on this and there are more times that you dont have to mcgiver than you do...so if trading a limited number of contracts i found that it was more profitable to go in the initial price with the larger number of contracts and mc'g with half that number but dont scratch any of the original trade wait for it to be at least 1 pt profitable before exiting

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