Replies to post #254 on Direxion Daily S&P Biotech Bear 3X Shares (LABD)

[Sendme]

Good luck on the scalps! That is one area that I need to work at. What time frame do you use for your scalp trades?
Just some thoughts on LABD, I don't see it as a reversal just yet, Almost looks like they are trying to take out all short and long stop losses. LOL


I have been back testing a combination of ideas from two people to work on my scalps. Trying to see if it is possible to calculate an exit.
Steven Hart

And Adam Khoo, he also uses the pattern trade idea, but throws in a formula to take first profits and set second profits with a break even stop loss. I am thinking about 80% on the first target and 20% on second target as a trailing stop if price continues above first target.

It does seem like a lot of work, but I have been testing it on multiple time frames and it does work pretty well, even on the .08 stocks like DCTH had on it's break out. I like to have a target that I can set a limit and still be at work and not have to watch it. That is if I catch the break out.

For example only. This one had a nice follow through.