It is important to establish your Investment Profile, mainly the maximum number of contracts traded and your tolerance to risk.
Default condition is trading 3 contracts with 4, 8, 0 ticks point profit taking and using system stop loss for all 3 of them, while there is also a more conservative stop loss line available for our members who trade more contracts. The third contract stop should be moved to breakeven when the second contract takes profit. We call this trade the rookie trade
If market moves in the predicted direction for a minimum of 2 points this becomes a free trade for the runner with 3 points profit for the 3 contracts you trades already accomplished. A few runners have impressive performance.
Every time the Smart Line trails, an audio alert is produced and Scalp Trades can be taken. The trade management is similar to the rookie trade with reduced profit taking to 3, 6, 0 ticks.
Trading the first 30 min of open is only for experienced traders. More so on a Monday or day after a holiday. Also Monday pre market trading is normally no good.
When a trade has produced 5 ES points or more, then the next trade in the opposite direction is a Cautionary Trade. Caution means entering fewer contracts, or avoid initial entry and wait for confirmation when a Scalp trade is produced or keep out altogether.
During Market Moving news times as defined in the site: http://fidweek.econoday.com/byweek.asp?cust=mam you should be flat, exiting 3 min prior to them and not entering a new trade for the 3 minutes that follow them.
Bear in mind that the Smart Line reflects the success or not of any trade. When it trails the trade it is nice while when it is horizontal that period is not in our favor.
A Warning Triangle is produced after 5 bars with no change in the value of the Smart Line to warn us about it. At that time, if you trade many contracts you should reduce your position, while if trading few contracts you should exit.
Following a Warning Triangle when the Smart Line starts to trail new Scalp trades may be produced. You will notice that nice trades are produced when the Smart Line starts trailing immediately after the trigger of a new trade, while if trades struggle from the very beginning the Smart Lines remains horizontal.