What if you could plan 5-10x Reward vs risk trades?
Hundreds of hours of development has made it simple
Hey all wanted to do a quick post regarding the latest update to Edge Trade Planner I’m working on.
In the Scanner we got this alert yesterday.
I added the PLAN button.
What does it do, behind the scenes it figures out where the stock is going, analyzes a bunch of contracts and then spits out a number of trade plans to choose from….
Just because the alert is 4350P at $13 doesn’t mean it’s the best deal. It dipped to $8 before running to 45. so lets say you get in at $10 and risk $5. and sell at $40. That is $30 Reward / $5 Risk = 6R. Not bad.
Would you have targeted $40 or $45 for the exit?
Here is the autogenerated idea and plans screen. Notice how it gives the what if option if market dumps to 4250.
So let’s choose 4335 for 3.8. because I think 1.89 won’t get filled and the stock is still pushing. Notice how current price is over 4…. Edge tries to estimate the best price you can get filled at…
I don’t think are going to 4250 so I can revise my sell targets to below and using my rules for using 1k capital and risking $500.
I want 2 contracts so adjust the stop to risk 1.50. This looks much better. Now I’m risking $500 to make $5k vs $300 to make $2500.
Ok. So how does the plan play out? I got lucky on the $30, but $28.89 prediction by Edge was spot on. Also the dip buy at 3.8 was perfect and we never got close to the 1.50 stop.
NOW THAT IS MAGIC!!!? by the way, what is the R on this?
$25 Reward / 2.3 Risk = 10R!!! Double the yield vs taking the 4250p at $10.
$5k using 1k on 4335 vs. $2500 using 1k on 4350!
Conclusion
I want a fast easy process that combines everything I do, into a simple to use system.
Select an alert
Select a generated plan
Alter the plan to fit what I think is going to happen
Make sure sizing/risk and reward fits what I want
Save the trade plan and place my orders (in future Edge will send the orders to my broker)
In coming weeks, let’s track how often we can plan 5R or better trades.