Scalping The Dynamic Trigger Range Breakouts
The Power Scalper Range Breakout System is designed to key off of natural THRUSTING price behavior as a Trending Market breaks out of the Dynamic Trigger Range. These are called IMPULSE MOVES.
Important Concept To Remember: The job of the system is to compute the Dynamic Trigger Range Barriers based on the current market structure. When the price is inside the Range it’s considered to be a “no trade zone”. We look to trade the range Breakouts that have potential to get follow-through. It is our job as Discretionary Day Traders to determine how to best exploit price movement once it breaks past the Trade Price Barriers (Range High and Range Low) and that’s where Trade Configurations come in.
The Discretionary Trader should set up an ATM configuration in their trading platform and plan to use each one adapting to hot and cold market conditions accordingly.
All the Trade Configurations below use our Delta Neutral Strategy – which is an integral part of trading with the Alerts. It’s imperative that you set these up as ATM strategies in your platform because the market can move fast and you’ll want to have the executions as automated as possible.
The 1-Contract Super Scalp Configuration
Meant for SUPER scalping situations or where you wish to build some risk capital while at the same time risking as little as possible. You must use this configuration with super precise entries.
2-Contract Basic Scalp Trade Configuration
The Basic 2-Tiered, 2-Contract Starter Configuration is designed to get you to a safe-spot on a small price move in your favor. (Your main goal using this trade configuration is to reach what I call a “Delta-Neutral State” – then you can let the trade work with relative peace of mind).
In this trade configuration you start ALL IN with 2 contracts and place a stop up to -2.00 points opposite your entry to exit the ENTIRE position should price move against you. A Delta Target of +0.75 is used to cut the position in half for a quick win and to slide the initial stop from a Full Stop scenario to a REDUCED STOP scenario. (So you have reduced risk in 2 ways, cut size in half and distance to stop by half. – This is referred to as the DELTA STOP MOVE. The 2nd Contract is now left in play at greatly reduced risk to work for a 2nd Target Objective.
The beginner may wish to start off with 2 High Frequency Fill Targets when trading into Impulse Moves, +0.75 and +1.25 to initially build up some risk capital. Later the 2nd target can be extended out bigger distances.
2-Contract Basic Scalp Configuration
2-Contract Delta Scalp Configuration
This is your standard “Go-To” Trade Configuration. The focus is to cut your position in half at a quick easy target of +0.75 or greater and tuck your stop up the same number of ticks captured achieving a “Delta-Neutral” Status.
The 2-Contract Delta Runner Configuration
This Trade Configuration is meant to help keep you in runners. The focus is to cut your position in half at a quick easy target of +0.75 or greater and tuck your stop up -1.25 outside of entry to achieve a “Partial-Delta” Status with additional wiggle room.
Advanced 3-Tiered, 4-Contract Runner Trade Configuration
The More Advanced 3-Tiered Configuration is designed to get you to a safe-spot on a small price move in your favor just like the basic configuration but with a larger position that scales out in 3 layers. (Your main goal using this trade configuration is to reach what I call a “Delta-Neutral State” – then you can let the trade work with relative peace of mind).
In this trade configuration you start ALL IN with 4 contracts and place a stop up to -2.00 points opposite your entry to exit the ENTIRE position should price move against you. A Delta Target of +0.75 is used to cut the position in half for a quick win and to slide the initial stop from a Full Stop scenario to a REDUCED STOP scenario. (So you have reduced risk in 2 ways, cut size in half and distance to stop by half. – This is referred to as the DELTA STOP MOVE.
The 2nd Contract is taken off at a secondary target of +1.25 to +2.50 and the 3rd position is now left in play as a RUNNER. The target for the runner can be 4.00+ points depending on market conditions.
Dynamic Trigger Range Breaks – Trading Into The Impulse Moves
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As I have mentioned, when price is able to successfully break out of the Dynamic Trigger Range past the Alert Software TRADE PRICE BARRIER we tend to see strong Impulse Moves develop. Our job is to position ourselves early in the Impulse Move and get to relative safety as quickly as possible by hitting easy Delta Targets of 0.75 to 1.00. Once a Delta Target is achieved and position is cut in half and stop tightened, the remainder of the position can be left in play to RUN to bigger targets.
Be sure to review the section on The Delta Neutral Stop to understand the prime directive using these trade configurations.