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In Trade Profit Management for a 1st  HVF in a new trend .

The Trade Gradient Bands, excess profit take tool.

In the absence of a regimented unemotional process to manage your remaining

open position after closing 60% at Target, you will get out on pain, whilst staying

in on greed.

The Trade Gradient Bands are an outstanding tool to ensure what is already a

good situation is not spoiled in anyway by a lack of process to contain the

emotional urges.

There needs to be a basis by which a trader can ‘milk’ the extended move, often

common with first HVF’s in new trends. This over performance to initial planned

RRR compensates for the additional risk of making the call on a short period of

new trend for the timeframe under review.

The logic defining the bands, is that the ‘Infield area’ price action provides us

with information on the momentum of the break. This means we have a clue on

the trades force in reaching Target. We use a simple process to provide us with

two lines that provide an approximated gradient for the trade at its best and

slowest progress moments, any additional progress in the required direction

within the bands area, whilst not retracing through our original target, see’s the

trade as ‘Compliant’ and left open.

A breach of the upper band suggests original momentum is now dissipating and

that on offer should be taken quickly before, a progress decay stage moves into

full swing with pullbacks against the set ups original direction.

A breach of the lower band represents an overperformance on our ‘excess profit

management’ process and also see’s the trade closed.

Why?

We were making more money even faster than before?

Experience has shown anything accelerating at an excessive level beyond that

already attained is at an utter extreme point of market reaction, bounces

regularly occur, ‘punishing’ over performance with closing the trade often

secures excellent profits and timing when retrospectively reviewed, nothing

moves in straight lines for very long and holding the other side of the trade when

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the ‘herd are stampeding’ whilst difficult to do, often proves exceedingly prudentafter.

Deere chart below, a US Listed Stock. On a 30 Min Inverted HVF

The line of efficiency is usually superior by its gradient angle to the Trade

Gradient Bands at it median line (The one best splitting the two limits aggregate

performance, but they provide a degree of tolerance around the Line of

Efficiency (LoE - attained from entry to partial close at the traditional HVF

target).

These bands become live, post target attainment; along with the target level itself.

Meaning any close through the Target level (already taken for 60%+) or the

lower or upper gradient bands requires an immediate close of the residual

position (40% maximum). Done on your pattern timeframe for candle closes.

This in trade management technique, can only be utilized by traders who have

reasonable access to monitor the position. For those that cant monitor the

market, follow the rules set below for the ‘whilst away ‘ situation describedbelow.

Don’t Trail Stops into the Trade Gradient Band area! What we do, do, is we move

your Stop Loss pending order to the Target level already previously attained on

the bulk of the position (Now a Profit Lock in).

For the take profit, we face a dilemma, as we do not have a horizontal level for

which a fixed level may be selected.

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If you need to be someplace else, leave your loss stop at the original Target level

and place your new Take Profit on the Lower Trade Gradient Band, that which is

directly below the current candle timeframe. In other words were it to capitulate

in a straight line down vertically you would be closed on the band, this along

with the profit lock in at the original Target ‘Collars ‘ the trade whilst you are

busy. When you return, if neither have been hit but you have a close outsideeither the lower or upper gradient bands close the trade at market.