On April 8, 2013, we received a 5 Ichimoku Time Frame Buy email alert on GOLD, Randgold Resources ADS. The email alert is shown below:
This stock is related to Gold Futures. Gold Futures are in a big consolidation pattern. As a result, we are going to trade using the 4h chart. The entry was 82.46, initial risk of 84.91, preserve mode 1 of 78.04 and preserve mode 2 of 74.64. The max. risk would be 2.45 and the min. reward would be 4.42 to preserve mode 1 and 7.82 to preserve mode 2. The min. reward/risk would be 1.8:1 to preserve 1 and 3:1 to preserve 2. The reward/risk to preserve 1 doesn’t look good so we are going to use options to reduce our risk more and increase our reward/risk to preserve mode 1 since volatility is average. Here is the trade setup
If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com
EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and Options Trading has large potential rewards, but also has large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provided on the Blog is for educational purpose.
