IF everything melts down, this is our plan.
-We are observing signals of a possible bearish movement. Yesterday we saw strong selling power on the market, and due to the current situation, we want to be ready for hedging in case of a 14 - 15 % bearish movement. We are not saying that a short impulse will happen. The idea of this post is to have a strategy in case we have this type of situation.
-Which is the plan? IF the price goes below the red line, we will short the index using S&P500 micro futures (ticker MES), and we will set our stop loss above the current impulse. Break-Even on the next horizontal line. Target on the Lower support zone you can see on the chart.
-When you buy or sell a Micro S&P500 Futures contract, you are getting exposure to a 12.500USD position on the Index. You can take this type of position as a Hedging strategy (imagine you are opened on the market for 12.500USD (on stocks), if you sell the index and the price reaches the target, you protected your portfolio from that loss.
-What happens if your order is executed and the stop loss is reached? You can consider the loss as insurance you pay for protecting your portfolio (-600USD more or less)
-Also, this type of movement can be taken as a normal trade risking a fixed % of the capital (Remember it's very wise not to risk more than 1% of the capital on any given trade)
-And finally, if the price keeps going up, and the short order is never executed, then you didn't risk anything, and everything keeps going as normal.
Use this as an informational post; we are not providing any advice here; you should take your own decisions on the market. Thanks for reading!
-Which is the plan? IF the price goes below the red line, we will short the index using S&P500 micro futures (ticker MES), and we will set our stop loss above the current impulse. Break-Even on the next horizontal line. Target on the Lower support zone you can see on the chart.
-When you buy or sell a Micro S&P500 Futures contract, you are getting exposure to a 12.500USD position on the Index. You can take this type of position as a Hedging strategy (imagine you are opened on the market for 12.500USD (on stocks), if you sell the index and the price reaches the target, you protected your portfolio from that loss.
-What happens if your order is executed and the stop loss is reached? You can consider the loss as insurance you pay for protecting your portfolio (-600USD more or less)
-Also, this type of movement can be taken as a normal trade risking a fixed % of the capital (Remember it's very wise not to risk more than 1% of the capital on any given trade)
-And finally, if the price keeps going up, and the short order is never executed, then you didn't risk anything, and everything keeps going as normal.
Use this as an informational post; we are not providing any advice here; you should take your own decisions on the market. Thanks for reading!
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.