So far, TLT has reversed at the bottom of the channel, which was the long entry earlier today. Targets have been added to this 60 minute chart with T2 (114.50) being my current preferred target. My plan is to use a very tight stop, placed about 10 cents below today’s low of 109.28 (which is would equate to a loss of less than 0.4% on the trade if stopped out).
Although the percentage gains (and stop-loss allowance) are considerably smaller than the typical profit targets on most trade ideas posted here, the R/R on this trade is very favorable. Also keep in mind that the suggested position size increase of 50-100% (1.5- 2.0x normal size), means that the if the preferred target (T2 at 114.50) is hit, although only a 4.4% gain from the posted entry price of 109.59, the total dollar profits would be comparable to as much as an 8.8% gain on a typical position.