This strategy is particularly useful for traders who have less time to micro manage their trades and prefer to set a trade at the beginning of the day and let it ride out over the entire day.[/TS_VCSC_Info_Notice]
The key here is to pick a good entry point. Typically, the TFA Sniper would do all the backend calculations for you and identify the entry levels worth considering in the DZ and EZ areas. In the examples above, you will notice that often there can be much better entries in the EZ area instead of the DZ area and you can manually adjust the TFA Sniper to set a pending order (or auto trade) with the EZ area in those cases.
Timothy also liked to used fibonacci pivot points as a prerequisite before entering a trade and his DZ/EZ entries typically lined up near one of the fibonacci pivot points. Do note that this function is also included in the new TFA Sniper V2 that has an option to only enter trades near a fibonacci pivot point – amazing eh?[/TS_VCSC_Info_Notice][TS_VCSC_Info_Notice panel_type=”critical” panel_icon=”ts-awesome-warning” panel_title=”Stop Loss Considerations” font_title_family=”Default:regular” font_content_family=”Default:regular”]A stop loss should be placed at least 10 pips away from the entry point so as to give the trade enough space to breathe. The key here is to pick a stop loss that is a 2 pips below(for long trades) or above (for short trades) the next optimum entry point. An example is for AUDUSD, we would pick a stop loss at 35 (37 – 2 = 35). For EURUSD, our stop loss would be 12 (14 – 2 = 12) and USDCHF our stop loss would be 14 (12 + 2 = 14).[/TS_VCSC_Info_Notice][TS_VCSC_Info_Notice panel_type=”success” panel_icon=”ts-awesome-star” panel_title=”Take Profit Levels” font_title_family=”Default:regular” font_content_family=”Default:regular”]A take profit level should be set to at least 3x the distance of your stop loss. So if your stop loss is 10 pips, you take profit should be 30 pips away.
The goal is the ride the momentum of the Flag Formation towards your take profit target.
Some additional areas to keep a look out for is when your take profit level is really close to a fibonacci pivot point (see USDCHF example above), you can tweak it so that is coincides with the fibonacci pivot point directly since such key levels are a magnet for price.
The adjustments of the TP levels are in the Settings Panel at the top of your grid under R:R to TP. A R:R to TP or 3 is what you want to use for this system as that’ll give you a 300% take profit target vs your stop loss.[/TS_VCSC_Info_Notice]