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1 INTRADAY TRADING RANGE THE MANUAL By DAVID BOOTH ©copyright ITR 2016
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INTRADAY TRADING
RANGE
THE
MANUAL
By DAVID BOOTH ©copyright ITR 2016
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RISK WARNING & DISCLAIMERS
Past performance is not indicative of future results. Trading forex, CFDs equities, binary
and/or spread betting carries a high level of risk, and may not be suitable for all
investors. The high degree of leverage can work against you as well as for you. Before
deciding to trade any such leveraged products you should carefully consider your
investment objectives, level of experience, and risk appetite. The possibility exists that
you could sustain a loss of some or all of your initial investment and therefore you
should not invest money that you cannot afford to lose. You should be aware of all the
risks associated with trading on margin, and seek advice from an Independent Financial
Advisor if you have any doubts.
The information provided by ITR should not be relied upon as a substitute for extensive
independent research which should be performed before making your investment
decisions. ITR are merely providing this information for your general information. The
information and opinions presented do not take into account any particular individual's
investment objectives, financial situation, or needs. All investors should obtain advice
based on their unique situation before making any investment decision and should tailor
the trade size and leverage of their trading to their personal risk appetite.
ITR and/or its owners will not be responsible for any losses incurred on investments
made by readers and clients as a result of any information contained on ITR.ITR does
not render investment, legal, accounting, tax, or other professional advice. If investment,
legal, tax, or other expert assistance is required, the services of a competent professional
should be sought.
Please note, fixed odds betting are not regulated by the Financial Conduct Authority.
Gambling is high risk and ITR and their writers and editors cannot be held accountable
for any monetary losses incurred. Before betting or if in any doubt as to the suitability
of this information seek independent advice. Transactions in financial contracts carry a
high degree of risk.
You are reminded that the price of any investment or spread/binary betting position can
go adversely against you. None of the contents of our reports should be construed as an
invitation to buy or sell securities or open spread/binary betting positions, shares or any
other financial trading product. ITR is purely educational and is therefore not regulated
by the Financial Conduct Authority (FCA).
ITR offer no advice but you might consider this statement carefully… Never bet with money you cannot afford to lose.
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INTRODUCTION
Looking back to when I started trading I recall the hectic styles of trading strategies, the
numerous hours of screen watching, changing styles and generally identifying which
approach suited and fitted within my lifestyle.
Over the years of trials and tribulations and the realisation that trading has many
challenges for entering and exiting the market I have developed a less hectic, simple, yet
effective way forward without the need for endless screen watching using a high
probability approach and giving a clear edge in the market.
The ITR method was developed!
The Intraday Trading Range is generated from the previous day’s trading. It is a
combination of levels made up from the high, low and close of the previous day’s price
movements. The levels generated can be adapted and used as support and resistance
points. These levels can be utilized for entries, stop placement and multiple target zones
and the instructions offer an approach and methodology to take advantage of those
levels.
The levels submitted can be used for position entry, stop and targets by means of limit
orders OR, if time allows, the positions can be entered at market and at any time
positions can be managed and/or exited manually.
The optimum approach is to take advantage of price movement as it ebbs and flows and
with this in mind we look to place limit orders to enter positions (together with
protective stops) and take profit orders (limits again) at initial targets (Target 1) whilst at
the same time look to take advantage of a run to extended targets (Target 2).
PRECISE SUGGESTIONS WILL BE GIVEN IN DAILY REPORTS
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The principle behind the approach is, once the position is open, to liquidate some of the
profits at Target 1 then move stops to the initial entry level and allow the position to
continue to run to either Target 2 for additional profits or stop out for little or no loss.
As already mentioned this process can be undertaken and managed manually if you
have the time or the desire to sit at a screen. If not, then placing orders in advance with
periodic monitoring as and when required is a suitable alternative and for this process, a
Broker that offers the ability to place orders in such a manner is required. Whilst there
are many Brokers that could provide the facilities adequately, one such suitable Broker
is “ETX Capital” and a brief run through of their platform is explained later.
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THIS IS WHAT I DO
Place orders before the London session opens at 08:00 (UK /London Time)
Place two half size position orders (preferred method)
Position 1 order = Entry, Stop and Limit order to take profit at Target 1
Position 2 order = Entry, Stop and Limit order to take profit at Target 2 and attach
a Trailing Stop to the order by increments of the amount of Target 1 pips. This
will bring stops to the initial entry level after the price has moved to and through
Target 1, reducing the risk to little or no loss.
Spreads and commissions need to be considered when placing orders and stops.
Place an expiry time of 15:00 (UK/London Time) on entry orders except for
Fridays when this will be 13:00 (UK/London Time)
…………………………………………………………..
Any invalidated orders need to be removed manually
Trade Ideas are invalidated if the price moves and violates either the stop level or
the Target 2 level before the entry orders trigger or are timed out
Any active orders should be taken off before major news and data releases i.e.
Interest Rate decisions, Bank press releases, NFP report (it should also be
considered to close any existing open positions before these types of releases)
Open trades that have not reached Target can be closed manually if desired
at the end of day. (This will be at a time determined by you, designated as your
End of Day)
Trade size is based on personal risk appetite and can be either fixed size or a
percentage risk per trade
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By adopting this approach both positions move in tandem in the same direction,
therefore they will either stop out together or move towards the profit targets together.
Profits are taken when the market price reaches Target 1 and the limit order on Position
1 is activated banking profits from that trade, at the same time the Trailing Stop on
Position 2 comes into play and moves the stop to the initial entry level giving a
relatively risk free remaining trade that will either hit the extended target 2 banking
further profits or stop out at the initial entry level.
As an example if 1% risk had been applied and both positions had run to their respective
targets the return would have been approximately 1.5%
Contact Details
Email: [email protected] Skype: itrteam68
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SAMPLE MORNING REPORT Good Morning,
Overnight activity during the Asian session and early trading has invalidated a couple of the set-ups that
were on the radar,
Yesterday's Trade Scenarios Activity: Aud/Usd Short - Did not Trigger
Gbp/Usd Short - Triggered hit target 1 (+32 pips) then progressed to hit target 2 (+58 pips)
Today's Trade scenarios: Eur/Usd - Short
The last two days has seen the bearish bias return and this continued into and during the Asian trading
session, Price is currently trading just above support and if momentum continues in the direction of the
short term trend then a break-out of lower support is possible.
Entry Break-out Support: 1.0810
Stop at or above: 1.0834 (24 pips)
Target (1): 1.0784 (26 pips)
Target (2): 1.0764 (46 pips)
Usd/Jpy - Long
This pair has entered its third bullish day and has been moving steadily sideways during early trading; price
is currently in the middle of the Daily Range,
We look for a retracement back to support for a price reversal back in the direction of the short term
trend.
Entry Support: 118.37
Stop at or below: 118.02 (35 pips)
Target (1): 118.74 (37 pips)
Target (2): 119.05 (68 pips)
Summary/Talking Points
There is Eurozone and US data numbers during the morning and into the afternoon,
All the best, Dave B
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FAQ’s and Skype Trading Room
Send in your questions and we will answer them within 48 hours, other than in unusual
circumstances. FAQ’s will be set out below.
For a faster response join our Skype Trading Room – here is how you join…
Sign into Skype and search itrteam68 send out the request to join and you will be added
to the members.
The room will be open all the time.
The members will be able to communicate within the room to each other.
I will be in the room each week-day from 09:30am to 11:00am (UK/London time)
FAQs
1) How are the ITR trade levels generated?
It is a combination of levels based on the previous day's price movements
2) What time are orders placed?
The report is sent out approximately 07:15 UK /London Time and usually the orders are
placed by 08:00 UK/London Time
3) What is the trading method behind this approach?
Once the trade is open the objective is to liquidate some profits at target 1, trail stops at
this level and allow the remainder to run to target 2 for additional profits.
4) Do I need to sit at a screen all day and monitor trades?
No, most brokers have the facility to set orders with a time expiry and trailing stops,
Also to set price alerts
5) What are risk parameters and trade frequency?
Risk in pips is usually 35 or less, our standard suggestion is to risk between 1% to 4% per
trade split between both parts of the position.
Weekly trade expectancy is not easy to predict; some weeks we have as many as 8-10
(which I think is a decent average) some weeks as little as 3-4
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6) How do you set your orders and trailing stops?
In this example from a report
Entry Resistance: 1.0900
Stop at or above: 1.0928 (28 pips)
Target (1): 1.0870 (30 pips)
Target (2): 1.0844 (56 pips)
This is how I would place my orders for the example above; I would place two orders for
two positions
Position 1 order: entry 1.0900 stop 1.0928 (28 pips) limit 1.0870 (30 pips) (target 1)
(order time expiry 15:00 UK/London Time)
Position 2 order: entry 1.0900 stop 1.9028 (28 pips) limit 1.0844 (56 pips) (target 2)
trailing stop (30 pips) (same as target 1 pips) (order time expiry 15:00 UK/London Time)
N.B. I use a Broker that gives me the facility to place multiple orders with stops, limits,
trailing stops and a time expiry on orders
7) How do I know when a trade scenario has been invalidated?
Most Brokers offer a facility to set alerts for their platforms plus the added benefit of send-
ing the alerts either by SMS or email.
Alternatively periodic monitoring of the screen/ platform will be required.
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ETX Capital
A brief run through
The Trading Platform
ETX Capital http://bit.ly/265aX5x
A suitable Broker for placing the orders is ETX Capital, although any Broker that offers
the ability to place orders, stops, trailing stops and limit orders in the same manner will
suffice, however, the “Trader Pro” platform that ETX offer is very easy to use for our
purposes, very user friendly and the spreads are favorable also - the link is above.
You can use the link above to visit ETX Capital's website. To apply for an account click
the “sign up” tab in the top right hand corner of the screen, this will take you to the sign
up page, fill out the email and create password fields, click the bonus button to apply for
any bonus that may be applicable at the time. Be aware that terms and conditions
apply and a link to these is at the bottom of the sign up page. Click “continue”
The ETX Capital account application process starts when you click continue
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Below is a screenshot of the Trader Pro platform
To place orders
After choosing what is to be traded i.e. EUR/USD click the order tab on the right hand
side an order ticket will then appear. Be aware that when placing multiple
positions/orders this process has to be done for each position i.e. Target 1 and Target 2.
For example we want to place orders for two positions to buy
EUR/USD at 1.0860 with a stop at 1.0840 (20 pips away)
Position 1 with a Target 1 to close and take profit at 1.0880 (20 pips away) and
Position 2 with a Target 2 to close and take profit at 1.0898 (38 pips away) with a
trailing stop on position 2 (set at the target 1 pips, in this example 20 pips) to
bring the stop up to the entry zone after position 2 has moved through the target 1
level
With an expiry time of 15:00 (UK/London Time) on both orders
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Bring up the order ticket for the first position and set the Target 1 order as shown on the
first example of screenshot #1
Screenshot #1 (Target 1)
Click PLACE to order
Repeat the procedure for Target 2 as shown in the second example
Screenshot #2 (Target 2) showing the trailing stop, the increment value same as Target 1
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Click PLACE to order
This process will place both orders into the platform order book waiting for a price
movement to trigger the respective orders (screenshot#3). These orders should
automatically delete if they have not triggered by the expiry time on the order, also these
orders can be manually amended or deleted from the order book at any time.
Screenshot #3 the order book with the two buy orders in place
If the price moves and triggers the orders, then the two orders will become active and
will automatically move to the OPEN POSITIONS section. This will also automatically
place the stop orders, limit orders and trailing stop order in the ORDER BOOK and the
process will run as per the orders.
All open positions and orders can be managed, amended, cancelled or closed at any time
manually.
If you have any questions on this manual or on our services generally
