RUT Exit +7.3% (Model Portfolio)
I just got filled on my exit for RUT for +7.3%.
I watched the futures charts (/YMZ9 on TOS Charts on “Charts” tab) as I planned my exit on RUT. I saw that we had just hit the low for the day at 9884 at 10:42 down from the closest previous high at 9922 at 10:21 am to the LOD (low of day). I drew my Fibonacci retracement and knew that it would approach the 50%-61.8% lines within this range then come back down most likely for a short jaunt. In futures trading this is called the “ambush” play. It’s a great way to fake out the amateur traders and follow along with the pros. Most amateurs would have seen the low of day (LOD) hit then would have gone bullish, not factoring in the ambush zone.
So I placed my whole order exit on the iron condor and lowered the limit amount by an extra 2 cents to the debit order so I could squeeze out just a little more on the exit.
This is just another way you can exit your trade, especially when you can’t watch it intensely due to work, schedules, etc. This is a much safer way than legging out if you’re not an experienced trader (yet).
If you’re in this trade with me, good luck on your exit!
-Gekko
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