Track 'n Trade Bulls 'n Bears Trading System

Adding a Position, and Market Re-Entry

Video Transcript

Let’s quickly discuss two advanced strategies and how the Bulls ‘n bears Tradings System can help you make trades.

First: Adding an additional position to our existing trade.

Second: Re-enter a market that we might have gotten stopped out of.

Both of these strategies are basically using the same signals, and can be used interchangeably for either situation, depending on your position in the market, of course.

Sometimes, after getting stopped out of a trade, we still feel like the market has some additional upside, or downside potential. When this happens, the Bulls 'n Bears system provides us with a couple of different options and strategies that can help us know whether or not to try and re-enter the market.

The first re-entry strategy pertains to the color change of the actual price bars.

Notice in this example that the market’s uptrend slowed after the initial rise in price, causing the price bars to return to Yellow, or Neutral. (Take note, in this case, they did not change all the way back to Red.)

In this situation, notice that we now have a new Buy signal generated, which is a Yellow price bar, followed by a Green price bar.

Now, we have two scenarios that could be taking place in this situation.

First, if we are still actively in the market from the initial entry point and have not yet been stopped out of our trade, this is an opportunity for us to add-on an additional position.

This would be done by placing a stop entry order just above the first Green price bars high. If the market continues to break higher, we would then enter the market or add-on an additional position to our trade.

In our second scenario, the market rebounds, and hits our stop loss order, which would exit us from the trade altogether, this same signal would then be an opportunity to re-enter the market.

Blue Light Entry or Re-Entry Strategy

A more advanced strategy would be to use the Blue light system to help us re-enter or add-on to our existing position. Traditionally we use the Blue light system for exiting the market, but in some cases, you’ll notice that the Blue light system switches sides of the trend during the pull-back stage of an advancing or a declining market.

As the Blue light follows the market pull-back against the prevailing trend, we can place a trailing stop order to either re-enter a market, or add onto our current market position once the current market price intercepts the Blue Light trailing stop.