IPM Trade Matrix - Trade 1 (Part 3)

IPM Trade Matrix Trades will be posted in the first half of 2014. This is an experiment to understand and enhance the capabilities of this Matrix.

First Trade of 2014 is in process:

TRADE
Long TNA at 76.25 (original) ==> 76.6 (new)
Long FAS at 92.30 (original) ==> 91.5 (new)
Long positions were added on 1/14/14 based on IPM Bottom window expiration, and low risk scenario

Condition: Next IPM Window is Top or Bottom
Trigger (Updated at End of Day on 1/9/14): Rally above 1837 (SP500) and above 16450 (DJIA)
Profit Target: 1890


RISK
Stop: Decline below SP500 = 1814, DJIA = 16217, Comp = 4095, Rut = 1141 (3 of 4)
Trailing Stops: EW & Trailing stops will be determined after by 1/17 & after IPM turn window passes
Typical IPM Trade Matrix Risk: 1.5%
Actual IPM Trade Matrix Risk: 1.2% (Entry = 1837, Exit = 1814, Risk = 1.2%)
Risk Reason: Wave 3 down might start.  Risk will be mitigated by the stops


Alternative: 

• Decline below IPM Model Bottom with Next major IPM (3-4 weeks) turn being a Bottom after 8/4 Test completed = Go Short
• Decline below IPM Model Bottom with Next major IPM (3-4 weeks) turn being a Top = Stay Neutral till trend changes (8/4 Test)

Applicable Rule: If next minor IPM turn window is within 2 weeks then wait for a confirmation break before exiting longs. 


Structure