Yes, every trade signal consists of 5 components: (1) trade direction (DIR), (2) trade quantity (Q) , (3) entry price (E) , (4) stop price or exit level at a loss (S) and (5) target price or exit price at a profit (T). The system algorithms will calculate the recommended stop exit price to accompany every entry price. By definition, the initial risk per trade (per contract) is the difference between the entry price E and the stop price S. On average the stop distance will be around 4 points. Obviously in higher volatility environments the stop distance can be larger (5-7 points), while in lower volatility the stop distance can be as small as 2-3 points.
Although Fractal Pattern Trading can be applied to every liquid market on the planet, we currently only provide signals for trading the E-mini S&P futures because it probably is the most important trading vehicle in the world. The Emini (or E-mini or ES) is a futures contract that tracks the S&P 500 index. It is traded on the Chicago Mercantile Exchange (CME) via their Globex electronic platform. Trading is 23 ½ hours a day, 5 days a week, using the ticker symbol ES. Each 1 point move in the S&P 500 index is worth US$50 per Emini contract and the minimum move of the Emini futures contract (or tick size) is 0.25 index points. Over the years we have traded almost every possible security and instrument: stocks, options, commodities, futures, forex, mutual funds, ETFs, etc. But we consider the ES or S&P 500 Emini futures to be the ideal trading vehicle and have traded this market since the Emini futures trading began in September 1997.
The average duration of the patterns we follow is 2 hours, however some can be as short as 30 minutes or as long as 6 hours. Most importantly, every single trade signal that develops into an actual trade will be exited (closed-out) at the latest at the end of the same trading day. So never will you be holding positions overnight or over holidays or weekends, which is done to avoid ‘gap risk’ which is one of the rare situations that can’t be hedged effectively nor efficiently.
FPT makes on average 1-3 trades during the RTH (regular trading hours) of the ES trading hours. Occasionally we have days that not a single trade signal is issued or that no trades are made because the market never reaches the indicated entry price. At the other extreme we may take 5 trades on a ‘busy day’. Although some people might still classify this as "active trading", it is a far cry from the high frequency trading we used to do (mainly in the currency markets) whereby on a "busy day" literally hundreds of buy and sell transactions were generated and executed in a fully automated fashion by our in-house developed proprietary trading algorithms.
By sending the FPT signals straight from our servers to our subscribers - this normally takes less than 1 second - we are confident that we are in a position to inform everyone well in advance of all potential new trading opportunities.