#CPIWatch
⚠️ The first CPI candle can reverse. Plan the loss before the entry.
My event-day checklist:
1️⃣ Wait for the chosen candle to close.
2️⃣ Confirm the breakout with a retest.
3️⃣ Define where the setup becomes invalid.
4️⃣ Size the position from that stop distance.
5️⃣ Check spreads and available liquidity before entering.
Illustrative arithmetic: a $20 planned loss budget with a $0.50 stop distance per ETF share permits 40 shares before fees and slippage. It does not guarantee a $20 maximum loss.
Futures need a different calculation using contract size and tick value.
If the stop is too wide, reduce size or skip. Don’t move it closer merely to make a larger position fit.
Save this checklist before the release.
Educational example. #CPIWatch #RiskManagement #tradingplan
⚠️ The first CPI candle can reverse. Plan the loss before the entry.
My event-day checklist:
1️⃣ Wait for the chosen candle to close.
2️⃣ Confirm the breakout with a retest.
3️⃣ Define where the setup becomes invalid.
4️⃣ Size the position from that stop distance.
5️⃣ Check spreads and available liquidity before entering.
Illustrative arithmetic: a $20 planned loss budget with a $0.50 stop distance per ETF share permits 40 shares before fees and slippage. It does not guarantee a $20 maximum loss.
Futures need a different calculation using contract size and tick value.
If the stop is too wide, reduce size or skip. Don’t move it closer merely to make a larger position fit.
Save this checklist before the release.
Educational example. #CPIWatch #RiskManagement #tradingplan