{"id":13431,"date":"2022-09-29T20:53:08","date_gmt":"2022-09-29T19:53:08","guid":{"rendered":"https:\/\/axiafutures.com\/blog\/?p=13431"},"modified":"2024-02-09T09:40:06","modified_gmt":"2024-02-09T09:40:06","slug":"lessons-from-managing-the-price-ladder-trade","status":"publish","type":"post","link":"https:\/\/axiafutures.com\/blog\/lessons-from-managing-the-price-ladder-trade\/","title":{"rendered":"Lessons From Managing The Price Ladder Trade"},"content":{"rendered":"\n

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Lessons From Managing The Price Ladder Trade Introduction<\/h2>\n\n\n\n

In this blog post, we will review lessons from managing the price ladder trade. We will take three different styles of managing the trade using a price ladder. The first example will capture a trade triggered by news executed in multiple products, two other trades were triggered by a technical setup. We will introduce trades and then focus on the particular management style used during the trade. We will ask questions that should give you insight into particular points of the management style. If you are interested in price ladder trades example, don’t forget to check our previous post: Elite Trader Trades False Break Setup With 200 Lots<\/a>.<\/p>\n\n\n\n

Price Ladder Trades<\/h2>\n\n\n\n

AXIA Elite Trader Trades a Trump Tweet <\/h3>\n\n\n\n
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AXIA Elite Trader Trades a Trump Tweet <\/figcaption><\/figure>\n\n\n\n

Theme:<\/strong> This live trading replay shows how an elite trader on the Axia Trading Floor executed multiple trades across three markets in response to a tweet by President Donald Trump on August 10th, 2018 at about 13.47 GMT+1. Adam walks us through an order flow analysis of this trader’s price ladder execution. Trump’s tweet relating to the Turkish crisis theme saw reactions in the Lira (weakening against the USD), acting as a gauge for flows into the Euro, Dax, and Bunds. The trader reacted to this by buying safe-haven Bunds and selling Dax and EURUSD futures.<\/p>\n\n\n\n

With the lagging reaction in the Euro, having not moved as far as the Dax and Bund, the trader worked more size into his position, looking for a quick blip down. This hypothesis held while the Dax continued pushing its lows and the Bund held higher prices. When the Bund then failed to pop its high and the Lira continued to pull back, the trader recognized this fact and immediately sized down his trades.<\/p>\n\n\n\n

\"DAX,
DAX, EURO and BUND price ladder<\/figcaption><\/figure>\n\n\n\n

Price ladder:<\/strong> <\/strong>recording starts at 5:27<\/a><\/p>\n\n\n\n

Execution style:<\/strong> Aggressive, taking profits by laying down small clips<\/p>\n\n\n\n

Questions<\/strong>:<\/p>\n\n\n\n

  1. What correlations did this trader use to have a conviction in his Bund trade?<\/li>
  2. How this trader managed the early squeeze that put him under pressure?<\/li>
  3. What was the style of taking profits and managing risk?<\/li><\/ol>\n\n\n\n

    How To Cut & Reverse When Heavy Selling Dries Up<\/h3>\n\n\n\n
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    How To Cut & Reverse When Heavy Selling Dries Up<\/figcaption><\/figure>\n\n\n\n

    Theme<\/strong>: In this trade example<\/a>, we are looking at the Bund. Originally we wanted to sell and follow through with the lower prices but the moment the sellers really stepped in, something changed. Here are the clues that led us to cut and reverse the position from short to long based on the price ladder:<\/p>\n\n\n\n