System 3 Training: Video 3 - Short Trades

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Freedom Formula System 3 Training

Video 3 – Short Trades


Rules For Short Trades

Price closes below EMA 60


#1 The price must close below the EMA 60.
This is our first criteria.

CCI value is lower than -100


#2 The CCI value must show to be lower than -100.
This is our second criteria.

Enter The Trade


Sell When both of the above criteria are met, we can
enter the sell trade.
Entering The Trade
• We enter a 2 lot trade (or multiples of 2,
covered in video 5).

• We set our stop loss at:


1. Just above the EMA 60
2. 200 Pips Above The Entry Point
 Use whichever stop risks less.
Once In The Trade
• Exit the first lot at 200 pips profit. The
easiest way to do this is to set a take profit
level of 200 pips on the first lot.

• Trail your stop at 200 pips for the second


lot.
– If your trading software doesn’t allow this,
move the stop 200 pips ahead every time the
trade moves 200 pips in your favor.
Short Trade Example
Criteria Must Be Met:
• Price closes below EMA
60

• CCI value is lower than -


100

• Enter The Trade!


Enter The Trade
We Enter The Trade
• We enter the trade with 2
lots.

• We set a stop loss at:


– 200 Pips Back Of Entry
– Just Above The EMA 60
 Choose The One That
Risks Less
Once In The Trade
• Take profit on first lot at 200 pips.
• Set stop for second lot to break even.
• Trail stop at 200 pips for the second lot.
What Now?
Move on to video 4 to watch long trade
rules and examples.

Practice making short & long trades on


MetaTrader.

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