A brief look into ROC DJC’s primary strategy.
This strategy is based on a previous sell setup later on being overcome, forming a new high and then completing a round return back to the entry of the previous sell setup — where we then enter a long position.
In other words;
Where people call a top and where there is a sell off, we look for those people to first be wrong (that is when the new high forms, referred to as point A). We then simply wait for price to complete a round return which proves acceptance and then we look to get on-board the level where they started selling.
There are many rules to the way I trade this strategy and most of them are aimed at avoiding bad setups. The take away though should be the principal of the idea. As there are many ways to manage and trade such an idea, keep an open mind to the possibilities.
A key rule is the FTA (First Trouble Area) must give us at least a 1R payoff considering where our stop is placed. This idea was adapted from teachings by Tom Dante and has helped me greatly to ensure a decent trade. I also use the FTA as the first level where I will manage the trade, if and when price moves through this level.
For entry there must be at least or greater than a H1 down candle, pre break out. In other words, the level we wish to enter ideally should be a sharp move up and out of the selling level, offering support at the base.
Often I will target the new high that was formed (Referred to as point B), however I do not enter a target with this strategy and instead use trailing stop loss management to take me out of the trade. The reason is simple — some times we lose small, some time we win small and other times we can find ourselves in continuing flow with recurring SABRE setups that allow us to pyramid.
Finally, this strategy is best applied during flow. Attempting the SABRE for reversals yields a lower rate of return and you should consider a standard H&S/INV H&S or other reversal strategy to attempt trading reversals. We can therefore state that a SABRE is best played when you have seen at least 1 previous standard sell after breaking up and out of a reversal.
You can of course invert this strategy for the sell flow. But for now I will focus on buy setups only.
Let’s look at a few examples
We have already played an inverse head and shoulders reversal, not seen on this chart but easy to spot. The retest of this structure formed a SABRE trigger.
Lastly, let’s take a look back to the NIKKEI.
Please excuse the MT4 feed for this instrument.
This trade was called and executed live with the ROC group and paid members back in October that yielded 12.7R without pyramiding
So here is the principal, I hope it helps you generate some ideas of your own.
I personally map the markets using a H1 resolution and execute and manage trades on the 15 Minute time frame. I use 15 Minute thrust through the next key levels to manage trailing SL. And I use the H1 thrust to first determine the original stop.
By effectively managing the trailing stop loss you can sometimes find yourself in decent runners.
You may wish to consider volume profiles to give you added confluence of the levels we are discussing here.
If you would like to learn more about this strategy, the rules and trade management feel free to checkout https://www.republicofcapital.com
Special thanks to master ledge Tom Dante for giving me many ideas for this strategy that I’m sure will continue to evolve over time.
Thanks for stopping by,