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How To Trade the Cup With Handle Family of Trades

During the development of the trading systems in the CupTrade Strategies© it became clear for each Cup with Handle breakout, in a good strong bull market, it was feasible to expect a total of four trades. This became one of the most important aspects of our systems. When loading the strategy into the chart the trader selects the number of trades (1 to 4) they want to allow the system to make. Of course the stock price must continue to trend in order to meet the criteria for further trades.

The exits used in our systems will allow the stock to make the maximum gain then when it shows signs of correcting one of the exits will take out the trade. It took years to research, develop and test each exit before the decision was made to use it in our strategies. We have seven exits we use in each system. The four bullish strategies all use the same seven exits and the four bearish strategies use the same exits. Getting out of the trade is the hardest decision a trader must make. The ability to get the trader out of a trade efficiently on a consistent basis sets the CupTrade Strategies© apart from its competition.

The chart below shows how $WYNN was able to complete all four trades of a Cup with Handle Trade before making its last exit just as the stock was beginning a correction. All stocks will at some point take time out to complete a correction. During this correction it may form another Cup with Handle, Double Bottom or Inverted Head and Shoulders pattern before breaking out and moving up for further gains. Most Double Bottom and Inverted Head and Shoulders patterns will contain a Cup with Handle pattern that our software will pick up. Of course when a stock starts down like $WYNN has in recent days it may keep right on going down following the overall market.  That is why it is necessary to get out when it shows signs of failing.

Take time to study the individual trades made by the #CupTradeLE Strategy in the chart for $WYNN. These four trades made total gains of 39.35% in six and half months. Try to visualize how you would have made the trades. Could you have done better? These systems are capable of making proper entries, exits and setting proper stop-loss trades while you are at work or on vacation. It is not necessary to set by your computer all day watching every move the market makes. The green arrows show the bar where the strategy entered a trade and the red arrows shows the exit.