Billy,

Thank you so much for taking the time and posting the tutorial “intro for the path of least resistance”. I’m very impressed with what appears to be optimal entries points for robot trades. I look forward to all of your posts as they really help me keep things in perspective. Please keep them coming!!

I have a question regarding after entering into a successful primary robot trade. One can never be faulted for taking money off the table along the way. It’s a personal preference, right? The recent trade on TZA, which was stopped out at close to a nice 5% profit, showed unrealized profits of over double that along the way. I believe this was true of a previous robot trade. It appears to me much as there are optimal entry points; there are also optimal exit points, to take at least some profits off the table. I understand the larger picture is to remain in the trade and the market could have just as easily roller over and we would be deep in the money at this point. I think you have made reference to intermediate exit points along the way giving probabilities, but I didn’t quite understand. Given how the robot seems so accomplished at picking an entry point, would it not very good at picking an intermediate exit point? For those of us that perhaps would like to reduce their position size and take some profits off the table. Maybe this clear to everyone given the LT ST information, but not to me.

Perhaps its old age, but I seem to be getting lost in the probabilities of all this. If you could just explain the edge in terms of probabilities for Tuesdays trade, that might help me understand. It’s a primary robot trade, but the short settings are neutral. The short settings are neutral at last close of 83.65 which would lead to a 3D loss? If the trade is triggered at 85.10, do we know from the past what the 3D gain or loss would be? If IWM rallies hard and approaches 86.86 stop level, do we know anything about the probabilities? Perhaps all of this could be explained in term of: If one had traded X dollars for the last robot primary trade, would you be allocating the same X dollars for this trade?

Thanks Billy, I hope I’m not exasperating you with my questions!!!

Dave