With all the action in the markets right now, there are some fantastic trading opportunities popping up! I’ve been having a great time working with the Ultimate Gann Course Coaching crew this year—helping them with their studies and hearing about their trading wins. Just recently, someone nailed an 18 to 1 trade on the SPI200, which got me thinking…

Why don’t more traders regularly aim for 10 to 1 or even 20 to 1 trades?

The answer is simple: they haven’t built a system for consistently finding and executing these high-reward trades. So, let me share my approach in a nutshell:

My 6-Step System for Finding 10 to 1 Trades

Step 1: Start with a Time Pressure Date

This could be anything from a simple repeating time count to more advanced techniques like Time by Degrees, an Interim Time Frame, or Rating the Market. Sometimes, combining two or more of these gives the best results. Its all about layering your analysis to a point where time and price clusters elevate your confidence to execute your trading plan.

Step 2: Identify a Strong Setup

Look for a solid trade setup—this could be a Classic Gann Setup, a Double Top, or even a simple Price Cluster. For example, on the SPI recently, had you followed the Active Trader Coaching session with Darren and Gus, you would have seen a systematic and detailed overlay as to why price was suggesting the double tops at 8580 could be a potential short entry. This had delivered an outstanding Classic Gann Setup and may have more to play out.

Step 3: Form Reading

Most setups reveal themselves days before they trigger, so your job is to watch how the market unfolds. This means tracking price ranges, counting sections, and assessing the strength of the move leading into your setup. Being prepared and ready to action your trading plan is key. The open close reversal on the 14th of February was a good indication.

Step 4: Plan Your Entry

When is the right moment to enter the trade? What signals will confirm the setup is ready? Most importantly, where will you place your stop loss? This step is key to achieving a high Reward-to-Risk Ratio! You need a low-risk entry—smaller is better. I’d rather take a low ‘points risk’ entry on a decent trade than a high-risk entry on an outstanding trade.

Consistently banking high reward to risk ratio’s build your confidence as well as your account balance.

Step 5: Compounding for Maximum Gains

Once the trade is going in your favour, look for safe spots to add more positions. If done right, this lets you use the market’s money to supercharge your Reward-to-Risk Ratio. My rule? I only add at places that are logical and safe. What I mean to say is I’ll add a place where the market must do something special to make me wrong. Also hiding my stops in places that are hard to trigger or at a place that confirms I am wrong on the direction and its time to be out.

Getting the position to breakeven as soon as I can is key —so if the trade turns, I’m out with no loss and no temptation to re-enter.

Step 6: Banking Profits

When do you lock in profits? Would you exit as soon as you hit a 10 to 1 profit, at least while you’re building confidence? Or would you let the trade run until it reaches another price cluster? As the old saying goes, “Let your profits run.”

There is no right or wrong answer here. Emotion is always hard to time, its better to have a 10 to 1 in hand wishing you were still in.

Experience will enhance your emotional control

Ready to Take 10 to 1 Trades?

If you’re not yet taking trades with a 10 to 1 or higher Reward to Risk Ratio, take a moment to go through these six steps and write out your own plan for each one. Once you have it, send it to the Trading Tutors for a review—they’ll help you spot any gaps and fine-tune your approach.

Good Trading

Aaron Lynch