I bought wheat after an acreage report that was bullish for corn and soybeans but less so for wheat. Wheat nonetheless broke out to the upside while corn and soybeans did not. I took this as a bullish sign. Entry with a stop of 1ATR gave a profit target below the 200-day moving average, so I would take profits before the market had a chance to bounce off the average.

Sadly, I accidentally traded with a 2ATR stop and therefore only made one risk unit when the profit target was hit.

Lines show the stop and limit levels. Blue arrow shows the entry point.

Advertisements