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Tuning up a Futures Startegy

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  • Tuning up a Futures Startegy

    While today's topic is not exactly about managing a trader's emotions, but examining key points of a trading strategy to tune it up and create extra certainty.

    Areas to examine:
    1) Reviewing 30-15-5 mins charts before trading to determine the overall market trend - provides a direction to trade and overall trend. Why? Because we know "the trend is our friend".
    2) Length of the move (number of bars or candles) in an UP trend is longer than the number of candles in the pull back (most of the time) to prepare for entries and exits going, long. A stair stepping UP fashion. Length is important in order to KNOW if there is even potential to make money in that market. If the UP moves are only a few candles and then taking into account the entry and exit to get filled, you can determine if there is enough room to make money. And maybe, not even take a trade till there is a move. "Great trader's KNOW when NOT to trade."
    2 a) Size does matter - Trading high probability strategies that are consistent, allows a trader to increase size to make more money, than holding on to a trade, where there is less probable for a longer move. So, creating more reasonable targets and exiting and locking in cash along the way, can work well. Then letting smaller size be "runners" to go for the bonus dollars, using size to your advantage.
    3) Time of day- 2 hrs. at open and one and a half hours before the close of the market tends to produce the most activity from increases in volume. These can lead to the best moves of a day and greater opportunities. Suggestion: Check what time of day your past winning happened. Avoid trading sideways markets, watching grass grow.
    4) Determine the best market personality mix - what market best suits your personality related to "speed". There are slower ones and faster one's. If your emotions increase when the markets speed up and anxiousness creeps in maybe looking at a slower market with potential is a better choice for you.
    5) Average number of opportunities in a day - examining lengths of good moves available in a day (typically) can give you another idea of the potential markets and opportunities available.
    6) Speed - Markets fall faster than they go up and trends can change. "As trading think: "It is what it is."

    Tune your strategy today. Any questions or comments feel free to post. Till next time great trading! Visit website for free trading info.

    Website: www.robindayne.com

    Free video presentation on "How to Survive a trading Blow-up" Visit: http://robindayne.com/index.php?main...omeo4vq2trp211

    Great Trading till next time!

    Robin "The Trader's Coach"


  • #2
    This a a good read during sideways markets. A lot of traders maybe looking for fireworks in the markets...but they tend to get quiet near the highs. it seem that with all the Geo-Political tensions that the market is holding its collective breath. Sometimes in this environment having no position is a position and this is a good time to review advice like what Coach Robin has posted above. Thanks again Coach and thanks for the post.

    Comment


    • #3
      Thanks for the comment CollinPalmer. Coaching clients have been increasing for a reason. These are times where emotions can build and take over. Always good to keep in check. Help IS OUT THERE!

      Comment

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