ILV - Futures Trade
So I haven’t posted for a while for many and various reasons. One of which is I have been learning/losing/winning in futures trading. I can tell you it’s been a hard learning curve which I think/hope i’ve started to get a handle on. One of the biggest things I found I needed to learn was entry points by finding to top or bottom of a movement for entry. with futures the liquidation point is “very” small usually between 2.8-3.8%. TINY.
What I’ve figured out is basically the same concepts used in long term trading apply but to a much more finite point. However, trading based on day or even 4+ hrs doesn’t work as there’s too much movement that can happen in the lower time frames (remember 2-4% in the wrong direction and your wiped). Also, almost an unavoidable factor, is BTC can move sporadically any which way and wipe you out or give you a wicked bonus depending on which way the wild ball bounces.
So what do I do. Using EWT, Fib’s etc I try to plot a coins movements in general, always initially spending time on BTC as it drags everything along with it, usually. This gives me the general trend for the market and the specific coin. To get a decent movement for a trade of a coin I look at the 1h RSI. If I can enter short above 60 downward or a long below 40 upward I should get a decent amount of movement. In addition, I look for a diversion on the 1h RSI either short or long, or there’s no trade. I look for corroborating indications on other indications like the SRSI, MacD, ADX/DI, and MFI indicators in the 1h and other timeframes. The more corroboration I get the better the trade looks.
In the example above, the large red arrow indicates where I entered the trade. The little red arrows in the indicators show corroboration, which also showed in other timeframes as well. The price range shows where the original liquidation was at the time of the trade, a 2.99% margin, which I adjust right away to about half that, or 1.86%. I don’t want to lose more than half my trade amount. I target a standard 3-1 risk ratio based on my adjusted initial liquidation setting.
The little white arrows show where I placed my stop loss before going to bed. The circles show the optimum get out point which happened in the middle of the night while I slept. Should have placed a market sell order at the 3-1 of $87.37 but I didn’t. My bad. Anyway, this morning I was waiting for the retest of the low but issued it because the wifi went out for a couple hours (fairly common here in Bali), and finally exited the trade at the big green arrow.
Result, 100% gain in just around 22h. The strategy is not perfect, not all trades work out, of course, but following this strategy has given me better returns with more wins than loses. I am continuing and refining this strategy constantly. Have a Merry Holiday Season all.
My thoughts, not advice Oklah. Cheers
What I’ve figured out is basically the same concepts used in long term trading apply but to a much more finite point. However, trading based on day or even 4+ hrs doesn’t work as there’s too much movement that can happen in the lower time frames (remember 2-4% in the wrong direction and your wiped). Also, almost an unavoidable factor, is BTC can move sporadically any which way and wipe you out or give you a wicked bonus depending on which way the wild ball bounces.
So what do I do. Using EWT, Fib’s etc I try to plot a coins movements in general, always initially spending time on BTC as it drags everything along with it, usually. This gives me the general trend for the market and the specific coin. To get a decent movement for a trade of a coin I look at the 1h RSI. If I can enter short above 60 downward or a long below 40 upward I should get a decent amount of movement. In addition, I look for a diversion on the 1h RSI either short or long, or there’s no trade. I look for corroborating indications on other indications like the SRSI, MacD, ADX/DI, and MFI indicators in the 1h and other timeframes. The more corroboration I get the better the trade looks.
In the example above, the large red arrow indicates where I entered the trade. The little red arrows in the indicators show corroboration, which also showed in other timeframes as well. The price range shows where the original liquidation was at the time of the trade, a 2.99% margin, which I adjust right away to about half that, or 1.86%. I don’t want to lose more than half my trade amount. I target a standard 3-1 risk ratio based on my adjusted initial liquidation setting.
The little white arrows show where I placed my stop loss before going to bed. The circles show the optimum get out point which happened in the middle of the night while I slept. Should have placed a market sell order at the 3-1 of $87.37 but I didn’t. My bad. Anyway, this morning I was waiting for the retest of the low but issued it because the wifi went out for a couple hours (fairly common here in Bali), and finally exited the trade at the big green arrow.
Result, 100% gain in just around 22h. The strategy is not perfect, not all trades work out, of course, but following this strategy has given me better returns with more wins than loses. I am continuing and refining this strategy constantly. Have a Merry Holiday Season all.
My thoughts, not advice Oklah. Cheers
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