A Powerful
Day Trading Strategy For
Futures And Forex Markets
Markus Heitkoetter
All trading involves substantial risk of loss and is not suitable for every investor.
Agenda
• How To Configure Your Charts
–
–
The Three (3) Best Indicators
The Best Timeframe
• A Powerful Day Trading Strategy
–
–
–
When to enter
Where to place your stop loss
When to take profits
All trading involves substantial risk of loss and is not suitable for every investor.
Very Important Disclaimer!
Futures and options trading has large potential rewards,
but also large potential risk. You must be aware of the risks
and be willing to accept them in order to invest
in the futures and options markets.
Don't trade with money you can't afford to lose.
This workshop is neither a solicitation
nor an offer to Buy/Sell futures or options.
No representation is being made that any account will or is
likely to achieve profits or losses similar to those
discussed in this workshop.
The past performance of any trading system or methodology
is not necessarily indicative of future results.
All trading involves substantial risk of loss and is not suitable for every investor.
How To Set Up Your Charts
All trading involves substantial risk of loss and is not suitable for every investor.
My Chart Setup
Î My charts are different!
Î Many traders are losing money
Î If you do what most traders do,
you probably lose money, too.
Î I believe that my unique chart setup
is giving me an edge in the markets.
All trading involves substantial risk of loss and is not suitable for every investor.
3 Ways To Look At Charts
1.
Time based
z
2.
Example: 5 min Charts
Volume based
z
Example: 133 Tick (Trade) Chart
My Experience:
At least 90% of traders are using
these kind of charts
All trading involves substantial risk of loss and is not suitable for every investor.
“My Edge”
Volatility Based Charts
a.k.a. Range Bars
All trading involves substantial risk of loss and is not suitable for every investor.
What IS A Range Bar
Fixed length, e.g. 20 ticks
Next bar forms when the market moves
21 ticks from the high or low
20 ticks
All trading involves substantial risk of loss and is not suitable for every investor.
Advantages of Range Bars
You KNOW where the high will be
You KNOW where the low will be
You KNOW where the bar will close
You KNOW where the next bar will open
20 ticks
All trading involves substantial risk of loss and is not suitable for every investor.
Eliminating Noise
15 min chart
16 Tick Range
Bars
All trading involves substantial risk of loss and is not suitable for every investor.
The Three Best Indicators
All trading involves substantial risk of loss and is not suitable for every investor.
The Simple Strategy
All trading involves substantial risk of loss and is not suitable for every investor.
Strategy Overview
• Strategy for TRENDING markets (trendfollowing)
• Used to capture move in direction of
underlying trend
• Profit objective is greater than stop
loss…only 50% winning percentage is
needed!
All trading involves substantial risk of loss and is not suitable for every investor.
Trend Rules
Determine direction of market with MACD…
Bullish Conditions:
MACD > Signal Line > Zero Line
Bearish Conditions:
MACD < Signal Line < Zero Line
All trading involves substantial risk of loss and is not suitable for every investor.
Entry Rules
Actual entry based on Bollinger Bands…
LONG = Buy Stop order 1 tick above high of
bar with bar closing at or near Upper
Bollinger Band
SHORT = Sell Stop order 1 tick below low of
bar with bar closing at or near Lower
Bollinger Band
All trading involves substantial risk of loss and is not suitable for every investor.
Exit Rules
Profit Target and Stop Loss calculated using
“Average Daily Range – ADR”
ADR = (daily high – daily low…last 7 days)/7
All trading involves substantial risk of loss and is not suitable for every investor.
Exit Rules
3 ways to exit…
1.Profit Target = 15% of the ADR
1.Stop Loss = 10% of the ADR
1.Change of direction = MACD crossover
All trading involves substantial risk of loss and is not suitable for every investor.
Exit Rules
E-mini S&P example with 15 point ADR…
Profit Target = 15 x .15 = 2.25 pts ($112.50)
Stop Loss = 15 x .10 = 1.50 pts ($75.00)
OR MACD crossover
All trading involves substantial risk of loss and is not suitable for every investor.
Here's What We Covered
• How To Configure Your Charts
–
–
The Three (3) Best Indicators
The Best Timeframe
• A Powerful Day Trading Strategy
–
–
–
When to enter
Where to place your stop loss
When to take profits
All trading involves substantial risk of loss and is not suitable for every investor.