Trading System
Post on: 2 Июнь, 2015 No Comment
SCALPING The Markets futures trading system has very specific goals, and it is important to have the same goals to benefit from our services. Our goal is to scalp the Futures Markets in the confirmed trend direction. Only aggressive traders should trade counter trend.
Our Futures Trading System is designed to buy into the weakness and sell into the strength of the market for longs. For shorts our Futures Trading System is designed to enter our short trades on minor strength and ride it down in major weakness. This might sound basic, but most traders actually do the exact opposite of this, and the result is entering too late in the wave and exiting too soon.
Most traders are missing the true condition of the market, and if you are trading the wrong condition you will lose money even if you are right on the overall direction of the market. Trading in the Futures Markets the condition is either sideways or directional. Again, this might sound basic but, we cannot tell you how important it is for you to trade the right condition. If you are trading the wrong condition your odds of success is very low.
Have you ever went long and had 4-5 points of profit and get stopped even on the trade? Or even worse it became a loser? The reason for this is thinking the market is expanding but in reality it is contracting. Of course all traders want the market to instantly go in their direction without any drawdown, but real traders understand that is not true reality.
Market Condition:
The market has different types of conditions and our futures trading system is designed to tell you what that condition will be for the next wave. Why is this important? It is important so when you enter your trade you are not thinking it will go up ten points when in reality the move has 95% chance of only going up four points. If you knew the odds were that the market would only go up four points would you hold for ten? Or exit with the four?
Futures Trading System Stops and Targets:
We see too many futures trading systems that have static stops that are always the same. They do this so when you, the trader, are searching on Google for a futures trading system you can find a system with “Low Risk” or “Tight Stops”. They do this so it seems like you are finding the perfect solution for your “Low Risk” trading mentality. In reality no one with any system wants to lose money or risk any money for that matter, but it is not realistic to have one or two point stops on every trade, day in and day out. The market has big waves and small waves, so the stop will vary depending on which waves you want to trade.
What’s the point of a small stop if you are constantly getting stopped? Does it feel less painful to have 9 losers for 1 point or 3 losers for 3 points? The point is you are assuming risk no matter what style or method you trade. The goal is to find a way to have more winners than losers, and hold the winners so you can net out money at the end of the day, week and month.
Our first wave stop has the biggest stop so as you go through our course you can make a decision if you personally want to trade that wave. Our second and third entries have smaller stops because the market is running at the entry points of our second and third entry.
IMPORTANT ALERT: It is absolutely crucial with any Futures Trading system, to give yourself the proper stop, and if the stop is too big on a specific trade, skip that trade and look for the second and third entry. One of the most prominent things with losing traders is the trader manipulates the stop and steps in front of the system. The end result is you get stopped right before the wave actually starts. If the stop is five points you must give it the full five points or you are not trading the system, you are trading your emotions.
Trading the right instrument is more important than most traders think. If you are trading an instrument that is too much money per point you will most likely step in front of the trading system and exit the trade before your true stop is hit. Have you ever been stopped out by 3 ticks and then the market went in your direction 10 points but you are not in the trade? If so, you know what we are talking about. To be a successful trader you must stop doing this immediately and start trading the correct instrument.
We recommend that all traders start off with our NQ module so you can learn the futures trading system and give yourself the proper stop, so you can hold the trade through the noise of the market and start holding the trades to the profit target. As you start to make money and build your confidence you can step up to the TF, YM and CL modules.
With all our methods we use two contracts, or a multiple of two, so we can scale out of our trades. Our first contract is there to minimize the risk on the second contract. We call the first contract our Risk Contract. and the second contract our Profit Contract .
Example: Trading the NQ our first target on the Risk Contract is +3.5 points. We trail our stop on our Profit Contract.
Goal #1 is to follow the direction of the updates. (We email our members specific levels to look for based off the bigger time frame patterns).
Goal#2 is to only take fully confirmed trading signals. (We have three signals long and three signals short)
Goal#3 is to stop trading when we hit our daily goal. (Start with a realistic daily goal and increase your goal as you make profits. We teach a specific way for you to do this).
Goal#4 is to repeat this on a daily basis. (Learn the system, build confidence in the system and repeat the system).
As you can see, with our futures trading system, we do not have a huge list of things that you must do to achieve success. We do all the hard work for you with our weekly videos, updates, and Bi-weekly emails. The next step is up to you to take the time to watch your charts and wait for the signals to occur. You can trade all day, or just a few hours. It is up to you.
We pride ourselves on delivering a Futures Trading System that any trader can follow. No matter if you are new to trading, or you are a seasoned pro, ScalpingTheMarkets can give you the confidence to take trades that are confirmed with multiple confirmations all in real-time.
Futures Trading System How we trade:
We trade two contracts per signal or any multiple of two meaning; 2, 4, 6, 8, 10 etc. It is important to follow this rule so you can scale out of the trade to reduce the risk of the second contract. Trading one contract with any futures trading system has low odds of having success. We use a static target on the first contract and use a trail stop on the second contract.
We also have a signal to add back in the first contract if we do not get stopped before that signal fires off meaning; if we are long and take the first contract off at +1.5 and get another long signal before the second contract is stopped we use that signal to re-enter the first contract. Once we re-enter the first contract we take that contract off again at +1.5 and then use the trail stop for the second contract. We can get three to four signals to re-enter before we are taken out on the stop. These trades do happen often and it is important to utilize this feature for maximum results.
The scale in method is important on multiple levels:
- If you are already long then you are not looking to enter short and be in a trade in the wrong direction. Less bad trades.
- We are using the same wave to enter and exit multiple times. This will maximize your profits and minimize the time you are spending at your computer.
- Hit your daily goal faster so you do not have to take the risk of another trade. Trade less and make more.
- Learn how to let your winners run with our futures trading system.
Typical Trade Without adding back in the first contract:
TF +1.5 points / 4.0 points for a total of $550.00 (TF is $100 per point, per contract)
NQ + 4.75 points / 7.5 points for a total of $245.00 (NQ is $20 per point, per contract)
ES +2.00 points / 4.25 points for a total of $312.50 (ES is $50 per point, per contract)
YM +40 ticks / 80 ticks for a total of $600.00 (YM is $5 per tick, per contract)