Trade Aptitude

Friday’s results: No trades suggested. 

Today’s Best S&P Futures Turning Points: Short 5808.00 stop 5812.75. Buy 5812.00 stop 5807.25 if price retraces from above. 

The World Index: (+100/-100) plummets from +57 to -14 with China wildly Bullish and the remaining major world markets somewhat Bearish. 

Catalysts: Fed’s Bowman @ 8:50 and Powell @13:55. Chicago PMI @ 9:45. Dallas Fed MFG Index @10:30. 

Quick Tip: Ratio Exits

Our volume-at-price strategy usually performs better in the Globex session. We know this from thousands of documented trades. The challenge for most of us is we’re sleeping! 

Setting a planned entry before bedtime is no problem. Optimizing the exit is the tricky part. 

One common exit is the trailing stop using initial risk. The downside is price can get spiky taking you out of what became a great trade. 

One great trader on our team uses what I’ll call the Ratio Exit. 

For example, we know that this strategy has a 53%-win rate over thousands of Globex session trades. Obviously we need to have average winners greater than losers. Pre-setting your exit to a ratio of more than 1:1 nets a positive result. How much to use is the question. 

Assessing the chart for potential supply/demand levels can help determine your ratio. Minimally you’d like to see 2:1 potential and ideally 3:1 or better. 

Some charts will offer less, some more. The key is to know your win percentage and only enter those trades that offer a positive expectation ratio. With this evidence you can effectively trade the Globex session.

Our trading teams focus on day trading futures and swing trading options. Maybe you'll fit right in. You can try either or both risk-free. 

Trade Fearlessly,

Mike Siewruk

P.S.  Feel free to pass this along to your trading buddies. Share in the wealth!