A Professional Approach to Trading Futures

[steven46]

Good Morning

I see that this thread has been left in place. So be it.

I have completed my obligation to train a class and am free to post again
I have also posted on another thread as a courtesy to a trader who indicated an interest
in my work. Copy of that post below

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Good Afternoon

It is Wednesday 29 Oct the time is approximately 1am in the City (one assumes London time)

I have begun to provide a comment for traders interested in trading the London Session of the
S&P futures. Current Volatility is approximately 18 after spiking to 24. This event (for most professionals)
signals opportunity and that is what you will see in the attached chart.

I will provide a more detailed comment shortly so that traders interested in this market can evaluate the
opportunities. In my view we are probably going to see more sessions like this one and therefore it might
make sense to think about how to monetize it, providing you have the requisite skills

The chart uses 5 min candles and CVD and is about as simple as I can make it for retail traders. As a side not
most professionals would be reading order flow, however I have not see a retail trader do it successfully or
consistently (I am talking about reading "stack & pull"). I am willing to give it a go if someone wants to learn,
I just think this is much easier to learn and the rules are simple.

Finally, in a couple of days I will start livestreaming on Twitch. I will show the preparation process that leads to this
result. It requires about 30 minutes prior to the open, and is very simple. We simply review economic data, and create
three (3) scenarios, "Risk On, Risk Off, and Neutral". We also suggest that traders think about restricting their entries
to specific time frames, in order to give themselves the best chance of success.

 

[steven46]

Thanks Trader333, greatly appreciate and I will let you know when I start my
Livestream
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This is a chart that professionals use to provide added context. By anchoring the
VWAP. By anchoring the VWAP to the London Session we can see how that those
institutions view the market. By monitoring and evaluating the Initial balance, we
can then make intelligent decisions as to whether to let wait to see whether the attempted
break to the upside is successful (statistically most fail). As can be seen in the attached chart
this was an easy day, if you knew the odds were in your favor to fade the B/O

During our pre-open preparation we plan for this (even when we are trading alone). It makes
all the difference to have gone over the options and to be ready (on time with entries and exits

Good Luc

 

[steven46]

Here is an example of what is known as the "Power Hour"
which is the last hour of trading the NY session of the S&P500
Futures Market

At this point in time professionals are closing book of business
and staging MOC orders for the "handshake" to the next session
Volatility increases

 

[steven46]

Posting this example of today's "Power Hour"
final trade. Notice the proximity to the end of session
this is common. Takes some experience to pull it off
but as can be seen, it is worth the effort

 

[steven46]

Interesting example here because it showcases the difference
between professionals and retail traders. Look at the way the volume
dries up in the "Dead Zone". During this time period I (may) be monitoring
however I am not looking seriously for a trade.

As we approach the last hour however you can see volume pick up and they
AT the last hour, we are in the game waiting for volume to show us where to enter
and (just as importantly, where to get flat. Today there were two (2) exits
If you have a way to monitor bar by bar volume it becomes clear

Also notice that traders are exiting at the VWAP (to the tick) AND at the 1st SD band
These are professionals using the tools of the trade to know the right time to exit.