Trading Buddies

[BlueRoo]

Trading Buddy Futures is an attempt to develop a core group of futures traders who are interested in working as part of a professional collaborative team through a structured approach. TBF is part of a small Facebook group called Trading Buddies. The idea here is not numbers but to bring together active traders who are seeking professional collaborative networks. There is no cost, fees or charges. It is a voluntary, closed community. To be a member you need to apply and be appointed. To remain a member you need to be active.

The idea is to use a number of elements to support this effort…

The Trading Buddies Facebook Group will focus on the group’s administrative posts. The Buddies Google Drive is the groups resource or library.

The other groups will bring together traders of a similar ilk. Currently there Trading Buddies Elite, a group that focuses on selling future options, and, Trading Buddies Futures, a group that focuses on trading liquid futures such as CL ZB 6E.

Here on Trade to Win I will start with several posts about the techniques I use to interpret price action in order to enter trades and how I am trying to deal with the psychology of trading…anyone who is interested in this endeavor is invited to do the same and contribute.

If you would like to be part of a small collaborative professional group of active traders then to apply you need to email me at [email protected]. We can exchange some emails and learn a little more about each other before taking a further step.

Members should prepare their posts prior to posting and give consideration to how best communicate and inform other members of their own techniques.

Active Trading Groups such as the Trading Buddy Futures group will focus on the daily posts of active members regarding their trading activity. What this consists of will be evident from other posts and develop over time. All members will be encouraged to comment and participate in trading chat in a professional, tolerant and informative manner.

If your not an active trader but interested join the main trading buddies group.
If you are seeking to develop professional collaborative relationships with other active traders email me at [email protected].


Links:

Trading Buddies link…
https://www.facebook.com/groups/tradingbuddies/

Trading Buddies Elite link…
https://www.facebook.com/groups/tradingbuddieselite/

Trading Buddies Futures link…
https://www.facebook.com/groups/tradingbuddiesfutures/

Michael (BlueRoo)

 

[BlueRoo]

I have up dated my bio details.

 

[BlueRoo]

My Futures Trading Plan

Chart Setup
Using 4 Hour, 30 Minute, 5 Minute and 6 or 10 Tick Range Charts
Using 75pma with 21 2SD BB supported by ADX (DM 21)

Establish trend with 4 hour chart and if move is up or down…
Use 30 minute chart to identity trade setup
Use small time frames to enter

Trade Setup
Use double bottom/top into support/resistance with breached trendline
Use continuation (second wave) with falling price into rising average / rising price into falling average
Use areas of congestion where price breaks through or rejects congestion area (false breaks)
Use low ADX for trade entry and high ADX for trade exit
Try not to trade short on a strong up day and long on a strong down day
In other words, try not to trade corrections (easy to recognise with price movement and ADX)

Trade Entry
Look for price moves that will provide a minimum $500 return
Look for entry at price levels where failure would incurr a loss of 20-30% of the target profit

Trade Management
Use trendline lines to establish a move and warn of failure
Use a close below a moving average as you last point of exit

Trade Exit
Set limit orders for targets based on areas of congestion

 

[BlueRoo]

Step One Part One A An Introduction to Reading the Market

Before you can even start to think about taking a trade, understanding the current price action in terms of its market stage will allow you to know if it is time to even consider taking a trade. It is important to know that Market stages apply to all time frames. It is also important to know that if price action can not be easily interpreted in terms of Market Stages the current market and price action may not be a trading proposition.

With every first look at a chart the question should be asked...What stage is current price action emulating?

Below are simply diagrams of the market stages for a bear and bull market. Stage 2 in both cases is the impulse move which generally features some degree of visible momentum. Stage 1 is generally some type of consolidation or congestion. Stage 1 in a bull market will have a neat orderly pattern with low volume where stage 1 in a bear market is more volatility and lots of candle tails as frantic distribution occurs.

The key feature of stage 1 development is the breach of an existing trend line generally before the W or M is confirmed followed by a V where price is falling into a rising average and an A where price is rising into a falling average. However W and M patterns do not just form during stage 1 but can often be seen when a small time frame is viewed and there is a pullback (mean reversion) to an average (support). As a directional player you want to see the ‘break out’ of stage 1 as an entry level. As an option seller you want to recognize price entering an accumulation or distribution stage. This is a very simply concept. It helps recognize price action in there terms helps recognize congestion, momentum and what market stage to anticipate next.





 

[BlueRoo]

30 Day Trading Challenge For June

I had planned to keep developing this thread but I will put it on hold. The group TBF is going to run for a 30 Day Trading Challenge. GooD to get a clean sample for metrics and expectancy. I will post some of the trades as we go along. cheers Michael BlueRoo

 

[drtro]

I trade /CL. I use a 4 brick Renko chart and 14 EMA.

 

[BlueRoo]

Thanks DrTro, I wish you success in you trading. Is a price crossover of the 14 EMA one of your trade setups...if so...this would be similar to one of my new trend entries...Cheers, Michael (BlueRoo)

 

[BrokeMike]

I have up dated my bio details.

I don't have facebook, nor plan on signing up, interesting..
Ha I like the idea and your aussie too so I'll sign up..
I'll email you.
Mike

 

[BlueRoo]

I don't have facebook, nor plan on signing up, interesting..
Ha I like the idea and your aussie too so I'll sign up..
I'll email you.
Mike

Very busy with the group on FB, for trading futures. We are running a trading challenge to improve our skills. I have holidays soon. So it will be a while before I come back and develop this thread some more.

 

[BrokeMike]

Very busy with the group on FB, for trading futures. We are running a trading challenge to improve our skills. I have holidays soon. So it will be a while before I come back and develop this thread some more.

Thanks for the add,
I trade the london open mostly and in bed by 12am..
I'm demo'ing on 6e but will start with a cheap mini.
Lol I went to mt gravatt tafe in 1995... hospitallity... I live in melb now.
Good tafe that one, first place I used the internet in the library
Anyway have a good holiday

 

[BlueRoo]

ZBU5 July Options and Futures Trading for June

Started out with a simple strangle...30DTE...became the winning trade of Trading Buddies June Trader Challenge!

 

[BlueRoo]

New Journal Entry Form for Metrics

Update Metrics Journal Entry Form for touch screen only entry on tablets such as at surface pro...

 

[BlueRoo]

Seeking new active futures trader

Trading buddies secret trading group called Trading Buddies Futures is looking for another member.

This is a small professional collaborative group of traders who seek to develop real relationships with other like minded traders.

If you are interested in being part of a active professional futures trading group who is seeking to develop collaborative relationships please email me at [email protected]

(If you would like to know more please read the first post in this thread.)

 

[BlueRoo]

Upgrade Psychology Section of Metrics File

 

[BlueRoo]

Step One Part One B Context Favours a Direction

Reading the market provides general context. But to it is not enough to enable you to trade. Understanding when context favours a direction gives you the advantage of higher probability when you trade in favour of the direction.

The simplest way to determine the context for the next trading session is to use a simple moving average on two different time frames. I use a 4 hourly and 30 minute chart with a 75 period moving average.

If price is above the 75pma on both charts then the context favours a buying opportunity. Obviously if price is below the 75 pma on both charts then the context favours a selling opportunity.

Now with a favoured direction what is the market context in terms of its stage in the price development cycle? The best market context is when stage one is well developed or every stage two has commenced because this is the impulse, momentum price move occurs.

If the market context does not fit this profile then the trading will generally be more difficult. In this case it is always better to move on and find a situation where the market context and the trading context fit clearly together and there is not mistaking what is being read.

Situation where price action is messy and not aligned to a clear market and trading context are likely to be more turbulent trading experiences.

 

[flipya4it]

Reading the market provides general context. But to it is not enough to enable you to trade. Understanding when context favours a direction gives you the advantage of higher probability when you trade in favour of the direction.

The simplest way to determine the context for the next trading session is to use a simple moving average on two different time frames. I use a 4 hourly and 30 minute chart with a 75 period moving average.

If price is above the 75pma on both charts then the context favours a buying opportunity. Obviously if price is below the 75 pma on both charts then the context favours a selling opportunity.

Now with a favoured direction what is the market context in terms of its stage in the price development cycle? The best market context is when stage one is well developed or every stage two has commenced because this is the impulse, momentum price move occurs.

If the market context does not fit this profile then the trading will generally be more difficult. In this case it is always better to move on and find a situation where the market context and the trading context fit clearly together and there is not mistaking what is being read.

Situation where price action is messy and not aligned to a clear market and trading context are likely to be more turbulent trading experiences.

Hey blueroo,

Just wondering how the collaboration is going? have you found that it has assisted you with decision making at times, operational issues?or does it become more of a simple support system for the challenges of a trader in general?

Either is good I guess.I worry that considering too many points of view or interpretations of the market/'world view' is another way of muddying the waters.aside from that I have always thought that some sort of collaboration would be rewarding.

interested in your thoughts.

cheers,

 

[BlueRoo]

Just wondering how the collaboration is going?

Flip,

Thanks for asking the question. The answer is complex and long. But I will keep my response on point and brief.

The collaboration has been going for 40 days. There are 9 members. There are 5 that are actively contributing meaningful posts. There are 4 less active who post an odd comment here and there. There have been 3 members removed because of no activity.

The type of collaboration can be summarised as follows:

1. Daily day trading threads. Each day members post what they are doing and planning to do.
2. Special topic threads. There are already several of these that focus on key trader issues.
3. Member bio threads. There are two kinds. First a member bio thread where each member shares their background and trading experience. Second specific member threads where a members trading strategy is shared and outlined. Three members have shared this mostly those trading fulltime.

Our type of collaboration is not sharing trading alerts or trying to follow or copy other members trades. Our collaboration is about developing a professional relationship with other colleagues. The best way to understand this is if you have had experience in middle management within a positive corporate environment.

Does collaboration assist in decision making. Indirectly the answer is yes. Exposure to other traders who are active is an invaluable resource. In our setting where we are promoting professional relationships and collaboration this is nothing like the general trading forums. This is an environment where real questions are asked and answered. In this way collaboration assists personal development and is automatically a support or more accurately a reference point.

Points of view. There is very little of this in our group. Few members are predicting outcomes. The reason for this is they are not newbies or selling something. The members in the group are appointed. This points to a good level of maturity in the group. The better and more appropriate focus of collaboration is on planning, technique, methodology, encouragement and congratulations.

It is still early days and 40 days is not long in terms of learning about another person particularly through this type of communication.

If you are trading futures actively I would encourage you to send me an email. We can exchange some messages as we learn about each other as traders.

What collaboration requires to be successful is honesty and respect. This is very rare in our field, particularly when it is free. But many do not respect or are honest about honesty and respect.

Collaboration requires effort to know someone and treat them in this way.

Cheers, Michael (BlueRoo)

 

[flipya4it]

Flip,

Thanks for asking the question. The answer is complex and long. But I will keep my response on point and brief.

The collaboration has been going for 40 days. There are 9 members. There are 5 that are actively contributing meaningful posts. There are 4 less active who post an odd comment here and there. There have been 3 members removed because of no activity.

The type of collaboration can be summarised as follows:

1. Daily day trading threads. Each day members post what they are doing and planning to do.
2. Special topic threads. There are already several of these that focus on key trader issues.
3. Member bio threads. There are two kinds. First a member bio thread where each member shares their background and trading experience. Second specific member threads where a members trading strategy is shared and outlined. Three members have shared this mostly those trading fulltime.

Our type of collaboration is not sharing trading alerts or trying to follow or copy other members trades. Our collaboration is about developing a professional relationship with other colleagues. The best way to understand this is if you have had experience in middle management within a positive corporate environment.

Does collaboration assist in decision making. Indirectly the answer is yes. Exposure to other traders who are active is an invaluable resource. In our setting where we are promoting professional relationships and collaboration this is nothing like the general trading forums. This is an environment where real questions are asked and answered. In this way collaboration assists personal development and is automatically a support or more accurately a reference point.

Points of view. There is very little of this in our group. Few members are predicting outcomes. The reason for this is they are not newbies or selling something. The members in the group are appointed. This points to a good level of maturity in the group. The better and more appropriate focus of collaboration is on planning, technique, methodology, encouragement and congratulations.

It is still early days and 40 days is not long in terms of learning about another person particularly through this type of communication.

If you are trading futures actively I would encourage you to send me an email. We can exchange some messages as we learn about each other as traders.

What collaboration requires to be successful is honesty and respect. This is very rare in our field, particularly when it is free. But many do not respect or are honest about honesty and respect.

Collaboration requires effort to know someone and treat them in this way.

Cheers, Michael (BlueRoo)

very well written response.thanks mate.

im interested in the idea.

im curious as to what times of day you 'meet' and discuss.i'll email you in the near future.

cheers,

 

[BlueRoo]

Futures and Options Expiration Calendar and Alerts

Updating an old tool and finally importing into google calendar...from the schedule exported csv files are created and imported into google calendar for all futures and options listed out to 2017 +. The calendar is shared as TB Trade...includes alerts for option selling with 65, 45, 35, 10 and 1 DTE alerts...

 

[BlueRoo]

Starting to Looking a Performance Reporting

This is my first weekly performance report. I am hoping to start to identify my errors better and look for where I can improve.