Well, considering the fact that this is a new playing field.
i'm a former options trader.
now i'm looking to go into futures.
how much of a difference is there?
The following user says Thank You to panlover215 for this post:
Biggest difference on hopping to futures is presumably you now have black swan exposures, but in exchange have no worries about theta decay.
I would say as a retail trader, 1-2% max risk on any position is probably pretty comfortable. Anywhere north of 3% starts getting mathematically problematic. Most institutional desks might run .25-.5% max risk.
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Trading: The one I'm creating in the present....Index Futures mini/micro, ZF
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Knowledge = Power
Here is one idea....
From this....
What are you looking to accomplish exactly (cash flow, wealth building) and how (day trades, swing trades etc)? Did you write a Trade Plan? This is a starting point.
Ron
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...My calamity is My providence, outwardly it is fire and vengeance, but inwardly it is light and mercy...
The steed of this Valley is pain; and if there be no pain this journey will never end.
Buy Low And Sell High (read left to right or right to left....lol)
I've read books on put selling based upon a 102030 reversal in options.
but after researching and back testing, this seems to be good half of the time.
I'm looking for a solid back tested proven methodology of trading. ie charting, technicals, etc.
I've seen a members post on a similiar abletrend charting, and i was wondering whether that is a good set up?
I've lost my job for several years now. and i'm looking to do this to generate an income to survive like a normal salary.
any ideas? recommendations? tested and true methods?
The following user says Thank You to panlover215 for this post:
Trading: The one I'm creating in the present....Index Futures mini/micro, ZF
Posts: 2,270 since Nov 2011
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Wow. Where to start. Don't have the time right now unfortunately. You must only trade with cash you can lose PERIOD. And it will take some time before you will be making an income of which you can survive comfortably. You and only you can do the work to create a Trading plan for YOU. It not a one size fits most type of thing.
If you are in a desperate type of mind set ......DO NOT TRADE!!!!!
How are you with data or numbers?
Ron
...My calamity is My providence, outwardly it is fire and vengeance, but inwardly it is light and mercy...
The steed of this Valley is pain; and if there be no pain this journey will never end.
Buy Low And Sell High (read left to right or right to left....lol)
I understand only what i can afford to lose, yes i get it.
I'm fine with data, i've been learning different indicators, oscillators etc...
But what i'm really seeking for is a method that can atleast give me 3 to 1 odds. I saw a post from a member in regards to able trend. Have you tried it?
do you have any recommondations? i use think or swim
Trading: The one I'm creating in the present....Index Futures mini/micro, ZF
Posts: 2,270 since Nov 2011
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I have not tried that system, sorry. For me, I don't use indicators (I used to) that are a derivative of price meaning a formula calculated off OHLC and vol. I tend to just use market generated info. For example my post here and its Excel spreadsheet....
Starting this thread to share ZF research. I have projects on the back burner that I am in need of motivation to complete. So I think this on going conversation will help us all.
I am flat out of time at the moment but will be posting …
So my recommendation would be to study purely market generated data....ie VPOC gap VAH VAL ONL ONH VWAP IBH IBL etc
As well as auction levels....
All the best my friend......
Let me know if I can help in your quest for your high probability edge.
Ron
...My calamity is My providence, outwardly it is fire and vengeance, but inwardly it is light and mercy...
The steed of this Valley is pain; and if there be no pain this journey will never end.
Buy Low And Sell High (read left to right or right to left....lol)
The following user says Thank You to Blash for this post:
Ok so i'm reading over this. Give me an example of an execution you would do?
Remember i'm an options guy. What exactly is it that i look for based upon the market generated data?
The following user says Thank You to panlover215 for this post:
Trading: The one I'm creating in the present....Index Futures mini/micro, ZF
Posts: 2,270 since Nov 2011
Thanks: 7,180 given,
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Driving now (at stop light) to pick up the kids from school. Wife gets back today from a business trip and I have to clean up the mess before she returns or I'm dead. lol.... But I will have time tomorrow and on the weekend.
Ron
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...My calamity is My providence, outwardly it is fire and vengeance, but inwardly it is light and mercy...
The steed of this Valley is pain; and if there be no pain this journey will never end.
Buy Low And Sell High (read left to right or right to left....lol)
I'd suggest that the important question should rather be how to protect capital. Stop loss should only be one of the 20+ ways to do so, and in my views, one of the least effective. Better ways would be to use a small portion of your capital in multiple non corrolated systems. According to Kaufmann latest book, and that's likely what I'll do eventually, stop losses should not be used. To answer clearly the question, on average, my systems have stop loss around 3.5%.
The following user says Thank You to Virtuose1 for this post:
I don't think you will find a tried proven tested method in the public domain. Trading isn't like engineering.
Some of the prior post have covered many on the questions you should answer so no point repeating them.
Since you have experience trading options, let's say someone came to you and said:
"I would like a tried proven and tested system for trading options. What is it and what is the the correct win loss aim to aim for"?"
Ron (Blash) gave you a good idea for using options as stops and since you know options using that knowledge for futures is a point of leverage. Then use other things from your past and your personality as inputs in developing a plan. What did you use to do? What did you study? What strategies of other traders appealed to you and what did you like about them? (read Market Wizards for a sampling).
I hope it helps,
..........
peace, love and joy to you
.........
The following 2 users say Thank You to aquarian1 for this post:
I trade /es mostly, it trades almost 23/5. All of my entry/exits are based on Fib. retracements. Not that the exact numbers (23.6 for example) work perfectly but at least you are always on the correct side of the trend.
Move, retracement, REretracement is the secret of my success and as far as I am concerned the only thing that works.
“Enter by the narrow gate; for wide is the gate and broad is the way that leads to destruction, and there are many who go in by it. Because narrow is the gate and difficult is the way which leads to life, and there are few who find it.
