Hi, I've started this journal to assist me in developing a viable futures trading system.
I am a price action trader, and have had some success over the years. I also swing trade stocks and ETFs, but would like to figure out how to trade futures so I can harness to advantages of leverage and 24 hour liquidity.
My rules thus far are:
What to trade?
Trading requires volatility and liquidity to be successful. Therefore, trade liquid securities that are moving.
How to enter?
Reversals: Wait for an initiating swing off a higher timeframe FIB level that clears the 60M trend filter.
Then build a position on a retrace to a shorter timeframe FIB level.
Trends: Watch for stair step FIB patterns using appropriate timeframe pivots as anchors for fib levels.
Use short time frame charts to frame current trend using FIBs.
Use short tick charts to time entry using classical chart pattens and price action logic.
Remember: Concentrate process and risk max 2 ideas. Don't spread risk across multiple ideas -
better to take a wider stop on one idea that spread out risk across multiple bets.
Do not bottom fish....bottom fishing is the most expensive sport in the world.