Trading Euro Currency Futures and Nasdaq Index in the live trading room this morning even though it was really slow for the holidays. Two trades were also generated on the British Pound Currency Futures.
Trend Trading Euro Currency Futures
- Identify the trend of the higher timeframe
- On the lower timeframe, the ATR must match the color of the higher timeframe
- Price must be close to the ATR indicator (plus sign)
Profit Potential is always at least double the risk on entry. However, if using the new THD ATR Strategy, then you follow the red line or yellow line, whichever is closest to price.
Counter Trend Trading the Nasdaq Index
- Higher timeframe makes an ADX magenta peak or is at a Congestion Dot
- Price should move down to test the ATR
- ATR on lower timeframe must be the opposite color (ie if the ADX line is red, the ATR on lower timeframe must be blue)
- Price must retest the ATR indicator (preferably on lower volume)
Although we ended the video early, I told everyone to place a closer stop as I would not be monitoring the trades. However, as you can see from the snapshots below, the strategy exited just about at the same point as I placed the stop.
The Nasdaq Index entry was at 4573 and the exit was at 4568. That 25 ticks minimum on the Nasdaq Index or $125 per contract.
Both trades were only risking 15 ticks per contract. The average risk to reward ratio on just these two combined trades was 1 to 2.7.
The THD Strategies automatically highlight the entries for you. The ATR strategy also identify the profit target and has two built-in stops. One stop is based on the ATR stop indicator and the second stop kicks in once a minimum profit target has been achieved. Then the stop follows price closer to get more profits.
The THD Strategies will be available soon on a subscription only basis (either quarterly or annually) for clients that have the indicators. Of course with our new subscription service, clients will always have the latest indicators, online training courses, and access to a weekly webinar on Mondays from 10am till noon.