Edition 773 - April 19, 2019
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: Swing Trading
Hey Joe! I suspect from my trading results that I probably should be a swing trader, but I have no idea of how to go about it. Do you have a way to use a simple method that would help me with these doggone swinging markets? Maybe something that doesn’t use indicators?
Yes, I think I can help, but there are those that laugh at the simplicity of what I’m going to show you.
One method that fits the criteria of swing trading strategies that work is relative strength, while it may sound fancy, it's just a term for looking at several related markets and seeing which one is stronger and which one is weaker. The key is to make sure there is relationship between the markets. We don’t need a relative strength indicator for this one.
What you want to do is to find two markets that have a relationship between them. A good example would be the e-Mini S&P along with the e-Mini Nasdaq. These two markets are about 85% correlated.
The e-Mini S&P is sloping about 55%
If I was to place a relative strength trade between these two contracts I would simply purchase the E-mini SP Contract and Sell the E-mini Nasdaq Futures Contract. Let's see how this would work out in reality.
Take a look at both charts as they appear on the February 21, 2013. See for yourself how it would have worked out.
e-Mini S&P drops about half as much as e-Mini Nasdaq
Simple! All you need are your eyeballs. This is a simple observation spread. Just remember that the two markets must be closely related.
E-mini Nasdaq falls twice as hard as SP index
You can clearly see from these two charts that the E-mini Nasdaq is dropping about twice as hard as the E-mini SP Futures Contract. This is a great example of swing trading strategies that work in the real world. We simply combined visual trend analysis and took two markets that are related and compared the strength of one vs. the other.
You would simply go long the E-mini SP and you would short the E-mini Nasdaq contract at the exact same time. You can apply this same method to related stocks or other related markets. But make sure your positions are of equal size, this is very important.
© by Joe Ross. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Trading Article: Disciplined Trading
Disciplined trading is critical for lasting success. Profitable trading requires a combination of skill and probabilities. The winning trader implements proven trading strategies over and over, so that across a series of trades, the law of averages works...read more.
© by Joe Ross. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
by Philippe Guartier: Administration and
New Developments of Instant Income Guaranteed
Trading Idea: Instant Income Guaranteed
PETQ Trade
On 26th March 2019 we gave our Instant Income Guaranteed subscribers the following trade on PetIQ Inc. (PETQ). Price insurance could be sold as follows:
- On 27th March 2019, we sold to open PETQ May 17 2019 21P @ 0.25, with 50 days until expiration with our short strike about 31% below price action, making the trade pretty safe.
- On 10th April 2019, we bought to close PETQ May 17 2019 21P @ 0.10, after 14 days in the trade.
Profit: 15$ per option
Margin: 420$
Return on Margin annualized: 93.11%
Philippe
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© by Joe Ross and Philippe Gautier. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
by Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, Day Trading, and
Editor of Traders Notebook Complete
Trading Article: Rest Periods
During ongoing activities, such as day trading, you have to learn how to pace yourself. This means…read more.
Andy Jordan is the editor for Traders Notebook which shows you Futures Trading Strategies in Spreads, Options, and Swing Trades. Learn step-by-step how to trade successfully.
© by Andy Jordan. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
by Professional Trader Marco Mayer
Educator for Forex, Futures and Systematic Trader
Creator of Ambush Trading Method, Ambush Signals, and Head of AlgoStrats.com
Is Natural Gas back to normal?! Ambush traders have one of their cash cows back!
The Ambush trading method is specialised in catching intraday market tops and bottoms in a variety of Futures markets. Including the Natural Gas Future (NG) traded at the CME, where Ambush Traders are cashing in again lately.
Ambush day trades on an end-of-day basis so there’s no need to even check the markets during the day.
Towards the end of 2018, fundamental news caused prices in Natural Gas to go crazy with volatility levels almost 10 times above normal. This didn’t just put various funds out of business but also caused most Ambush traders to stay away from NatGas for a while.
Right now NG is trading pretty much where it traded before the hype and looks much more like the NatGas market we are used to again.
As you can see on the chart below it moves in boxes and has a lot of false intraday breakouts, perfect conditions again for Ambush:
With NatGas behaving normal again, Ambush results look great again too.
Here’s the result of all of these trades, trading one Natural Gas (NG) contract, including $10 commissions/slippage per trade:
Now if you’ve been the one making money on the crazy up-move just ask yourself how often that actually happens and if you wouldn’t rather be making money the other 95% of the time ;)
TWO WAYS TO JOIN US
AND BECOME AN AMBUSH TRADER!
1) AMBUSH SIGNALS
OR
2) AMBUSH EBOOK
READ ON....
With Ambush Signals you can easily follow Ambush, a system specialized in catching intraday market tops and bottoms in the Futures markets!
The most popular and easiest way to follow Ambush is Ambush Signals. It does all the work for you, allows you to customise what markets you want to see and has a position sizing tool implemented to automatically adjust the positions to your risk preferences.
Each day around 6:30 pm NY Time the Signals are available for you on the Dashboard. You can then place your orders and literally walk away until the next market close! To find out more about the details of Ambush and how Ambush Signals works, have a look at the Ambush Signals Website.
Let’s be realistic. Following any System can be tough, especially in the beginning. It simply needs time to build the confidence needed to make it through inevitable drawdowns. So what if you are unlucky and don’t catch a good start right away?
I want you to succeed trading Ambush Signals, so here’s something for you that will strongly increase your odds of success and allow you to easily gain the confidence you’ll need to become a long-term profitable Ambush trader.
Find out more about Ambush eBook and Ambush Signals!
Did you come up with questions? Don't be shy, email Marco Mayer, he wants to hear from you! This email address is being protected from spambots. You need JavaScript enabled to view it.
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LEARN ABOUT AMBUSH TRADING METHOD
© by Marco Mayer. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
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