Day Trading Futures
- Thread starter manishchan
- Start date
- Tags day trading strategy tsf
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As per pms from some of my traderji friends, posting one of the techniques I use, if there is any constructive criticism will be open for the same. Please take a look if this is of some way of a miniscule use to you 
Use two Bollinger bands BB(20,2) and BB(50,2).
Color BB(20,2) as red and BB(50,2) as green.
After doing as mentioned chart will look like the above.
Now I use Bollinger Bands for two things,
1) Gauging market mood.
2) Exit method.
Regular day:
Whenever market opens without gap or with less gap, then it is a regular day. I have shown BNF today’s chart above for 5 min which is my day trading trading time frame. Since looking onto multiple time frames is not comfortable for many, we will consider only 5 min time frame with 21 SMA, ADX(14), volume, BB(20,2) and BB(50,2), these are the indicators we are going to use.
Now, once market starts and first candle has started forming see our 5min chart. For example consider today. We can see that BB(20,2)(RED BB) is within BB(50,2)(GREEN BB) which means market has not started to trend well yet.
Do not take trade till both BBs intersect which tell us two higher tf’s are trending in same direction.
Only on 9:40AM candle both BBs have intersected, so this means we are ready to trade. Now wait for a pivot or in other words swing to form.
Now first swing high is formed(1H), which gets taken out by 2H which is formed on 10:35AM. So, we are long now two ticks over 1H, with SL two ticks below the low of 2H. This is a losing trade and we would lose around 21 points on this trade.
Remember always, since we are using only one TF here, no long when price is below 21SMA and no short when price is above 21SMA when it is a regular day, for gap day there are other rules to follow.
Now, 1st trade small loss, we are waiting for next setup, price has gone below 21SMA line we are now looking only for shorts, look at 1L which is taken out by 2L, before this happens the BBs move away from each other for two candles but have joined together before this break down. So, we can take this short trade again. We have entered two ticks below the low of 1L and SL is two ticks above the high of 2L. Since, this is intraday trend you can notice that BB(RED) is moving within BB(GREEN), don’t worry about this, keep trailing stops.
PLEASE NOTE HERE THAT WHENEVER MARKET IS GOING ON TREND MODE, MOST OF THE CANDLES GET TAGGED TO THE NEAREST BOLLINGER BAND AND WE CAN SIMPLY TRAIL SL WITHOUT TROUBLES.
Please see here, under the yellow quadrant, all prices tag the BB(RED) obliging trend. Suppose a candle is not tagged to BB, please trail SL above the second most recent candle that was touching BB, once BBs are not intersecting trail above every bear candle if your short and below every bull candle if you are long.
2E would have been our TSL that was taken and we would have made around 100 points from this trade.
After this BBs don’t meet each other as trend is not clear. Till now it was easy trading, now we have few rules to trade second half of the day, whenever two BBs are not intersecting each other, make sure to only enter on break out of pivots that are protruding outside atleast single BB. If protruding outside both BB, it’s a high probability trade.
The above condition is satisfied only on 3H break which happens on 2:30PM candle, hence we have entered 2 ticks above 3H with SL two ticks below 2:30PM candle. For every new high made through candle trail profits two candles before(low of second recent candle where second candle high needs to be more than 1st candle high), on our case this would be another 100 point trade.
Today was an easy day hence we had made good points. Now, I am pretty tired, so summarizing thumb rules,
1)Long only when price above 21SMA.
2)Short only when price below 21SMA.
3)If ADX(14) < 16 no trade whatever happens as this mentions market has lost its force in singularity direction.
Since, this method was used by me atleast six months ago, I am not able to remember all the rules I had. If I have missed something I will post it once I remember it.
Can, someone try this for some other day, or give me for some other day to explain if this is not clear.
For someone who was expecting more than this, I am sorry this is what I am using and had used as a part of my system.
For someone who finds this dumb, please ignore the same, I will be happy if atleast one struggling trader gets something out of this.
If someone interested please try this for existing gap day and let me know the hiccup you face, I will try to help you out if it is possible for me to do so.
Use two Bollinger bands BB(20,2) and BB(50,2).
Color BB(20,2) as red and BB(50,2) as green.
After doing as mentioned chart will look like the above.
Now I use Bollinger Bands for two things,
1) Gauging market mood.
2) Exit method.
Regular day:
Whenever market opens without gap or with less gap, then it is a regular day. I have shown BNF today’s chart above for 5 min which is my day trading trading time frame. Since looking onto multiple time frames is not comfortable for many, we will consider only 5 min time frame with 21 SMA, ADX(14), volume, BB(20,2) and BB(50,2), these are the indicators we are going to use.
Now, once market starts and first candle has started forming see our 5min chart. For example consider today. We can see that BB(20,2)(RED BB) is within BB(50,2)(GREEN BB) which means market has not started to trend well yet.
Do not take trade till both BBs intersect which tell us two higher tf’s are trending in same direction.
Only on 9:40AM candle both BBs have intersected, so this means we are ready to trade. Now wait for a pivot or in other words swing to form.
Now first swing high is formed(1H), which gets taken out by 2H which is formed on 10:35AM. So, we are long now two ticks over 1H, with SL two ticks below the low of 2H. This is a losing trade and we would lose around 21 points on this trade.
Remember always, since we are using only one TF here, no long when price is below 21SMA and no short when price is above 21SMA when it is a regular day, for gap day there are other rules to follow.
Now, 1st trade small loss, we are waiting for next setup, price has gone below 21SMA line we are now looking only for shorts, look at 1L which is taken out by 2L, before this happens the BBs move away from each other for two candles but have joined together before this break down. So, we can take this short trade again. We have entered two ticks below the low of 1L and SL is two ticks above the high of 2L. Since, this is intraday trend you can notice that BB(RED) is moving within BB(GREEN), don’t worry about this, keep trailing stops.
PLEASE NOTE HERE THAT WHENEVER MARKET IS GOING ON TREND MODE, MOST OF THE CANDLES GET TAGGED TO THE NEAREST BOLLINGER BAND AND WE CAN SIMPLY TRAIL SL WITHOUT TROUBLES.
Please see here, under the yellow quadrant, all prices tag the BB(RED) obliging trend. Suppose a candle is not tagged to BB, please trail SL above the second most recent candle that was touching BB, once BBs are not intersecting trail above every bear candle if your short and below every bull candle if you are long.
2E would have been our TSL that was taken and we would have made around 100 points from this trade.
After this BBs don’t meet each other as trend is not clear. Till now it was easy trading, now we have few rules to trade second half of the day, whenever two BBs are not intersecting each other, make sure to only enter on break out of pivots that are protruding outside atleast single BB. If protruding outside both BB, it’s a high probability trade.
The above condition is satisfied only on 3H break which happens on 2:30PM candle, hence we have entered 2 ticks above 3H with SL two ticks below 2:30PM candle. For every new high made through candle trail profits two candles before(low of second recent candle where second candle high needs to be more than 1st candle high), on our case this would be another 100 point trade.
Today was an easy day hence we had made good points. Now, I am pretty tired, so summarizing thumb rules,
1)Long only when price above 21SMA.
2)Short only when price below 21SMA.
3)If ADX(14) < 16 no trade whatever happens as this mentions market has lost its force in singularity direction.
Since, this method was used by me atleast six months ago, I am not able to remember all the rules I had. If I have missed something I will post it once I remember it.
Can, someone try this for some other day, or give me for some other day to explain if this is not clear.
For someone who was expecting more than this, I am sorry this is what I am using and had used as a part of my system.
For someone who finds this dumb, please ignore the same, I will be happy if atleast one struggling trader gets something out of this.
If someone interested please try this for existing gap day and let me know the hiccup you face, I will try to help you out if it is possible for me to do so.
Bro !! iam very much comfortable with my system of PA for dealing the range and trending markets so...not much to express
but for the collective action of people you have done a wonderful work of sharing
!!!:clap:
I cant bet anything on Crude never ever going back to 44 again.
Just as in bull market there are fancy targets sames is the case in the bear market. Now Analyst community is giving 100000 Sensex targets in 3 years (sounds impossible but probable) but crude will never go to 44 that is for sure.
Saudi wont let that happen....
Just as in bull market there are fancy targets sames is the case in the bear market. Now Analyst community is giving 100000 Sensex targets in 3 years (sounds impossible but probable) but crude will never go to 44 that is for sure.
Saudi wont let that happen....
Just start a thread and run !! for the TJ people... if you have time... from my side i shared my method which ,iam trading from past 6 years nothing is changed... in that..earlier i used to trade stock now future but method is same... first in 5 min chart in 30 min trend... now 3 leg trading...30 min ,5 min and 1 min...
- Status
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