Hello Linkon
I am sorry if these questions are basic and you have already replied them elsewhere . . .
The rules that you have given in the first few posts give us 3 types of trades. In this system do you propose to take all the signals thus generated or you will be using some discreation as per your interpretation of the market conditions.
- FlatBB rule: When BBtop (20,2.25) and BBtop(20,1) is flat
- Angle rule: When BBtop (20,2.25) and BBtop(20,1) is sloping upwards (angle greater than 30 degrees)
- Divergence Rule: When BBtop (20,2.25) and BBtop(20,1) is sloping upwards/downwards (angle greater than 30 degrees)
Note : Never attempt a counter trend trade as it will give very little profit and will hit SL most of the time.
Your choice of instruments, using both long & short options along with futures to trade is interesting but for me it will take some time to understand . . .
Hopefully once I follow your trades for some time all this will be clear to me.