This template was created to be used as a checklist for futures trading.
- Start with the Moving Averages (MAs). If the Moving Averages are Bullish (Yellow line over Blue), then draw and arrow up. If the Moving Averages are Bearish (Blue over Yellow line), draw an arrow down.
- 3 Min (3 Minute Chart Trend), if the 3 Minute Chart is in an Uptrend, draw an Up arrow and Down arrow if trending downwards.
- 133 (133 Tick Chart Trending), if the 133 Tick Chart is in an Uptrend. draw an Up arrow and Down arrow if trending downwards.
If these 3 arrows are in-sync, then you can move forward with the trade. If they are in confluence, then it is best for new traders to be patient and wait for a trade with more favorable conditions.
- ADX > 20, is the ADX in a trending state? An ADX greater than 20 means the market is in a trend and not just choppy up and down movements.
- ATR, what is the ATR of the 3 Minute Chart? Ideally our trades work best with an ATR above between 10-30. ATR is also used to calculate our Stops and Adds.
Stops and Adds are discretionary and can be adjusted to a traders comfort level.
Your 1st Entry should be at the Top or Bottom Bollinger Band when a Trade Alert is signaled. We recommend using ATR multiples for your Adds and for your Stop. (Your Stop will be the same for ALL contracts and should be calculated from your 1st Entry. DO NOT move your Stop further! Take your Stop and move onto the next trade.
1st Target should be the Middle Bollinger Band and your 2nd Target should be the opposite Bollinger Band from your Entry. When 2nd Target is hit, if you have remaining contracts, bring your Stop up to at least Break-even in anticipation of a "runner".
Trading takes tremendous Discipline. Successful traders know when and when not to be in a trade.