Tuesday, June 30, 2009

Trading Rules

Rules for taking a long position (reverse the rules for a short):
1) Enter the trade below the Scalper channel mid line (cyan line) to reduce draw down.
2) If close of bar equals midline of Scalper channel, then you must fade the entry by 2 ticks.
3) Volume Tracker must be positive i.e. above the zero line.
4) Trend Analyzer must be greater than the previous value.
5) One or both of these indicators $TICK or the ROBOT TRACKER should be bullish.
6) First profit target is at 3 ticks, second profit target is at 5 ticks.
7) First stop is at 4 ticks.
8) If first profit target of 3 ticks is achieved, immediately move stop to break even i.e. entry.
9) Price must touch the bottom channel.

Trading Notes:
Trade quanity must be divisible by two for scaling out.
Best trade setups occur when price consolidates for ~3 bars below the Scalper channel midline.
Do not trade if price gaps.
Do not trade if the range bar is large ~>1.50 points on the ES.