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Overview of FL's main methods
Dot Method:
  • a swing trading method for S&P500 futures
  • uses relationships of filtered waves on a 3-minute barchart to define trend
  • relationships of filtered waves also identify basetrades, called dot1 (beginning of trend), or dot2 (deeper pullback in a trend).
  • The dot trend definitions make it easier to start a trend than to end one, so both trends are often working at the same time, providing opportunities for 2-sided trading.
  • Since there are no lagging indicators in the trend definition, some very timely entries into new trends are signaled.
  • In range-bound trading, entries are often signaled near the top and bottom of a sine wave that oscillates roughly around a 9-day average.
  • Historically, in the datasets sampled, with a 3 point stoploss, 30% of dot trades have initiated moves greater than 10 points.
  • With good risk control rules and a campaigning style of trade management the edge can be improved considerably.
Daily Window method:
  • a trend-trading method which uses filtered waves on a daily chart to identify tradable pullbacks in a trend
  • provides relatively low-risk entries into bigger trends that may last weeks, months, or years
  • when in an area of opportunity on the daily chart, uses intraday entries on a 3-minute or 15-minute chart to get on board
  • expect low percentage of winners (25-30%), and some very large winners if managed properly
  • low frequency of opportunity may be increased by following multiple markets
Important notes and disclaimer:
These methods are being documented as the result of many hours of conversations with Marty Rosenthal, here called by his chat handle "FL," whose qualifications can be found on the links page. The information given is by no means complete or without error. It is hoped that the information shared will save you much time and effort in finding what works. If you intend basing any financial decisions on the information shared, do your own testing first, make your own trading rules, and risk only capital you can afford to lose. Keep in mind that even with a proven method most people are unable to trade successfully because of the many technical, emotional and psychological hurdles.
S&P500 futures
dot method:
      all trends view
      long only view
      short only view
see trend_rule_v.4.
see historical charts
see overview and disclaimer