of FL's main methods
- 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
- 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,
- 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
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