| Scalps: |
- The lowest quality trade
in terms of expectancy or "quality
index"
- The hardest to do successfully
because of the level of expertise, attention and screen time required
- The trade most sought by
new arrivals, but not recommended or supported by FL
- Scalps are backtested here
mainly to define advantageous entries into bigger trades
|
| Dot trades |
- dot1 and dot2 are the main
trades defined by FL's "dot trend"
- provide a clearly identifiable
opportunity which can be backtested
- provide a road map for determining
what waves will be acceptable to trade or campaign (see below)
- are best used as swingtrades
(hold overnight or longer)
|
| 9-day
method |
- uses a 9-day moving average
as a simpler alternative trend definition to the dot method
- a method developed by FL,
inspired by conversations with Marty Schwartz (see Pit Bull autobiography)
- usually doesn't identify
a trend change as early as the dot trend
|
| Daily Window |
- highest quality trades in
terms of expectancy or "quality index"
- low frequency of occurence
is overcome by following multiple markets
- best trade for those who
can't be at the screen all day
- FL recommended as most profitable
and least demanding
- after some work to get the
trade on, little attention required
- swing trades that may last
days weeks or months
- entered on 3m or 15m chart
to reduce initial risk
|
| Campaigning |
- a trade management style
which can improve most swing trading methods
- uses tested auxilliary trades
within the framework of a tested base trade
- done properly can improve
the expectancy of the base trade
- psychological advantage
because of freedom from close stops
|