Q&A

The following questions were sent to me via email and are sent by others on a regular basis, so I wanted to take a minute to share:


Q) Can your method work on 1 contract? (EMinis)

A) I trade a lot of different markets and time frames. The strategies I used in futures are based upon the same building blocks that I use when trading equities. They work well with one contract, although ideally I would recommend two in order to adjust position size at different support or resistance levels. I would start with the NQ when trading intraday or practice on the ES afterhours when the market can be a lot slower.

Q) How is the trade entered? Is it based on price action entry with the break of a bar or is the entry based on certain support and resistance levels?

A) I use a combination of entry triggers. Often in futures I will use more entries based upon support or resistance levels, but can use tight a very small time frame channel break to confirm the reversal.

Q) In terms of stop placement, is it an absolute amount or it varies trade from trade depending on the pattern.

A) For stop placement, I rely purely on support or resistance level breaks and not absolute price amounts, so it does vary from trade to trade. I would suggest taking setups where the stop amounts will be approximately the same, however, until you can built up to larger risk and are able to adjust contract size accordingly to keep stop amounts more comparable.