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Today was another great day for all the traders at the School of Trade. As we have said the past few days, we want all of our traders to be well capitalized, this ensures them the proper amount of margin required to enter the trades we do, and gives them the best chance of making money in the markets. We have always told all our members and guests, the minimum you account value you will want is $4,000, which will allow you to take advantage of all our trade set-ups on all the various markets we trade on a given day (Futures Day Trading Account Management Video). With the amount of trades we took today, and the amount of profits we made, it was only possible because we had a well capitalized account of $4,000. We went 6 for 6 today, making +$1,102.00 on 4 Contracts!! (A 25% return on your account with only a $4,000 balance).
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Our first trade of the morning came early, on our old friend the Dax! (Symbol FDAX). Once the London markets opened up at 3:00am EST, the Dax futures took off to the long side after determining a bottom in price at 5700.0. After seeing the increased volume to the long side we immediately looked to capitalize on the quick change of trend with a 2-step or breaker pattern (Dax Futures Day Trading Video). At 3:44am EST we entered the FDAX with a 2-Step pattern long, getting our order filled at a basis of 5709.0. We quickly saw a newly formed line of resistance above us and were able to lock in profits of +5 ticks (2 contracts) before automatically closing our trade out via our ATM NinjaTrader strategy, for a total of +10 ticks on the trade ($185).
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Our next trade came on the Dax Futures (Symbol FDAX) as well, after our first trade long on the DAX, we shortly realized the trend was going to continue and decided to enter the market once again, in the direction of the trend. This proved to be the correct decision as we entered the market long at 4:01am EST with a Breaker pattern (3 Key Components To A Day Trading System Video). Our stop limit order was filled exactly where we wanted it at 5722.0, and we were able to lock in profits at our first two targets of +3 ticks (2 contracts) and +6 ticks, before closing the trade out at a profit of +12 ticks ($222).
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The euro currency market didn’t really pick a distinct trend until the opening of trading for currencies and many commodities at 8:20am EST, where it looked that the euro was going to make new highs for the day (Symbol 6E). This wasn’t the case for long though as more volume entered the market closer to the U.S equities open at 9:30am EST, the euro futures began to sell off sharply. After seeing the weakness to the long side we looked to take advantage of this short term trend to the short side, and looked for a possible entry. At 9:16am EST we finally were able to capitalize on the downtrend with a Breaker pattern short, entering the market at a basis of 1.4752 (Euro Currency Futures Day Trading Video). Once our trade was active, we watched as the Pace of Tape (P.O.T) indicator quickly showed us increasing green P.O.T bars, indicating that more and more sellers were entering the market, per the speed of the ticker tape; we were able to lock in profits at all three of our targets for +4 ticks (2 contracts) +8 ticks, and +6 ticks for a total of +22 ticks ($275).
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The fourth trade of the day came on the Gold futures market (Symbol GC), which has once again seen new all time highs for the third day in a row! To profit from the obvious long trend we looked for a possible entry later in the morning (Gold Futures Day Trading Video). Patience seemed to handsomely pay off because at 10:08am EST we entered the Gold futures long due to a 2-Step pattern. Our order was executed at a basis of 1044.8 and we quickly found out the trend was definitely our friend in this case, as more buyers jumped into the market long, we were able to close our trade with profits of +3 ticks (2 contracts), +6 ticks and our final contact (our runner) got us an additional +14 ticks for a total of +26 ticks ($260).
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For our fifth trade of the morning, we waited for the Natural Gas Storage numbers to be released, as history has shown us increased volatility in the crude markets when the natural gas storage figures are released. Because the School of Trade takes more of a conservative approach to our trading, when we wait for absolutely perfect set-ups instead of just mediocre set-ups, especially on days like today, they seem to pay off. One crucial aspect for all traders to also remember is, when you are up any amount of profit, it is essential to protect your trading account and those profits you’ve made, which is why we wait for perfect trading opportunities, instead of higher risk trades, because protect of capital is our main concern. Or fourth trade of the morning, which came on the Crude Oil futures (Symbol CL), was a perfect set-up in the form of a Breaker pattern, to the long side. We entered the market at 10:42am EST with a basis of 70.88 and were able to scalp some quick profits from the market for +4 ticks (2 contracts) for a total of +8 ticks ($80) (Scalping Futures Day Trading Video).
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We noticed that when the Crude Oil open outcry pit trading began, the crude market began to sell off strongly from the mid $70/barrel range, and by the time the U.S equities market had begun trading, it had dropped more than a whole dollar to $69.20 at its bottom ( Crude Oil Futures Day Trading Video). The crude oil market then began to consolidate into the mid $69.00 price level until the Natural Gas Storage figure was released, which sent the crude oil market higher. When watching these market turns occur, we quickly looked to capitalize on this trend continuation trade to the long side with a breaker pattern. At 11:18am EST we were able to execute a Breaker pattern to the long side with a basis of 71.64. Once in the trade, we effortlessly took profit at +4 ticks (2 contracts) for a total of +8 ticks on our final trade of the day ($80).*Insert CL 11-09 11:18am Picture
