I wanted to put this strategy in witting more detailed than the transcript
Here’s the rules
1) As a guide only, draw S/R lines at the H/L of 9:30 bar on 15 minutes charts
2) Wait for the market to break those lines.
3) Go for it…market order only please
No bracket orders OCO orders or stop orders allowed
Sounds simple right?
Well, there’s certain things you must watch before pulling the trigger
1) The break of the range must be with enough momentum to sustain the move.
Don’t be so quick into pulling the trigger. Wait. Observe the speed. Ask yourself,
is the market hungry enough to break the range? I’m always in hold for 5 minutes
unless the market is so anxious for the move, in this particular case then I pull the
trigger right away
2) The market not necessarily breaks the range at the next bar. Sometimes the market
breaks the range at the next bar but is very shy. The market is testing the waters
Wait…let it go…..eventually the market will break the range and most of the time
@ the direction of the first test .
3) Don’ watch the Tick/Trin/Prem or any of the good indicators. Don’t pay attention
at the tape…. Forget about the gap, pivots, Market Profile..etc don’t let anything
distract you by any means…glue your eyes to the bar
4) You’re not trying to make 100 points in this move. Go for a quick trade. I shoot
for 1 ER2 point with 25-30 contracts That’s it.
Sometimes the market keeps moving your way. Well, secure your profits using
trailing stops and keep going. Just don’t get greedy
5) I don’t want you to start trading this strategy tomorrow and bet the farm, the wife
and the mother in law…well maybe the mother in law…but anyways, familiarize
yourself with this strategy. Do your own diligence and backtest all the way back .
Gain yourself confidence. I want you to say ”well I did a backtesting and now it
makes sense to me.” “I checked that some days the market doesn’t break the
range until three or four bars later but sometimes the break is at the next bar
(sweet)” That’s what I want to hear from you.
6) Use stop-loss in tune with your money management setup. As for me I don’t use
them. I am ready to pull the plug just in case. I don’t advice you go like me with
no protection. You’ll get there eventually
Disclamer and some words
This is an old strategy very used in the floor back in the 80’s It’s not mine nor
anyone’s property. Not to be confused with other methods. It’s a method only
designed for a quick in and out. As I mentioned before, yes you can trail your stops.
Just as you get profitable, don’t get too excited and stretch this strategy to other
limits. The idea is for you to be profitable consistently but at the same time don’t give
the profits back to the market.
Of course this is not the Holy grail. But if you master this trade, could be the only
way you trade for the rest of your trading career, as many of my student’s opinion.
After all, you’re trading in order to make money right???? or I am wrong???
Well I have to be blunt with you. Everyone who I had the privilege of teach how to
trade and learn about this simple technique, are using it exclusively. But I am not
pushing that up to you. You trade on the best of your abilities and if you want to
incorporate it in your trading style, that is fine.
I used this strategy for many years and most of my trades were done before 10:00AM
EST . This strategy is only designed for indices. Don’t use it in another market please.
Do a backtest and see for yourself . It works
Most of the advice you get outhere is made up all about warnings. Well I am not an
exception to that rule. But I notice that so many warnings about losing money makes
you under-confident and weak in front of the charts. Have you ever feel like a deer on
the headlights after you place an order???
You know the warnings. You know there’s always a chance for losing money. Like
there’s always a chance for us to die tomorrow…who knows??
Stop thinking about risk…You are already saturated with it and is impairing your
ability to be a better trader than your are
My mentor used to tell me” Raul, I am going to make your profitable either if you
like it or not” He said that whenever I was like ”Markie this is too much for me I am
losing money blah blah blah…..the crying game, you know
I remember he always said” You’re not allowed to quit. If you do, I am going to
chase you all over the world and hunt your down. Then I’ll bring you back to New
York tied up butt-naked so everyone can see how weak you are. After that, you’ll
meet me at the pit next morning. I was truly intimidated( back in the day, Mark was
like 6’4 full of muscles and I am 5’7, with just the necessary muscles to stay put, so
there’s not too much I could do… His wife was like 5’0 so go figure)
I know it sounds harsh. But look at me now, 26 years in this ride, thanks to Mark
It’s worth it I want you to be profitable….the sooner the better
So you’re not allowed to quit…never. If not, I am going to hunt you
down….hahahaahha Im kidding