Trading Tips and Strategies Archives • Futures Day Trading Strategies

Posts in Category: trading tips and strategies

How to Trade with Support and Resistance Levels


The following article on How to Trade with Support and Resistance Levels is the opinion of Optimus Futures.

Support and Resistance levels are concepts that are so fundamental to technical analysis that any lack of understanding in their formations and indications may serve a major impediment to any trader’s technical progress. This article has two general goals: first, it aims to cover the basic concepts surrounding support and resistance; and second, it aims to provide a few tips on how to use support and resistance levels in your trading.

What Are Support and Resistance Levels?

Support and resistance points at which price trends reach a temporary limit, either to reverse or continue in the direction of the original trend. Why do prices reach this limit? Because demand has increased above supply (support),

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How to Measure Your Futures Trading ROI (return on investment)


The following article on Futures Trading ROI (return on investment) is the opinion of Optimus Futures.

futures trading roi

There is a plethora of metrics you can use to measure almost every aspect of your futures trading. Too many, perhaps. You can measure volatility in a given market. You can even apply similar metrics to your trading performance and equity returns. You can measure risk-to-reward, profit factor, and even mathematical expectancy. You can use the sharpe ratio, sortino ratio, sterling ratio, and MAR ratio and more if you so choose. You can even find some way to assess your trading psychology for whatever that’s worth. Does any of it make a difference? Sometimes yes, sometimes no.

At the end of the day, however, all that matters is how much more or less sits

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How to Read Level II Market Data | Analyzing Trading Activity on the DOM


The following article on Level II Market Data is the opinion of Optimus Futures.

Are you trying to switch to DOM trading? Do you wish to use the data on the DOM to complement your futures trading on the charts?  This article will explain the hidden details behind the flashing numbers that you see on your DOM. Read on to get a better understanding of the Level II data and learn a simple strategy on how to read level II data in order to identify market direction.

What is Level II Market Data?

First, let’s go over what we call Level I.  At its core, Level I displays the best bid-offer-volume quotes in real-time. Some call it Top of Book.  On the other hand, Level II, also known as Order

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Is Scalping Futures A Sustainable Trading Strategy?


The following article on futures trading scalping strategies is the opinion of Optimus Futures.

Scalping is a trading strategy that involves capturing profits from small price movements–as small as one to a few ticks. In order to make a profit, you often have to execute a substantial amount of trades a day. It isn’t uncommon for scalpers to make anywhere from ten to a hundred trades a day as each individual scalp trade typically generates a minuscule profit.

While scalping sounds good in theory, it comes with some caveats:

  • Since you must carry out a large number of trades, the transaction costs from fees and commissions can eat up a lot of your gains.
  • Considering that trading volume and liquidity may differ from minute to minute, you can never predict when price slippage will shave a tick

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An Introduction to Tick Charts and How to Trade Them in Futures Markets


The following article on Tick Charts is the opinion of Optimus Futures.

Traders use a wide variety of charts to analyze markets. Most charts, however, are time-based, and traders’ cycle through different time frames to match their specific strategy or preferred time horizon.

Longer-term traders may use daily charts to get a sense of the big picture while using hourly charts to plot entries and exits. Short-term traders may go as small as using 1-minute charts to trade price action.

But what if your short-term goal was to trade on the smallest “transaction” level? What if you wanted to trade price breakouts not on the level of time but on the level of each transactional “tick”? If this aligns with your trading objectives, then you might want to consider trading Tick Charts.

What is a Tick Chart?


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