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A Step by Step Guide on How to Take Your Futures Trading Strategy from a Demo Account to Live Trading

 

This article on How to Take Your Futures Trading Strategy from a Demo Account to Live Trading is the opinion of Optimus Futures

Futures Trading Strategy

Many traders who develop their own trading strategies often go nowhere despite their best efforts. Most often fail due to reasons that are entirely preventable:

  • Some traders are simply too afraid to go live, so they spend months to years “perfecting” a system in simulation that will likely be destroyed in a few minutes of live trading.
  • Other traders who go live may end up terminating their live testing too soon upon experiencing a drawdown, a situation that may prevent them from giving their system a fair chance.
These scenarios are preventable if you take careful and calculated steps toward bringing your system from a simulated to a live

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Top Three Technical Indicators for Futures Trading

 

Technical Indicators

The following article on Top Three Technical Indicators for Futures Trading is the opinion of Optimus Futures.

As a futures trader, it can be quiet overwhelming to find the right technical indicator with all the options available in the marketplace. After all, no one likes a chart overlaid with too many indicators yielding conflicting and confusing signals, making trading stressful and daunting.

In this article, we look at three of the top technical indicators that may potentially assist you in selecting higher probability trades and managing them effectively.

Moving Averages

Technical traders have been using moving averages to trade for almost as long as digital trading has existed. That is one reason why moving averages work so well in the first place. The more traders that follow a particular technical indicator, the higher the chances that indicator

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Improve your Chart Reading Skills: How to use RSI, MACD and ADX Indicators

 

This article will go over the advantages and disadvantages of the RSI, MACD and ADX Indicators. We identify the market conditions that best leverages their strengths and how to complement them with other technical analysis tools to offset their weaknesses in order to improve the accuracy and timing of your trades.

RSI (Relative Strength Index)

Although the RSI (Relative Strength Index) indicator is usually listed under oscillating indicators, it really should be seen as a trend indicator. A quick look at the RSI formula shows that it measures the momentum of price movements. This incorrect classification as an oscillator can easily lead to problems when traders try to use the RSI in ranging market periods, where the indicator loses its predictive power. In fact, the smaller the range, the less ideal the RSI becomes.

To counter this effect, a trader could add a true oscillator like the STOCHASTIC indicator to his toolbox. Then,

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How to Read Bull and Bear Market Phases – Accumulation, Participation & Distribution

 

Dow Theory is a cornerstone of price analysis and its principles have been time-tested over decades. An understanding of the three market phases and the trend cycle concepts within the Dow Theory can help traders make sense of the way price moves and shed new light on how bull and bear markets are created.

The Dow theory distinguishes between the accumulation phase, which is where the ‘smart money’ starts to accumulate positions very early on, and the public participation phase where the trend has become apparent to the ‘typical investor’ and retail traders. The third distribution phase is the final stage where the market tops and the smart money is unwinding their positions while the average investor is usually still adding to their positions. Let’s now take a closer look at the individual trend phases and what is important to know here.

 

Market Phases accumulation distribution

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Deciphering Order Flow – Understanding The Mechanism That Moves Price

 

To understand the mechanism that moves the price up or down we have to learn the interplay between the Depth of Market on one side and Market Orders on the other hand. This interplay is the Order Flow. We used SierraChart Trading Platform for the illustration.

The Current Price is the last price in which a trade took place. This last trade could have taken place either at the Best Bid Price or at the Best Ask Price. Those two terms will make sense in a minute once we understand what the Depth of Market is.

The Depth of Market is the total Size of limit buy or sell orders that are placed at each price. It is often called Liquidity, Limit Orders, Passive Orders or The Book. Take a look at figure #1.

Order Flow Figure #1:  The Emini-S&P500 DOM ( Sierra Chart charting and trading platform.)

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