Futures-trading strategies how futures trading

Here are three basic types of futures trading strategies with ProFi trend trading, business cycle and seasonal trade.



Trend trading line



What is trend trading? Simply put, you consult trade with trend-like structure diagrams. Market development feels more and to focus less on "Noise" in the daily variations. Markets tend to the direction of the trends in the course of time, so try, against the tendency to almost suicidal Act. Set the stop loss and take profit below trend level, market through resistance.



Cycle trade



Effectively you have to first find the market with reliable cycles trade cycles. Robust cycles in equity index futures, under 20-23 weeks cycles and 14-day cycle. The grain and animals, 9-11 month cycle is markets is a good guide. and for gold and silver in 28-day cycle. Interest rate futures is about 32-day cycle.



Avoid highly connected markets, as this you will be exposed to even greater danger than necessary. tend to go in the direction of marketed. If your prediction is incorrect, it will take a loss on both sides. It is therefore necessary to avoid tend to follow the markets similar basic cycles.



Seasonal sale



Seasonal trade can be one of the most effective methods of trade. While other methods a powerful theoretical support, which have to some empirical evidence for success. On the contrary can method of seasonal trade very little have to better empirically, but to support his theory. This method works on the assumption that certain markets peak or trough in a few months of the year. This applies in particular in the commodities markets, where prices with the seasons vary.



But up to 80% in some markets can create indexes of seasonal price trends. There are three main types of price trends: cash prices, Seasonals in futures prices and in the future. Seasonals in cash prices generally based on month after month. Seasonals in futures prices, work on a weekly or even daily because the futures. new future is created by the previous steps and different contract months will reflect different conditions. Seasonals ahead is in the key relationship between two different, but markets or two months from the contract for the element.