Delta Trading Group’s methodology for day trading is an established system used to make money whether the market is trending up, or trending down. One of DTG’s Pro Trader Instructors explains how to evaluate a trade on the S&P 500 E-Mini. Click the subscribe button to keep up with our weekly videos! To schedule your 2 free visits call us at 888-646-8787, 888-788-1788 or visit us at DeltaTradingGroup.com.
We have consulted with Dr Clifford Vance Cast, Delta Trading Group, SP500 E-mini Trading Group, and the micro E-mini Trading Group in the marketing of this officially sanctioned video on Futures Trading.
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PARTIAL TRANSCRIPT:
Our trading methodology is a proven way to mitigate your risks, while being
profitable. Rob Betsch who is one of our pro trader instructors, reviews how to
evaluate a trade using Delta's method for trading.
So what we're going to do today is evaluate a few trades that came
in on a downtrend. So instead of looking at a typical trade that most people
would think where we buy low, sell high, we're actually going to sell first, and buy
a back at a cheaper price and that’s called shorting the market. So we make
money going in both directions. We can make money when the price action is
going up, and we can make money when the price action is going down. As you'll see
here, our price action is definitely going down. We even have a 90 minute EMA, this blue line,
that tells us that the price action is going down. Here we clearly see the price action is going
down. We have lower lows, lower high, a lower low; so we've determined that the
price action is going down, that we are in a downtrend. So now we're going to
look for a blue ball. We look for blue balls when the trend is down, green balls
when the trend is up. Because the trend is down, we're gonna ignore the green
balls and we're only gonna look at the blue balls. So right here, we have a trade
that meets the rules and I'll go over this blue ball right here. This blue ball, let me circle it.
We’ve determined that the trend is down, so if we go through our rules and our
rules are- The trend, the retracement, the cloudy stop, and our headroom for profit.
So, if we go through each one of those, and we measure
each one and determine if they meet the rules, we can do this fairly quickly and fairly easily.
So, we've already determined our trend is down, so we can go ahead and let's give
that a smiley face. So our trend is good, we like that. Our retracement, so we're looking for
a 30-50% retracement on the price action. We're measuring our price action and
we're lucky here, because the Pesavento lines actually give us our price
action. So, we're measuring our price action from there, to there. So we can
draw a line and as you see, it meets up with the Pesaventos. And then our
retracement is always going to be going in the opposite direction of our price
action. So our retracement, in a downtrend, is always going to be the
green candlesticks. If we're in an uptrend, it's going to be the blue
candlesticks. So if we measure our retracement, it came up from our lower
low, to our lower high. If we chop this in half, we're looking for a 50% retracement.
So if you figure, that's about 50%. Well, if we come back from here, from our point,
we're looking at about a 60% retracement; it's within our range. 30-60% is fine, we teach
30-50%, but we know that 61.618 is the golden mean, it's the Fibonacci. So, 61.618 is actually a
perfect retracement. So we're gonna go with the 60% here. So our retracement is
great. So let's give that a smiley face too. Now we're going to look at our cloudy
stop. Our cloudy stop is where our -3 lies in relation to the most recent price action.
So if we take our trade here, at 2940, we'd be right here, if we go back here and look. It's at 2940,
and we count up 3. 1, 2, 3 we'd be stopped out at 2943. Well, you can see
that our stop is above the retracement and it falls about where our 60% is,
so we might want to take off one for the cloudy stop. So we're looking
good there, it's still a good cloudy stop. And our headroom for profit, is where we
would make 4 points.
If you'd like to sit in behind the scenes with Delta trading group, call 888-646-8787. You can also go to
DeltaTradinGroup.com to see if you qualify to join our Academy.
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