Approach on using a Swing Trading system view to exercise discretion over a mechanical Day Trading System
How can you filter out more losing days and increase win ratio while not adversely changing risk reward in a day trading system…? Some might say you can’t. How would you be able to select trades opportunities that resulted in this kind of move?
They would be the people who probably did not learn to swing trade first… These are the people to avoid. The Statistics are you should start life off trading position, swing then day trading or you are probably going to lose… even if your day trading system shows great potential…
The reason is you need to see the bigger picture and the higher time frames, ranges and price cycles, higher time frame price analysis – look for a market that has ripe conditions – understand what makes the market move and how that looks for day trading… day trading ranges and moves are more symptomatic of large smart money swing trading – versus the effects of retail day traders… time and trend and large money/pressure makes it move. Recognize on higher time frames where the significant buys and sells are likely and – then try and align with this analysis trade it perhaps intra-day…. perhaps a simple way to do that is with the session open looking for it to break significantly and stay in – let the winners run… the cliches really do work in trading when used correctly.
So here is one way you can do this using the components inside the MicroTrends NinjaTrader Framework + using the analysis to guide your decision as to when to let an automated trading system enter a trade for you – the idea being you are increasing the odds in your favor… instead of relying on a blind mechanical system using a parameter set that is tested to be robust, offering only pure probability and win ratio/ risk reward /expectancy to do it for you.
Scanning for Ripe Market Conditions – Planning the trade in advance
So in summary we are looking to take signals intraday that are aligned with potentially huge moves! So you risk a small amount of money and realize a multiple 10 times larger for example…
You stop wasting and shooting your ammo off – until its really a good identified target – then you trade… but with rules… to stop over trading…. trade less and achieve more… of course this is not going to make the broker rich but you can’t please everyone 🙂
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