How I trade Futures

This is how I trade Futures, I've got fairly simple rules, and when I keep them I make money on the long run, I'd like to share the rules with the world, and if anyone will follow them, he will make money.

Money management:

This rules will keep you alive in the markets on the long run, and they are probably going to save you from having a heavy loss.

1. Risk only 1% of your account each day, once you got to that point of losing a percent, leave the computer, don't let your emotions take over.

2. Trade only 1 contract per each 11K$ in your account, if you trade more than that you will make money faster, but when you lose, you'll finish the day after 1 losing trade, which is bad statistics and the odds are against you to make money right on the first trade of the day.

3. Always move your stop loss in the direction of your trade, never against it.

4. Finish a day after making 2%, or if you traded a lot that day and you are going to pay a lot of commissions, just finish the day either in a minimum amount of profit, or with your daily risk money (%1 max!)

Technical analysis:

1. Enter on simple situations, like channel breakout, support break, or riding the trend the market is currently at, I find that what works most of the times is watching the 15 minutes chart for a channel (longer time frame trend) that is broken, usually after it breaks the market surge in the other direction.





2. Time frames setup - Look at the daily for long term trend, then on 3 days 60min chart for possible support and resistance levels, 15 minutes chart for the current trend, and 5 minutes chart for your entry, always look for confirmation that what you are doing is right in all of the time frames.

3. Pivot points and support and resistance - The experts are looking at it, so you must do it too, whenever you get close to one of those levels, scale out of the trade a little to minimize risk, usually the futures will get stuck in those levels, but once it breaks it, you can buy or short for a nice and FAST profits.

4. Exit method, stop loss at -10 points, profit taking is on the usual break of a trend, and when you are at 10 points profit, higher your stop loss to +5, this keeps you away from a side going market.

A little disclaimer - I'm not recommending anyone trading with his money, I do not offer trading advise , I merely here to post my progress, my technique, and the way I trade, in order to learn to do it better.