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Tuesday, May 18 2021
 Futures D'Amour - Triple Play!! Trading 3 markets,  Q&A with Rob

Q&A with Derek aka "Futures D'Amour"  of Futures Networks Live

Check out his YouTube Channel at  https://www.youtube.com/channel/UC-201QPDXCJky32NvkmBcmw
 

Rob: Hey Derek, I see that you record and post a YouTube video Monday - Friday  for Futures Networks Live under the name Futures D’Amour.  Could you give a bit of history on why you started doing this for FNL?

Derek:  Sure, thanks for asking Rob!  Our goal at FNL (Futures Networks Live) is to help each other become consistently profitable traders (Futures, Cryptos, Options, Stocks, etc)

One of our members, Jeff B, has about 3 years of recorded data pertaining to Opening Bell, where he has about a 57% win rate using proper risk management. My idea was to use his data and record it each day so that we have a record and we can look back and learn, grow, and modify to become even more profitable!  As you know we use a “PSR” system which states that our goals are combining “Position, Situational Awareness, and Risk Management“ before we make a decision in entering a trade.   I also have an idea of promoting other traders and financial YouTubers that I personally like, so I wanted to learn how to do videos and become more proficient at making them!  I have a passion for passing on good information, so doing these videos sure fulfills that desire!  The main focus is Opening Bell right now, but I have done a few “subject” oriented videos – like “Stress Free Trading,” “RSI Divergence,” or“50 & 200 period EMA crossings” etc.

Rob:  When did you start the videos on YouTube?

Derek: I went back and looked, and only around Feb 1st of this year!  I feel that the videos have come a long way already.  Originally, I was just recording the S&P 500 OB trade and what the  S&P 500, the Nasdaq, and the Russell were doing each day.  Around March 24th, I decided to start trading all 3 of the markets around Opening Bell!  for the first 3 weeks it was pretty random with Limit Orders and going different directions in each of the markets depending on what I saw... Now for those 3 weeks I had great success, but I was thinking that it would be hard to replicate and back test.

Rob:  So what did you change? I’ve noticed that your videos are different now.

Derek: Well Rob, 2 things happened almost simultaneously...

1) I changed my risk management to a 2:1 Profit/Loss ratio (from a video that I watched showing the spectrum of Swing Traders  versus scalpers), and I determined that I’m more of a swing trader than a scalper! This means that I only have to be correct 36% of the time to break even

2) When Travis and I were helping Virginia S with a NinjaTrader charts, it  became an amazing solution to be able to physically see different markets on the same chart all in sync with one another!   This has revolutionized how I can watch charts! Sometimes they are all moving the same direction, almost herd mentality, and other times you can tell that there is rotation out of one (or two) and into another market. Now I do all 3 markets in the same direction (LONG OR SHORT) with the 2:1 ratio and it seems to be working very well. 

The S&P I’m choosing a P8S4, the Nasdaq I’m choosing a P24/L12, and the Russell I’m choosing a P10/L5. Always maintaining the 2:1 ratio.

Rob: This sounds great! Do you see yourself changing anything as you learn?

Derek: The first thing that I’m going to do is set “Ninja Alerts” so that I purchase the 2 contracts with a few seconds to go prior to Opening Bell.  I will probably go both directions to see  there is one that seems more profitable, AND who knows with the 2:1 Risk Management ratio I may end up making money more times that not.  I’m also going to have one of our awesome members help me to make a strategy builder for back testing so that I can try different perimeters to see if other risk rewards are actually more profitable

Rob: Thanks for your time and helping us understand what you call the “Triple Play” in the Opening Bell session

Derek: Anytime Rob

Futures D'Amour on YouTube:  https://www.youtube.com/channel/UC-201QPDXCJky32NvkmBcmw

Posted by: Derek D AT 11:46 am   |  Permalink   |  1 Comment  |  Email
Tuesday, May 11 2021
Do your homework if you want to get ahead!

I am not sure who told me that in my formative years but it sure has stuck with me.  As I contemplated this blog, that phrase kept buzzing around in my head.  I believe this is especially true when it comes to trading.  I approach trading, like most endeavors in my life, as a puzzle to solve.  Or said other ways:  how I get ahead in this game; how do I win; how do I advantage myself.  So, as my trading mentor told me many times, “do your playbacks!” (Homework).

Let me tell you my story to help illustrate the point.  I was in an opening bell class with a dozen or more traders and was doing OK, but not great.  Then I started to see patterns in the price action as I traded OB day after day. The feeling that I had “seen this price action before” got stronger and stronger with each trade.  I mentioned to my mentor that I thought I wanted to trade opening bell with live money, to which he responded, “Do 200 OB playbacks, then come talk to me.”  I could have chalked it up as being politely blown off but it only hardened my resolve.  I did the 200 playbacks, but started to see other patterns.  So I decided to use some of my engineering and Six Sigma training to organize and streamline my effort to find a trading advantage.

Let me give you the 30-second Six sigma overview.  Approach any problem with a DMAIC process:

D = Define the problem

M = Measure the current state

A = Analyze the data you collected

I = Improve the process or situation

C = Control the process so you can get repeatable, improved results

So I put forth a hypothesis of what I thought mattered most in the moments before OB (trend, price action turn around and previous days’ closing price).  Then I redid the 200 playbacks collecting detailed data.  Now I could quantify how much of an advantage each factor gave me going into OB.  I did my home work, twice.  As I analyzed the data I found that my original ideas had to be tweaked to get an advantage.  The analysis was not complicated:  it was simple averages, percentages and standard deviations (just like Bollinger bands).  So I knew the precise advantage for each combination of indicators.  After testing my new-found advantages in simulation I eventually went live and now OB is my best-performing trade.

So, decide what you think makes a difference in your trading, and “Do your homework”!

By Jeff B, GA

Posted by: Jeff B. AT 08:06 am   |  Permalink   |  1 Comment  |  Email
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Visit David Jeffries FNL Blog Site

Don’t take life so seriously, no one gets out alive!

My picture taking hat.

 

"At some point, you will find your life is changing and you have to roll with the punches or get knocked around pretty badly as the waves of time get rough and rougher.

Getting younger is not an option. Getting old is the best option, but it comes with conditions. (read the fine print:)

When that time comes, look at what we do here in the FNL trading group and understand it is a chance to start over and start bigger than ever. If you want to earn extra money or re-start your career with  great pay increase, then you can learn how with an awesome group of people that are committed to each other and learn together.  On patrol or on deployment; a battle buddy or your patrol partner is a must. We recommend one for trading also." -David Jeffries, TX