So here is my new day trading strategy for the Live Cattle and Lean Hog Contracts.
Daily goal is $300/day minimum with a strict policy of not chasing extra profits once threshold is reached.
Principles are: do not trade the opening volatility, 1 or 2 trades per day, trade break outs and persistent trends, place tight slop loss orders after entry.
The strategy entails following the daily trade and placing 1 or 2 trades each day of 5 contracts or 10 contracts. Each tick gains $50 for 5 contract positions, $100 for 10 contract positions. Commissions or just under $10 per contract.
My question is, does this strategy of short 'get in get out' trading have a high likelihood of making the $300 per day objective assuming on 1 or 2 trades will be made each day with significant evidence of a daily trend? To me it's an aggressive trade witha conservative strategy as opposed to the deadly 'scared money' systems of aggressive strategy and conservative trade.
1) It would be "better" to swing trade the livestock contracts. It would be better to daytrade a higher-volume, electronic-based, financial-contract instead.
2) The problem with "capping" your daily profit at $300/day is that you will leave a lot of money on the table and miss out on bigger trends and then have to "work" harder to earn that money.
3) Most of the day's trading range can occur early in the session. It'll become tougher to hit your profit goal if the market stagnates the rest of the day when you're "ready" to trade.
4) It would be better to trade electronic-based contracts with lower fees/commissions and instant access. (Do hogs and cattle trade on the screen, the pit or both? It's been too long since I've actually traded them.)
5) The "strategy" can work but its disadvantages are well apparent.
6) Daily trend?....Re-read what I said in (3). How much of the trend will pass by before you're confident enough to jump onboard?
7) It's an aggressive strategy. There's nothing "conservative" about livestock trading.