Proven Futures Trading Strategies

Discussion in 'Commodity Futures' started by Ausman, Mar 30, 2014.

  1. No trading method will be successful without a solid risk management foundation. I learned this when I started. I now use a 3/3 rule. Meaning I trade until I receive 3 winning trades or 3 losing trades for the day. I use a 1:3 risk:reward ratio. This gave me greater chances of ending the day green. Then I built a strategy that works around my 1:3 risk:reward ratio.

    Here's how it looks.

    W/L
    3-0 Winning Day
    3-1 Winning Day
    3-2 Winning Day
    3-3 Winning Day
    2-3 Winning Day
    1-3 Break Even
    0-3 Losing Day

    This gives me a 14.28% chance of ending the day in red. This also builds my confidence during the day because I know once I win one trade, I at least break even.

    1:2 risk:reward is also good for trading 3/3. There is just no break even point.

    W/L
    3-0 Winning Day
    3-1 Winning Day
    3-2 Winning Day
    3-3 Winning Day
    2-3 Winning Day
    1-3 Losing Day
    0-3 Losing Day
     
    #11     May 5, 2014