Profitable trades will stay in profit upon inception with greater duration when placed coinciding with the predominant trend on the timeframe your trading. Meaning price will retrace only briefly between your entry point to stop loss point interval. Then it will resume price trend into profitability
SP500 index calculation ---> who calculates and publishes it to all the newsfeeds... SP500 Futures ---> futures move at spread from cash... 1) if you can calculate the index ahead of anyone else using the individual components then you can move futures in direction of the next calc. 2)If your going to profit on the variability of the spread between cash and futures you can execute program buying or selling on individual index components to bring the spread inline. which ever side is pressured first drives the other.
data mining ---> analysis -----> extracting edge ----> system design ---> implementation -----> analysis -----> redesign.
If your a struggling trader.... wait for a market that is volatile and slap exponential moving averages on a tick chart. Trade it with the signals, and increase account size. or if your a hedge fund, scan the various markets all over the world that you have access to, look for securities that meet your volatility filter. Slap some exponential moving averages and sit back..
how would you go about assessing volatility based on the different metrics of a given market? - tick movement per second (micro price structure) - order flow size on DOM (micro price structure) - price variance (macro price structure)
in a uptrending market with price increasing over multiple years. Entries should be on the buyside at bottom of ATR and vice versa.
increased volatility is a sign of tops and bottoms, we havent seen that yet. Target is 1525-55-75 zone.
http://youtu.be/_KrmgZR_jPg SPECTRE Gunship, I wish our boys that died in Libya had a President that ordered one of these out to help.