S&P 500 Emini Futures 1D Trend Following Strategy
Emini Trend Following Strategies
The Emini trend following strategy is probably the most powerful. Trend following has the potential to generate the biggest profits. One of the greatest traders of all time Jesse Livermore said that the big money is always made on the big market swings.
We have identified two parameters that can be used to determine when we’re going to have a strong trading day:
Strong trend trading days come after small daily range bars.
Both the closing and the opening Emini prices close near the high and the low of the day.
These Emini price characteristics need to be used in conjunction with other technical tools. It is a simple Emini pattern that can be used to develop a trading strategy around it.
Why Trade Emini Futures?
The main reason to trade the Emini strategy is to have a diversified exposure to the US stock market. While Emini futures are more suitable for day trading they offer several advantages for swing traders as well.
Other reasons to trade the ES contract are:
You can go both long and short. Unlike stock trading, there is no uptick rule when shorting the Emini contract.
Trading around the clock 24-hours per day. This is extremely attractive as you can trade Emini futures around the world. You can also take advantage of the overnight Emini price swings.
Tight bid/ask spreads. The large traded volume through the Emini contract offers cheap costs to enter and exit a trade.
The SPX is traded on a centralized exchange (the CME), which often can translate into much clear technical chart pattern that is unique.
As you can see the Emini futures market is very tempting as there are numerous trading opportunities. However, trading the Emini market without losing your hard-earned capital is a little bit harder. That’s why in order to increase your chances of successfully day trading Emini, we’re going to share the best Emini trading strategy.
With this approach, you can build another stream of income.
The only way you make money in the market is if you’re able to catch a trend. It doesn’t matter if you’re a day trader or a swing trader. In order to make a profit day trading the 5-minute time frame, you need an intraday trend to secure a profit.
The best Emini trading strategy requires to hold your trades to the close. Don’t try to get in and out scalping ES futures because when you have a loss most likely it will eat all the previous profits. Instead, try to catch a trend move and hold it to the close.
With this approach, you’ll make a lot more money because during the trend days the Emini contract tends to close near the high for bullish candles. The same is true for all large bearish range day, which closes near the low of the candle.
Go study your Emini chart and you’ll see this repeating pattern over and over again. Some research suggests that when the Emini futures close in the top 10% of its range, it has an 80% chance of follow-through the next day
Trade your trading plan to find entry, Stop Loss & Take Profit.
The Emini trend following strategy is probably the most powerful. Trend following has the potential to generate the biggest profits. One of the greatest traders of all time Jesse Livermore said that the big money is always made on the big market swings.
We have identified two parameters that can be used to determine when we’re going to have a strong trading day:
Strong trend trading days come after small daily range bars.
Both the closing and the opening Emini prices close near the high and the low of the day.
These Emini price characteristics need to be used in conjunction with other technical tools. It is a simple Emini pattern that can be used to develop a trading strategy around it.
Why Trade Emini Futures?
The main reason to trade the Emini strategy is to have a diversified exposure to the US stock market. While Emini futures are more suitable for day trading they offer several advantages for swing traders as well.
Other reasons to trade the ES contract are:
You can go both long and short. Unlike stock trading, there is no uptick rule when shorting the Emini contract.
Trading around the clock 24-hours per day. This is extremely attractive as you can trade Emini futures around the world. You can also take advantage of the overnight Emini price swings.
Tight bid/ask spreads. The large traded volume through the Emini contract offers cheap costs to enter and exit a trade.
The SPX is traded on a centralized exchange (the CME), which often can translate into much clear technical chart pattern that is unique.
As you can see the Emini futures market is very tempting as there are numerous trading opportunities. However, trading the Emini market without losing your hard-earned capital is a little bit harder. That’s why in order to increase your chances of successfully day trading Emini, we’re going to share the best Emini trading strategy.
With this approach, you can build another stream of income.
The only way you make money in the market is if you’re able to catch a trend. It doesn’t matter if you’re a day trader or a swing trader. In order to make a profit day trading the 5-minute time frame, you need an intraday trend to secure a profit.
The best Emini trading strategy requires to hold your trades to the close. Don’t try to get in and out scalping ES futures because when you have a loss most likely it will eat all the previous profits. Instead, try to catch a trend move and hold it to the close.
With this approach, you’ll make a lot more money because during the trend days the Emini contract tends to close near the high for bullish candles. The same is true for all large bearish range day, which closes near the low of the candle.
Go study your Emini chart and you’ll see this repeating pattern over and over again. Some research suggests that when the Emini futures close in the top 10% of its range, it has an 80% chance of follow-through the next day
Trade your trading plan to find entry, Stop Loss & Take Profit.
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