Strategy 1 trade per day on forts. The first lesson of the Online Course "Scalping
Derivatives are traded on the derivatives market financial instruments- futures and options contracts for a whole list of groups of underlying assets, such as stocks, bonds, indices, currencies and commodities. Stock market instruments are perceived by many traders as assets for investment, and derivatives instruments are associated with various types of speculative transactions. Traditionally, such speculative strategies, like intraday ones, are implemented precisely on the basis of, and there are a number of explanations for this.
Prerequisites for speculation in the FORTS market
Trading volumes on the derivatives market often exceed the volumes on the stock market, as well as the number of transactions with the most liquid futures contracts in comparison with the most liquid shares... Moreover, a very large share of transactions in futures contracts, and especially with futures, is opened and closed within one trading session, which is an indicator of the speculative nature of these transactions.
Even from the word "urgent" in the name of the market, it is clear that contracts on it have time limits - the date of the beginning of circulation and the date of execution (expiration). Accordingly, any deal made with urgent contacts is a priori limited in time. The stock market is focused on the long-term investor. In the long term, the stock market grows and stocks can be held for as long as you like and even be inherited.
In the derivatives market, to complete a transaction, there is no need to pay the entire cost of the contract, it is enough to deposit a guarantee, usually 10% of the amount, which provides the effect of the tenth maximum leverage. This allows, subject to the rules of risk management per unit of investment in the derivatives market, to earn much more than in the stock market. The guarantee for the most liquid futures on the US dollar is 3488 rubles. (in the future, this amount may change), which with a contract value of 58 125 rubles. allows you to buy 16 contacts for the cost of one contract.
Since when opening a short on a futures, the seller makes a guarantee, assuming the obligations of the supplier of the asset in a pending transaction, he does not take anything from anyone with an obligation to return, in contrast to the stock market, where the seller takes the required number of shares from the broker to short. for short sale. Therefore, there is no such thing in the derivatives market. margin trading, and it is free to short sell even with a postponement overnight. Considering that it is not necessary to make a deal in futures with the nearest contract (it is also possible with later expiration dates), short deals can be concluded for a period much longer than one quarter.
Commissions on the derivatives market are much lower than on the stock market, and the exchange itself does not take a commission for exiting a deal, the opening and closing of which took place within one trading day on the derivatives market (from 19:00 on one day to 19:00 on the next day). So, the exchange commission for registering a transaction with futures contract per US dollar is 0.81 rubles, or 0.0013% of the contract value (58 125 rubles)
It is worth considering that for urgent contacts (for stocks and bonds) neither dividends nor coupons are paid, which makes their long-term retention less expedient.
In total, all these prerequisites allowed speculators to actively make money on the derivatives market.
Speculative strategies in the derivatives market
The main strategies for speculation in the derivatives market include scalping, intraday and swing trading.
Scalping is a type of trading in which a trader enters into a large number of transactions with a traded instrument within a session (10-100 transactions per day) in order to fix a relatively low profit on intraday price fluctuations. Traditionally, scalpers in their trading use charts of the price and volume of the traded instrument, correlated assets, as well as the tape of transactions and the order book. The purpose of scalping is precisely to catch the price impulse, in order to identify which scalpers track the indicated instruments. It is worth noting that scalping may seem like a simple method, but it is the pinnacle of a trader's skill.
Intraday trading is a trading method that aims to capture intraday trends in traded assets without carrying positions overnight. Unlike traditional scalpers, which do not perform technical analysis charts, do not follow the market news and published statistics, intraday traders conduct research data. In intraday trading, on average, 5-20 deals are made per trading day - less than in scalping, which is due to the long period of holding the intraday trend in comparison with the scene impulse. Now the border between intraday and scalping is being erased.
Swing trading differs from intraday and scalping only by carrying over the position overnight in the presence of favorable market conditions. Moving a position is theoretically a profitable move, as opening candles are often large in size compared to intraday candles. But being in a trade at the time of opening also implies an increased risk, since the price can change sideways against the open trade, which makes necessary holding a thorough analysis of the feasibility of such a transfer of position.
Well, speaking of speculation, one cannot fail to note conservative positional trading, which involves holding a position from several days to several weeks in order to profit from the formation of a certain price trend. Positional trading is present both on securities(stocks) and in futures, but in futures, the profit from it is maximized using the "leverage" effect. V positional trading big role dedicated to technical research and news background.
Conclusion
The purpose of speculation on the FORTS derivatives market is to make a profit from both intraday and longer-term transactions. The prerequisites for such speculation are the factors that have been discussed in this article. Otkritie Broker will always help you to learn the intricacies of speculative trading and start making money on the stock exchange.
"What am I risking and what can I earn"- the first thought that should arise before the decision to make a deal on the market. We cannot be 100% sure that it will go in the direction we need, and therefore only by learning to "cut" negative trades and "hatch" profitable ones, you can bring your trading system to a stable plus. Using the example of the main futures I trade Russian market, i I'll tell you in this article what and for what profit is worth risking. First, calculate the daily potential for a trade. It is not at all difficult to do this, knowing the ATR of the instruments traded. RTS on average per day from high before low 2500 points go, but this figure is approximate for the current period, it can naturally change. You can build on the last two weeks. Accordingly, having earned 50% -70% of the daily price movement in a deal, it will be just great! 50% is 1250 points. When making deals within the day on small timeframes, it is enough to set a stop of 250-300 points, respectively, the risk to profit goes even more than 1 to 4. But I will still calculate the option here if I just take 1 to 3 (300 stop or 900 take) twenty trading days 3 deals per month = 60 deals For example, I will consider 40 trades (66%), stop-out - 300 points and 20 positive trades (34%) with a take-profit of 900 points 300 * 40 = 12000 points 900 * 20 = 18000 p. Accordingly, even if 2/3 trades are by stop, all the same by the end of the month, you will be with a plus of 6000 p. The second example, even more pessimistic, 45 trades (75%) by stop and only 15 trades (25 %) by take !!! 300 * 45 = 13500 p. 900 * 15 = 13500 p. Even with 75% negative trades, the deposit will remain around zero, slightly less due to slippage on the stop and commissions of the broker and the exchange. By increasing the take to 1000 points, the system will go to zero even in such a bad scenario. The question immediately begs to all of you, so why do 97% of traders drain their deposits ??? Yes, because most of this same risk management does not comply. Do not put stops. Either the risk is very high per trade, or they simply do not incubate a decent one !!! For tools like GAZR, SBRF, Si, the optimal stop for intraday trading will be 20-25 points, the take is 60-100 points (here you need to look separately from the potential of the transaction according to the chart). In points, the risk and profit can naturally change, depending on your trading system, but it is important that the advantage of 1 to 3 or more still remains with you. In real trading, sometimes the risk to reward can go up to 1 in 20 or more, but this is on shock days. It is these days that make it possible to display the trading month in a good plus! The risk per trade is now clear, but the risk per day as a whole is shown below in the example of calculating a deposit of 100,000 rubles. This table also describes the number of contracts and how much money will be needed to carry out a particular transaction, without going beyond the daily risk and the ability to carry out three transactions simultaneously on different instruments. The optimal risk of losses per trading session for such a depot, I think, is 2000 rubles. The larger the deposit, the more carefully they will need to work and reduce the risk for the day. The most difficult thing is the mathematical calculation of the trading system and risks, and their disciplined observance. Observe risk management and may profit come to you !!!
Greetings colleagues.
We have already posted a post with a description of the course program. If someone missed it, then go to our profile and find it.
In this post I want to tell you in more detail about what we have prepared for our students in the first lesson.
There is a desire to describe all the tasks in this way, so that you can fully assess the amount of material that we give.
The first lesson of the Online course “Scalping. Active intraday. ”Stock market trading is a popular topic and attracts many people from different cities, different ages and work experience. Regardless of the input parameters, everyone is united by one goal - to make good money in the market.
We always start our classes with theory. It is very important to understand not only what exactly you are trading, what laws and procedures are there. In the first lesson, students are told what stocks, futures and their features are. How these markets are regulated, where to look for information on instruments, the opening hours of the exchanges and an overview of the main trading instruments. We also give recommendations on the literature and materials that need to be studied.
Now is the time to start setting up workspace and terminals ...
For quality work a trader's first step is to prepare the workplace. On this site I have already seen a post on the topic of the trader's desktop. Recommendations: stationary computer, 2 monitors, wired mouse and internet. It is also important to have a comfortable chair, because a lot of time will have to sit at the computer.
Now you need to start setting up your workspace. Our team TeamTraders uses 2 terminals.
terminal for technical analysis: Quik, Transaq, Smart-x or other terminals.
We need them to analyze data and assess general trends.
2. Cooper drive... We carry out all transactions through this terminal. The terminal is free and very convenient. This terminal is connected directly to the exchange, which allows you to receive and send orders as quickly as possible.
In the first lesson, we teach how to properly configure the terminal and specific tools. The functionality of the program allows you to very conveniently display the most important parameters of the market. We set the settings for each instrument so that you can see large orders and deals. It is very important to set up personal parameters for each stock or futures, because the instruments are different and the trader must take these features into account.
Trading is carried out using "hot keys" and it is very important to set up comfortable parameters for yourself. As a result, after the first lesson, the trader already has a configured workplace and an idea of what and how he needs to do. It remains to consolidate the knowledge gained by doing homework.
Despite the theoretical component of the first lesson, it is nevertheless very important. Correct configuration of terminals allows you not to miss important information and to minimize the time for data analysis.
Join the TeamTraders team
There is nothing more useful than communicating with real professionals in their field.
1 Blokhin Boris Nikolaevich- Head of the department for work with participants in the stock market of the business division Stock market OJSC Moscow Exchange, participant of the Best Private Investor 2009 competition, one of the TOP 40 best traders in terms of profitability (out of 813 participants in the competition). The data is given as of 20.11.2009 (according to the website www.rts.ru), the competition was completed with a yield of 664.18% per annum; participant of the competition "The Best Private Investor 2012" with a pool of clients, the best of which showed a return of 54.84% per annum. Data is given as of 15.12.2012 (according to the website investor.micex.rts.ru).
Boris Blokhin: “This seminar will not leave anyone indifferent: for some it will become the entrance door to an interesting and dynamic world of trading, for others it will be an opportunity to correct mistakes, optimize an existing strategy, and someone may decide that this activity is not for him , and thereby also earn money without losing it. "
At the end of the seminar, you will learn:
- what is the specificity intraday trading futures on the RTS index;
- how to prepare yourself and your workplace for active trading;
- how to find entry and exit points from a position;
- how to build your own strategy for trading RTS index futures, relying on the experience of professionals;
- everything about the risk management system, the psychology of active trading;
- get acquainted with the strategy of the participant of the "Best Private Investor" competition.
The most important thing:
you will save time searching for information and building your trading system (from several weeks to several months).
you can save tens and hundreds of thousands of rubles on the mistakes that all traders make.
Course program:
Lesson 1. Preparation for trading.
- Why do we trade futures, which ones are the most interesting. Peculiarities of collateral and the effect of financial leverage. Basic futures trading strategies.
- Setting up the QUIK trading system for active trading. Ease of use and increased information content. Formation of settings for the most comfortable and profitable trading.
- Drives for active trading and terminals for viewing world markets. Semi-automatic trading systems terminals for viewing world markets that make it easier for a trader to work.
- Psychology and typical mistakes traders. Why the minority earns on the derivatives market, how to avoid losing money, how to overcome your psychology. Artificial constraints in trading.
Lesson 2. Preparing for the working day. Impulse analysis.
- Preparing for the working day. Morning technical analysis, 3-screen method, setting "beacons". Time zones of trading.
- Analysis of the course of trading. Guideline analysis and impulse impact levels. Divergence analysis, order book analysis.
- Impulse trading. Grounds for entering a position, risk management.
Lesson 3. Intraday trading. Formations.
- What formations are and where do they come from. Graphic, time-based formations.
- Typical intraday formations. Work at the opening of the market, recognition of shock days. Breakout strategy and counter-breakout strategy.
- Risk management in intraday trading. Position control.
For the nearest date of the seminar, check with the manager: 8 800 500 99 66 (ext. 4),
In most cases, I present myself to my readers as a mid-term investor. But most of my trading practice is devoted to rather tough speculations on the rules intraday trading... Over the years and the growth of the portfolio in absolute terms, the size of its speculative part has decreased. Now about 90% of the funds are allocated for investments in Russian and foreign shares, and the rest for speculation in the Russian derivatives market.
Universal rules for day trading
I am often asked why I trade in the derivatives market? At one time, it just became more comfortable for me. If I had to make a decision where to trade speculatively at the current moment, I don't even know which I would choose, because now there are opportunities to take out more loans on stocks than on some, and not worry that expiration will interfere with the plans. Sometimes I think, maybe I should shake old things on the "stock"? But for now I will refrain, since I have not yet studied everything in the derivatives market, and I don’t want to be diffused.
However, my strategy for intraday trading in the derivatives market will celebrate its fifth anniversary in November this year. Already, the results are quite good, I do not like to announce them as official, as there were long breaks in trading in fixed-term contracts. But, nevertheless, if these gaps are not removed from the statistics, then the profitability will rise to 120% per annum with a maximum of 40%.
Very often, when working on the derivatives market, I do not go out with a deal beyond one day. I think even if you have not appreciated the results of my practice, I understand that they are modest for the market I have chosen, then my rules for intraday trading in the derivatives market will be useful to you, since they can be adapted to any time interval and for any exchange instruments.
So, let's figure it out in order.
When do I stay within one trading day?
- When I trade intraday, I trade against the main trend.
- When between and resistance there is too little profit to pull the trade for a week or more (less than 2-2.5%).
What do I trade within the day?
- Futures: Gazprom, Sberbank, RTS, Si.
But, as I said, the rules of intraday trading presented below will be universal after some adaptation.
How do I trade intraday?
According to the classics. The advantage of this method is that whenever I open a terminal, I can see the idea and not be tied to the monitor.
The downside, especially for beginners, is that it will be difficult to deal with the subjective aspect of this method. Experience is needed here!
Working slices for day trading?
Most often it is 1 hour, sometimes 15 minutes - for. And God forbid you to trade in 5 minutes if you do not have a robot or at least a trading advisor that automatically generates signals.
15 simple rules for day trading
- Check the trend on the underlying asset.
- Check the main one on the glued futures.
- Do not trade for a week before and after expiration.
- One day for analysis (that's why I don't trade speculatively on Fridays). You can take the weekend as this day!
- Do not open trades with a yield of less than 1%.
- Replay all signals of trends, Fibos, horizontal lines, figures that I see.
- If it is done, then the next deal after the filter is 1 hour.
- If the "stop" is passed the second time - the filter is 2 hours.
- After the third unprofitable deal- I stop trading until the next session.
- I do not open trades where the risk for income is less than 1 to 2.
- After a losing trade, the risk of income is 1 to 3.
- At the same time, no more than 2 names of futures are in operation.
- If the underlying asset (shares) of Sberbank or Gazprom can give up to 8% of the net profit potential and there is a similar signal on the futures, the deal is considered a priority. Opens daily with maximum leverage.
- Indicators are only important when the contract has traded as the main month. The “Three Great Signals” of the indicators can be used to work over the entire leverage. What are these "Greats"? This is my personal secret, which I share only with clients on consulting support.
- Close the deal in the main session before 18.30 Moscow time. (I'll clarify here! The terminal allows me to close a deal at any time, even if I'm not at the monitor. But I prefer to close the deal myself. Therefore, if I eject from work today at 18.00 Moscow time, then I will close the deal 15 minutes before that). Well, throw stones at me for the irresponsibility that I do not follow the closing of the auction? From experience - discoveries are more important, I try not to miss them.
- The use of customer-supplied raw materials for the production of finished products: accounting, consumption rates, write-off Reflection of services for the processing of materials
- Terms of payment of insurance premiums and submission of reports under the new rules
- Reminder of admission to off-budget (paid) places How to pay for tuition
- Online courses for accountants, distance accounting courses online, online training for accountants Accounting for cash transactions and transactions with accountants