Strategy 1 deal per day at Forts. First lesson of the Scalping Online Course
Derivatives are traded on the derivatives market - futures and option contracts for a whole list of groups of underlying assets, such as stocks, bonds, indices, currency and commodity assets. Many traders perceive stock market instruments as assets for investments, and derivatives instruments are associated with various kinds of speculative transactions. Traditionally, such speculative strategies as intraday are implemented precisely on, and there are a number of explanations for this.
Preconditions for speculation in the FORTS market
Trading volumes on the derivatives market often exceed volumes on the stock market, as well as the number of transactions with the most liquid derivatives contracts in comparison with the most liquid shares. Moreover, a very large share of transactions with futures contracts, and especially with futures, opens and closes within one trading session, which is an indicator of the speculative nature of these transactions.
Already by the word “urgent” in the name of the market, it is clear that the contracts on it have time restrictions - the date of commencement of circulation and the date of execution (expiration). Accordingly, any transaction made with urgent contacts is a priori limited in time. The stock market is focused on a long-term investor. In the long run, the stock market is growing and stocks can be held as long as you like and even be inherited.
In the derivatives market, there is no need to pay the entire cost of the contract to complete the transaction; it is enough to make guarantee coverage, 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 investments in the derivatives market, to earn much more than in the stock market .. Guaranteed security for the most liquid US dollar futures is 3488 rubles. (in the future this amount may change), that 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 futures, the seller makes a guarantee, assuming the obligations of the asset supplier in the deferred transaction, he does not undertake anything to return the obligation to anyone, unlike the stock market, where the seller takes the necessary number of shares from the broker to make the short for a short sale. Consequently, there is no such concept of margin trading on the derivatives market, and short sales, even with a transfer of position overnight, are free. Considering that it is not necessary to make a deal with futures with the nearest contract (it is possible with later expiration dates), shorts 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 transaction, the opening and closing of which occurred within one trading day in the derivatives market (from 19:00 one day until 19:00 the next day). So, the exchange commission for registering a transaction with a futures contract for the US dollar is 0.81 rubles, or 0.0013% of the contract value (58 125 rubles)
It should be noted that neither dividends nor coupons are paid on urgent contacts (for shares and bonds), which makes their long-term retention less appropriate.
In total, all these prerequisites allowed speculators to actively earn money in 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 concludes a large number of transactions with a traded instrument within a session (10-100 transactions per day) in order to fix relatively low profit on intraday price fluctuations. Traditionally, scalpers in their trading use price and volume charts of the traded instrument, correlating assets, as well as a tape of transactions and a glass of quotes. The purpose of scalping is precisely catching a price impulse, to identify which scalpers track these instruments. It is worth noting that scalping may seem like a simple method, but it is the pinnacle of the trader’s skill.
Intraday trading is a trading method that is aimed at taking intraday trends in traded assets without transferring positions overnight. Unlike traditional scalpers who do not conduct technical analysis of charts, do not follow market news and published statistics, intraday traders conduct these studies. In intraday trading, on average, there are 5-20 transactions per trading day - less than in scalping, which is due to the longer period of holding the intraday trend compared to the scene impulse. Now the border between intradey and scalping is erased.
Swing trading is different from intraday and you can scalp by moving your position overnight in the presence of favorable market conditions. Moving a position is a theoretically profitable step, since opening candles are often large in size compared to intraday candles. But being in a transaction at the time of opening implies an increased risk, as the price can change to the side against an open transaction, which makes it necessary to conduct a thorough analysis of the appropriateness of such a transfer of position.
Well, speaking of speculation, one cannot but note the conservative positional trading, which involves holding the 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 on futures, but on futures, profit from it is maximized using the “leverage” effect. In positional trading, technical research and the news background play a large role.
Conclusion
The purpose of speculation in the FORTS derivatives market is to profit from both intraday and longer transactions. The prerequisites for such speculation are the factors that were considered in this article. Otkritie Broker will always help you learn the intricacies of speculative trading and start making money on the stock exchange.
"What I risk and what I can earn" - The first thought that should arise before deciding to make a deal in the market. We cannot be 100% sure that we will go in the direction we need, and therefore only by learning to “cut” negative transactions and “hatch” profitable ones, we can bring our trading system to a stable plus. Using the example of the main Russian futures traded by me, I will tell you in this article how and for what profit it’s worth the risk. First, calculate the daily potential for the deal. It is not at all difficult to do this, knowing the ATR of traded instruments. Rts daily average 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 move in the transaction, it will turn out just excellent! 50% is 1250 points. When making intraday transactions on small timeframes, it’s enough to set a stop of 250-300 points, respectively, the risk to profit goes even more than 1 to 4. But I still figure out an option here if you just take 1 to 3 (300 stops or 900 take) 20 trading days per month for 3 transactions \u003d 60 transactions For example, I will consider 40 trades (66%), stop-loss - 300 points and 20 trades (34%) positive with a take profit of 900 points 300 * 40 \u003d 12000 p. 900 * 20 \u003d 18000 p. Respectively, even if 2 \\ 3 transactions are stop, anyway by the end of the month, you will be with a plus of 6000 p. The second example, even more pessimistic egg, 45 trades (75%) of the foot and trades only 15 (25%) of Teika !!! 300 * 45 \u003d 13500 p. 900 * 15 \u003d 13500 p. Even with 75% negative transactions, the deposit will remain about zero, slightly less due to slippage in the stop and commissions of the broker and the exchange. By increasing the take to 1000 p., The system will go to zero even in such a bad situation. The question immediately arises for you all, so why do 97% of traders merge their deposits ??? Yes, because the majority does not comply with this same risk management. Do not put feet. Either the risk is very high for the transaction, or they simply do not hatch a decent one !!! For tools like Gazr, SBRF, Si, the best stop for intraday trading is 20-25 points, take 60-100 points (here you need to look separately from the potential of the transaction according to the schedule) All the above examples on take-offs, starting from the minimum, that is, with lesser goals, are not worth trading. In points, risk and profit can naturally be changed, 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 profit can reach 1 to 20 or more, but this is on the busy days. It is these days that make it possible to display the trading month as a good plus! The risk for the transaction is now clear, but the risk for the deposit as a whole for the day is given below in the example of calculating the deposit of 100,000 rubles. Also in this table, the number of contracts and how much money is needed to carry out a particular transaction is described, without going beyond the daily risk and the ability to carry out three transactions simultaneously on different instruments. The optimal risk of losses for one trading session for such a depot, I think 2000 rubles. The larger the deposit, the more carefully they will need to work and reduce the risk for the day. The most difficult part is the mathematical miscalculation of the trading system and risks, and their disciplined observance. Observe risk management and may profit come to you !!!
I greet you 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 such a way so that you can fully appreciate the amount of material that we give.
The first lesson of the online course “Scalping. Active intraday. ”Trading in the stock market is a popular topic and attracts many people from different cities, different ages and work experience. Regardless of the input parameters, all are 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 are the laws and orders. 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 work schedule of exchanges and an overview of the main trading instruments. We also give recommendations on literature and materials that need to be studied.
Now is the time to start setting up workspace and terminals ...
For the quality work of the trader, the first thing to do is prepare the workplace. On this site I have already seen a post on the desktop of the trader. Recommendations: desktop computer, 2 monitors, wired mouse and the Internet. It is also important to have a comfortable chair, as a lot of time will have to sit at the computer.
Now you need to start setting up your workspace. In our team, TeamTraders uses 2 terminals.
technical analysis terminal: Quik, Transaq, Smart-x or other terminals.
We need them for data analysis and assessment of 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 applications as quickly as possible.
In the first lesson, we teach you how to properly configure the terminal and specific tools. The functionality of the program allows you to very conveniently display the most important market parameters. We set the settings for each instrument so that large orders and deals are visible. It is very important to set 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 by means of "hot keys" and it is very important to configure comfortable parameters for yourself. As a result, after the first lesson, the trader already has a tuned workplace and an idea of \u200b\u200bwhat and how he needs to do. It remains to consolidate the knowledge gained by completing homework.
Despite the theoretical component of the first lesson, it is nevertheless very important. Correct configuration of the terminals allows you not to miss important information and minimize the time spent on data analysis.
Join TeamTraders Team
There is nothing more useful than communicating with real professionals in their field.
1 Blokhin Boris Nikolaevich - Head of the department for working with participants in the stock market of the Stock Market business division of the Moscow Exchange OJSC, participant in the contest "Best Private Investor 2009", one of the TOP 40 best traders in terms of profitability (out of 813 participants in the competition). The data is presented on November 20, 2009 (according to the website www.rts.ru), the competition was completed with a yield of 664.18% per annum; participant of the contest "Best Private Investor 2012" with a pool of customers, the best of which showed a return of 54.84% per annum. The data is shown as of December 15, 2012 (according to investor.micex.rts.ru).
Boris Blokhin: “This seminar will not leave anyone indifferent: for some it will become the entrance door to the 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 lesson is not for him and thereby also earn money without losing it. ”
At the end of the workshop you will learn:
- what are the specifics of intraday trading in 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 strategy for trading futures on the RTS index, based on the experience of professionals;
- all about the risk management system, the psychology of active trading;
- get acquainted with the strategy of the participant of the contest "Best Private Investor".
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 of them are the most interesting. Features of collateral and the effect of financial leverage. Key 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 global markets. Semi-automatic trading systems that facilitate the trader's activities, terminals for viewing global markets.
- Psychology and typical mistakes of traders. Why a minority earns money on the derivatives market, how to avoid losing money, how to overcome your psychology. Artificial limiters in trading.
Lesson 2. Preparation for the working day. Impulse analysis.
- Preparing for the work day. Morning technical analysis, 3-screen method, setting of “beacons”. Temporary trading areas.
- Analysis of the course of bidding. Guide analysis and impulse effect levels. Discrepancy analysis, glass analysis.
- Impulse trading. Grounds for entering a position, risk management.
Lesson 3. Intraday trading. Formations.
- What are formations and where do they come from. Graphic, temporary formations.
- Typical intraday formations. Work at the opening of the market, recognition of shock days. Breakdown strategy and counterbreakdown strategy.
- Risk management in intraday trading. Position management.
Check the nearest seminar date with the manager: 8800 500 99 66 (ext. 4),
In most cases, I appear to my readers as a medium-term investor. But most of my trading practice is devoted to rather tough speculations on the rules intraday trading. Over the years and portfolio growth in absolute terms, the size of its speculative part has declined. Now about 90% of the funds are allocated for investments in Russian and foreign stocks, and the rest is for speculation in the Russian derivatives market.
Universal rules for intraday trading
I am often asked why I trade in the derivatives market? At one time, I just felt so comfortable. If I had to make a decision where to trade speculatively at the moment, I don’t even know what I would choose, because now there are opportunities to take out loans on shares than on some, and not worry that expiration will interfere with the plans. Sometimes I think, maybe I should shake the antiquity on the "drain"? But for now, I’ll refrain, as I have not yet studied everything on the derivatives market, and I don’t want to spray.
However, my strategy on the rules of intraday trading in the derivatives market this year will celebrate its fifth anniversary this November. Already, the results are not bad, I do not like to announce them as official, as there were big interruptions in the trading of futures contracts. But, nevertheless, if these gaps are not eliminated from statistics, then the yield will catch up to 120% per annum with a maximum of 40%.
Very often, when working in the derivatives market, I do not go beyond a single day with a deal. I think even if you have not evaluated 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 come in handy, as they can be adapted to any time interval and any exchange instruments.
So, let's figure it out in order.
When I do not go beyond one trading day?
- In intraday trading, I make deals against the main trend.
- When between and resistance, profit is too small to pull a deal for a week or more (less than 2-2.5%).
What am I trading intraday?
- Futures: Gazprom, Sberbank, RTS, Si.
But, as I said, the rules of intraday trading below will be universal after some adaptation.
How do I trade intraday?
According to the classics. The advantage of this method is that at any time when I would not open the terminal, I can see the idea and not be attached to the monitor.
The disadvantage, especially for beginners, is that it will be difficult to cope with the subjective component of this method. Here you need experience!
Work slices for intraday trading?
Most often it is 1 hour, sometimes 15 minutes - for. And God forbid you to trade at 5 minutes, if you do not have a robot or at least a trading adviser that automatically generates signals.
15 simple rules for intraday trading
- Check the trend on the underlying asset.
- Check the main on glued futures.
- Do not trade the week before and after expiration.
- One day for analysis (so I do not trade on Fridays speculatively). You can take a weekend as this day!
- Do not open transactions with a yield of less than 1%.
- Play all the signals of trends, Fibo, horizontal lines, figures that I will see.
- If rendered, then the next transaction after the filter is 1 hour.
- If the second time made a “stop” - filter 2 hours.
- After the third losing trade - I stop trading until the next session.
- I do not open transactions where the risk on 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 types 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 transaction is considered a priority. Opens for the day with maximum leverage.
- Indicators are only important when the contract is bargained as the main month. “Three great signals” of indicators, can be used to work on the whole shoulder. What are these "Great"? This is my personal secret, which I share only with clients on consulting support.
- Close the deal in the main session until 18.30 Moscow time. (I’ll clarify it here! The terminal allows me to close the 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, I’ll close the deal 15 minutes before). Well, throw me stones for irresponsibility, that I do not follow the closing of the auction? From experience, discoveries are more important, I try not to miss them.