Question 1

1. What Trading Broker do you use?

Accepted Answer

We utilize TRADOVATE, a user-friendly and efficient futures platform with relatively low fees. However, you have the flexibility to choose any broker that suits your preference.

Question 2

Why do you not use indicators?

Accepted Answer

Indicators rely on historical data, providing backward-looking insights. We prefer REAL-time volume, enabling us to anticipate market movements. As the saying goes, "Trading with indicators is like driving an F1 car using only the rear-view mirror."

Question 3

Why do you trade Futures exclusively?

Accepted Answer

No day trading pattern rule: Unlike other markets, there's no pattern day trading rule in Futures.
High liquidity and minimal slippage: Futures markets offer excellent liquidity and minimal slippage, ensuring efficient trades.
60/40 Tax advantage: Futures trading provides tax advantages, making it a favorable option.
Cleaner price action: Futures markets offer clear and predictable price movements.
No need for a large account: Futures trading doesn't require a massive account size to get started.
Ability to long or short without borrowing shares: Futures allow you to go long or short without the complications of borrowing shares.

Question 4

What are the Futures market hours?

Accepted Answer

Futures markets are open 23 hours a day, providing ample trading opportunities.

Question 5

What is the best time of day to trade?

Accepted Answer

Typically, trading activity peaks around market open at 9:30 Eastern time and slows down at market close at 4 pm.

Question 6

Why do we focus on NQ and ES markets?

Accepted Answer

NQ (Nasdaq) and ES (S&P 500) markets offer consistent price action due to their high liquidity, making them ideal for strategic trading.

Question 7

Can you make money when prices go down?

Accepted Answer

Absolutely! We profit regardless of market direction; we have strategies for both bullish and bearish scenarios.

Question 8

How much money do I need in my account to trade futures?

Accepted Answer

The required amount varies based on whether you're trading full-size contracts or micros. Detailed margin requirements can be found at CMEgroup.com. For example, NQ requires $16,800 per contract, while the Micro contract needs only $1680. Broker requirements may be lower; please check with your broker for the most recent details. As of writing, TRADOVATE demands $4000 for day margin on NQ and $400 for MNQ.

Question 9

Why use a prop firm to trade?

Accepted Answer

Prop firms offer the opportunity to trade a $50k account for a minimal monthly fee, making it an affordable choice. If you're learning or need a fresh start after losses, this option provides flexibility.

Question 10

Why don't more people trade Real Time Volume Events?

Accepted Answer

The associated software costs approximately $355 monthly, deterring many retail traders. However, the information it provides, such as "hidden institution orders," can significantly enhance trading strategies and profitability.

Question 11

What does "Buffer" mean in the context of trading?

Accepted Answer

In trading, a "Buffer" refers to a concept involving a 5-minute Average True Range (ATR). It is utilized to provide a safety margin for price movements to move away from a designated "smash zone" before returning to a level that makes a particular trading range feasible. Let's illustrate this with an example:

Imagine we have the NQ smash box with a price range of 15400 to 15421, and a Buffer set at 27 points. This means that the price is allowed to deviate by up to 27 points from the designated range before it becomes suitable for trading. The Point of Control (POC) in this scenario is at 15299.

Question 12

What is the significance of POC in trading, and how is it used in decision-making?

Accepted Answer

POC stands for "Point of Control," and it represents the price level that has the highest trading volume for a given day. This value is not static but moves throughout the trading day. Understanding the POC's importance in trading is crucial.

In trading strategies, POC serves as a valuable reference point. Here's how it can influence trading decisions:
Long Positions: When the current price is above the POC, it's often a signal to consider taking long positions. This suggests that there's a higher interest and trading activity at this level, making it a potential support.
Short Positions: Conversely, if the price is below the POC, it may be a signal to consider taking short positions. This implies that there's a higher level of trading activity at this lower price point, making it a potential resistance.
Targeting POC: In certain scenarios where the price significantly deviates from the POC, it can be used as a target for your trades. For instance, if the price is far above the POC and a short setup appears, traders might use the POC as a target for their short trade. Similarly, if the price is well below the POC and a long setup emerges, targeting the POC as an objective can be a strategic move.

In summary, the POC acts as a key reference point that can guide trading decisions by helping traders assess potential support and resistance levels, as well as serving as a target for trades in specific situations.

Question 13

What is meant by a "Pre Market Macro Zone" in trading?

Accepted Answer

A "Pre Market Macro Zone" in trading refers to a higher time frame consolidation area that is typically observed in the pre-market trading hours. These zones represent levels where price tends to gravitate during this specific time period.

One notable characteristic of Pre Market Macro Zones is that they exhibit a tendency to act as areas of rejection. This means that regardless of the direction from which the price entered the Macro zone, it often demonstrates a proclivity to bounce back out. In essence, these zones have a certain magnetism, pulling price action back towards them, and traders often leverage this behavior as part of their trading strategies.

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