Futures Day Trading / Volume Profile Edge & Risk Management

By BHARAT NISHAD

This Book is focused on volume profile and auction trading strategies, risk management, execution and the way to trading without risking your own capital.

The auction approach is the reality of any tradable markets, where you can interact with actual buyers and sellers, which will provide you with better visual of how and why prices moving, so this education is focused on:

1) How prices move in any tradable market.

2) What are the price movement mechanics around values?

3) Dry values versus liquid values.

4) The 4 unique types of values that I use to trade against.

5) The hidden values (HV) in focus and criteria.

6) What are the tradable setups around values.

7) The process of trade execution including entries, stop losses, scaling and taking profit.

8) Live examples.

9) How to use the ladder/ depth of market (DOM) to find the best entries, reduce risk, scale out of trades and maximize profits.

10) Risk management in focus where i cover risk nature and the process of successful risk management and how to scale down for longevity in trading.

How To Trade Risk Free

Funding a trading account isn't a problem if you have what it takes to be profitable, it takes a good trading system, solid risk management, behavior knowledge of your tradable product and discipline. once you master these elements you only need capital to trade, we all have an option to trade our own money but you also could trade risk free (capital provider)so in this Book I'm covering the trading as a career, time risk and capital risk, the learning stages (4 stages) , trading through capital provider with a list of a well known capital providers, proof of legitimacy of the company I use, the rules and evaluation steps to get funded and a risk management plan to pass evaluations.

• Language: English
• Publisher: BHARAT NISHAD
• Release date: Apr 13, 2024
• ISBN: 9798224548774

Book preview

Copyright

Copyright© 2024 by BHARAT NISHAD.

Published by BHARAT NISHAD

Futures Day Trading / Volume Profile Edge & Risk Management

Cover Design: BHARAT NISHAD

Cover Photo/illustration: BHARAT NISHAD

Layout & Design: BHARAT NISHAD

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The accounts in this book are true and accurate to the best of our knowledge. They may contain some speculation by the author(s) and opinions/analyses from psychology, criminology, and forensics experts. This book is offered without guarantee on the part of the editor, authors, or publisher. The editor, authors, and publisher disclaim all liability in connection with the use of this book.

Table Of Contents

Copyright

Table Of Contents

About

Introduction

Crude Oil Case Study Part 1

Crude Oil Case Study Part 2

Crude Oil Case Study Part 3

Crude Oil Case Study Part 4

What are Order-Blocks

Dark Cloud Cover

Marubozu

Bullish Harami Cross

Bearish 3-Method Candlestick Formation

Rising Window on Candlestick Pattern

Evening Doji Star Candlestick Pattern

S&P Futures Case Study Part 1

S&P Futures Case Study Part 2

S&P Futures Case Study Part 3

S&P Futures Case Study Part 4

What is Fibonacci Retracement? (Technical Analysis)

Understanding Fibonacci Retracement? (Technical Analysis)

Demo trading

Short Sale Metrics

Sources of short interest data

Understanding VIX

Inverse ETFs (Short Selling)

52 Week High or Low

50,100 or 200 Day MA

New Insight on 52W High or low

Flag & Peanut Pattern

Symmetrical Triangle Pattern

Ascending Triangle Pattern

Gold Futures Case Study Part 1

Gold Futures Case Study Part 2

Gold Futures Case Study Part 3

Gold Futures Case Study Part 4

What is Gross Profit margin?

Gross Margin (TTM & 5YA)

What is Operating Profit margin?

Operating margin (TTM & 5YA)

What is Pretax Margin?

Pretax margin (TTM & 5YA)

What is Net Profit Margin?

Net Profit margin (TTM & 5YA)

What is Quick Ratio?

Quick Ratio (MRQ)

Understanding Dow Jones Theory

Irving Fisher Debt Deflation Theory (Swing Trading)

What is the Price Volume Trend?

Price Volume Trend Calculations

What is a Stochastic Indicator?

Conclusion

About

This Book is focused on volume profile and auction trading strategies, risk management, execution and the way to trading without risking your own capital.

The auction approach is the reality of any tradable markets, where you can interact with actual buyers and sellers, which will provide you with better visual of how and why prices moving, so this education is focused on:

1) How prices move in any tradable market.

2) What are the price movement mechanics around values?

3) Dry values versus liquid values.

4) The 4 unique types of values that I use to trade against.

5) The hidden values (HV) in focus and criteria.

6) What are the tradable setups around values.

7) The process of trade execution including entries, stop losses, scaling and taking profit.

8) Live examples.

9) How to use the ladder/ depth of market (DOM) to find the best entries, reduce risk, scale out of trades and maximize profits.

10) Risk management in focus where i cover risk nature and the process of successful risk management and how to scale down for longevity in trading.

How To Trade Risk Free

Funding a trading account isn't a problem if you have what it takes to be profitable, it takes a good trading system, solid risk management, behavior knowledge of your tradable product and discipline. once you master these elements you only need capital to trade, we all have an option to trade our own money but you also could trade risk free (capital provider)so in this Book I'm covering the trading as a career, time risk and capital risk, the learning stages (4 stages) , trading through capital provider with a list of a well known capital providers, proof of legitimacy of the company I use, the rules and evaluation steps to get funded and a risk management plan to pass evaluations.

Introduction

Crude Oil Case Study Part 1

Hi guys. Today we will discuss crude oil at Al case study its crude oil WTI futures nearly contract now we'll be checking it out to see how it goes so that we completely understand that this strategy works and how it works. Where do we need to be extra vigilant and where we can let it grow or profits because profit is something that goes deep if you are just vigilant to focus on them. Now to start off we will be adding our indicators in your key strategy. We have DMA indicators. We will go into the style and select the colors because colors are something really important. Otherwise you'll be looking at the wrong line and it will be showing you wrong signals for green, red and blue to go to settings again. Green is for plus D.A. ready for minus D.A.

and blue is for ADX. Then we move to CMO change a moment demonstrator then we move to parabolic SAR then we move to exponential moving averages we're doing it to 24 style should be 24 should be blue And next should be 48 we can turn back into green we have blue green chain data EMI and average true range to show us that is the volatility increasing or it like stuck in a band. Now this is really important to understand if you're trading on the correct side or not because if you're trading a futures contract that is into volatile then you will have serious problems because for any strategy to work it needs a volatile futures contract otherwise it will be really hard to make money from it because if it moves within a tubular band then it's hard to make money from it if it moves within a 20 door Ben then it's far easier to make money from it.

Now if we move forward this is the first day of 2017. Now the reason we're doing the case study on the older historical chart is to show you how it works now for any strategy. Either you follow your strategy or any futuristic strategy you need to test it out on the historical charts so that you understand okay. This is how it works. Now if it works like this then I can implement it on an intraday chart or I can implement it on the monthly chart because Drew would remain the same. The only difference is understanding how it works. Because if you don't know how it works then you won't be able to trade it. An example would be on a daily chart. You might have 50 trades in a year but if you implement the same Yogi strategy on the intraday chart then the same one year will have 500 trading decisions.

500 trades or maybe a thousand trades. It depends. And how it did. Basically Wolf the strategy remains the same. It's just that on the intraday chart there is too much going on. So the trading goes into extreme detail. Now you need to remember on the intraday chart there is manipulation and you do that manipulation. You will have extreme highs and extreme lows in your trading Excel sheet. Therefore you need to ask yourself who you are because if you want a steady income with reduce risk then don't trade intraday because in intraday trading as I do it myself I've seen that if I need to sell a million shares or let's say a hundred thousand futures contract then I'll be looking at the entry chart to pick the buy points because once I see a buy a point I'll be just selling with my heart out.

Reason being I know people will be buying and that's a good opportunity to just sell my holding to them and I will sell them so much that they'll buy returning to sell and the futures contract will further fall down so those people will have a smaller loss. Because a bigger player is looking for exact and his exit will always come in the form of intraday trading because if I'm trading a monthly chart then I'll be looking at the long chapter and if I if it sees that today's June in May 21st the month end and on 30 forced me told me to sell then the starting June will all be by selling points every each and every day and within each and every day I'll be looking at buy points on the intraday level so anytime you are buying I'm selling you and therefore you will have far larger incorrect signals because of manipulation but as the strategy works.

So once the rivals come up you will be making for the lost revenue all your losses will be filled but the concept is we all are human so we have emotions and in that falling train the emotions will or eyed you and there is a higher chance that you will see hell with the strategy. Let me go on my own and that's where the mistakes start. That's the reason I always tell my students to either focus on the long run or to increase their risk profile. However, increasing your risk profile is an exceptionally hard thing. It's not so easy now, let's start our trading decisions now. As you can see the price falls off and it looks to be going downward. But you can see this smaller 24 day exponential moving average so it's something that supports it. The next support will be this larger moving average price usually gets this kind of support. To fall fall and again to support on the green line rise up down up.

Now on the CMO chain Dave momentum will scurry so you are seeing a rise up so at 50 to 52 you will be buying on 16th Gen if you move forward. The crossover on DMA happens so on 17th January at 52 48 you'll be buying me a strong EMI price falls off if you look at it it has broken the previous low right here. This is a dangerous signal now whenever this kind of thing happens on GMO and the crossover down on EMI that's dangerous and whenever in danger the best thing is to exist or to put a stop loss on the previous low no previous lowest 50 one this low is 50 91 so it means that just 30 cent lower than it is our stop loss it opens higher for stop loss not hit it rises back up. So stop loss did not hit the draw so whereas it happened again.

That's a good sign. The Rise Up has broken the previous high. Again a good sign. So we haven't sold and we have gone up and on this day 22 January. We will be buying based on parabolic SA 50 to 75 for Emi Emi exponential moving average. Now as you've seen in the previous case studies exponential moving average is usually a long term movement. And on the yogi strategy we are basically missing it out now. I am missing it out intentionally because I am teaching you each and every level one by one. That's why these case studies are formed so that I can teach you each and every level of it. Now whenever you start trading you will see that EMC usually moves higher after a certain time. Now what you can do to get a buy into EMC because it's a long workday movement is its way up.

Now if you move in a day up and if you look at E and lead to a PI. This is the Yemenis the PI 50 to 35 this number right Yeah 52 35 52 32. And then it falls off right takes 52 twenty nine 52 33 and year 52 44. So it has crossed a previous high of EMI. Now on the UBS strategy you can add in a rule that says if I'm buying I can buy EMC based on previous high across all so right here 53 Sony 8 will act as a buy point on 26 January now EMI means long term movement. Now if you remember in the previous case study I did because parabolic SA acts to the kill switch. Yes it does. But once you will start to earn money you will see that it's easier and you will get into the groove and you will understand how to trade.

Once you do that then you can put the EMC at the long term profit making opportunity so you won't be selling it right here. You'll be only selling it once the twenty 24 day moving average crosses that 50. This 48 day moving average simple or a major law is broken but let's focus on the crossover downward movement. As of now the price moves up but if you look at it there is a double top and a fall. So it says that we should sell at 50 to 60 based on CMO. It's just any lone cent profit. Wait a minute now if you move forward the price dips higher. Again you low. And up so we could have been rewarded on this day at 52. 1 30 first January. Now the price continues to move up and down. It's confusing but that's because the part of the game is at 50 to 0 1.

You will be a gain selling CMO. The reason is simple full stop. Second top fall and if we move forward the price dips. It takes a parabolic SAR number of 50 to 60 so at 50 to 50 we'll be selling it off. But EMI won't be sold so it will stick to EMI. Now we haven't made enough money. On the contrary. Wait a minute. It should be in minus what it's showing plus it's some 30. Sorry this is 20 cents so that's right now the price falls rises back up and it says buy again on parabolic SA at 8 periods tent February at 53 86 the DMA has also crossed up so we'll be buying on DMA as well let's cancel this out next move forward the price dips dips and it shows double top up. So at 53 40 we will be buying based on CE m o the date here is 17th February. Now the price moves up down up up now. Now that's a double top.

So you will be selling CMO again at 54 05 to make sure that the 73 cent profit price dips and a crossover has happened but before that the kill switch for free to 90 gets it so 50 to 90 50 to 90 and now you're in loss of a daughter plus the price goes straight. Is it a double low? This low is minus 20 but this low is minus 20 points seven too. So it's not double low you won't be buying it. Price falls for the down for the down further down. Now just look at it. We sold at 52 90. Now it's forty thousand seventy two. That means a five dollar loss and a five dollar loss means 10 percent losses. But we have saved him. Price moves higher and it's dropping but we are getting a divergence that is pointing up where the price is continuously going lower even if you would have bought it you would have bought it on this day at forty thousand thirty four but we are buying it at a high rate at 48 05.

Now why are we buying it at 48 0 4. Although two or strata. You would have told us to buy right here because first law second low up but let's presume we were late. We are buying at a higher point just to see how our strategy moves because strategy is your lifeline and you should follow it no matter what. But you need to be vigilant as well. Example your stop loss right you would not be parabolic SA as it is at a high point. So your stop loss will be based on the lowest low. That looks to be this day at 47 0 1 this lowest 47 0 9. This is forty thousand twenty three. So AK 47 will be a stop loss even if we would have followed this law at 42 in 0 9 then even your stop loss would not be 4 cents lower at 47 0 5 it should be at least 10 cents or 20 cents lower so at 47 will be a stop loss and it kept only 47 0 1. If you move forward the price is going straight which is a good sign and it crosses the parabolic Saar and parabolic SA acts as your stop loss.

From this point onward. So at 48 37 we'll be buying parabolic SA on 28 March. And if you look at it or ADR has started to make lower highs but if we just zoom out I can show you that ADR certainly jumped up it showed us that the water quality has increased and that's where most losses gaming that's where it showed us what could go wrong. But now ADR is starting to dip down. But if you zoom out you can clearly see that basically it's falling since the start falling falling and falling. So it means that the volatility is decreasing although that's not a good sign.

But on a falling market that's a good sign because it means a team in train is about to happen and that's a stronger signal because if you are basically buying in big this kind of signal to understand what the future holds because that's where you can literally differentiate yourself from a beginner trader from a new waste trader and that where you become a professional trader because you can stock picking signals that show you a change in train. Now the first quarter is completed and currently we're in losses but let's see how our next quarter goes. In the next chapter you will discuss the next quarter. Thank you.

Crude Oil Case Study Part 2

Hi guys. Let's move forward now if you look at it. The price is in Ukraine now to check any train you can just select train lines and pointed higher as you can see it's in a trend and a trend is the best thing ever because it usually means that the price is going up if you just look at it and a fight just drag the trend line higher you can see it earlier it was lower and now it's just trying to cross it up but it isn't successful so it shows you that the price is in a trend and if you look at it we had a crossover of TMI. So we could have bought DMA at 51 but we missed it. Now I am missing these things intentionally so that I can show you that even though the profit number that we are showing could be met like magnified but I just want to show you that sometimes this will happen with you as well and in the