High Frequency Stock and Futures Trading (HFT)

Our latest edition to the NeverLossTrading concept family is the HF-Concept. It offers:

• Frequent trades on key reference time- and tick charts.
• Clearly defined entries and exits. 
• Human interaction (not automated).

The indicator family applies measures and proposes trade entries based on:

• Momentum changes: Short-term price movement, trend in the trend. Dark-Green-Signal.
• Volume differential changes: Following institutional money flow: Light-Green-Signal. 
• Trend positioning and price composition reversal potentials. Pink-Signal. 
• Price Breakout after consolidation: Purple-Signal. 

Today, we tested the NLT HF-Trading-System based on the input of a Linkedin-Group, where we asked for securities with proposed time and tick relations to test our indicators on. The focus of the indicator-test is on the Momentum Change and Volume Differential, the other indicators we leave aside: Pink signals (reversal opportunities) do not show on the chart. 

AMZN (Amazon): 1-Hour chart

The hourly chart for AMZN provided highest probability trading:

• 13 trades, 13 gains.
• The average entry to exit price move calculated: $2. 
• Applying the NLT Delta-Force option trading concept, this trade provided an average return on capital of 30% per trade, which is an outstanding result, quadrupling the risk capital in 5-days.

Russell 2000 Futures on a 233-Tick Chart

Actually, the Russell 2000 and trading tick-charts is not where we have the most expertise. By the request of a trader, we simulated the 233-tick chart and indeed it provided high probable entries and exits.

To not overcrowd the chart, we display the afternoon session of November 27, 2012.

• The light-green and dark-green indicator provided 11 trades: 
• Nine trades with an average gain of $60/contract =          $540
• Two trades with an average loss of $90/contract =           $180
• A net positive result of                                                     $360 in 2 hours.

We simulated a 333 tick chart and still had a positive outcome of 8 gains and 4 losses. 

Hence, the trader who proposed the 233-tick chart gave us a higher probability tick-reference to trade on. 

The chart below shows the morning session. In Purple framed zones, we do not trade.

If you want to learn how to trade like this: contact@NeverLossTrading.com