Spot and Trade Institutional Money Moves

Algorithmic Trading with Human Interaction for:

Day Traders, Swing Traders, Long-Term Investors

Showing posts with label AMZN. Show all posts
Showing posts with label AMZN. Show all posts

Tuesday, November 27, 2012

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