Trading multiple time periods

Trading multiple time periods objectively

Adds to your winning positions as the trend strengthens
Reduces positions as the trend changes eventually getting you neutral
Reestablishes new positions with the trend
Adds to positions as the new trend strengthens.

Definitions

120 = the trades taken using EMAs on 120 minute bars
Daily = trades taken using EMAs and daily price bars
Weekly = trades taken using EMAs on weekly price bars
Monthly = trades taken using EMAs on monthly price bars

 

 

The 120 EMAs generate a long and we buy 250 contacts

 

 

Daily hits long, buy another 250, you’re now long a total of 500 contracts
Weekly hits long, buy another 250 contracts, net long a total of 750
Monthly hits long, buy another 250, you’re now net long 1,000

Market starts to sell off and you’re long a 1,000

120 hits sell, reverse the 120 from long to short by selling 500 contacts
The first 250 contacts offsets the initial 250 you bought using the 120
At this point you’re long only 750 contacts
The second 250 contracts offsets the 250 you bought using the daily
You’re now net long just 500 contacts

Market continues sell off

The daily hits sell, reverse the daily position selling 500
The first 250 offsets the initial 250 you bought using the weekly
At this point you’re long only 250 contacts
The second 250 sold offsets the 250 you bought using the monthly
You’re now flat, you have no longs or shorts

Market is still selling off

Weekly hits sell
Reverse it by selling 500 contracts
You’re now net short 500 contacts

Monthly hits sell
Reverse it by selling another 500 contracts
You’re now net short 1,000

Short 1,000 Breakdown
250 on the 120
250 on the daily
250 on the weekly
250 on the monthly

For Exchange reporting see this link. download the position limit spreadsheet , you’ll find the levels in vertical column J.

If your trading on your own  holding in excess of 100 contacts make positions are filed on  this link  for the ATAs we run position reporting is automatic.

If you have questions send a message or contact me

Regards,
Peter Knight Advisor

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Asset Investment Management

Family Office, Advisors