Value Based Position Trading

Method: To purchase securities/futures at the Point Of Control (ie the highest volume price in the given time frame) in an uptrending market as it retraces and pulls back to support.
Rationale: The POC will oftentimes, even on an intraday timeframe, act as support/resistance. Value has been determined in the minds of the most market players where peak volume has located peak demand.
Stop: One multiple of ATR (range determined by days used in overlay) below the POC or if fundamental/economic conditions change.
Target: 1/2 at the Upper Value Area and another 1/2 TBD if the trend continues and breaksout.
Timeframe: Intermediate, one day to several weeks. This is to be differentiated from my short term, intraday scalping strategy which remains the same and traded in a different account
 

Attachments

Quote from SethArb:

in market profile

have you ever heard of their cap flow software ?

I've heard of it and even read their little instruction manual online. But I think they've discountinued that software and gone with Aspen Res, which I've heard pretty decent things about though I haven't used it myself.
 
Executive decision, not stepping in front of this > 3 TRIN selloff until more support can be shown. May swing EOD long if TRIN closes 2.6+. Statistically speaking, such readings show oversold and high proabibilty of bounce.
 
IBB purchased at $67.60 as it showed good signs of a bounce from UVA and penetration of the POC. MVL starting to do a nice comeback, but still well below POC.

Futures indices showing signs of strength after the selloff, but haven't established a swing position yet. Most are hovering below or just at the POC.

May purchase e-mini gold on this pullback.
 
Back
Top