Winning Edge Trading: Successful and Profitable Short- and Long-Term Trading Systems and Strategies

CHAPTER 13

The Winning Edge System for Long-Term or Position Trading

You can use the Winning Edge Trading System to position trade markets such as futures and equity. For instance, you could utilize the system to trade Russell futures contracts and ETF-like securities such as SPY and Spider, which represent the S&P 500 Index.

POSITION-TRADING RUSSELL 1000 INDEX FUTURES

To position trade futures contracts, you could use a different timeframe, such as daily and weekly charts. Your period selection determines two important aspects of your trading. First, you would need to use a larger stop loss for a bigger timeframe than you’d use for a shorter one. For instance, your stop loss for using a daily chart should be larger than a 30-minute chart due to market price movements and fluctuations in each chart. Second, your choice also indicates a larger move and higher anticipation for profits. Since using a larger-scale time chart, you might need to hold your position longer, and then it would be natural to expect higher profits for exposing yourself to a higher possible risk.

Position or long-term trading may be more suitable for individuals who do not take trading as their main job but rather are active investors on the side. You might want to monitor or manage your investment or retirement account with proper implementation of the system for position trading. Since as a long-term trader you work with longer timeframes such as daily and weekly schedules, you might not need any real-time ...