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10 tips to potentially help you survive the next Drawdown

 

Drawdown is a Reality of Every Trader

Being able to deal with and understand drawdowns are among the most important concepts in trading and in the life of a futures trader. Misinterpreting drawdowns lead to wrong assumptions and decisions that not only may result in larger drawdowns, but can even mean the “end” of a trading account.

Conventional drawdown parameters and risk metrics such as the Sharpe and Sortino ratio may add value when it comes to understanding one’s own performance. However, we think that on their own, they are not sufficient to understand drawdowns and you may require the understanding of additional concepts to fully appreciate the positive and the negative of your own style, and/or the analysis of an automated system or a managed account run by a commodity trading

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The final BREXIT week. How to trade BREXIT and what does it mean?

 

This trading week, all eyes will be on Thursday’s BREXIT referendum and financial players and investors from all around the world will closely watch the financial markets. We may see a major impact on price behavior across multiple asset classes due to the BREXIT poll, before and after the actual vote on the 23rd, when investors and traders position themselves. The opinions below are of Optimus Futures, LLC and are shared for your convenience and do not constitute a trading advice.  We encourage you to read the note we have placed in our forum addressing the issues that may be associated with “Brexit” and trading around this period.  Please Click here: Preparing for Brexit

 

What is BREXIT?

BREXIT stands for “British Exit” and it means that Britain is considering and voting on

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Trend Channels – How to draw and use them to make Trading decisions

 

Price and trend channels are tools in technical analysis to make sense of charts. Further, trend channels can be used to stay in trades as well as enter new trades. In this article, we show you how you can draw and use trend channels in your trading to have a potentially positive effect on your decision making.

 

Drawing trend channels 101

Trend channels consist of at least two trend lines that connect the swing highs and the swing lows of a trending or a sideways moving market. It’s important to understand that trend channels don’t have to be completely parallel and it’s even possible that one side of the trend channel is a horizontal support or resistance – in such a case, we typically speak of triangles or wedges as we will

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How to use price action to exit your trades

 

When it comes to exiting trades, some traders may have room for improvement in their approach and strategy. In this article we highlight some simple, yet often overlooked, price action principles that can help you understand when a trend is over and likely to reverse.

 

Exiting Trades using Wicks – Candlestick Rejections

Wicks after a long trending phase may point out that the trend is losing strength. In the screenshot below you can see how multiple wicks to the downside after the strong sell-off foreshadowed the bullish reversal.

The wicks show that sellers tried to move price lower to continue the downtrend, but sellers didn’t have enough power and buyers stepped it to absorb all sell orders and keep price up. Finally, sellers gave up completely and buyers moved price higher.

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Build a Portfolio of Traders in TradingView

 

Tradingview is not only a great web based charting platform, but the social and member-oriented aspect of it allows you to connect with other traders and learn from more experienced traders as well.

We will now show you how to leverage Tradingview’s social functions to build a portfolio of traders that you can learn from and improve your own trading potentially.

 

Step 1: Finding the traders with a positive expectancy 

First, you need to make sure that you follow the right people. For that, it’s usually good to go through the top authors and look for the traders with the largest following and also the most reputation points (green number at the right).

In Tradingview you can go through the top authors by week, month and of all time. Here you only need

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