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Continuation Trading Strategies and when to use them

Bund 14 May 2018

Technical trade strategies can be reasonably easy to come up and very easily looked back on favourably, meaning that a strategy gets applied in any situation rather than in the correct context, often resulting in valid trade being ‘thrown out’.

Questioning yourself through your debriefing about what happens before certain trade set ups, enables you to distinguish key criteria that must be met before the trade can be executed. In this case we are looking at using VWAP (volume weighted average price) for a continuation trade – this was a trade I initially observed working and then started to build parameters around. Over time debriefing the trade, I began to realise the parameters needed tweaking and by doing so I could prevent some of the losers I was still taking – of course not all, no trade is perfect and it will evolve further over time.

I discuss the parameters I deem important for the trade in this live Axia daily debrief; context is crucial and the way the market trades before a passive entry is available, not only informs whether the trade is viable but also how it is likely to play out making staying in the trade easier. Keep up the debriefing!

 

 

Technical setups and their related price action are studied during the technical trading sessions and further during pattern development sessions of the Axia Futures 8-week Trader Training Career Programme.

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