A Gentleman from Ireland asked me the following question :
Can your software be used for trading the Dow30, FTSE100 indices ? I like the built in risk control features in your software.
I think a good strategy when swing trading would be to hedge any shortterm retracement of the futures market by countertrading the same indice with a slightly larger stake as a day trade, resulting, hopefully in a win/win situation. How would that strategy appeal to you Sanjoy ? All the best,
Dear Sir,
Attached are the two charts of Dow Jones Index and FTSE index showing buying and shorting signals using DreamTai.
The charts are daily charts.
However, for daytrading, they can be used to know when it is safe to be long . You can be more confident when the price bar is green, that the trend is up.
The rule for going long are that the price bar should be green and should be ABOVE the blue dotted line.
The rule for going short is that the price bar should be red and should be below the blue dotted line.
So, if the price has turned green and gone above the moving average, you can day trade with a positive bias.
About the strategy of trading counter trend when the market retraces, it depends on your experience and expertise trading the futures market.
If you are new to trading and have just begun, I would not recommend it.
In US, we call it "Catching the falling Knives"
The reason we have rule in DreamTai that the price must be above the moving average and must be green is that we are trading in the direction of the natural market flow or momentum. so, there is very little resistance.
When you trade counter trend, there is chance that the prices may suddenly move against you in direction of the trend.
But, if you have traded counter trend before and have experience, there is no problem.You can go ahead with the same as long as you maintain proper risk control.
By the way, we also have a blog at http://dreamtai.blogspot.com
Please feel free to ask any questions.
Sincerely,
Sanjoy
Dreamtai. com Inc.
