Daniel Gramza - Building Your E-mini Trading Strategy

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PRESENT

Building Y our E-mini E-mini Trading Strategy

Prepared and Presented by Daniel Gramza

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Materials in this presentati presentation on are covered under current United States and international copyright law s. NO PORTION OF THIS P RES RESENTATION ENTATION MA Y BE REPRODUCED REPRODUCE D WI THOUT THE THE WRI TTE TTEN N P ERMI SSION OF THE AUTHOR.

Daniel Gramza Gramza is currently completing two books: Trading in th e Eye of the Storm The Handbook of J apanese Candle Candle Trading Strategies Strategies Yo u can be notified w hen these books are are available available by contacting contacting Daniel Gra Gramza. mza.

D a n i e l M . Gr a m z a

A l l C h a r t s Cr e a t e d o n

P residen t

A s p e n G r a p h i c s So f t w a r e

Gr a m z a Ca p i t a l M a n a g e m e n t , I n c .

Co n t a c t

22 27 F o res tvie w R o ad

M I K E B R O D R O GI



























Building Y our E-mini E-mini Trading Strategy • I dentify market you're going to trade • Dete Determine rmine your trading time frame • Select trading app roach • Create trading strategy • Establish trading strategy param eters strat egy • M easure performance of trading strategy



























Section 1: I DENTI FY M ARK ET YOU'RE GOI G OI NG TO TRADE T RADE C ME E-mini™ E-mini™ Fut Future ures s OPTI ONS on CME C ME E-mini E-mini™ ™ Fut Future ures s C M E eFX FUTURES



























CM E E-mini™ E-mini™ S & P 500 ® Futures Average Daily Volume I ncrea ncreasing sing Volume = I ncrea ncreasing sing P roduct Acceptance Accept ance 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000



























CM E EE-mi mini ni NASDAQ-100 ® Futures Average Daily Volume I ncrea ncreasing sing Volume = I ncrea ncreasing sing P roduct Acceptance Accep tance 400,000

350,000

300,000

250,000

200,000

150,000





























OPTIONS on CME CME EE -mini mini™ ™ S& P 500 ® Futures Average Daily Volume

I ncrea ncreasing sing Volume = I ncrea ncreasing sing P roduct Acceptance Accept ance 14000

12000





























OPTIONS on CME CME EE-mini™ S & P 500® Futures Month End Open I nterest nterest::

I ncreasing Open I nterest = Increasing P roduct Commitment Commitment 160000

140000

120000





























CM E and a nd Grow G row th of Electronic Elec tronic Trading I ncrea ncreasing sing Volume = I ncrea ncreasing sing P roduct Acceptance Accept ance Average Averag e Dail y Volume by Year 1,500,000 1,400,000 1,300,000 1,200,000





























W hy Trade T rade CM E E- m i n i ™ Futures? • Easy access 24- hour trading • Virtually 24-hour

• One central marketplace





























W hy Trade T rade CM E E- m i n i ™ Futures? KEY BENCHMA BENC HMA RK I NDEXE NDEXES S CME EE -mini S& S& P 500® futur futures es Tracks large-capitalization U.S. stocks CME EE -mini NA S DAQDAQ-100® 100® futures































CM E EE- m i n i ™ F U TU T U RE R ES C ontract Specification s































How are EE-Mini Mini S& S& P 500 prof profits its and loss losses es calc c alcula ulate ted? d?































How are CM CM E EE -M ini NA SDAQDAQ-100 100 profits and losses calculated?































E-min Emin i FUTUR ES COM P AR ED TO SP SP DRS































E-mini Emini FUTURES FUTURE S COMP ARED TO T O SP SP DRS (C (Cont'd) ont'd)









































































































































































































































































































































































































TREND TRE ND ANALY SI S

Close below prev swing low = Dntrend

Close




























swing high

swing low



























TREND TRE ND ANALY SI S Close below previous low = continuation of trend = Downtrend

Close




























swing high

Sell

Close above prev swing high = Uptrend

Sell


















































































































J AP AN ES ESE E CAN DLE CHA RTS Japan ese Candle C andle Fou ndation Shape Close

High

Open





























J apanese Candle C andle Construction High Selling Shadow Close

Open





























J apanese Candle Candle Shadow Shadow Development 45 min Candle High Selling Shadow Close































J apanese Candle Candle Shadow Shadow Development (Cont’d) (C ont’d)





































































































































































































































































































































































































































































































































Candle G lobal Environment 1. W hat is the current market condition? I s it day basis?

on a yearly, month ly, w eekly, daily or intra-

I s it magnitude?

o ve r w h at p erio d o f tim e an d w h at is it's



























Candle G lob lobal al Environm ent (Cont'd) 2.

Throu gh the analysis of long-term charts w hat is

th e •

Overvalued,

of th e curren t m ark et? At value,

Under valued



























Candle G lob lobal al Environm ent (Cont'd) 3. How does the market compare to: • •

both domestically and internationally Other sectors



























Candle G lob lobal al Environm ent (Cont'd) 3. How does the market compare (Cont’d)



























Candle G lob lobal al Environm ent (Cont'd) 4.

W hat is the market

?

W hat is a relationship of the current market levels to ___________________________________candles? ___________________________________ca ndles?





























Candle G lob lobal al Environm ent (Cont'd) 5. W hat is the • Are you trading • Are you going

of th e trade? the trend? current bearish or bullish candle

patterns? Buy (not rec.)

Sell (better)

Buy (best option)





























Candle G lob lobal al Environm ent (Cont'd) 6. W hat are price________ price_________and _and price___________ at major maj or highs and low s?





























Candle G lob lobal al Environm ent (Cont'd) 7. W hat is th e

o f m ajo r h igh s an d lo w s ?





























Candle G lob lobal al Environm ent (Cont'd) 8. I s the trade clean?

•

Does it hit you y ou betw een the eyes and scream at you to the trade?

•

Do es cu rren t in form ation

th e





























P OTE OTENTI NTI AL OUTCOMES OUTCO MES OF A TREND REVERSAL REVERSAL P ATTERN

Be prepared for any outcome!

Could result in

or































Essential Consideratio ns W hen Comb Comb ining Technical Trading Techniques































Essential Consideratio ns W hen Comb Comb ining Technical Trading Techniques ( Cont'd)































Section 5: ESTAB ESTAB LI SH Y OUR TRA DI NG STRA TEG TEGY Y PARAMETERS































ESTABL I SH Y OUR TRA DI NG STRA ESTABL STRA TE TEG GY P AR AM E TE TERS RS (Cont'd) (C ont'd)































ESTABL I SH Y OUR TRA DI NG STRA ESTABL STRA TE TEG GY P AR AM E TE TERS RS (Cont'd) (C ont'd)









































































































































































































































































































































































































THE ESS ESSENTI AL STEPS I N TH E TRADI NG P ROCE ROCESS SS.. 1.

Trade

2.

Trade

3.

Trade

4.

Trade

• •

5.

P rofit and Loss Yourself M o n i to r ab o ve categ o rie s: W here am I the

?



























I dentify and Evaluate Ev aluate the Trade •

W hat is your perspective? perspecti ve?

•

W hat market information is candle analysis a nalysis (Candle Characteristics, P attern Developmen t and Global Global Environm ent) providin g for the lo ng, interm ediate, and short term?

•

I s the market imbalanced to t o the buy or sell



























I dentify and Ev Evaluate aluate the Trade (Cont'd) •

W hat information is being bei ng revealed reveal ed by mathematical studies?

•

Does the current accumulated market information informat ion support or contradict contradi ct new or existing market positions?

•

W hat are the challenges c hallenges to your trade? tra de?

•

I s trade location locat ion favorable?



























Trade Execution Execution and Managem ent Before the trade is entered and after the trade is executed, consider the follow ing:

•

W hat is your y our men tal state? st ate?

•

I s this a full or partial position? posit ion?

•

W hat is considered positive positiv e or negative mark et activity? activity ?

•

How , w hen, and w here w ill the trade t rade be entered added to reduced and exited ?



























Ev aluate and Mo nitor the Trading Decision Evaluate Process • W hat is the profit per trade t rade production?

target ? • I s this on target?

• W hat is the loss per trade production?

target ? • I s this on target?





























Ev aluate and Mo nitor the Trading Decision Evaluate P rocess (Cont’d) (C ont’d) expe cted paramet pa rameters? ers? • I s this w ithin expected

• I s there a time of day, w eek, month or year w hen you trade your best?





























Ev aluate and Mo nitor the Trading Decision Evaluate P rocess (Cont’d) (C ont’d) • Do you review your profitable and unprofitable trades at a minimu m on a mo nthly basis? t han the other? • I s one more profitable than





























Ev aluate and Mo nitor the Trading Decision Evaluate P rocess (Cont’d) (C ont’d) charact eristics betw een • Are there distinctive characteristics profitable and unprofitable trades? ye s, how and w hen w ill you y ou implement this into i nto • I f yes, your trading?





























Ev aluate and Mo nitor the Trading Decision Evaluate P rocess (Cont’d) (C ont’d) • Does your trading strategy match the market and your trading time frame? ty pe of trade tr ade w ere you y ou doing w hen you felt the • W hat type “ b e st s t ” t r ad a d in i n g? g?





























Ev aluate and Mo nitor the Trading Decision Evaluate P rocess (Cont’d) (C ont’d) • W hat are you doing about these concerns? exec ute • Have you done your homew ork before you execute the trade? Are you in good physical condition?































TRADI NG I N THE EY EY E OF O F THE STORM STORM































How does a trader tra der stay sta y in the eye ey e of storm?































THOUGHTS































THOUGHT CHOI C HOI CE































THOUGHT ENER G Y The trader's though t hough t choices have an impact















































































































































































































































































































































































Daniel Gramza - Building Your E-mini Trading Strategy

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