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Oct 2, 2020

"Building Successful Futures Strategies in a 50/50 World" Takeaways

By:Pete Mulmat

tradeTALK part 3 features Pete Mulmat, resident futures expert at tastytrade! Pete reveals the keys to long-term success in futures trading. Find out how strategy selection and proper trade mechanics can increase your probability of success! 

tradeTALK Key Takeaways
Episode Three
Building Successful Futures Strategies in a 50/50 World with Pete Mulmat

Futures live in a 50/50 world that demands successful traders push the probabilities just a few percentage points in their favor. As you choose your strategies, mechanics around management play an equally important role to get that strategy to long-term success.

Traders throw the term "scalp" around pretty liberally these days. In this episode, I try to define it and show you how to take part in this financial buzzword. I use Small Exchange products as the backdrop for futures scalping examples and discuss measures to design strategies, also taking into account the challenges of managing emotions around directional trading.

I look at what I feel are the main parameters for long-run success in scalping futures: win rate, average profit, and average loss.

Whether it's applying simple, short-term strategies to uncorrelated asset classes and setting hard entries and exits using the numbers at your disposal, everyone's strategies are different. It is key to complementing them with the appropriate trade management mechanics that fit your comfort and style.  Mechanics can be based on time, money, percentages, or whatever, as long as they are consistent.

Finding a strategy that fits you is essential, but mechanics take that winning strategy to long-term profits.  Find out how mechanics can help engineer your long-term success in scalping futures. 

Watch Episode 3 and tune in next Thursday, October 8 at 3pm CT for Episode 4, Extending Portfolio Reach with FX Futures with Katie McGarrigle.

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

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