High Flying Trading (HFT) Method

Any method that should give us information about buyers and sellers than giving us signal to buy and sell if so it becomes a Good method

i want to know your strategy . i also read your " hedge and correlation " strategy . thanks for your sharing

All clear for takeoff!

Edit.



After to explain.

Lol,what?!You need to work on your english...Seriously.

It s not first and native language.
Thank yoıu

"Altitude and Airspeed"

Pilots know that we must at all times have altitude and airspeed. These are the two cardinal rules of flying, for if we run out of either one we stop flying. Altitude and airspeed.

There are two cardinal rules for being successful in trading. They are very simple, and here they are:

1. Keep losses small. In flying it might be stated, never have an accident. This of course is absolutely critical in trading, too, for we want to live to trade another day. In other words, our trading must be careful to protect our capital first, so we keep our losses absolutely tiny in comparison to our profits.

2. Let profits runand multiply them. When I fly from Chengdu, China to San Francisco, California we are going from East to West and there is a Jetstream of wind that travels that direction. Our dispatchers will put us directly in that Jetstream to take maximum advantage of 150-200 knot tailwinds. When we are in a trend we must multiply profits, catching the Jetstream of the trend and riding the tailwind which allows our profits not merely to add up but to multiply.

Of course there are many other rules. For instance:

Our method must be simple. What good does it really do to have tons of indicators, Fibonacci retracements, support and resistance, big round numbers, half levels, candlestick pattern notifiers, trend lines, horizontal lines, fifteen indicator windows open, etc. While some of those things are helpful, and we can certainly reference them if we want to, we must keep our trading basic and simple. My Boeing Dreamliner aircraft is very sophisticated, with all the latest technology, and yet we use the same basic instruments that I learned to fly a Cessna 152 with.

Our method should be logical. It should make sense, and fit in with sound reasoning. Being logical means it does not violate our two basic rules, it is consistent, it is timeless. When studying and learning different methods we should relatively quickly say "oh, that makes good sense" in order to know we are on the right track in our learning.

Our method should be duplicatable. It should work anywhere where there are trends. It should work in finance and in fashion, in business and in industry, in all areas of life. This ensures that our method is sound and that it will continue to work in the future because it is based on the behaviors and patterns of mankind.

Additionally, we must treat trading like a business. We often spend many thousands of hours and dollars learning our profession, and we should think of trading in the same way. Trading successfully requires us to learn and practice, investing time in our future business. One thing I like to do is write down every mistake I make, stating what I learned from it and what I would do differently next time. This is a carry over habit from my early days learning to fly, I still do this after each flight today. And I have done it for 10 years in trading. We want to be part of the 5% of traders who make it, so we must treat trading as a business. Would you want to fly with someone who treats flying as a hobby, tinkers with it to pass the time, or someone who is serious about it and has invested the time to learn it right.

There are more rules to trading, and on this thread you can feel free to add your wisdom. Collective wisdom is so much greater than any one person.

Altitude and airspeed. Two rules we cannot break.

Keep losses small, let profits run--and multiply them! Two rules we cannot break.

Our trading method will take maximum advantage of those two cardinal rules.

The next post will illustrate these two rules, with pictures that show my trading method, as soon as I'm able.

Greetings friend; please remove this picture from this thread. We do not wish to disparage any airline. Feel free to post another, but without any identifying symbols of the airline itself.

Hi Dreamliner!

Really appreciate the knowledge and experience you are sharing with us!

Happy Saturday!

Sir, I like this turkish ad too much. Its short but so inspirational.
Anything can be achieved through hard work, focus and vision.

I've navigated to this place, now, let's communicate

Hi Dreamliner,

Booked... a non-stop bullish flight with you. I hope I could get miles of pips or a multiple of 787dreamliner pips

I wish you all the best!

Hi Dreamliner, sounds awesome, can't wait for take off....

Good luck with your new thread...Clive

Dreamliner... About to quit my day Job... LOL..

Looking forward to learn and earn from this Strategy.. I am in buddy :-)

ready to wait, what next when the airplane take off

Great to see you Clivepackham, I have appreciated your posts throughout the years.

UFE;Unknown Flying Expert

Post 3: Illustrations

I am now going to show you a series of illustrations, highlighting and explaining my method.

It’s important to understand that my way of trading is only one way, I'm sure it is not the best way. This is why I took a few posts in the beginning of this thread to share the overall objective, the big picture, the 40,000 foot overview of how to trade. Now you can take and modify things to suit you, to fit your objectives, and to coincide with what you already know about trading. We always want to keep the big picture in mind: our objective is to get from Point A to Point B safely, that is, to not blow up our trading account and to trade profitably.

When considering entering the market we want to enter on the start of a trend. We can add to our position as the trend moves, but we don’t want to make an initial entry halfway through a trend. We will consider our initial entry our departure airport. We want to depart at the departure airport. At the beginning of a trend.

Of course this will mean that we may have several small losses while looking for the trend. There are several things we want to do to help mitigate these losses, such as keep our position size small, spread out our trading capital over numerous currencies (some will range and some will inevitably trend) and keep a tight stop loss at the point of the previous swing high or low. There are other things, and feel free to add some as the thread moves forward.

When we are at the gate ready to depart any number of things can go slightly wrong to delay our departure. Weather can delay departure, mechanical problems can arise that take time to fix, baggage loading can sometimes cause delays, etc. I’m sure you’ve experienced some or many of these things. They can be costly to an airline but they are part of doing business.

Small losses while looking for a trend are part of doing business, and must be accepted and even embraced (because we are one trade closer to the trend). Not every flight departs on time. If you are looking for a system that takes no losses then you will want to continue your search. But if you’re willing to accept small losses to make large gains then continue studying here with me. When I take a small loss while looking for a trend it tells me I am one trade closer to departing and flying high and fast.

I have a good friend who has a food truck business. He drives his food van to fairs and civic events where there are lots of people. On good days he can make thousands of dollars in food sales (and he and his wife are fabulous cooks). One good weekend and he is rolling in the dough (pun unintentional), making money hand over fist.

But he lives in Iowa where the winters can be harsh. It is during these cold and snowy winters, where very few people come outside to purchase food, that makes him or breaks him. He must not purchase a ton of food during these times or it will spoil and he will have large losses. He must manage this time with small losses in preparation for summer when he will catch a tailwind and make a ton of profit.

This is simply how business works. And it is how trading works.

What I am going to do now is show you some trades using a 4 hour chart. I just picked 4 hours for illustration purposes. I like to trade the daily timeframe, due to my schedule, but occasionally when I have time I’ll trade for a day on 15-minute or 30-minute timeframe. The timeframe is up to you.

On the chart I am posting I am showing how I get into a trend. You can use any method you want to find the initial trend: moving average cross, stochastic cross, trendline break, support/resistance bounce, round number touch, alignment of stars and moon, and the list goes on and on. The reality is that the method of getting in to the initial trend is not very important. It is how you manage your trade once in (keeping losses small, letting profits run and multiply them) that matters.

I use a 34 SMA (smooth moving average) cross as my entry point. It is very simple. Sure there will be false signals (maintenance delays, weather delays, etc.) but it will ensure that we do get into every trend, and do so close to the beginning. This is what we are after, for as you are about to see, once we get into the trend we are right in the middle of the 200 knot tailwind and we will fly high and fast to profits.

Some people will want to start adding indicators to mitigate the whipsaw of the initial entry, and that’s fine. Some use RSI or Stochastics, or other oscillators to try to mitigate their risk on entry. That’s ok, every business needs to try to look for ways to cut costs. But I doubt you will find a way to eliminate false entries entirely. Even with all our modern technology, our departures can still be delayed at times.

If you want to post your current method for reducing false entries that’s ok, maybe we will all learn a better way. I’m merely posting my way, there are probably better ways. But I have tried all the ways mentioned above (and many more), and while they might eliminate some false entries they also eliminate some good entries, and that we cannot afford to do. My friend in Iowa cannot afford to miss a nice, sunny day selling food at the fair, it would cost him thousands of dollars to do so.

I’ve attached the chart, which shows a basic entry, and in the next post I will show how we let our profits run—and multiply them. I will be posting numerous charts so we get the idea of how to let profits run—and multiply them. Then, I will begin posting my method for keeping losses small.



Next post: how to take advantage of a trading tailwind.

Hi Dreamliner, great thread you have here!

As an ex-pilot, I feel like I'm home

Looking forward for the next post

Dreamliner I am in formation standing by , cheers