This trade strategy taught by Hubert Senters involves the Futures market.  This is a low risk trading system meaning you are only risking a small amount of money to make a larger amount of money . This trade will actually risk $156.25 with the target of $1000. The idea is to put on a trade at night and let it work over night and then if its still open you can manage it in the morning – this take YOU out of the trade once the trade is on.  You will be asleep which will prevent you from taking profits too early.

With this strategy you can have a real low winning percentage and still come out on top.  You can lose 8 times (8*156.25= 1250) and win 2 times (2*1000 = 2000) and still come out on top. Its a must though that you let your winners run.

Things to Know when trading this strategy

Time to Trade Bonds
6pm to 5pm EST
Open Outcry = 8:20am to 3:00pm EST

This strategy takes advantage of intraday margin – when you enter after 6pm it considered intraday by most brokerages – but you will want to confirm with your brokerage to confirm

New Items to watch
-Good place to look : Econoday.com
– Normal Major Economic News that will affect the over all market
– Interest Rate changes

Bonds Future Symbols

US = 30 year bonds – Value Per Tick 1/32 = $31.25 – 1 pit tick – 1 Full Point = $1000
TY = 10 year bonds – Value Per Tick = $15.625 – 1/2 pit tick
= 5 year notes – Value Per Tick = $7.81 – 1/2 pit tick
TU = 2 year bonds – Value Per Tick =$15.625 – 1/2 pit tick

Futures Months Letters

January = F
February = G
March = H
April = J
May = K
June = M
July = N
August = Q
September = U
October = V
November = X
December = Z

 

Bonds Month Letters

March = H
June = M
September = U
December = Z

Example

Bond Tradestation symbol for December 2013

USZ13

 

The Strategy

• Trade 1: Reversal Fade Trade

  • Stay in the direction of the daily trend
    • Look for recent High – Lows to determine trend on daily chart
      • If daily trend is up – you will want to go long
      • If daily trend is down – you will want to go short
  • Time Frame: Start at 6PM EST during Globex and Day session
  • Future to Trade = 30 Year Bond @US
  • Chart – 5 Min chart
  • Trade Type
    • 8 Tick reversal
    • 12 tick reversal
    • 16 tick reversal
  • Pick 2 of the reversal types but not all 3 – Hubert prefers either the 8 tick reverse or 16 tick reverse
  • So if in downtrend on daily you would be looking to go short
  • So look at chart at 6pm
    • -if above the open and moving up = No Trade
    • – if below the open and moving down you want to put your short entry 8 or 16 ticks above the low depending on which one you chose to go with
  • Stop = 5 ticks (-156.25)
  • Target = 32 ticks (+1000)

 

• Trade 2: EBT Sneak Attack

  • Stay in the direction of the daily trend
    • Look for recent High – Lows to determine trend on daily chart
      • If daily trend is up – you will want to go long
      • If daily trend is down – you will want to go short
  • 7:20am EST to 8:20am
  • Future to Trade= 30 Year Bond @US
  • Draw line at the high of that 60min range and a low of the range
  • Verify that the high to low is 17 ticks or less – if so you have a trade setup (if more than 17 ticks dont trade)
  • Trade in direction of daily trend
    •  so if trend is up and price breaks the low = no trade
    • If trend is up and price breaks the high = trade – enter 1 tick above high of range
  • 5 tick stop loss (-156.25)
  • 10 tick target (+312.5)

 

If you are interested in additional Hubert Senters information or strategies – check out his latest .