What is Commodity Futures Day Trading? Day trading strategy is a unique, mechanical method of entering liquid commodity markets early in the trading day and exiting later to make a profit. Keith Fitschen has developed a series of day trading strategies for the commodity markets that use the same basic market principles to earn regular profits. The underlying methodology uses multi-timeframe analysis to determine the potential direction of each market early in the trading day. Once a potential trend is identified, entries are made in the direction of the trend. Trades are cleared in one of three ways: Liquidation occurs when a stop loss occurs (if the trade is a loss), a profit target is reached (if the trade is a windfall), or at the end of the trading day. , usually for profit.
Keith Fitschen's Commodity Futures Day Trading Method is used for the most liquid instruments in each group. Grains, wheat, and soybeans can be traded. For soft chips you can trade coffee. For currencies, you can trade Yen and Euro. Metals, copper, gold and silver can be traded. In the case of energy, you can trade crude oil, heating oil, and reformed gas. In finance, you can trade 10-year bonds. For stock indices, you can trade the S&P 500, Russell 2000 and German DAX.
Traditionally, the problem with futures trading strategies has been trading costs, namely slippage and commissions. These costs have had a serious impact on the profits that can be made from day trading. However, with the advent of deep discount brokers and electronic trading, trading fees can be as low as $10 and trading slippage can be as low as a tick or two. These developments have resulted in a number of successful trading system designers promoting day trading strategies. Keith Fitschen's strategy is unique in that he uses the same market approach across all groups and the strategy “works” for all liquid instruments. This type of day trading results in an average profit of around $150 per trade across all instruments and a win rate of around 55%.
Typically, successful day trading strategies have been sold to the public for $3,000 or more. These high entry bars reduce the funds available for the average trader to trade. Keith Fitschen's day trading strategy is available for monthly rent. This allows traders to avoid large upfront fees and spread them over a long period of time while retaining the right to stop at any time. This means of accessing trading signals certainly has advantages over traditional approaches.
