Jacob Bronowski states that “Man masters nature not by force, but by understanding.” and it is the Trader Guy’s belief that the same applies to the trading of the markets. The Trader Guy is a Basic Swing Trader and applies a simple but 100% technical approach to trading. He judges the movement of the market solely by price and volume actions and trades continuations from pullbacks in a defined trend. The system uses predictive indicators of price and time to determine optimal “in-trend” entry points, high probability swing peaks for profit targets and definitive trend breaking areas for the placement of loss stop exits.

The Trader Guy is a day trader of various instruments including the E-mini S&P500, E-mini Nasdaq and the US 30 year Treasury Bonds. Our analysis and trading charts are defined from Intermediate, Short and Medium term timeframes, none of which exceed 60 minutes, except for daily for targets when necessary.  Our trends are determined from the Short and Medium term charts, our trade entries and stop loss exit points are determined from the Immediate charts and our profit targets from any one, whichever is most appropriate and where I find the most convergence.

System Overview

The markets either move up, down or sideways and when trending, tends to move in waves or swings. One of the cores of the system lies in my TG Yellow Line indicator and depending on how it is applied, functions as a warning indicator for entry or loss stop exit signals. It serves as an area that when broken will either result in a price move to target, if used for entry or as point at which the trend direction becomes questionable and therefore serves as a stop area for loss exits.

Sample System Trade Setup

1. As seen in the example chart above, we were in an an uptrend on 5/27/10.
2. The market pulled back around the open, as seen by points A to B, without breaking the levels of the prior swing low.
3. A component of our system triggered a warning to begin looking for long triggers and is represented by the green up arrows.
4. In an uptrend, the TG Yellow line serves as resistance for a conservative entry and support for loss stop exits.
5. The break of the yellow TG Res-1 line indicates a high probability move to the green target line that corresponds to the TG line at point D and C for TG Res-2.
6. The overnight break therefore told us that we would move to the 1098.50 with a minor profit target of 1095 that could cause a slow down. (Our other charts showed addition convergence of profits in the 1100-1103 area and was also used in the actual trade recommendation)
7. An In-The-Money Call would be purchased
8. TG Res-2 was broken and TG Targets were hit as result.
9. The Call would be sold for a profit.

Money Management

Money management is used by the Trader Guy as a defensive concept, to enable risk management and for the optimization of my capital. Position sizing is one of the keys to my success as it equalizes our exposure over various trades and thereby giving us a greater opportunity to profit.

See our Money Management article for further details

What’s in it for our followers?

The Trader Guy shares his  short term high probability option trade recommendations as they occur and its 100% free. Just follow us via Twitter and see how well we see and trade the markets. Our actual “for our use only” trade recommendations will be shared as they occur.
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U.S. Government Required Disclaimer – Commodity Futures Trading Commission. Futures and options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.