How to Get Caught in Big Trades

By Mike WiltFrom Chicago

• I will tell you none of my secrets• I am sharing only my observations and tried and

true trading thoughts. This has worked for me.• No 2 traders are the same. Know yourself and make

sure your plan fits your idea of how you see the markets.

• Stop looking externally for your success.• KISS. The constant pursuit of something better

generally makes it worse.• Know when not to trade• Set daily, weekly and monthly goals. Initially mine

was to be GREEN each day.

My trading style:

• Trade with trend toward daily range expansion targets• Use HB/HB1 as guide posts and learn to trust them. Trade

away from them.• Know the best times to trade for range expansion• Consult larger timeframe charts • Visualize• Know when NOT to trade– Do not trade inside larger structures– Do not trade against the symmetry in the market– Do not trade in consolidations where the swings are

small– Don’t trade in periods less likely to have range expansion

Tools• Performance sort by period• Average swing size for 5, 10, 30 brick charts• Daily range targets

- 90 tick range target -IBP 1.50 levels

- DOW Pit target - DOW Globex targets

- 10 day Average Pit Range - 10Day Average Globex Range

- DOW Weekly target -ONH/ONL targets

Period Performance Sort

Average Swing Size by chart type

Daily Range Targets

Average Weekly Ranges

Other Tips• Look for single prints on 5MB and 10MB charts• Know your targets for the day. They are the natural

progression of range expansion• Know when you are in a STUPID trade• Understand when you reach areas of diminishing returns• Watch for rising/falling period OPEN lines. Might be a clue of

near term move• Macro view trumps micro view. Know the macro picture• Range expansion should trump PRTs. When it does not

happen it is generally a clue.• Trade into Blue Skies aggressively (Open Zones)

Measurements of Success• Winning Percentage (Percent Profitable)• Win:Loss Ratio (Profit Factor)• Are you GREEN today, yesterday, this week, the

last 2 weeks, the month• Study your trades each day. Why did you enter

the trades you made? Percent inside your plan.

Thank you Rob Mitchell for creating an environment for learning, growth and self actualization