Hedge Fund Trader Quick Start Guide by SmartSetups.com Risk Disclaimers Trading or investing carries a high level of risk, and is not suitable for all persons. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. This content is subject to change at any time without notice, and is provided for the sole purpose of education and assistance in making independent investment decisions. SmartSetups.com has taken reasonable measures to ensure the accuracy of the information contained herein; however, SmartSetups.com does not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or from an inability to access such information or any delay in or failure of the transmission or the receipt of any instruction or notification in connection therewith. Any past performance results are shown for illustration and example only, are hypothetical and as such have many inherent
limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Past performance is not necessarily indicative of future results. 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 is neither a solicitation nor an offer to Buy/Sell futures, stocks or options on the same. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL, OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED WITHIN THIS SITE, SUPPORT AND TEXTS. OUR COURSE(S), PRODUCTS AND SERVICES SHOULD BE USED AS LEARNING AIDS ONLY AND SHOULD NOT BE USED TO INVEST REAL MONEY. IF YOU DECIDE TO INVEST REAL MONEY, ALL TRADING DECISIONS SHOULD BE YOUR OWN.
Hedge Fund Trader Quick Start Guide Hedge Fund Trader (HFT) markets Stocks, Futures, Options, and FOREX Hedge Fund Trader (HFT) timeframes Daily, Weekly, and Intraday (Time and Tick Charts) Hedge Fund Trader Buy and Sell Signals Buy Signal Sell Signal
HFT Swing Trading Trailing Stop Level Guides Set the Swing parameter to True to display Swing Stop dots. Set the Swing parameter to False to hide Swing Stop dots.
HFT Swing Trailing Stop Level Guides Long Position (Swing) Trailing Sell Stop Guide Dots Short Position (Swing) Trailing Buy Stop Guide Dots Past performance is not necessarily indicative of future results. There is a risk of loss in trading.
HFT Trend Trading Trailing Stop Level Guides Set the Trend parameter to True to display Trend Stop dots. Set the Trend parameter to False to hide Trend Stop dots.
HFT Trend Trailing Stop Level Guides Long Position (Trend) Trailing Sell Stop Guide Dots Short Position (Trend) Trailing Sell Stop Guide Dots Past performance is not necessarily indicative of future results. There is a risk of loss in trading.
Hedge Fund Trader Best Practices The following information is based on what we believe, in our opinion, to be the best way to use the Hedge Fund Trader. As a general rule, avoid using the HFT in slow, choppy market conditions. It is our opinion that the HFT is best used with moderate to high directional volatility. Finding the Right Bar Intervals Finding the best intraday bar intervals for each market is part art and part science. Begin with the eyeball test. Look for bar intervals that do not get chopped up during good price moves. You do not want to exit trades on normal corrections. Find periods with good intraday price moves. With the correct intraday bar interval, the HFT should catch these moves without a lot of whipsaws. You don t want the HFT to generate signals during normal expected corrections or pauses. If this occurs, you bar interval could be too short term. This approach applies to all markets, including stocks, options, futures and forex. We have found that different markets do better with different types of price bars. Futures tend to do better with tick bars and stocks (in certain cases) tend to do better with time bars. However, be sure to test all types of bars for any market that you wish to trade. If you use the smallest bar intervals (like 1 min, 2 min or 10 tick), then you need to become skilled at recognizing strong intraday volatility environments. There are some tools that can help with recognizing good directional volatility, like the ADX (free on most platforms) or the SS Smart Money Index (available at SmartSetups.com).
Hedge Fund Trader Finding Intraday Bar Intervals The HFT, in our opinion, is best used on optimal bar intervals. We recommend that you test the following bar types and intervals (see below) for any market that you want to trade with the HFT. You will find that the HFT, in our opinion, works better on some bar types and intervals over others for certain markets. So be sure to do your homework. Past performance is not necessarily indicative of future results. There is a risk of loss in trading. Intraday Time Intervals to test 1 min, 2, min, 3 min, 4 min, 5 min (High Directional Volatility Only!) 10 min, 15 min, 30 min, 60 min, 90 min, 120 min, and 240 min Intraday Tick Intervals to test (depends on trade volume) 1 tick, 10 ticks, 25 ticks, 50 ticks (High Directional Volatility Only!) 100 ticks, 250 ticks, 500 ticks, 1000 ticks, 2500 ticks, and 5000 ticks Acceptable Bar Interval Selection for Good Volatility (Good Directional Volatility)
Bad Bar Interval Selection (Poor Directional Volatility) Avoid This Past performance is not necessarily indicative of future results. There is a risk of loss in trading. Mark s Favorite Bar Intervals for Certain Markets Important: Selecting the appropriate bar intervals for the Hedge Fund Trader is highly dependent upon current directional volatility. Avoid trading with the HFT in markets that are dead, directionless, or choppy with low directional volatility. The best market conditions, in our opinion, are ones with decent to high directional price volatility. (See Following Pages)
ES (Emini S&P 500 Futures Market) ES 250 Tick Chart for Day Trading (with Good Directional Volatility) ES 5000 Tick Chart (with Good Directional Volatility)
NQ (Emini NASDAQ 100 Futures Market) NQ 100 Tick Chart for Day Trading (with Good Directional Volatility) NQ 1000 Tick Chart (with Good Directional Volatility)
YM (Emini Dow Futures Market) YM 100 Tick Chart for Day Trading (with Good Directional Volatility) YM 500 Tick Chart (with Good Directional Volatility)
CL (Crude Oil Futures Market) CL 500 Tick Chart for Day Trading (with Good Directional Volatility) CL 2000 Tick Chart (with Good Directional Volatility)
US (30-Year Treasury Bonds Futures Market) US 500 Tick Chart for Day Trading (with Good Directional Volatility) US 15 min Chart (with Good Directional Volatility)
GC (Gold Futures Market This Can Be Tricky) GC 25 Tick Chart for Day Trading (with Good Directional Volatility) GC 60 min Chart (with Good Directional Volatility)
S (Soybeans Futures Market This Can Be Tricky) S 100 Tick Chart for Day Trading (with Good Directional Volatility) S 2500 Tick Chart (with Good Directional Volatility)
EURUSD (EUR/USD Forex Cross) EURUSD 240 min Chart (with Good Directional Volatility) EURUSD Daily Chart (with Good Directional Volatility)
GOOG (Google Inc. Stock) GOOG 60 min Chart (with Good Directional Volatility) GOOG Daily Chart (with Good Directional Volatility)
TSLA (Tesla Motors Inc. Stock) TSLA 30 min Chart (with Good Directional Volatility) TSLA Weekly Chart (with Good Directional Volatility)
NFLX (Netflix Inc. Stock) NFLX 50 Tick Chart for Day Trading (with Good Directional Volatility) NFLX Daily Chart (with Good Directional Volatility)
PCLN (Priceline Grp. Inc. Stock) PCLN 50 Tick Chart for Day Trading (with Good Directional Volatility) PCLN 500 Tick Chart (with Good Directional Volatility)
AAPL (Apple Inc. Stock) AAPL 500 Tick Chart (with Good Directional Volatility) AAPL Weekly Chart (with Good Directional Volatility)
QQQ (NASDAQ PwrShs ETF) QQQ 500 Tick Chart (with Good Directional Volatility) QQQ Weekly Chart (with Good Directional Volatility)
GLD (SPDR Gold Trust ETF) GLD 60 min Chart (with Good Directional Volatility) GLD Daily Chart (with Good Directional Volatility)