How To Trade Futures

Visit me here: http://www.daxtrader.co.uk

This is a simple trading strategy and system which I use to enter in to and get out of short-term trades on the Dax. You can use this to trade indices, forex or commodities. The video is designed to help less experienced traders.

INDICATORS REQUIRED
Bollinger bands (34,3)
RSI (14, 80/20)

RULES
You need to understand the underlying trend of your market
Uptrend = you only buy (see below)
Downtrend = only sell
Ranging - use a different strategy

You MUST use a simple reward:risk ratio and always use stop losses and profit targets. Use at least 2:1 reward:risk ratio.
Somewhere between 2:1 and 3:1 works best.
Examples
10 pip stop : 20 pip target
15 pip stop : 30 pip target
40 pip stop : 100 target

RULES FOR BUYING:
You must be in an underlying bullish market
Lower bollinger band recently hit and RSI went under 20

RULES FOR SELLING:
You must be in an underlying bearish market
Upper bollinger band recently hit and RSI went over 80

MOVE STOP LOSS TO BREAKEVEN
Set your stop loss and take profit targets. Move your stop loss to break even once you have gained at least your stop loss as profit. So for example, if your stop loss is 20 pips, and your trade is currently 20 pips in profit, move stop loss to break even.