**Trade Strategy Overview**

Our trading strategy focuses on capturing the major daily trends in three of the most liquid and largest asset classes traded worldwide on the Chicago Mercantile Exchange: S&P 500, Gold, and Crude Oil.

**Market Targets**

- **S&P 500:** Target 10-100 point moves, with 5-10 solid trades expected per week. Over 50% of our trades will be in the S&P 500.

- **Gold:** Target $5-$50 moves, depending on market volatility. Expect 1-5 trades per week.

- **Crude Oil:** Target $1-$5 moves. Expect 1-5 trades per week.

**Market Analysis**

To trade these markets effectively, we must closely monitor daily economic reports and avoid key data points in the early hours. Once the market is clear of data, we analyze the charts, starting with the weekly chart for a broad view, followed by the daily chart to identify the larger trend of the day.

When trading these three markets (S&P 500, Gold, or Crude Oil), we closely monitor the following correlated markets:

- US Dollar

- 30-Year Treasury Bonds

- Euro

- Silver

- Dow Jones

- Nasdaq

A skilled trader can predict market behavior based on the interactions of these correlated markets.

**Intraday Chart Analysis**

After analyzing the weekly and daily charts, we switch to our intraday charts to dictate our trade strategy for the day. We use a combination of charts to gain a comprehensive view of the market:

- **4-Hour Chart:** The most powerful chart, providing direction and trend identification.

- **60-Minute Chart:** A micro view of the 4-hour chart, offering detailed insights.

- **5-Minute Chart:** Exact entry point identification.

These three charts drive the bigger daily trends shown on the Daily and Weekly charts.

**Trade Signal Generation**

We utilize a combination of 10 indicators, trade patterns, and support/resistance levels to generate signal combinations for confident trade entries.

**Market Correlations**

Our day trading strategy offers a unique advantage: low correlation to the overall stock market direction. Unlike traditional stock investments, our approach allows us to rapidly exit long trades and reverse to short trades, capitalizing on market fluctuations. This agility enables us to adapt quickly to changing market conditions, including stock market sell-offs.

As a result, our trading strategy provides a diversification benefit, reducing correlation with your overall stock portfolio. By investing with us, you can potentially offset losses in your stock holdings during market downturns while maintaining the opportunity to profit from our trading expertise in liquid futures markets.

**Risk Management and Trade Exit**

Once in a trade, we set parameters for our exit, ideally using a "trailing stop" order. This risk management strategy allows us to ride the market move as far as possible without cutting profits too soon. It’s imperative to ride winners as long as possible and cut losers quickly. If the market begins to reverse, our trailing stop triggers to protect our profits or cut our losses.

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