People sometimes ask me if there’s a way to “cheat” in the markets a little bit.
And I admit, there is.
Of course, it’s not “cheating” in the classical meaning. But it’s definitely a small shortcut to start making at least some profit in algo-trading faster.
And it goes like this:
Start with long-biased emini strategies.
Now, here’s why it’s “cheating” and why this will very likely work for you – IF done right.
The main thing is, the index markets are skewed. That means, they have many more up-days than down-days and their overall tendency is mostly up. (Something you won’t see as much in other markets).
Besides, indexes are “manipulated” by the FED and U.S. government too. The monetary politics has plenty of tools to keep supporting this long bias, and it is overall in their interest to keep doing that. Including the government, who wants to show their ‘economic power’ through steady market growth.
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So, in essence, indexes have an edge already built-in and you don’t have to work so hard to ride this edge in your favor.
But of course, it is not that simple either.
First, you still need to time your entries properly. You shouldn’t just enter anytime because the edge is already built-in to the markets. In fact, your timing needs to be pretty precise.
Second, you also need to have good exits in place. Although indexes are heavily long-biased, they still DO retrace quite often, and if you don’t have good exits built-in, you won’t lock-in your profits fast enough.
And lastly, you still need QUALITY trading strategies, with reasonable levels of robustness.
So, if you have all this in place, then the next step is to start utilizing all this in the emini indexes first.
Why? Because, with emini indexes, you can take full advantage of the possibility to start with a rather small trading account and start building your trading business with less risk and capital required.
And that’s about it.
I think this IS the fastest way to start making profits in trading, and I’ve never stumbled upon anything better and more direct than this. (Besides, our ‘Build emini breakout strategies FAST’ students confirm this with their fast results too. And I definitely recommend getting this low-priced program if you want to start building your trading up).
Now, of course, you could have some objections to this approach too.
For example, how about big selloffs, like 2008? Or how about bigger and longer retracements, when indexes go down for weeks?
Well, this is a pretty simple one to answer too. You simply WON’T trade in days like this. And how do you do that? By implementing a ‘super-filter’, that will keep you away from unfavorable markets automatically. (You can learn more about the super-filter here). Btw, if you trade stocks – I would suggest to do the same.
Remember – in trading, we have 3 different positions: Long, Short and FLAT. And all of them are equal. So there is no shame in staying away from the markets that are not highly favorable to even a long-biased trading strategy.
Anyway, this is what I would call “smart cheating” to get results faster. Simply using what is already available in a smart way, like a small edge that occurs in the index markets naturally.
It’s simple. It’s fast. And it’s highly effective.
Happy trading!
Tomas
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