Today’s dynamic markets demand flexibility in trading timeframes and adaptability of trading ‘systems.’ Our approach of trading in multiple timeframes tries to capture opportunities in three specific time horizons. The objective is to thereby reach more consistent profits.
Benefits of trading in multiple timeframes
The trader greatly decreases the correlation of his portfolio vs. the market
The trader automatically ‘hedges’ his portfolio by having ‘long’ and ‘short’ trades allocated to different timeframes
The trader gains significantly better perspective of the market’s current standpoint and opportunities
The trader will find more trades with the most favorable risk/reward ratio
The trader can act from a more neutral standpoint and without emotions
What Are The Different Time-Frames?
(Bucket 1) Time Horizon – 1 day or less: A few select intraday setups in the E-Mini S&P500 Index futures contract and individual stocks.
(Bucket 2) Time Horizon – 2 days to 3 weeks: ‘Swing trades’ on various mid and large cap stocks and ETFs, often via the options market
(Bucket 3) Time Horizon – 3 weeks to 6 months: A bucket of long stocks and net short options trades on various mid and large cap stocks and ETFs to take advantage of time-decay/high options volatility – often using option credit spreads.
Please read the risk disclaimer.