"I'm always on the lookout for "paralysis by analysis". Often less is more when it comes to learning how to trade. It's important to start simply. Like any long term goal, it's best to break it down into manageable pieces. That's how you make progress and avoid feeling overwhelmed."
– Scott Hoffman
Futures & Options Broker
About the Trade or Fade Advisory
Why “Trade!” or “Fade!”?
The “Trade!” or “Fade!” Advisory was developed to accomplish two things. First, to develop a set of volatility based rules to determine, before the market opened, whether a market would have a trending day bias or a normal distribution — an evolution of Toby Crabel’s breakout work in the 1990’s. This gives us a “heads up” for markets that might have tradable setups and would tell us what kind of day we might expect for a given market.
The “Trade!” or “Fade!” reports are a twist on traditional pivot point analysis. They are a set of support and resistance levels derived by a proprietary algorithm based on the trading session’s open. This gives “Trade!” or “Fade!” a distinct advantage over the traditional pivot point analysis. Being based off today’s activities, it relies on the most recent market activity, thus avoiding a common pitfall of many short term trading methods.
We feel this combination of the nightly Bias report and “top day” derivation of support and resistance gives short term traders powerful tools to exploit today’s rapidly moving futures markets.
What is the “Trade!” or “Fade!” Advisory?
The Trade or Fade Advisory is based on statistical and historical research. It utilizes a number of proprietary trading methods to take advantage of specific market patterns and setups for short-term futures trading, such as:
Specific Market Patterns and Setups:
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Dojis (view larger image) A popular candlestick formation day where a market’s open and low is approximately the same. |
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Gaps (view larger image) A day in which a market opens above the previous day’s high or below the previous day’s low. |
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Narrow Range Days and Wide Range Days (view larger image) A day with the widest or narrowest trading range of a set period. We normally use 4 or 7 days. |
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Inside Days and Outside Days (view larger image) An inside day is a day with a higher low and a lower high than the preceding day (today’s range is contained “inside” the previous day). An outside day has a higher high and a lower low than the day preceding (today’s range is “outside” the previous day’s). |
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Trading Range Contraction and Trading Range Expansion (view larger image) A day with a quantifiably larger or smaller trading range than the preceding day. |
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Intraday Support and Resistance (view larger image) Trade or Fade provides a set of support and resistance levels derived from proprietary calculations, designed to give you precise support and resistance points. |
How is Trade or Fade Different?
In our opinion, other futures advisories either leave a gap in information flow (not taking into account overnight market activity) or are inconsistent in their delivery. “Trade!” or “Fade!” is a unique service. We send out a nightly pattern analysis report, highlighting tradable setups for the following trading day. Then, our “Trade!” or “Fade!” morning advisories reflect overnight market activity, giving you timely information to act on. Together they give you a complete package - a projected trading bias for the day and specific, tradable price levels - all in a concise, easy-to-read format!
