What is commodity futures day trading? Day trading strategies are uniquely mechanical ways of entering the liquid commodity market early in the trading day and exiting later in the day to make a profit. Keith Fitschen has developed a set of day trading strategies for the commodity markets that use the same basic market principle to earn regular profits. The basic methodology uses multiple timeframe analysis to determine the potential direction of each market early in the trading day. When the potential trend is identified, an entry is made in the direction of the trend. A trade is exited in one of three ways: the stop loss is hit (and the trade is a loss), the profit target is reached (and the trade is a windfall), or the exit is made at the end of the trading day, usually for a profit.
Keith Fitschen’s commodity futures day trading methods are used for the most liquid commodities in each group: grains, wheat and soybeans can be traded; For soft chips, coffee can be traded in; For currencies, the yen and the euro currency can be traded; Metals, copper, gold and silver can be traded; For energies, crude oil, heating oil and reformed gas can be traded; For financials, 10-year bonds can be traded; For stock indices, the S&P 500, Russell 2000 and German DAX can be traded.
Traditionally, the problem with futures day trading strategies has been transaction costs: slippage and commission. These costs severely affected the profit that could be made from day trading. But with the advent of deep discount brokers, and electronic trading, the trade commission can be as low as $10, and the slippage in a trade can be as low as one or two ticks. This development has led to a number of successful trading system designers promoting day trading strategies. Keith Fitschen’s strategies are unique because they use the same market approach across all groups, and because the strategy “works” on all liquid commodities. This type of day trading results in an average profit per trade of about $150 across all commodities, and a win percentage of about 55 percent.
Usually, successful day trading strategies have been sold to the public for $3,000 or more. This high entry bar reduces the funds available to trade for the average trader. Keith Fitschen’s Day Trading Strategies are offered for a monthly rental fee. This allows the trader to avoid large upfront fees and spread them out over a long period of time, while retaining the right to stop out at any time. This means of accessing trading signals is definitely an advantage over the traditional approach.