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Running out of gas: The TICK fade trade
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AT-March 2008-3
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Reversal indicators and the TICK indicator combine in this strategy that fades intraday moves in stock index futures.
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Detailed Description
Stock indices arent purely a faders market, though. This is easy to verify: Just short stock index futures every time they make new intraday highs and see how long it takes to get a margin call.
However, there are many intraday moves in the stock indices that run out of gas fairly quickly. The following strategy is designed to identify shorter-term fading opportunities in stock index futures using a specific combination of market-timing techniques and time frames, along with aggressive money management and risk control.
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