Garry Madrone's Futures Pages

These pages are a reflection of my trading experience in the futures markets. Successful traders discover the techniques and strategies that fit their personalities and their financial goals. The interesting thing is that two successful traders can use techniques that seem to contradict each other. This is because it is the combination of technical/fundamental analysis, money management, trade time frame, and trader psychology that create successful outcomes. For example, while one person may be concerned with short term fluctuations, another may only trade the long term trends. One may require only a small percentage of successful trades to be profitable because of their money management techniques while the other may need to win a high percentage of the time because of theirs. In these cases, the trading techniques might be very different and even seem contradictory, yet each could be profitable when used with the appropriate time frames and money management techniques.

These pages describe the combination of these trading elements that has evolved for me. I use technical analysis as my primary analysis method. I have developed some skill in its use through study and experience. There are countless methods that I have not tried, but I have come to rely on a handful of technical tools and technical techniques which I describe in the page Approaching the Commodity Markets.

One of my money management techniques is concerned with limiting my risk when I first put on a trade. I always set protective stop orders when I place a trade to limit my potential loss. Setting stops seems straightforward at first glance, but in the page Using Protective Stops, I describe a few of the pitfalls that I've encountered that can make a large difference in overall return.

I've recently discovered a phenomona I call Riding the Tiger that works in harmony with my entry techniques and protective stop strategy. I use it once I've entered what appears to be a long-term uptrend to take advantage of sudden moves against the trend that happen in most every good uptrend.

In future pages I will explore the other trading aspects I mentioned above; trading psychology, time frames, and more on money management. Since my trading techniques are always involving, I will also continue to update the current pages.