Aha! there you are where have you been?

So we are now in the throes of the US presidential election and the markets are behaving accordingly so I have squirrelled myself a way to complete my back testing on the neutral zone trade as applied to the FTSe 100.

I have used the 0800 open and 0830 low/high as my range highs and then waited for the 08:50-9:10 swing which often then initiates the key morning move. I chose the 08:50 swing time as it seems to suit the FTSE and has proven the lowest risk/highest reward option. It may often outside the chosen range, but within 20 points or so. So, for instance, if the bottom of the range is 4100 and the top is 4170 and the swing begins at 4089 I will wait for the cross back into the range and trade to the top taking profit at resistance or sticking with it if there is still energy in the move.

Thus far the risk reward ratio is consistently in the 3:1 areas with typical moves being between 50-100 points so now to put the plan into action. WATCH THIS SPACE and good luck all those Americans rooting for their men/pitbulls. Be careful what you vote for.

Happy Trading 

Love Dirk