Rob: Hey Derek, I see that you record and post a YouTube video Monday - Friday for Futures Networks Live under the name Futures D’Amour. Could you give a bit of history on why you started doing this for FNL?
Derek: Sure, thanks for asking Rob! Our goal at FNL (Futures Networks Live) is to help each other become consistently profitable traders (Futures, Cryptos, Options, Stocks, etc) The Triple Play refers to the 3 markets I am trading, S&P500, Nasdaq and Russell. Typically the Micros on each.
One of our members, Jeff B, has about 3 years of recorded data pertaining to Opening Bell, where he has about a 57% win rate using proper risk management. My idea was to use his data and record it each day so that we have a record and we can look back and learn, grow, and modify to become even more profitable! As you know we use a “PSR” system which states that our goals are combining “Position, Situational Awareness, and Risk Management“ before we make a decision in entering a trade. I also have an idea of promoting other traders and financial YouTubers that I personally like, so I wanted to learn how to do videos and become more proficient at making them! I have a passion for passing on good information, so doing these videos sure fulfills that desire!
The main focus is Opening Bell right now, but I have done a few “subject” oriented videos – like “Stress Free Trading,” “RSI Divergence,” or“50 & 200 period EMA crossings” etc.
Rob: When did you start the videos on YouTube?
Derek: I went back and looked, and only around Feb 1st of this year! I feel that the videos have come a long way already. Originally, I was just recording the S&P 500 OB trade and what the S&P 500, the Nasdaq, and the Russell were doing each day. Around March 24th, I decided to start trading all 3 of the markets around Opening Bell! for the first 3 weeks it was pretty random with Limit Orders and going different directions in each of the markets depending on what I saw... Now for those 3 weeks I had great success, but I was thinking that it would be hard to replicate and back test.
Rob: So what did you change? I’ve noticed that your videos are different now.
Derek: Well Rob, 2 things happened almost simultaneously...
1) I changed my risk management to a 2:1 Profit/Loss ratio (from a video that I watched showing the spectrum of Swing Traders versus scalpers), and I determined that I’m more of a swing trader than a scalper! This means that I only have to be correct 36% of the time to break even
2) When Travis and I were helping Virginia S with a NinjaTrader charts, it became an amazing solution to be able to physically see different markets on the same chart all in sync with one another! This has revolutionized how I can watch charts! Sometimes they are all moving the same direction, almost herd mentality, and other times you can tell that there is rotation out of one (or two) and into another market. Now I do all 3 markets in the same direction (LONG OR SHORT) with the 2:1 ratio and it seems to be working very well.
The S&P I’m choosing a P8S4, the Nasdaq I’m choosing a P24/L12, and the Russell I’m choosing a P10/L5. Always maintaining the 2:1 ratio.
Rob: This sounds great! Do you see yourself changing anything as you learn?
Derek: The first thing that I’m going to do is set “Ninja Alerts” so that I purchase the 2 contracts with a few seconds to go prior to Opening Bell. I will probably go both directions to see there is one that seems more profitable, AND who knows with the 2:1 Risk Management ratio I may end up making money more times that not. I’m also going to have one of our awesome members help me to make a strategy builder for back testing so that I can try different perimeters to see if other risk rewards are actually more profitable
Rob: Thanks for your time and helping us understand what you call the "Triple Play" in the Opening Bell session!