The Power of Dynamic Trade Setups is one of the essential ‘12 Powers to Successful Trading.’ Dynamic trade setups are able to self adjust to real time market conditions. This is important for several key reasons:
- Price action — price is always moving, ever changing in volatility, velocity and intensity
- Static trade setups don’t work because of the unruly and controllable nature of price action. What good is a 10 tick target, for example during a wild market or even, a dead market?
- Each market, chart, timeframe, etc. will produce different dynamics. The same market could be good to trade on one chart and not another.
- It’s far better to set a target that is tuned to the current condition of price action itself. We need to be able to ‘dance with the market;’ to go with the flow, in other words.
- The BEST strategies have the ability to self tune themselves in real time.
Check out this example of today’s trade session in the ES (S&P eMini). Notice each trade setup is a different size, with unique target objectives, entry and risk levels, directions, etc. The strategy is able to identify high percentage trade setups and wins 5 out of 6 of this session’s trades using the ‘power of dynamic trade setups.’
If you can trade with a strategy that is able to adjust to market conditions bar after bar, you will be closer to having a robust enough strategy that will stand the test of time, and continue to perform well no matter how much a market changes, moment to moment.
Learn it once, use it for a lifetime. Why? Because of its ability to use the power of dynamic trade setups.
Even with that said, NO strategy is going to win every trade. If you are looking for that, you will continue to be frustrated and will ultimately lose anyway, because it does not exist. It’s important to not chase after a fantasy. Making money is more important than chasing fantasies.
Making money is about growing the value of your trade account on a steady and consistent basis while controlling your drawdown with minimal and efficient trading.
If you want to make money, it will serve you well to learn the 12 Powers to Successful Trading. You can download our flipbook that explains each one in great detail at this link.