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futures flex strategy

Overview

The Futures Flex Strategy is designed for active and experienced futures traders who are seeking reliable long and short signals on the futures markets. Depending on market conditions, the strategy trades both the underlying futures contracts and options on futures.  Options trades may be used for directional bias, or as a hedge for broader positions on the underlying futures contracts.

Features

  • Signals delivered in real-time via secure application (Telegram)

  • Highly liquid markets only

  • Options on futures with no stops, premium spent is stop

  • Profit targets and stops on each signal (futures)

  • Clear entry and exit points

  • No set or subscription fees.  Fees variable based on value provided and invoiced to client

  • Opportunity to profit regardless of market direction 

What it Trades

  • S&P 500 e-mini: ES (Underlying and Options)

Trade Size & Allocations

For the futures contracts themselves, when traded, the number of contracts trades is specified. The size traded, and whether mini or micros, is dependent on volatility, but the maximum risk per trade will generally not exceed $2,000.  However, the strategy scale of risk can increase per trade as a month progresses based on profits captured.

When options are used - buying calls or puts - we specify the number of contracts that are purchased and premiums may total anywhere from a few hundred dollars to $2,000 of risk premium spent.  All options trades assume that the position MAY go to zero.  Clients must ensure they accept this style of options trading prior to participating in the strategy.

These are not a recommendation for how a client should size or how much risk to take per trade.  Clients may use the signals as they see fit but should keep in mind that the fees charged are based on the value that the strategy itself delivers

Risk Budgets

Each client should consider defining a Risk Budget prior to trading.  This is simply the amount of total capital they are willing to risk in order to achieve their individual goals.  Basically this is the maximum drawdown a client is willing to take

Below are some common starting risk budgets that clients use that areassociated with this strategy.

Standard Risk Budget:    $10,000 to $20,000

Minimum Risk Budget: $5,000  

This is for illustrative purposes only and not a recommendation or advice, but is suitable to participate in the strategy considering the position sizes and  risk taken.  

Each client is responsible for maintaining their own margin requirements.

Signal Examples

Example 1: Long ES at 2800.  Profit target 2815. Stop 2780

Example 2: Closing ES Long

Example 3: Buying 2 ES 3000 calls for 18 Oct exp.  

How It Works

  1.  Submit New Client Agreement Form (here)

  2.  Determine Risk Budget (see below)

  3.  Provide mobile number to sync with application for signal delivery

  4.  We deliver signals specifying long or short on which market, along with profit target and stop losses. Periodically review performance and make adjustments as needed

  5.  When applicable pay any invoiced fees

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