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Tips and Suggestions for Using CTOD

/ The CTOD method is best used in active markets which tend to make large moves during the day. Currently such markets are S&P futures, most currencies, and Treasury bonds. This can change, however, inasВэmuch as markets currently not active will one day become active as well as volatile.

/ Once you have established your position, be sure to use a trailing stop loss, or you may find your profit rapidly diminishing. The whole idea of CTOD trading is to grab profits yet at the same time to give the market you are trading sufficient room to continue its move.

/ Experiment with different time frames such as 1 hour, or 1V2 hours. Study the markets you are trading for unique characteristics which allow short- or long-time windows to work better.

/ Multiple units can offer you the best of possible worlds using CTOD. If, for example, you enter your initial position with two units, then you can close one out at a profit when the market either bulges or drops sharply and hold the remaining unit according to the rules in the event that a further move is coming.

/ Trailing stop losses can and do work with CTOD. Experiment with different stop loss methods, in particular with those described in this book.

/ Remember that CTOD can give two signals each day, a buy and a sell, or it may, on occasion give no signals whatsoever.