3 Key Elements of a Winning Strategy with Steven Primo

TradingPub Admin | January 16, 2015

Responsive image

At the TradingPub we work hard to provide an environment where traders like you can connect with top professionals and learn from their knowledge and experience. And yesterday was no exception as Steven Primo stopped by and gave us a great presentation on his "3 Key Elements of a Winning Strategy". Steven has been actively trading the markets for more than 38 years, and during this time he has discovered  that complicated charts and  excess noise actively works against trading consistency.  Over the years he has developed several simple strategies and during yesterday's session he shared with us his favorite technique for spotting breakout moves in the stock, futures, and forex markets.

Here are some of the key points Steven shared during his presentation:

1. Trading in synch with the market is of utmost importance for success and consistency

2. A powerful price bar pattern can be used in your trading right away

3. Consider entries only after confirmation of a trend

Key Element # 1

Being in sync with the trend is not a new concept, but many traders fail to take advantage of this simple step. Properly identifying the trend is the biggest challenge for most traders and Steven suggests that using the 50 period Simple Moving Average (SMA) can solve this problem. If the market price is above the SMA, then the trend of the market is up and you only look for buy setups. And when price is below the 50 SMA, the trend is down and you look for short setups.

And better yet, this concept can be applied in any market and any time frame!

Key Element # 2

Look for a price bar that closes in the top 25% of its range. Once you have identified which way the market is trending, find a bar which is indicating a further the uptrend, and you can feel confident that the next 3-5 bars will continue in the same direction. Here is chart that illustrates this point.

Primo 1

Key Element #3

Enter a trade only upon confirmation of the trend. Simply knowing which way the market is trending is not enough. You also want to wait for a confirmation of the trend, and here is where Steven shared his favorite method for doing this.  What you want to do here is to buy on the bar after a bar that has closed in the top 25% of its range. In this cases price is expected to likely trade 1-5 ticks above, as seen below.

Primo 2

When selling the market, the same rules apply. When market prices are below the 50 SMA, look for short setups by looking for a bar that closes in the bottom 25% of its range, and wait for a confirmation signal.

Steven also shared his approach for spotting entry opportunities when prices start to retrace during a trending move.  He calls this his Pullback Technique and it involves placing a trade as prices retreat back to the 50 SMA and you are looking for a bounce in the opposite direction. For long entries look for a confirming bar that closes in the top 25% of its range, and for short entries look for a confirming bar that closes in bottom 25% of its range.

Steven then showed how these techniques can be used to trade the stock, futures, and forex markets across multiple time frames.

He also put together a very special offer for TradingPub members for his on-line trading education course that provides 3-hours of high quality information on the following topics:

  • All About Trading Edges
  • The Wrong Indicators To Look At
  • What Steven Primo Learned From Other Traders On The Floor
  • How Simplicity Equals Consistency
  • Systems vs Strategy
  • 3 Ways For Identifying The Trend
  • Using Donchian Channels, Bollinger Bands, and the RSI In Your Trading
  • Learn How To Be On The Right Side Of The Trade
  • Learn When A Trend Has Changed Direction
  • Learn When To Stay Out Of A Trade
  • Position Trading
  • Learn All Of The Rules Of Steven Primo’s favorite strategy

This is a special, limited time offer available only to TradingPub members and your cost is only $37.