Trading Strategy Overview
Josh, a trader from Connecticut, has received funding in OneUp Trader’s funded trader program by employing a straightforward support and resistance trading approach. His strategy focuses on identifying key levels on the chart and profiting on breakouts and retracements. Many traders use support and resistance levels in their approach, but Josh has a unique method. Let’s dive into this trader and how he was able to successfully complete the Evaluation in such a short amount of time!
Pre-Market Preparation
Before the market opens, Josh’s routine starts with reviewing the day’s economic news and announcements. This allows him to identify news events that could influence the market direction for that day. By staying informed on economic events, Josh can make better trading decisions and avoid being caught off guard by sudden volatility.
He then analyzes the previous day’s chart, drawing support and resistance lines based on the price action for that day. This pre-market analysis gives Josh a clear idea for the trading day ahead and where to look for new entries before the price even moves into them.
Identifying Trends and Entry Points
Once the market opens, Josh takes a patient approach, waiting for a clear trend to emerge. This discipline is essential, as it prevents him from entering trades prematurely or chasing price movements. When the price finally breaks through a resistance level, Josh looks to enter a trade, typically on the next one-minute candle.
The decision to enter on the next one-minute candle after a breakout allows Josh to confirm the strength of the breakout and avoid being caught in a false break. By waiting for the price to pull back and retest the broken resistance, he then enters the trade with a favorable risk-to-reward ratio.
Trade Management
Josh’s trade management strategy is disciplined and well-defined. He aims to hold the position for around 10 points or until the price reaches the next resistance level. This approach helps him lock in smaller, consistent profits rather than chasing ‘home run’ trades.
This technique requires Josh to monitor the price action very closely. For example, if a reversal candle forms, it might be time to exit the position especially at such short time frames. This risk management technique means he can limit his losses until the winner comes.
Market Analysis
In addition to focusing on the NQ futures contract he trades, Josh also keeps an eye on the S&P 500 (ES) and Apple (AAPL). This approach provides gives him understanding of the overall market direction and sentiment. By analyzing multiple assets simultaneously, Josh better contextualizes the price movements in NQ.
Indicators
Josh’s trading approach is relatively simple, as we have already covered, he rellies on price action and support/resistance levels, but he also uses the VWAP (Volume-Weighted Average Price). This is a very popular day trading indicator used on intraday charts that resets at the start of every new trading session. It’s the average price a security has traded at throughout the day, based on both volume and price.
We also have a strategy video on the anchored VWAP you can view here.
Key to Success & Advice From Josh
Josh’s success in OneUp Trader’s funded trader program can be attributed to his disciplined, patient, and data-driven approach. He emphasizes the importance of taking small, consistent wins rather than trying to achieve outsized gains in a single trade.
For those starting the funded trader program, Josh says traders must take the time to complete the evaluation properly, rather than rushing. He stresses the importance of managing risk and not overextending, as the small daily profits will accumulate over time.
Josh’s trading strategy and mindset serve as a valuable example for aspiring traders. By focusing on simplicity, discipline, and risk management, he has demonstrated that a straightforward support and resistance approach can be highly effective.
