A NASDAQ futures trader uses an 80/20 price level strategy: calculate 80% and 20% of the current price, enter short when price rejects the 20 level, and take initial profit 15 points away to cover risk before scaling for more gains.
the 80/20 strategy, and it's based off the NASDAQ. I would be looking at these two numbers, 80, and if it was trading at 25,620, I'd be looking at this number. That's where 80 and 20 comes from. Let's say you missed this 80 buy. Now it's going to 20. So boom, it tapped 20. This is your 20 level, and again, you're looking for that reaction. So it taps it, then it closes under, and you see that reaction. Okay, this is going to be your entry short, and I would have my first take profit 15 points just so I cover my risk. So I would have my initial risk covered, and then I'm gonna Let's see how much I can squeeze out of this move.
