The Trade Framing Process: Standard Questions for Preparing a Trade By, Ken Long

Ken 2021Trade Framing is our name for constructing a decision-support framework to trade symbols that are in a critical state.

A Critical State is a moment when there is an abnormally large probability of:

            1. A larger-than-normal move,
            2. In either direction with a reasonable probability,
            3. In a Shorter-Than-Normal period of time,
            4. And where the “execution risk” is much smaller than the reasonably available gain, in both directions.

When we find a critical state, we frame the trade in both directions by systematically answering the following standard questions:

For a trade frame:

  • What do you see?
  • What could it do?
  • Which way would you trade?
  • Where would you enter?
  • Where would it fail?
  • Would you stop and reverse?

On a win:

  • Where would it stall?
  • Where would you preserve?
  • Where would it then go?
  • Would you stop and reverse?
  • Where would you re-enter?

In this video, Ken discusses trade framing and the power of Hybrid Trading to find opportunity where other people only see boring, routine price movement on daily charts.

1065 KL Video1 1

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