The TTF Strategy (True Trend Following) by Nick Syiek

In this strategy, I focus solely on riding momentum in the direction of a dominant market trend. If the market is moving up, I'm looking for opportunities to be long. If the market is moving down, I'm looking for short setups. In this strategy guide, I will be sharing my personal strategy and how I trade it, the pros and cons, and some examples.
Please note, as with any strategy there are ups and downs with this approach, and past performance is never a guarantee of future results. This is my own approach to the market, that you may do with as you see fit.

Overview

As mentioned previously, this strategy focuses on trend following. More specifically, buying strength and selling weakness. Markets do not always trend, but occasionally some of the most impressive moves happen within the context of a roaring uptrend or aggressive downtrend. This strategy looks to capitalize on those rare moves.

As a result of the market trending infrequently, this strategy inevitably faces a problem: it has a low win rate (lots of stop losses being hit). This is uncomfortable for some traders, but is necessary to accept when trading this approach.

Pros & Cons

Every strategy has pros, cons, and drawdown. If we cannot accept this, we cannot be traders!

Pros

- Winning trades can be very large
- Holding onto winners for long stretches of time
- Losing trades are usually small & brief

Cons

- Losing trades can be very frequent, resulting in losing streaks
- Low win rate (most trades are losers or breakeven)
- Many losing trades can stack  up

Entries

My favorite entries with this strategy are relatively simple, though not always the exact same. I will highlight some of the things I look for below.

Technical Signals

- Price moving above 200 SMA
- Support / Resistance
- Fibonacci Retracements & Extensions
- Trend continuation patterns + breakouts

Fundamental Signals

- Interest Rate Decisions
- Economic Outlook
- Unemployment
- Headlines
Before taking a trade, I look for confluence in these areas. If I can stack up multiple reasons for entering a trade, I am more likely to execute the entry!

Exits

The exit approach I personally use with this strategy is an initial stop loss, and a trailing stop when trades move in profit. I trail my stop primarily using market structure, and usually place initial stops above/below my entry price based on structure as well.

If price stops me out initially, then my trade was not what I had hoped for, and I move on. This causes my losing trades to usually be very small.

If price does go in my favor, I continue to trail my stop until price eventually stops me out. This approach limits the initial risk, while creating (theoretically) unlimited reward potential when a trade really decides to go in my favor.

A1 Trading Company

A1 Trading Company is a financial services and media business founded in Atlanta, USA.
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram