What Is Aspen Trading?
The Aspen Trading Group provides a suite of tools to enhance the capabilities of individual traders.
According to Dave, there is a plethora of trading information distributed on a daily basis. All of that information must be sorted and analyzed to find trading opportunities. Unfortunately, the majority of market data is not that useful.
Aspen Trading Group aims to be a filter for this data and serve only relevant information to individuals. The Group works with a variety of clients, including those already familiar with the markets and those aspiring to join the top echelon of traders.
Individuals can leverage analysis and trade alerts which are distributed each and every day ahead of the New York open. They can also access mathematically derived support and resistance levels that indicate where the market is focused on a particular day, or opt for Aspen’s trade copier program, which executes positions on a trader’s behalf.
Following in Dave’s footsteps, the company focuses on a small selection of assets including the S&P 500, 10-Year Treasury Notes, and the major FX pairs, such as EUR/USD and USD/JPY.
What Is Dave Floyds Trading Strategy?
Dave is a short-term swing trader which means that he can be in and out of positions within a couple of days. However, a small number can also extend to a couple of weeks.
Short-term trades lend themselves to Dave’s preference for technical analysis, which, in his opinion, is far more valuable than the larger macro picture on shorter timeframes. As a result of the speed of his trades, Dave only targets a small number of asset classes.
Dave believes that there is a diminishing rate of return when he expands outside of his usual trading basket. By maintaining a focus on the S&P 500, 10-Year Treasury Notes, and major FX pairs, he can become intimately familiar with price action, which gives him the best chance to predict market movements. According to Dave, it is only by trading the same instruments every day that a certain level of intuition can be reached.
While knowing his strengths, Dave openly admits that one of his weaknesses is a willingness always to win; an element of his personality that he has become increasingly aware of during his trading career. It is his willingness to win that can lead him to wait for the absolutely perfect setup. Although he knows that this never exists, it is a constant psychological battle that he fights.
In addition, while Dave has no problem cutting stop losses instantly, an urge to constantly win also leads him to cut winning trades slightly too early; sometimes before his winning thesis has actually changed.
Most importantly, it is Dave’s awareness of these weaknesses that allows him to stay ahead when trading. By actively managing flaws on a daily basis, Dave is better positioned to place his faith in his trading strategy and technical analysis skillset.
Knowing Your Time Horizons
For Dave, a fundamental part of trading is knowing and understanding the time horizon that a trade will be executed. Without this fundamental understanding, he believes that traders will permanently lose.
The time horizon of a trade can completely alter the way that analysis is completed. A trade executed with a 1-year time horizon will be entered differently when compared with a trade executed with a time horizon of 10 minutes.
When choosing a time horizon, Dave also strongly believes that this should go hand in hand with a trader’s personality. If you err on the side of instant gratification and do not feel comfortable predicting markets beyond a couple of weeks, short-term trades are likely preferable.
The opposite would then be true if you struggle to manage the volatility that can come with shorter time periods.
Most importantly, once a time horizon has been chosen, Dave implores that a trader does not deviate from the horizon that has been selected. Swapping time horizons can mean that analysis becomes distorted.
Knowing Your Time Horizons
For Dave, a fundamental part of trading is knowing and understanding the time horizon that a trade will be executed. Without this fundamental understanding, he believes that traders will permanently lose.
The time horizon of a trade can completely alter the way that analysis is completed. A trade executed with a 1-year time horizon will be entered differently when compared with a trade executed with a time horizon of 10 minutes.
When choosing a time horizon, Dave also strongly believes that this should go hand in hand with a trader’s personality. If you err on the side of instant gratification and do not feel comfortable predicting markets beyond a couple of weeks, short-term trades are likely preferable.
The opposite would then be true if you struggle to manage the volatility that can come with shorter time periods.
Most importantly, once a time horizon has been chosen, Dave implores that a trader does not deviate from the horizon that has been selected. Swapping time horizons can mean that analysis becomes distorted.
The Importance Of Having A Network Of Traders
Daves believes that one of the best ways to get better as a trader is by getting involved.
The best traders are not forged by looking at static examples in a textbook. Instead, it can be much easier to learn on the go, while having a network of like-minded traders that can comment and provide the necessary guideposts for improvement. Part of this includes being able to share market analysis and new ideas.
As the markets change, successful traders know how to adapt strategies to suit them. However, when changing plans it can be useful to bounce ideas off a network so that decisions can be fine-tuned. Evaluating trading strategies with companions can save significant time when compared with trying to progress with trial and error. In Dave’s experience, this often yields the best results.
