Tim, you were a big influence on me with trading when I was getting started. I wanted to re-connect with you and first thank you for the impact you had on my trading.

I remember about 5 years ago when I started, I was doing a strangle on an earnings report...you probably don't remember; but I didn't set my positions out far enough, I think it was on NFLX...and I got thumped!!

  • how long have you been trading

  • what got you started

  • what are your tips for someone just getting started

  • what are your favorite techniques for trading (or setups)

  • market engine/mkt effectiveness: how do you determine probabilities?

  • I have learned over the years that my consistency is driven by hitting base hits; any time I try to:

  • set really wide targets
  • get too close to risk
  • pull the trigger before my confirmations
    I GET THUMPED

Today I trade with a blended strategy; that was first inspired by you with options trading.
My general strategy is a two-pronged approach
- options
- futures

Options: use of credit spreads, I generally avoid making directional trades with options, however, I still make directional decisions, but only to help me determine the how far out of the money I should go with my trade
Mostly verticals, out of the money, and let theta do its job...so I'll be in a an options position for 3 to 10 days typically.

I knew I needed the cash flow capabilities of selling options that were improbable.
- Market Engine & Market Effectiveness Chart

Futures: I trade those directionally, again I use
- Market Engine & Market Effectiveness Chart

For all trades I use 3 charts:
1. Trading Chart (Market Engine - shows effort to move price of a particular instrument) [ES: 1 min; AAPL: day]
2. Market Effectiveness Chart - shows how effective the Big Market Engine is doing at moving price (there are many elements that go into this...) [Typically 2 to 3 times, the amount of time of the Trading Chart]
3. Context Chart (this is where I take time OUT of the picture and focus on market structure)

1- On my trading chart, let's say it for AAPL, I have the Market Engine; which is tuned for a particular exchange; NYSE or the NASDAQ and it deals with level of effort. It gives a real time read on the effect of buying and selling on the exchange and maps it to price; and I've discovered some patterns on it.

2- The signal typically starts with the Mkt Eff Chart...because on there is a correlation, and it begins when there is a Gear Shift

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