Captures multi-day to multi-week price swings
| Strategy Type | Swing Trading / Position Trading |
| Market Outlook | Captures multi-day to multi-week price swings |
| Risk Profile | Moderate with wider stops for overnight holding |
| Reward Profile | Larger moves (100-500+ points) over several days/weeks |
| Time Horizon | 2-20 trading days typical |
| Iv Environment | N/A - Futures/Index based |
| Breakeven | Win rate × Avg win > Loss rate × Avg loss + Carry costs |
| Primary Instruments | FTSE 100 Futures, FTSE 250 Futures, UK100 CFD, iShares FTSE 100 ETF (ISF) |
| Mas Compliance | MAS regulated brokers required for futures/CFD trading |
| Trading Hours | Analysis on Daily/H4 charts; execution during London session |
| Contract Size | FTSE 100 Futures: £10 per point; Mini: £2 per point |
| Settlement | Cash settled; overnight financing for CFDs |
| Tax Treatment | No capital gains tax for individuals in Singapore |
| Margin Requirements | Overnight margin higher than day trading margin |
| Cdp Account | Not required for futures/CFD; custody with broker |
| Singapore Relevance | Swing trading suits Singapore investors - less screen time required, analysis outside market hours, captures larger UK market moves |
Trading style capturing multi-day to multi-week price movements. Holds overnight unlike day trading. Typical holding period 2-20 days. Aims for 100-500+ point moves. Requires only 1-2 hours daily analysis.
Primary: Daily chart for trend and setup identification. Secondary: H4 for entry timing. Context: Weekly for major trend. Daily is where you make trading decisions, H4 helps with precise entry.
Typically 50-150 points for FTSE. Based on swing structure (below swing low) or ATR (2.5× ATR). Wider than intraday to survive overnight moves and daily fluctuations. Size positions accordingly.
Typically 4-10 swing trades per month. Quality over quantity. Wait for good setups rather than forcing trades. More trades isn't better if setup quality drops.
Excellent fit. Analyze after UK market closes (9-10 PM SGT). Place orders before London open (3-4 PM SGT). Only need 1-2 hours daily. Compatible with full-time job.
Using Weekly (context), Daily (setups), H4 (entries) together. Weekly shows major trend and levels. Daily identifies swing setups. H4 fine-tunes entry timing. All should align for best probability.
In uptrend: RSI dips to 40-45 area is 'oversold'. Wait for RSI to turn up, combined with price at support. In downtrend: RSI rallies to 55-60 area is 'overbought'. Watch for RSI divergence as warning.
Total open risk across all positions. If 3 positions each risking 1.5%, total heat is 4.5%. Maximum recommended: 5-8%. Prevents catastrophic loss if multiple positions stopped simultaneously.
Swing trail: Move stop below each new higher low (longs). ATR trail: Stop at 3× ATR from highest point. MA trail: Exit on close below 20 MA. Choose method and apply consistently.
Broken resistance often becomes support (and vice versa). After breakout, price may pull back to test the broken level. Entry on successful retest is high probability setup with tight stop.
Identifying current market state: Trending (good for swings), Ranging (reduce swings), Volatile (smaller size). Use ADX > 25 for trending. Adapt strategy and position size to current regime.
Multiple similar positions = concentrated risk. Three FTSE positions aren't diversified. Track correlation between positions. Reduce combined position size for correlated trades. Diversify across uncorrelated setups.
Optimize parameters on 3 years (in-sample), test on 1 year (out-of-sample), roll forward. Prevents curve-fitting to historical data. Parameters must work on unseen data to be valid.
Accept as part of swing trading. Position size accounts for worst-case gap. If gap beyond stop, exit at market (don't hope). Consider reducing before known events. Typical gaps 0.5-1%.
Win rate (45-55%), Profit Factor (>1.5), Average R:R (>1.5), Max Drawdown (<15%), Sharpe Ratio (>1.0). Analyze by: setup type, market regime, entry method. Track in database, review monthly.
Full guided lessons, quizzes, and a complete strategy library for the Singapore market. One-time purchase. No subscription, ever.
Get Singapore access →