Silver Swing Trader Strategy

For CFDs/spread bets: £2,000-5,000 minimum allows proper position sizing. For futures (SIL): $5,000+ for margin + buffer. Ensure you can risk 1-2% per trade ($20-50 minimum risk per trade for meaningful results).

30-60 minutes daily is typical. Morning: Review positions, check for new setups. Evening: Analyze charts, plan tomorrow. You don't need to watch markets all day since swing trades develop over days/weeks.

Primary: Daily chart for setup identification and decisions. Secondary: Weekly for overall trend context. Optional: 4-hour for entry timing. Don't go lower than 4-hour for swing trading.

Quality over quantity. Typically 2-8 trades per month is normal. Wait for clear setups with good risk-reward. Taking no trades is better than forcing poor setups.

Moderate leverage (2-5×) is common with CFDs/spread bets. More important is position sizing for risk. Ensure each trade risks only 1-2% of account regardless of leverage. Leverage amplifies gains AND losses.

CFD/spread bet financing is typically 0.5-1% per month (0.02-0.03% per day). For 1-2 week holds, cost is ~0.15-0.30% - factor into target. Futures have no financing but require rolling before expiry.

Common approach: Take 50% at first target (prior swing high or 2R), trail rest. Take partial when: approaching key resistance, momentum weakening, or before major events. Don't take partial too early (under 1R).

Friday review: Assess open positions. If strong profit, consider taking some. If at breakeven with uncertain weekend news, decide if risk is acceptable. Keep positions sized for potential gaps. Can reduce before risky weekends.

Pyramiding can work in strong trends: add 50% original size after 1R profit, with trailing stop covering all positions. Only pyramid when trend is clearly strong and you have profit cushion. Don't add to losers.

Exit triggers: (1) Target hit, (2) Trail stop triggered, (3) Reversal pattern on daily chart, (4) Trend structure breaks (lower high in uptrend), (5) Time stop if no progress. Use multiple criteria together.

Check gold (high correlation), dollar (inverse), copper (industrial), and real yields for silver trades. Use as confirmation, not primary signal. Example: Silver technical setup + gold breaking out + dollar weak = high conviction.

Calculate full Kelly from your system stats, then use 1/4 to 1/2 of that. Full Kelly too aggressive (large drawdowns). Example: Full Kelly = 28%, use 7-14% per trade. Adjust based on confidence and market conditions.

Define: Entry criteria (trend + setup + trigger), stop rules (swing point + ATR), target rules (prior swing, Fib), sizing (risk-based). Backtest 5-10 years. Validate out-of-sample. Execute without deviation. Review quarterly.

Limit correlated exposure to 50% of total heat. Example: If max heat is 10%, max correlated (silver + gold + copper) = 5%. Diversify remaining heat into uncorrelated strategies. Monitor correlation changes.

Stop at 20% drawdown - something may be wrong. Review: Did market regime change? Were rules followed? Is system still valid? Don't trade until you understand the drawdown. May need system adjustment or just patience.