ES & MES Futures Trade Plan #368

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COMMON QUESTIONS FOR ES FUTURES TRADERS

What is a Strong Level in ES futures trading?

A: A Strong Level is a price level where ES has proven it will react… a zone that has stopped or launched price before and is likely to do it again. These levels demand patience. In this Battle Plan, price ground back and forth at the Strong Level for a full hour before it finally broke to the south for a 40-point move. Same level, three days in a row, three very different trades. The market dealt a different hand every single session. Your job is to wait at the level and let it do the heavy lifting.

What are Range Rules and why do they matter?

A: Range Rules Rule. When ES trades inside an established range, the play is simple… look for longs near the bottom of the range and shorts near the top. Trade location comes first, every time… a perfect candle setup in the wrong location is worthless. That is exactly how these Battle Plan setups get mapped… reaction zones at the edges of the range that keep you on the right side of the price action. Ignore Range Rules at your own peril.

What is a Lotto Runner?

A: The Lotto Runner comes from the 3-contract system. You take profits on your first two contracts, protect the last one, and let it ride for the big move. The base profit is already booked, so the runner costs you nothing to hold. In this session, traders holding a Lotto Runner short from Battle Plan 1 in the minus 3 point position stayed short for the 40-point move without giving back what they had already earned.

What is the Core Strategy and why did it take zero trades today?

A: Core Strategy is the level-based approach taught at Micros Trader… price must reach a well-developed level and confirm before a trade exists. Some days the market never builds those levels. This session, level development was atrocious the day before CPI, so Core Strategy scored zero. That is the strategy working as designed. No setup means no trade, and that discipline protects your account on Level 10 trading days.

Should you trade ES on a CPI release day?

A: CPI day is a Level 10 trading day… the highest risk rating there is. This plan calls for skipping the overnight session entirely and waiting for the RTH open. Even then, your trade plan makes the call, and it should be written before the number drops. Remember the Tip of the Day… a hunch that the market must go up is a feeling wearing a trading costume. If predictions worked, everyone would be rich. Wait for price to reach your level and confirm… then it’s a trade.

MICROS TRADER BASICS

The Lotto Runner

The Lotto Runner is Micros Trader’s term for the third contract in the Three Contract System… the one held at break-even after initial profits are secured. With the stop moved to entry, the position carries zero risk. The only question is how far it runs.

Lotto Runners are how Micros Trader traders participate in 100-point-plus moves without giving back what they already made. Members trail the stop behind structure and Strong Levels, letting the market decide how far the runner goes. The system is built to produce consistent base profits on the first two contracts while keeping one contract alive for the occasional large winner.

Full lesson: Hold the Runner in the Trading Library

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