Futures Trading Setup on the M15 Chart for MNQ
A Structured Approach to Multi-Entry Position Management
This trading setup is designed for the futures markets, specifically focusing on the MNQ (Micro E-mini Nasdaq-100) using the M15 (15-minute) chart as the primary timeframe for analysis and execution.
Market Context and Chart Preparation
Begin by analysing the M15 charts for MNQ. Unlike some methodologies, this approach does require marking the previous day’s high and low as reference points for the current session. In addition, emphasis is placed on identifying and marking out significant price action zones based on recent moves and reactions evident on the M15 timeframe. These zones, along with the marked highs and lows, act as potential areas of interest for entries and risk management.
Establishing Daily Bias
It is essential to establish your daily bias—whether you are looking for opportunities to go long (buy) or short (sell). This bias should be determined using a higher time frame confluence, broader market context, or any other trusted methodology that helps you decide the most probable market direction for the session. The previous day’s high and low also assist in refining this bias, helping you decide the optimal zones for entries.
Entry Placement and Zone Selection
Once your bias is decided (long or short), focus on the price action zones highlighted on the M15 chart. For a bullish (long) bias, you will look to place three entries at M15 zones below the current market price. These zones represent strategic areas where price may retrace before continuing in the direction of your bias, offering optimal entry points with defined risk.
Three Entry Logic
The concept of Three entries is central to this strategy. Each entry should be managed in such a way that if the first entry (“Entry 1”) is stopped out or results in a loss, subsequent entries (“Entry 2”, “Entry 3”, etc.) are positioned and sized so that their profits will not only make up for their own risk but also cover the cumulative loss of previous entries.
- Entry 1 : Placed at the first identified M15 zone below current price. The aim is for NT1 to deliver an initial “R”—a risk unit—if the trade is successful.
- Entry 2: Placed at the next significant M15 zone below Entry 1. If Entry 1 is stopped out, Entry 2 should be sized and targeted so that a win covers the loss from Entry 1 plus generates one “R” of profit.
- Entry 3: Placed at a further M15 zone below Entry 2. If both Entry 1 and Entry 2 are stopped out, Entry 3 must be structured so that its profit covers the cumulative losses of Entry 1 and Entry 2, plus delivers an additional “R” in profit.
This cascading risk management system ensures that, despite a string of stop-outs, the next successful entry compensates for all previous losses and achieves the target risk-reward.
Example of Risk Management
Suppose your risk per trade (“R”) is $100.
- Entry 1: Risk $100. If successful, gain $100 (1R). If unsuccessful, lose $100.
- Entry 2: Must be sized so that, if successful, the profit is at least $200 ($100 to cover Entry 1’s loss plus $100 profit).
- Entry 3: Must be sized so that, if successful, profit equals $300 ($100 for Entry 1 loss, $100 for Entry 2 loss, plus $100 profit).
This system may require increasing position size or targeting larger moves for each subsequent entry, but the core principle is that each entry absorbs prior losses and preserves the integrity of your risk-reward model.
Benefits and Considerations
This approach minimises drawdown through strategic re-entry at optimal levels and ensures that, even after consecutive stop-outs, a single win can restore profitability. However, it is essential to:
- Strictly adhere to your risk management rules to avoid overleveraging, especially as position sizes increase for each new entry.
- Carefully select zones with the highest probability of reversal or continuation in the direction of your bias.
- Monitor overall market conditions and avoid trading in highly volatile or news-driven environments where price may ignore technical zones.
Conclusion
The described setup leverages the structure and adaptability of the M15 chart, using price action zones, previous daily highs and lows, and dynamic entry management to pursue consistent profitability. By ensuring that each new entry is capable of recouping prior losses and achieving a net gain, traders can maintain a robust risk-reward profile—provided they remain disciplined and selective in their execution.
Thanks
Stephen V
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