SPDR S&P 500 15M ETF DAY TRADING STRATEGY

We’re going to talk how ETF trading strategies can help you grow a small account quickly.
ETFs are versatile financial instruments that are suitable for every trading style from day trading ETF to swing trading ETF.
ETF exchange traded funds are financial instruments designed to follow the price of a specific basket of assets and are traded on the US stock exchanges. ETF trading works exactly like stock trading.
For example, the SPDR S&P500 ETF (SPY) is tracking the S&P500 index.
Day trading is among the best ETF trading strategies because this environment is characterized by high volatility.
the best ETF to day trade
SPDR S&P 500 (SPY)
Gold Miners ETF (GDX)
ProShares VIX Short-Term Futures ETF
ProShares Ultra VIX Short-Term Futures ETF (UVXY)
iShares MSCI Emerging Markets ETF (EEM)
Step #1: Apply the 50 – period Moving Average on the 15-Minute Chart
The 50 – period moving average is one of the most popular indicators in stock trading. The 50 MA is a psychological level that many professional traders and investors use to gauge the market sentiment.
Because many traders use the 50 moving average it has more relevance to the price action. This is the reason why we use the 50 MA in combination with the opening trading range.
Step #2: Only Enter Trades after 10:00 AM ET
We like to focus on the opening trading range when day trading ETFs. The morning session is when the smart money usually steps in the market and subsequently the most volume happens during the morning session.
By focusing only on the morning session we avoid being glued to the chart all day long and only trade alongside the institutional money.
The regular trading hours for the SPDR S&P 500 trust starts at 9:30 AM ET. But, we like the first 30 minutes after the open, to wait and see what the smart money are doing.
Successful day trading leveraged ETFs is all about taking those opportunities during the most volatile time of the trading day.
Step #3: Price Needs to Hold Below 50-MA and to Open in the Lower Part of the Previous 5 Day Trading Range
After we analyze how the market plays out during the first 30 minutes of the opening session, we look for the price to hold below the key 50 moving average.
Secondly, the SPDR S&P 500 ETF also needs to open in the lower part of the previous 5 day trading range. Simply mark on your chart the previous 5 trading days and the lowest price of that trading range.
If, on the six day we open near the lowest price and we hold below 50 MA we’re good to sell SPY.
Step #4: Hide SL $0.25 above the 50 Moving Average
With this mechanical day trading strategy we place our stop loss $0.25 above the 50 moving average. If after the open SPY breaks above the 50 MA it signals that the bears are very weak. We found this technical reading to be very significant for day trading.
Step #5: Take Profit if SPY Declines $1.00
This trade setup is based on our experience that if all the above conditions are satisfied, then there is a very high probability for the SPY ETF to fall at least $1. If your profit target is not reached by 4:00 PM ET close the trade manually.
Note** the above was an example of a SELL trade. Use the same rules for a BUT trade – but in reverse.
Day trading ETFs provides simple investment opportunities and have a lower operating cost than most of the other financial vehicles. Don’t underestimate the power of trading leveraged ETFs if you want to take advantage of the intraday volatility.