Futures trading is all about strategy. Whether you're trading with a prop firm or your own capital, having a solid game plan can make all the difference. Futures markets move fast, and without a clear approach, it’s easy to get caught on the wrong side of a trade.
In this guide, we’ll break down the best futures day trading strategies, highlight key indicators, and answer common questions to help you develop a high-probability trading plan.
What is the Most Successful Strategy in Day Trading?
No single strategy guarantees success, but momentum trading, trend following, and breakout strategies tend to have the highest success rates among experienced futures traders. The key is consistency—sticking to a structured approach while managing risk effectively.
Which Strategy is Best for Future Trading?
Your best strategy depends on your trading style and risk tolerance. Here are a few of the most effective futures trading strategies:
1. Momentum Trading
Best for: Traders looking to capitalize on rapid price movements.
How it Works: Momentum traders buy or sell futures contracts when price action confirms strong momentum in one direction.
Key Indicators: RSI, MACD, VWAP.
Example: Buying the S&P 500 E-mini (ES) when price breaks above VWAP with strong volume.
Learn how to trade momentum with futures here.
2. Breakout Trading
Best for: Traders who want to catch big moves early.
How it Works: Enter trades when price breaks key levels of resistance or support.
Key Indicators: Bollinger Bands, Volume Profile, Pivot Points.
Example: Going long on Nasdaq-100 futures (NQ) when price clears a previous day’s high with rising volume.
3. Trend Following
Best for: Traders who prefer longer holds within a trend.
How it Works: Enter long trades in uptrends and short trades in downtrends.
Key Indicators: Moving Averages (EMA, SMA), ADX.
Example: Buying crude oil futures (CL) when price is above the 50-day EMA and the ADX confirms trend strength.
4. Range Trading
Best for: Low-volatility markets.
How it Works: Buy near support and sell near resistance within a defined price range.
Key Indicators: Bollinger Bands, Pivot Points, RSI.
Example: Shorting Gold Futures (GC) near a known resistance level when RSI is overbought.
5. Scalping Futures
Best for: Traders who prefer frequent, small profits.
How it Works: Scalpers take quick trades, aiming for small moves multiple times a day.
Key Indicators: VWAP, Level 2 Order Flow, Short-Term Moving Averages.
Example: Buying the Dow Jones (YM) when price pulls back to VWAP and bounces off support.
6. Reversal Trading
Best for: Traders who look for trend exhaustion and turning points.
How it Works: Identify classic reversal patterns like double tops, double bottoms, and head and shoulders. Enter trades when price action confirms a shift in trend direction.
Key Indicators: RSI (Relative Strength Index), MACD (Moving Average Convergence Divergence), Candlestick Patterns (e.g., engulfing candles, pin bars).
Example: Shorting E-mini Nasdaq (NQ) futures after spotting a double top at key resistance, confirmed by bearish divergence on RSI.
7. News-Based Trading
Best for: Traders who thrive on fast, high-volatility moves.
How it Works: React to major economic news, such as CPI reports, Fed decisions, and job numbers. Enter trades based on market reaction but be prepared for wild swings and slippage.
Key Indicators: Economic Calendars (ForexFactory, Investing.com), Volatility Indicators (VIX), Price Action.
Example: Trading Crude Oil (CL) futures after an unexpectedly low inventory report, catching the momentum-driven price spike.
⚠️ Note: Most prop firms prohibit news trading, and doing so could result in failing an evaluation or losing a funded account. Always check your firm's rules before using this strategy.
8. Algorithmic Trading
Best for: Traders who want to automate strategies and remove emotions.
How it Works: Use programmed trading systems to execute trades based on technical rules or quantitative models. Requires coding skills or access to pre-built algo platforms.
Key Indicators: Custom Scripts (Python, NinjaTrader, TradeStation), VWAP, EMA Crossovers.
Example: An algorithm buys E-mini S&P 500 (ES) futures when the 9 EMA crosses above the 20 EMA, and sells when the 9 EMA crosses back below.
Pros: Eliminates emotional trading, executes trades instantly, runs 24/7.
Cons: Requires constant monitoring, coding knowledge, and fails in unexpected market conditions.
9. ICT Concepts (For Entertainment Purposes Only)
Best for: People who love conspiracy theories and financial fiction.
How it Works: Follow vague, secretive trading techniques from a self-proclaimed market mastermind who claims to have invented trading itself.
Key Indicators: "Smart Money Concepts," "Liquidity Raids," and a high tolerance for questionable logic.
Example: Believing hedge funds move the market just to hit your stop-loss, then re-entering a trade based on unverified theories.
🚨 Reality Check:
No professional traders, hedge funds, or banks use ICT concepts.
It's not backed by any institutional framework or market research.
The best traders focus on proven strategies, risk management, and discipline.
What is the 80% Rule in Futures Trading?
The 80% rule applies to trading futures within the value area of the Volume Profile:
If price opens outside the previous day's value area but re-enters it, there’s an 80% chance it will fill the entire value range.
Traders use this rule to anticipate price movement and target full retracements inside the value area.
Example: If the ES futures price re-enters the value area from above, a trader might short with a target at the bottom of the value area.
Which Trading Strategy Has the Highest Probability of Success?
No strategy wins 100% of the time, but the highest-probability strategies focus on:
Trading with the Trend (Trend Following)
Momentum Trading on Strong Volume
Breakouts from Key Levels (with Confirmation)
80% Rule in Volume Profile
Success comes from risk management—cutting losses quickly while letting winning trades run.
What is the Best Moving Average for Day Trading Futures?
Moving averages help smooth price action and identify trends. The best moving average depends on your strategy:
9 EMA & 20 EMA: Best for short-term scalping and momentum trades.
50 EMA: Great for spotting medium-term trend direction.
200 SMA: Used for identifying long-term trend bias.
Example: A futures trader might use the 9 EMA and 20 EMA crossover to enter trades, exiting when price retraces to the 50 EMA.
How to Succeed in Futures Day Trading
1. Trade with a Plan
Set clear entry, stop-loss, and profit target levels before taking a trade.
2. Manage Risk
Never risk more than 1-2% of your capital on a single trade.
3. Use Volume and Price Action
High volume confirms strong moves. Low volume breakouts often fail.
4. Trade with the Trend
If the trend is up, buy dips. If the trend is down, sell rallies.
5. Track Your Performance
Keep a trading journal to review mistakes and improve your strategy.
Final Thoughts
Finding the best futures day trading strategy isn’t about picking one method and sticking with it forever. Instead, it’s about refining your approach, testing different strategies, and focusing on consistency.
Whether you trade with a prop firm or your own capital, strategies like momentum trading, breakouts, trend following, and scalping can all be profitable when executed with discipline.
Now it’s time to put these strategies to the test—pick one, backtest it, and refine your edge in the futures market!
