David Bennett's book is a gold standard for practical, no-nonsense day trading in volatile futures markets like grains (corn, soybeans, wheat on CME). Its core strength is a simple, repeatable system based on price action, risk management, and execution during high-volatility sessions—principles that translate exceptionally well to ETH perpetual futures on platforms like Kraken Pro. ETH's 24/7 nature and high intraday swings (often 3–10% during US hours) mimic the "open volatility" Bennett describes for grains.
Since you're in Varna (EET, UTC+2), I'll tailor tips to your local time, focusing on US market open hours (~15:30–22:00 EET), when ETH liquidity peaks and correlates with S&P 500/ES minis. Here's a detailed adaptation guide, broken into key book concepts with ETH-specific tweaks. (Assume you're using 5–15 min charts on Kraken Pro for intraday.)
1. Adapting the "Initial Move" and Session Open Setup
- Bennett's Core: At grain market open (e.g., 9:30 AM CT for CME grains), watch the first 5–15 minutes to gauge the "initial move" (up/down range). This sets your bias: bullish if above open, bearish if below. Map quick support/resistance from highs/lows.
- ETH Adaptation: Crypto has no fixed open, but treat US session start (~15:30 EET / 13:30 UTC) as your "open" — that's when volume surges (London-NY overlap).
- Tip: In the first 15–30 minutes (15:30–16:00 EET), note ETH's "initial swing" from the pre-US low/high. If price breaks above the 15-min high, go long (target +2–3x risk). If below low, short.
- ETH Twist: Add funding rate check (via Kraken Futures tab) at session start — positive funding favors shorts (longs pay you), negative favors longs.
- Example Setup: If ETH opens US session at $2,900 and swings +$50 in first 15 min, bias long with stop below session low (-$30 risk, target +$90–$150).
2. Support/Resistance and Zone Mapping
- Bennett's Core: Use early session highs/lows, pivots, and volume clusters to draw "zones" for entries (e.g., buy near support after rejection).
- ETH Adaptation: On Kraken Pro, enable VPVR (Volume Profile) for visible range — it shows ETH's "value areas" like grain pit levels. Combine with round numbers ($2,900, $3,000) and previous day's highs/lows.
- Tip: During your 15:30–19:00 EET window, map zones in the first hour: e.g., POC (longest volume bar) as fair value. Enter long on bounce from VAL (value area low), stop below it.
- ETH Twist: Watch BTC correlation — if BTC rejects a level, ETH often follows. Use Kraken's order book for live depth (thicker bids = stronger support).
- Risk Management: Bennett's 1:2–1:3 reward:risk ratio fits ETH — but cap leverage at 5–10x to avoid liquidation (ETH can wick $100+ fast).
3. Trend Bias and Trade Management
- Bennett's Core: Once bias forms, trade in that direction only; trail stops on winners, cut losers quick. Avoid counter-trend until reversal proof.
- ETH Adaptation: In US hours, ETH trends stronger with macro (e.g., Nasdaq moves). If initial move is up, only long until a lower low forms.
- Tip: Use Bennett's "add-on" rule: Partial out at first target (+1R), trail the rest with a 15-min close below trailing stop. For ETH, add a time filter — exit by 19:00 EET if no momentum (volume drops post-overlap).
- ETH Twist: Incorporate funding resets (every 8 hours, e.g., ~18:00 EET) — if negative and you're long, it pays you to hold briefly.
- Example: Long ETH at $2,920 support (bias from initial up-move), target $2,970 (1R = $30 risk, so 1:3 = $90 profit). Trail stop to entry after +$50.
4. Risk and Money Management
- Bennett's Core: Risk max 1% per trade, 2–3 trades/day; position size based on stop distance. Journal everything.
- ETH Adaptation: With ETH's volatility, stick to 0.5–1% account risk per trade. Use Kraken's position calculator for leverage-adjusted size.
- Tip: Bennett's "daily loss limit" (e.g., 2–3R total) is crucial for ETH — stop after 2 losing trades in US session to avoid tilt.
- ETH Twist: Factor in slippage (crypto spreads widen in thin hours) — use limit orders. Track funding P&L separately in your journal.
- Daily Routine: Pre-session (15:00 EET): Review overnight ETH moves. Post-session (19:00+): Journal wins/losses like Bennett's monthly reviews.
5. Psychological and Execution Tips
- Bennett's Core: Discipline over prediction; practice on sim accounts; trade small until consistent.
- ETH Adaptation: Use Kraken's demo mode for ETH perps to simulate US hours. Focus on execution speed — Kraken's interface is fast, but set hotkeys for quick entries.
- Tip: Bennett's "repetition builds edge" — backtest 50+ ETH US sessions on TradingView (Kraken symbols) using his initial move rules.
- ETH Twist: Crypto FOMO is real — counter it with Bennett's "wait for setup" patience, especially during news (e.g., CPI at 15:30 EET).
Potential Challenges & Enhancements
- Volatility Mismatch: Grains are ~1–3% daily; ETH can be 5–15% — scale down Bennett's targets (e.g., 1:2 ratio instead of 1:3).
- Tools on Kraken: Use built-in indicators (MA, RSI sparingly — Bennett hates complexity) + VPVR for volume zones.
- Resources: Combine with crypto-specific books like "The Mental Game of Trading" for ETH's emotional swings. Track progress over 20 US sessions (~1 month at 5 days/week).
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