Feeler Positions in Trading

How to use feeler positions to your advantage

Feeler Positions

On last week’s member Zoom call, Chris talked about ‘feeler positions’. He said something along the lines of:

“I like to have something in the market to really feel the price action”

This is not uncommon. I know several traders who like to work with what’s called a ‘feeler position’ to get a better idea of how price is moving. There’s something unique about your perspective when you have skin in the game. So how can we leverage that to our advantage?

Feeler Tactics

  • feeler position is a very small, almost meaningless position
  • position size small enough to not do any specific damage to your account if it goes against you, yet big enough to make you watch the market with a bit more focus
  • It almost activates some kind of mechanism in your brain that makes you observe the market more intently on each candle.

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Let’s work through an example:

Say you want to get long… You think price is going to close at highs, but can’t get in tune and find a good entry. A small feeler position long gets you into the market. You’re now in, small size, long. Then you watch how the market moves in relation to that feeler and when you see the right opportunity you pull the trigger on your full-size clip. (Or not, as the case may be). It’s like a baby step forward before the big leap.

The tactic is not for everyone. But if you’re a trader who sometimes hesitates too much, or finds they get a better read on things with a position on, then it could be something to look at.