Learn to Day Trade the Futures Markets
1. Coach needs to be a good teacher – Having someone who is personable and can communicate ideas effectively is super important. John Paul has years of experience teaching traders using a live webinar format. His explanations are clear and concise. You are free to ask questions whenever you want and go over previously taught concepts that may still be challenging. Remember, what Mentorship offers is an educational experience – it’s not a trading room. We want you to become a professional trader who can engage with the markets successfully on your own.
2. Coach needs to be accessible – Individual Mentorship can be customized to your availability and time zone. John Paul answers emails from students directly, before, during, and after the eight week coaching program. We occasionally have students from Australia or other countries where the 3:00 p.m. US/Eastern Group Mentorship time is inconvenient. They love being able to access the video recordings on demand and following up with email questions. As a Mentorship student, you can email John Paul your trading questions at any time.
3. Proof of success – What are people saying about the Program? How are the reviews? Does the website offer any testimonials from real traders who partook in the education? We have a full testimonial page with over 16 video testimonials from traders who have taken our courses. And below the videos, you’ll see many written testimonials. We’ve had hundreds of students who have taken our courses. We know they’re still trading our methods because they email us to update their software licenses years after their original date of purchase. In addition, we have over three years of Atlas Line trades posted on our recent trades page.
4. Training materials need to be easy to understand – Does the website provide any indication of what the courses will be like? Are they designed for beginners or more advanced students? Day Trade to Win’s courses are full of easy-to-understand explanations and charts. We know day trading education can be intimidating, so we try our best to lower the learning curve. With the Mentorship Program, you receive courses for the ATO, Price Action Scalping, and Trade Scalper. These strategies are also taught in the live training in addition to other strategies that are live-training only. Being able to ask questions and see why a trade setup occurs greatly improves understanding. Remember that all of the live training is conducted using the most recent data (current day and recent days). This way, you can get an idea of how the market is currently playing out.
5. Practice environment required – Does the coaching program offer any sort of practice environment? You’re going to need to test what you’ve learned on the markets. At Day Trade to Win, we provide access to the NinjaTrader platform, the same platform John Paul uses. We also provide live data feeds for free upon request, so you are able to trade just like you would with real money. Remember, the only time you have to pay for NinjaTrader is when you want to trade live with real money. At that point, you fund a brokerage account and pay for a live NinjaTrader license. Up until then, there’s no cost to hone your skills.
6. Affordability – Can you afford to take the Program? Education is an investment. If you jumped in to the markets without an idea of what you’re doing, the market will have its way with your finances. It’s better to be fully prepared and be armed with strategies that have been proven and tested for years. Losses from mistakes and guessing can easily surpass the costs of a proper education. With Mentorship, the cost is less than purchasing all of our courses separately. We also split the payment three ways. With the deposit, you are able to get the first week’s course right away.
7. Assistance getting setup with trading materials – Many of our students had never traded before finding us. In fact, a large portion of our students are not the best when it comes to computers. That’s why we provide remote assistance. Upon request, we can log in to your computer and help you get set up with NinjaTrader and our courses and software. You’ll be able to practice trading in no time without any frustration or obstacles. Support is also offered after the eight weeks of training are over.
8. Ability to track progress – We offer the ability to practice in a simulated (paper) trading environment until you’re ready to fund an account with a broker. Since you’re getting into trading to actually trade money, you obviously will need a way to track your results. You’ll need a positive indication before investing into trading further. For each simulated trade you place, the NinjaTrader platform logs everything about the trade. Using NinjaTrader’s Account Performance tab, you can get instant statistical feedback on consistency, profit, loss, and overall totals.
9. Video training – Does the program offer training videos? It’s important to be able to see visual explanations and examples. We record each Mentorship training session and upload it to your personal account. You can log in and play back Mentorship training sessions at your own leisure. If a concept is a bit difficult for you, play back that portion of the video over again. We have these videos up within a few hours of each class, in most cases.
10. Integration with the charting platform – Day trading is about looking at charts and applying learned strategies. For many of the methods taught in our Mentorship Program, we have indicators programmed for NinjaTrader. Unlike other trading educators, we do not give you a ton of confusing indicators and have you blindly trade them. In fact, you do not need to use these indicators to trade since you fully learn each method. However, these indicators are great in ensuring your understanding. For example, the Trade Scalper indicator provides entry signals. You can manually find the same entries and check if they are correct by comparing with the Trade Scalper’s automated signals.
The next Group Mentorship Program begins July 8, 2014. Classes will be Tuesdays and Thursdays from 3 p.m. to 4 p.m. EDT (UTC-4). Click here to enroll.
Individual Mentorship can begin at almost any time. Send us an email at [email protected] with your availability.
Have you ever been surprised by a new bar or candle plotting without advance notice? NinjaTrader’s BarTimer is an very important indicator/tool that we instruct all of our students to use on time-based charts. Whether you are using the Trade Scalper method for quick entries or the Power Price Action method for a larger move, the BarTimer is used as a countdown to the close of the currently plotting time bar. If you are on a 5-min chart, the bar will countdown from five minutes to zero every five minutes. Likewise, a 1-min chart will countdown from one minute to zero every minute. By knowing when the current bar will close and a new bar will open, you can better position your entries, stop losses, and execute better trade management.
How do you get the BarTimer on your chart?
First, make sure you are on a minute-based chart. If you are on a tick-based chart, you will need to use the TickCounter instead, which can be considered a sister of the BarTimer.
1. Right-click the chart > Indicators
2. Scroll until you find “BarTimer” > Double-click it
3. In the parameters area on the right, set Auto scale parameter to false (although it doesn’t matter much for this indicator) > Click OK.
The BarTimer should then appear.
By default, the BarTimer appears in the lower right portion of the chart window. If you are not connected to a live data feed, you the BarTimer will say “Bar timer disabled since either you are disconnected or current time is outside session time or chart end date” instead of showing the countdown. Connect to a live data feed and the BarTimer will correct itself to display the countdown.
At Day Trade to Win, we regularly receive a question that goes something like, “How come my BarTimer counts down from 4:50 instead of 5:00?” We also get asked, “Why is the BarTimer inaccurate?”
Firstly, it’s important to understand how NinjaTrader calculates the BarTimer countdown display. The BarTimer will only count down when your NinjaTrader platform is receiving packets from the data feed Countdown only occurs when a new tick of data comes in. When a tick finally comes in, Ninja will “catch up” and display the countdown correctly. So if you are frequently seeing countdowns that start from 4:50 or so on your 5-min chart, don’t panic! NinjaTrader intentionally operates this way. Slow markets or small periods of inactivity will delay the BarTimer’s countdown display.
Watch this video to see what we mean:
It’s also important to make sure your Windows computer clock is accurate. NinjaTrader depends on the Windows time for its calculations. You have to make sure your Windows computer clock has the exact, correct time. Your Windows computer clock is usually in the bottom-left corner of your screen, displaying the current time. You can sync your Windows clock to an official time server by:
1. Close down NinjaTrader if it’s running.
2. Click the clock area > Click Change date and time settings…
3. Click the Internet Time tab at the top > Change settings…
4. Make sure Synchronize with an Internet time server is checked and then click Update Now.
5. You should see a success message > Click OK > Click OK
6. Open NinjaTrader and your BarTimer accuracy should be slightly improved.
» Get the Atlas Line «
Soon after the short trade John Paul recorded earlier in the day, the Atlas Line produced a Long trade as seen in the video above. John Paul caught the price action right before it caused the Atlas Line to generate the Long signal. You can see how John Paul knew a Long trade was likely to occur – a second bar was about to close above the Atlas Line. Remember, two consecutive closing bars either above or below the plotted Atlas Line will generated a Long or Short signal. Seen here, a long signal was generated at 1926.25. If you take a look at the green ATR value on the bottom of the chart, you can see the current ATR value at 2.3. This indicates the profit target should be rounded to 2, or 1928.25. What happens if the trade goes against you? This is why we have specific stop losses in mind. A catastrophic stop is the largest of the stops John Paul uses. In most cases, if the profit target is not hit, the time-based or prove-it stop will be hit first. You can learn about all of these stops, profit targets, and signals by purchasing the Atlas Line and attending the included live training session with John Paul. Click the blue link above to find out more.
» Get the Atlas Line «
When it comes to going long or short during breakouts, the Atlas Line can be very helpful. Notice where the Dbl Bar Short entry at 1923.75 occurred in relation to the later breakout price action. The short entry occurred after the market pulled back a little bit. The candle that candle prior to the 1923.75 entry candle is the low. Markets love to test where they’ve previously been. Instead of going long or short after a big move occurs, it’s better jump in early right after a small pullback. In this scenario, price was on its way down to test the low, and proceeded to pass through it, into profit territory as guided by the Atlas Line signal. The closing price of the second bar below the Atlas Line is what decided the direction and price for the signal. Remember that you can get the same exact signals on your NinjaTrader charts. Click the blue link above to find out more.
On Thursday, June 5, 2014 Mary Jo White, SEC Chair, announced plans to regulate high-frequency trading. At a New York City conference, she said, “The SEC should not roll back the technology clock, but we are assessing the extent to which specific elements of the computer-driven trading environment may be working against investors rather than for them.” The SEC aims to promote market stability and fairness.
The SEC is expected to propose rules that could:
- Require high-frequency traders to become registered brokers, thus allowing for more regulatory control.
- Restrict high-frequency traders from executing short-term strategies that disrupt markets via an “anti-disruptive trading rule.”
- Require firms to better manage the behavior of their algorithms to comply with regulations
Furthermore, the SEC will work with stock exchanges to fix data feed speed and quality discrepancies between slower, public data feeds used by small traders and faster, proprietary data feeds used by high-frequency traders. This comes as a result of last August’s Nasdaq public data feed failure, which halted trading in Nasdaq-listed stocks.
By working with the Financial Industry Regulatory Authority, the SEC also plans to expand disclosure of dark pools; pseudo-markets where trading occurs away from regulated stock exchanges.
These SEC announcements are the broadest response to concerns over the impact of high-frequency trading on the markets. These transactions account for the majority of U.S. trading. Concerns have intensified as a result of the book Flash Boys, which argues the stock market is rigged. The SEC’s new plans may take months for application, as the plans are likely to be met with opposition, debate, and voting.
Take a look at this video we created using a Radiolab podcast episode:
» Get the Atlas Line «
Here’s a live trade placed by John Paul on Monday, May 5, 2014. The dashed pink line is the Atlas Line. With two closing bars above the line, the Atlas Line signaled for a long trade. This trade occurred during a Mentorship lesson he was conducting with one of his students. If there were two closing bars below the dashed line, then the Atlas Line would have signaled for a trade in the short direction. In this case, John Paul has to wait for the second closing bar above the Atlas Line for the long signal to appear.
The current Average True Range (ATR) value is about 3 points. Therefore, the profit target will be 3 points. This is fairly volatile for the E-mini S&P. The ATR is used to determine the liquidity of current market conditions. If the market is too slow, it may not be worth trading. However, when the market tells us it is capable of moving three points, we want to maximize profit potential and minimize risk.
The entry of 1868.50 was filled via a Limit Order. Market Orders will work, but you’ll want to get as close as possible, if not a better price based on the entry price the Atlas Line signals. NinjaTrader’s Bar Timer is useful in timing when a bar is expected to close, although it is not shown in the video.
John Paul has a large catastrophic stop in place. If four bars close without hitting the profit target, he would get out at the close of the fourth bar at the current price. This is the time-based stop. If price closed on the opposite side of the Atlas Line, the prove-it stop is used. There are other stop strategies. Keep in mind the catastrophic is there as a safety net until the profit target is hit or one of the other, less costly stop losses is hit.
The result of this trade using 11 contracts is a profit of three points, equivalent to +$1,650.00, excluding trading fees.
Click here to find out more about the courses mentioned in the presentation.
John Paul conducted a presentation for NinjaTrader, in which he covered his price action approach to the markets, what to expect in 2014, and how to improve your results.
Some of the topics discussed:
• Best time of the day to trade – why the first 2.5 hours are usually the best
• Why manipulation occurs – handling overbought or oversold markets and “testing” previous prices
• Why your trading methods should work with trending and non-trending days
• Why you should be using the ATR and what it can tell you about the market
• Where you should go to find about news events that can impact the markets
• How to plan for trending or whipsaw days on the E-mini S&P 500
• A peak at the Trade Scalper software for NinjaTrader (you fully learn this method in the Trade Scalper course, so the software is not required)
• Where John Paul expects the market to reach later this year
» Get the Trade Scalper «
Take a look at the entry, profit targets and stops used to place these two trades on a 1-Min E-mini S&P chart. The triangles near the chart represent the Trade Scalper software entries that help you know exactly when to enter.
For the first trade, John Paul placed a limit order at 1879, the same as the entry signal generated by the Trade Scalper software. John Paul prefers limit orders over market orders to prevent slippage. The profit target, based on the ATR, was three ticks. The stop was at six ticks. This stop loss may raise eyebrows, however, the time-based stop is used more frequently than the six-tick stop. If the ATR with a period value of four is above three ticks, go for three ticks. If it’s ranging from three ticks to two ticks, go for two ticks. If the ATR is below two ticks, don’t trade at all (market is too slow). This price action strategy can be used on a variety of futures and currency markets. No moving averages, stochastics, etc. are used by this method.
The course teaches when to place a trade long or short and the reason why. You wait until the candles plot according to the rules and this confirms the entry. Included with purchase, you’ll get the Trade Scalper software for NinjaTrader, the Trade Scalper digital course (about 100 pages), a live training session, and a recording of this live training session.
» Get the Trade Scalper «
» Get the Atlas Line «
Using 10 contracts, John Paul traded with a result of over $2,000. This was accomplished using the Atlas Line software and the Trade Scalper strategy. These methods can be purchased separately or can be acquired through enrollment in the Mentorship Program.
For the E-mini S&P, the Atlas Line provides an entry signal around 10 a.m. US/Eastern. However, March 11, 2014 was an exception. Price danced around the Atlas Line around this time without having two consecutive closing signals above or below (which would normally generate an entry). The entry signal fired off at the close of the 10:15 a.m. candle, suggesting a Long entry of 1875. This means John Paul needed to buy the market at that price. He entered with a limit order which told the market he wanted to get in at the specified price. Price rose upwards for a while and then dropped again, tagging the entry price and filling the order. Now that he was in a trade, it was a matter of waiting and managing the the trade. You might notice NinjaTrader’s Chart Trader was not turned on right away, but you can see the profit target indicated by the green bar in the DOM window.
The second trade, over an hour later in the day, told John Paul to go short at 1874.50. Three ticks was the profit target. Although he could have gone for six ticks, he already made some profit for the day and decided on a more conservative approach. This one was filled much more quickly.
Stay tuned for the upcoming Trade Scalper videos were you can see the remaining two trades!
» Get the Atlas Line «
Today, the Atlas Line produced a Long signal at 1857.75 as seen on the chart. The doorbell sound was heard, as the Atlas Line can be configured to play sound file for the main Long and Short signals. John Paul’s Limit order was filled at the desired price. His catastrophic stop was at 1853.75, four points below the entry. In most cases, the catastrophic stop is not hit; it’s just there as a safety net. From this point, John Paul manages the trade by tightening the profit target slightly to 1859.50 (1.75 points of profit, if hit). Right away, price approached his profit target. Price danced around, retracing values it reached previously. As he says, markets love to retreat back to tested waters regularly. Within 10 minutes, price broke through the profit target, earning the 1.75 points (or $87.50 profit with one contract, $1050 with 12 contracts as seen here). Remember, the ES is worth $12.50 per tick and there are four ticks per point. 1.75 / .25 = 7 ticks x $12.5 = $87.5 (1 contract) or x 12 = $1050 (12 contracts).
Remember, you can get these same exact Long and Short entries on your charts everyday. Click the link above to find out more about the Atlas Line.