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This webinar focuses on managing risk. John Paul discusses how the ATR can be used to determine profit range for each trade. The Bar Timer counts tells you when the currently plotting candle closes. Using the Bar Timer with the ATR, it’s possible to plan a profit target and stop loss. Essentially, a profit target is the “goal” of how much profit you believe the market will provide and the stop loss is how much you are willing to lose. Therefore, wouldn’t it make sense to set your stop loss to the current market price for no risk? Wrong – there’s always risk. And if your profit target is too small, there is a greater chance the constantly fluctuating market price will hit your stop loss. This is why stops that are too tight are a problem. Instead, John Paul prefers to use the ATR to determine what the market can produce. This dynamic approach changes based on “what the market can provide” instead of a fixed value. To be more conservative, he rounds the ATR down to determine the profit target.
At about 19:50 in the video, you can see the Atlas Line. There are no short or long signals yet because there needs to be two consecutive closing bars above or below. At the moment the Atlas Line was applied, there was only one closing bar. In a situation like this, you can get ready to place a short trade when the second candle closes. The bar timer is counting down and lets you know when to place that short trade, providing the bar does indeed close below the dashed Atlas Line. , the catastrophic stop loss (as its called), is generally a maximum of five points. For the maximum stop loss, John Paul doubles the ATR value to a maximum of five points. This is referred to as the catastrophic stop and it’s only hit if the profit target is not reached and the less penalizing stop losses are not hit. The main purpose of this stop is to keep you in the trade. At around 31:30, additional stop loss strategies are discussed and how they apply to the Atlas Line.
To learn other ways to improve your trading, call us at 1-888-607-0008. Using the link above to register. With your deposit for the next Group Mentorship class, we will provide you with the ATO course and software.
Get the Atlas Line signals on your chart
When adding the Atlas Line to the chart, you won’t see anything displayed until specific conditions are met. Eventually, you will see a dashed line begin to grow, most often at a diagonal angle. In the included live training, you’ll learn exactly when to expect the line to appear along with entry prices. In this video, you’ll see a Long signal when price hits 2152.75. This signal occurred because of the two close bars above the Atlas Line. The second close occurred at the 2152.75 price, so that’s the entry.
An important part of trading the Atlas Line is understanding and avoiding risk. Before entering a trade, John Paul looks for overbought or oversold conditions. He gauges this via the distance between the Atlas Line and position of recent candles. A greater distance implies greater risk. At about 2:10 here, you can see how this trade is riskier because of the distance. Another risk factor is news events. Always check a news calendar for high-priority events and when the Fed Chair speaks. Planned and unplanned news events can cause sudden, drastic changes to volatility that increase risk. Not every trade will be a winning trade. Some will result in a small win, breakeven, a small loss, or a large loss. In any case, with the Atlas Line, you are not guessing. It’s telling you exactly when to enter and it’s up to you to place the trade if the remaining risk factors are reasonably acceptable. Markets often revisit previously reached price levels.
Later on, the Atlas Line produced a Strength Trade, signified by the small letter S that appears below the candles. Since the direction is long, the rules say that future trades will be on the long side. Pullback trades are also possible, and these too have exact rules.
To get the Atlas Line and live training, you can purchase it individual or get it along with all of our other trading courses and software via the upcoming Group Mentorship class. This next class begins Oct. 19 and seats are filling up. It’s first-come, first-served, so don’t wait! Click here for the details.
On Sep. 8, 2016, you will need to roll over your CME equity index futures contracts (including the E-mini S&P) to the next contract period, December 2016. In NinjaTrader, this period is listed as ES 12-16. The next roll date after this is December 8, 2016, at which time, the March 2017 contract will be the new contract.
Click here to see the CME page with an explanation and future dates
Click here to see the official rollover instructions from NinjaTrader
Note: if you’re encountering issues getting live data after rolling over, go to this link, select your NinjaTrader version, and follow the nine or so steps to correct the contract date.
Here is how to roll over:
1. Go to NinjaTrader’s Control Center > Tools > Instrument Manager.
2. In the name box (top center of the Instrument Manager), type in the abbreviation for the market you want to roll over, e.g. ES. Click Search.
3. In the result box, click the correct market and the row will highlight. If you are rolling over on the roll date or after, notice below how NinjaTrader knows to set the Expiry date to the correct value (09-16 in this case). Click the left black triangle / arrow button so that the new ES contract is added to the list on the left. Then click OK. Optionally, you can click the old contract and click the right arrow/triangle button to remove it from the list.
From this point forward, you can open a new chart for the new contract period or switch over your current chart by using the drop-down list in the upper left corner of the chart.
Learn the rules of the Trade Scalper system
Spoiler alert – the outcome of this video is not a winning trade. Watch to see how John Paul makes the best out of the situation.
To begin with, notice how there’s a Dbl Wick Short signal on the E-mini chart. This standards for Double Wick, and it’s entirely based on wicks / price action; not moving averages, MACDs, etc. With the Trade Scalper, you’re often going for a three-tick target with a six-tick stop. It’s scalping, so the goal is smaller. Like our other trading methods, the ATR is used to assess conditions. Slower markets mean smaller profits. The inverse is also true. Correct price action trading is always relative to current market conditions. The video speeds up and you can see price try to move toward the target, but ultimately failing during the allotted time. It’s never good to stay too long in the market, certainly when scalping. Remember that one of the stop loss rules is based on time. This trade is taking too long, and therefore has met the conditions for that rule to apply. To get out at the trade at breakeven (excluding broker fees), the profit target is moved to the entry value, 2181.00. Remember, it’s not possible to get out of every losing trade this way. This is just an example of a time-based stop working as intended.
Get the Trade Scalper signals on your chart
Let’s take a look at a E-mini S&P Trade Scalper trade from Aug. 26, 2016. The Trade Scalper software produced a short signal at 2181.75. This is the exact limit order price John Paul wants to get. Typically, with market orders, you’ll lose a tick due to slippage. As with any trade, getting filled sooner rather than later, is preferred. The longer the wait, the greater the risk. Especially in scalping, you want “instant in, instant out” if possible. Scalping can be done all day long in different markets, but the conditions have to be suitable. Avoid news events, as they produce market volatility. Also, avoid the first 10 minutes of the session open and the final 20 minutes of the day. During these times, buyers and sellers are battling it out, and individual traders like yourself can get into trouble. In this trade, the profit target is about two ticks. If the profit target was not reached, you would follow the rules to exit at small profit, break even, or loss. Markets love to test where they’ve previously been, and this trade is an example of that.
Get the Atlas Line signals on your chart
Here’s a quick three-minute video of Atlas Line trades for today, August 26, 2016. First, there was a nice short trade signal produce at 9:55 a.m. EDT. The signal appeared at the close of the candle, at 2178.25. The market is neither overbought nor oversold. In fact, the signal coincides with the Roadmap and a couple of other strategies. Later in the day, an Atlas Line Pullback trade occurred, signified by the multiple P symbols that appear above the candles. With Pullback, Strength, and trades used by other strategies, it’s best to make profit as quickly as possible. Behind the 5-min Atlas Line chart, there’s a 1-min chart using the Trade Scalper. Notice how price is touching the profit target. Price needs to pass through the target to ensure a fill. Within a few seconds, John Paul makes three ticks of profit.
Learn the ATO strategy and many more price action methods by taking part in the next Group Mentorship. Group Mentorship begins Sep. 7, 2016. All courses and software are included. Click here to secure your seat. With your deposit, we will send you the ATO course and software, so you can get started right away.
We’ve had some slow activity in the markets lately. If conditions are too slow, it’s difficult to find trades. On daily charts, you will often see cycles consisting of groups of candles in tight ranges followed by sharp break outs. In this webinar, John Paul covers how to handle this behavior. If recent days have been slow, assume more of the same. If the market begins to stall, then a change in direction may soon occur. You can get a better picture of daily activity by switching to a daily or monthly chart. If a day has a large range range, there’s a chance the following day will trend.
What about intraday? At about 7:50 into the Part 1 video, John Paul explains the concept behind the ATO (At the Open Strategy). When a market first opens, there is often a push in one direction (up or down). Being able to recognize the direction and using it to take profit is the basis of the ATO. If you take the European or Australian market open and match up the times in the E-mini, you can often see the market pushing in one direction at these times as well. After the direction is determined, is there a way to get a better entry price? Markets love to test where they’ve already been. Wait for the retest to occur. Even though the ATO will plot signals in the afternoon, only consider trades in the first 2.5 hours. If no signals generate by noon, then there were simply no trades for the beginning push of the day.
At about 28 min. into the first part, you can see two ATO trades that at first look, would have not worked out. Sometimes, you can get a signal, but no fill. This means the market is too strong to the upside or downside. This setup here is called Chase the Trade – it’s an additional long or short available if the original fill does not occur. Chase the Trade trades are placed as stop with limit orders (middle mouse button). Then it’s a matter of waiting until price hopefully goes in your favor.
In Part 2, John Paul discusses using the ATO on the Euro (6E), front-running trades, MIT orders, scalping, and more.
Did you miss today’s webinar? Here’s your chance to watch the recording. The recording consists of two parts.
Covered in the webinar:
• ABC Strategy – how it works and where to enter
• ATR (Average True Range) – gauging risk, stops, and profits
• Atlas Line – accurate entry signals on a 5-min chart
• Trade Scalper – quick trades on a 1-min chart
• News events – what to look for and how to trade them
• Phantom orders – are the markets tricking you on purpose?
…and much more!
Learn all of John Paul’s strategies by enrolling in the next Group Mentorship class. The next class begins Sep. 6, 2016. Click here to submit your deposit. After submitting your deposit, we will email you the first week’s materials, so you can get started right away.
John Paul spots a Roadmap opportunity on the E-mini S&P on August 12, 2016. Most indicators would be telling you to go short. It looks like a downward trend, why not? However, you would be mistaken. The Roadmap (provided with Mentorship) is telling you the opposite – go long.
The markets are manipulated. Unless you know where to find the manipulation, the markets can trick you into following trends that aren’t truly there.
What does the Roadmap do? It can help you spot manipulation and find exact trades (entry points) to take. It also filters other strategies. In the video, watch how the market reverses to the long side, as predicted by John Paul.
How can you get the Roadmap? Join the next Individual or Group Mentorship Program. The next class begins September 6, 2016. Classes will be Tuesdays and Wednesdays from 4 p.m. to 5 p.m. US/Eastern (New York Time). Click here to submit your deposit and reserve your seat. With your deposit, you will receive the first week’s course and software (ATO strategy), so you can study and practice in advance.
Join our next Group Mentorship class:
Click here to submit your deposit and reserve your seat.
Seating is first come, first-served
In this video, John Paul demonstrates how the Mentorship Program provides a plan for tackling the markets every day. Without a plan, it’s almost impossible to get ahead. He’s demonstrating using the E-mini S&P 500 and the September 2016 contract.
Before risking money in the markets, you have to consider the following:
- Is the market over-bought or over-sold?
- Is there a Roadmap trade?
- Is there an Atlas Line trade?
- Is there a Blueprint trade?
- Is there an At the Open trade?
- Are there any news events?
- Any X-5 trades?
…and so on. These strategies, and the others that are taught in Mentorship, work together to filter and validate trades. In the video’s example, you’ll see how an Atlas Line long trade works. As the market continues higher, a Roadmap area indicates caution ahead. This sensitive area is where the market will likely encounter manipulation and greater unpredictability. Sure enough, the market stalled out in the Roadmap, then reversed. If you knew in advance this was a problem area, you would have stayed out and possibly prevented loss. The market continues bearishly, reaching a period of Yo-Yo Bars. It would have been tempting to guess the chop was over and jump in without a plan. Instead, you should have a reason for placing a trade. The Atlas Line provides this reason, in the form of a short signal. This short is confirmed by a Blueprint trade. In this scenario, there are to strategies telling John Paul to go short.
Remember that the Mentorship Program teaches you many different price action strategies and how to use them together as one cohesive trading plan. In John Paul’s recap, you’ll see seven types of trades for this one day. You do not have to take them all, but there are plenty of opportunities. Don’t trade more – trade correctly!
Alternatively, you can enroll in a one-on-one class (Individual Mentorship), where you can talk with John Paul over Skype and customize the training to meet your schedule.