John Paul conducted a webinar today for NinjaTrader, our partner. Topics discussed include:
• How to use the ATR (Average True Range – included with NinjaTrader)
• How to trade news events (using yesterday’s news events as a prime example)
• How to use our free news indicator
• Currency trading vs. E-Mini trading
• Why using price action is advantageous
• An outline of our services and how we can improve your trading
Thanks again to NinjaTrader for hosting this event!
Here’s a recap of July 2012′s Atlas Line trades. These stats were compiled using data from the Recent Trades page. The results do not account for slippage, brokerage fees, trading platform fees, etc.
Atlas Line Trades for July 2012
Total # of trades = 65
Total # of days traded = 20
Total net profit or loss (using 10 contracts excl. fees) = +$15,625.00
Now, let’s look at some recent days trading the Atlas Line…
Here’s a half hour presentation John conducted for the TradingPub community. Over 160 attendees witnessed John calling out the setups on his live charts. This presentation discusses the ATR (Average True Range) in great detail. Using this tool, you can base your stops on market activity instead of arbitrary values. John also discusses the entry and stop out rules for the Atlas Line trading software. Audience questions are answered. A review of recent trades are also shown.
The E-Mini S&P is a great market to trade – unless it’s slow. Well, it’s been slow. There are numerous videos that I’ve created detailing when to just say NO to trading the E-Mini under undesirable conditions.
What is considered slow? I use a 5-Min chart in conjunction with the ATR (Average True Range) set to a 4-5 period. Refer to my previous blog post / video to find out more. If the ATR value is below 1 on the E-Mini, consider it dead and not worth trading. The dojis will come out and play along with the whipsaws. No one is trading and neither should you.
If the E-Mini just isn’t cutting it, then what do we do? Take a look at other markets. Here are a few of my personal favorite alternatives to the E-Mini. Utilize them to diversify your trading:
Euro Currency (6E) – $12.50 per tick increment Australian Currency (6A) – $12.50 per tick increment Swiss Frank Currency (6S) – $12.50 per tick increment Canadian Dollar (6C) – $10 per tick increment
What are the best times to trade? This depends on when the exchange opens for the market you wish to trade.
3:00 a.m. US/Eastern Time is when the Liffe exchange opens
9:30 a.m. US/Eastern is when the U.S. indices markets open
On currencies, the ATR works a bit differently, being denote in ticks instead of points. For currencies, again use a 5-Min chart with a period setting of 4-5. To determine tradeability, perform a simple mental calculation by moving the decimal point over four places to the right to know how many ticks the market can handle and what you can expect. As an example, 0.00080 is the equivalent of 8 ticks or 2 points. Anything below 5 ticks on the currencies is a dead market.
I also like the Soybean market and Treasury Notes as alternatives to the E-Mini S&P.
If you’re a beginner, I recommend avoiding energies like crude oil and natural gas.
Remember, you can use the Atlas Line, Trade Scalper and Power Price Action methods in these other markets. In the Private Mentorship Program (new group session begins Monday, Feb. 13), we discuss these markets in detail and how to tackle them on a day-by-day basis. Click here to find out more or register.
This video will show you how to objectively determine whether a market’s activity is too slow to trade. In less than seven minutes, John Paul will set you straight on when to “stay out” based on ATR (Average True Range). Using the correct ATR parameters along with value ranges, you can quickly assess an instrument’s tradeability. The E-Mini S&P has been relatively slow within the last month, with the ATR less than 1.5 points during morning trading hours. In the afternoon, the ATR often drops to three ticks. This video also shows John using the ATR with Euro Currency Futures, providing exact values to look for when seeking optimal trading conditions. Being a consistently successful day trader requires that you know how to reduce risk. Further training is available to Group Mentorship students. Sign up for the next eight week session today. Lessons begin Monday, February 13.
Wouldn’t it be great if you had an automated solution to tell you when to go long or short and at what price? That’s exactly what the Atlas Line can tell you. In this video, the first Atlas Line signal of the day on the ES (E-Mini) appeared around 10:00 a.m. when price was at 1287.5. John then placed his entry to go long exactly at the provided price. Profit targets are always based on what the markets can produce (volatility) as determined by the ATR (Average True Range). Using this information, we know to go for a profit target of 1.5 points (6 ticks) based on current market conditions. You’ll also notice that the stop is placed automatically using NinjaTrader’s ATM strategy. Stops and targets can be adjusted on the fly by dragging and dropping the Chart Trader markers on the chart. If necessary, John will switch his stop to a Time-based, but usually relies on the Prove-It if market conditions are not going in his favor. Each stop type as well as profit targets are taught in the live training session that’s included with purchase.
Really, trading can’t be any simpler. That’s the goal of the Atlas Line. Consistent results. See our previous post below showing the trading results of the last three months.
Above, check out a new video where John Paul shows how effective the (At the Open) method is when used in conjunction with the Atlas Line. Traders have been using the ATO trade for about five years, and it’s still an effective strategy.
In the video, John goes for 6 ticks, equivalent to 1.5 points, as determined by the market’s ATR (Average True Range) Using the ATR is essential for deciding profit targets – use what the market is dictating, not your emotions or personal financial needs.
Besides the ATR, John uses NinjaTrader’s Bar Timer to let him know exactly when candles are opening and closing. Price action is all about price and its relation to time, so it’s easy to see why this is a must have trading tool.
Yesterday, October 28, John Paul recorded a video in which price came up to the Atlas Line and bounced off it. Long orders were produced right when price was being “supported” by the Atlas Line.
Remember to watch in HD!
John is trading the December contract using a 5-minute time frame. Take a look at how quickly price accelerated after it intersected the Atlas Line.
There are a few tools that can help your trades:
1. The Bar Timer (displayed in the bottom-right corner of the video / chart): displays a countdown until the current price bar is complete. Using the Bar Timer, you’ll know exactly when the next candle will open and when the current candle is going to close.
2. ATR (Average True Range, green line and pointer displayed at the bottom of the video / chart): lets traders know the range of price movement to expect from a trade. Traders should decide to take profit based on the ATR of the last few bars / candles.
3. The Atlas Line (of course). We’ve covered that already.
Know where to place your stop losses, profit targets, etc. based on a combination of all three.
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
GOVERNMENT REGULATIONS REQUIRE DISCLOSURE OF THE FACT THAT WHILE THESE METHODS MAY HAVE WORKED IN THE PAST, PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. WHILE THERE IS A POTENTIAL FOR PROFITS THERE IS ALSO A RISK OF LOSS. A LOSS INCURRED IN CONNECTION WITH TRADING FUTURES CONTRACTS CAN BE SIGNIFICANT. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION SINCE ALL SPECULATIVE TRADING IS INHERENTLY RISKY AND SHOULD ONLY BE UNDERTAKEN BY INDIVIDUALS WITH ADEQUATE RISK CAPITAL.
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The E-Mini S&P is a great market to trade – unless it’s slow. Well, it’s been slow. There are numerous videos that I’ve created detailing when to just say NO to trading the E-Mini under undesirable conditions. 
