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.
A new Group Private Mentorship class begins February 11, 2014. Eight weeks of live training with John Paul will teach you everything you need to know to successfully trade futures and currencies. All courses and software are included with lifetime licenses. This new session has classes twice each week.
We expect this new session to fill up quickly. It’s a good idea to reserve your seat as soon as possible.
Remember, group training includes:
• Eight weeks of live training with DTTW founder John Paul
• Each training session is recorded for future playback reference
• All courses and software with lifetime licenses and digital books
• In total, 11 unique methods to trade price action are taught – unlike anything you’ve traded before
• Training goes above and beyond the written material
• Look at each day’s activity and ask questions to improve your understanding with expert insight
In this video, John Paul takes a Blueprint Trade, the main strategy taught in the Power Price Action course. Since the strategy is based entirely on price action, only time and price movement are considered for recognizing the entries and calculating the profit target and stop loss. The Bar Timer tool is used to let us know the time remaining in the currently plotting candle. It’s a countdown indicating when the current candle closes. Once the candle closed, John Paul entered the trade long at 1618.75. With NinjaTrader’s Chart Trader enabled and an ATM strategy in place, you can see the profit target and stop loss lines on the chart. The profit target is easy to calculate for this trade. Based on the current ATR (Average True Range) value, it’s two points. The stop loss is at 1615, which is 3.75 points below the entry. John Paul did not expect the stop loss to get hit, but it’s always important to have one in place in case the market suddenly takes off. Sometimes, when stops are too tight, regular market fluctuations can take you out of a trade prematurely when your profit target may have otherwise been reached. There are a few other stop strategies taught in the course such as the prove-it and time-based stops. For this trade, it’s just a matter of waiting for price to move through the profit target. With Power Price Action, there are no Fibonaccis, MACDs, bands, channels, or Market Profile techniques. It’s all price action – the way candles plot on the chart.
Najam from New Jersey was a struggling trader who traded on and off for about a year. During his struggle, he was following moving averages, cycles, momentum, etc. He was not sure when to enter the trade and when to exit. He then found Day Trade to Win and signed up for the eight-week Mentorship Program. By learning the many price action methods John Paul teaches, Najam has all the answers he needs. Najam’s favorite trading methods he learned is the Roadmap, Atlas Line and X-5 trade.
“John Paul is an amazing teacher. You can ask him any question and he will explain it over and over until you get it. His method of trading is price action.”
He recommends this course to anyone who wants to improve their trading results. He commends John Paul and the Day Trade to Win staff for reliable help and service.
Included with the eight week Mentorship Program:
• Eight weeks in duration taught live by John Paul.
• Focuses on the E-mini and other popular futures and currencies
• Includes all software and courses (Atlas Line, ATO, Roadmap Trade, Blueprint Trade (Power Price Action method), X-5 Trade, Price Action Scalping, the Trade Scalper, Filtering Trades, Trading the News and much more).
• All classes are recorded and any class after the eight weeks is free. You can play back your videos at any time in the future and watch the lessons.
• Via email, John is also able to answer your trading questions about the Mentorship methods whenever you have them
• We also offer remote assistance to completely set you up with everything that you need.
• Our methods are based on experience and knowledge used by floor traders. Our focus is consistent profitability using only price action.
In case you missed it, here is yesterday’s price action webinar. With many traders in attendance, John shared his live NinjaTrader charts while explaining how the Atlas Line software works. For those of you who are new to Day Trade to Win, the Atlas Line is software that plots a line on your charts and provides exact entry prices and direction (Short or Long) across the most popular futures and currencies. When you have an accurate system that provides the direction to trade along with the time / price to enter, trading becomes much more enjoyable.
Remember, the Atlas Line is included and taught in the Private Mentorship Program. Also, everything else we teach is included to assist with filtering and recognizing opportunities. A new session of Private Mentorship begins this coming Thursday (March 15). Don’t be idle at the Ides – register your seat and change your trading around!
The Atlas Line plotted a Short signal for the CL (Light Sweet Crude), 6E (Euro) and GC (Gold Futures) charts as shown. Providing you took the live trade according to the profit target rules, you would have made out nicely.
Also, if you’re looking for tips on how to trade those unpredictable news events, John explains a plan of action at around the 2:30 mark.
Because yesterday was contract rollover day for CME futures, you’ll also see how to switch to the new contract period. Although this may be common knowledge among professionals, some basic information is provided at around 16:10.
In the E-Mini (ES), a Long entry was given at the price of 1363. This would have also been a nice trade.
At around the 29:00 mark, John explains how to read the ATR across multiple markets. This is important because the value he and others quote involves decimal position moving, particularly when addressing the Euro as compared to the E-Mini.
John Paul once again proves that successful day trading can be easy. The video starts with showing you how to take advantage of the large bullish news event candle at around 8:30 a.m. US/Eastern. A common mistake is made when trying to interpret the news as either positive or negative, then entering based on your judgement. John shows a specific technique where the market can be used to provide direction AFTER the big move, when price movement becomes easier to predict. To keep track of news events, visit the Bloomberg Economic Calendar and note the red star announcements.
Another technique John discuss is the Yo-Yo effect. Based on buyer / seller exchange principles, this effect occurs when price bounces back and forth in a choppy succession. If you’re looking to enter a trade, this forecasting method will help you avoid problematic conditions. Start watching from around the 26 minute mark if you’re interested.
The final topic John touches on is market predictions for 2012. By the end of the year, John expects indices to climb to levels higher than those reached in January 2012. The pattern used for this prediction can be back-tested many years with a high degree of accuracy, as it’s used by professional market analysts.
Watch John Paul make 1.25 points using the Atlas Line while teaching one of his students. The other voice you hear in the video is a one-on-one Private Mentorship student who is asking John questions. Normally, when John is training his students either in the individual or group Mentorship classes, he focuses on teaching instead of trading. When a profitable and educational trading opportunity arises during lecture, John takes the trade. Watch the video to see how the Atlas Line’s Long signal is used along with a target of 1.25 points. You’ll see a fairly large stop (Catastrophic) in place as indicated by NinjaTrader’s Chart Trader, but this is not used. If the trade started to move against him, John would have used a Prove-It stop in this case, triggering when price closes below the plotted Atlas Line. A second Time-Based stop is also kept in mind, but not used as price eventually hits the target. Each stop strategy along with the entire method for trading the Atlas Line is taught in the included live training or in Private Mentorship (if you prefer to learn everything we offer).
Remember, let price prove to you how it wants to be traded. Also, have a defined entry and exit strategies in mind before each trade. This keeps risk management in check and makes your trading objective.
New video testimonial – Tony is a Private Mentorship student who attributes his success to the methods taught during his eight weeks of training with us. By using eight of the 11 of the unique price action methods taught in the coaching program, Tony has a chronological plan to deal with any situation price presents. Tony can handle price when it’s trending, ranging and whipsawing while being able to determine a market’s tradability and the best approach to take at the current moment. Tony says, “I know exactly what I am looking for as a price target. I know when to stay out of market – when it’s too wide and too thin. What he (John Paul) does teach, you can go through and start taking ticks out of the market instead of giving them back.”
• 8 weeks of live, personal training taught and recorded by John Paul
• The Roadmap Trade
• Power Price Action (Blueprint) Method
• Atlas Line Trading Software (2 lifetime licenses)
• At the Open (ATO) Course
• ATO Trading Software (two lifetime licenses)
• Trade Scalper Course w/ entry software
• Price Action Scalping Course w/ Scalp Level software
• Floor Traders Secrets Method (X-5 Trade)
• Filtering Trades, Trading the News, ABC Pattern and much more
• Continued support and video recording access after program completion
Individual, one-on-one lessons are also available. For more information, please call 888-607-0008 or email [email protected]
This is a strategy you can use day in and day out as a setup to determine where price is going to trend / channel. This is a forecast method that works for the ES (E-Mini) and other futures / currencies. As mentioned, you can use it without any software, as it’s a powerful way of looking at your charts by observing price action.
The goal of the ABC is to split the trading day into three separate parts: the opening (A), mid (B) and end (C) sections. The ES opens at 9:30 a.m. US/Eastern so this is the position of the first line. The second line, placed at 12:00 (noon) is the second line. This effectively encompasses the A part of the day (2.5 hours). What can be expected out of this period? Generally, a strong movement or direction as influenced by systems and swing traders. The second part of the day is from 12:00 p.m. until 2:30 p.m. (14:30) This period is usually slower, lacking in activity as compared to A. If and when price in B moves (breaks) out of the high and low range of A, then you have a prime opportunity to trade to the long or short side. It’s best to look for this opportunity early in part B. Part C occurs from 2:30 p.m. until market close. To trade part C, use the range of B to determine the ‘pop’ in direction. December 12 ended in a late-day sell off that could have been used for a decent profit.
Watch the video to see how today’s ABC pattern worked out today!
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.
ANY ADVISORY OR SIGNAL GENERATED BY DAY TRADE TO WIN IS PROVIDED FOR EDUCATIONAL PURPOSED ONLY. ANY TRADES PLACED UPON RELIANCE ON WWW.DAYTRADETOWIN.COM SYSTEMS ARE TAKEN AT YOUR OWN RISK FOR YOUR OWN ACCOUNT. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. WHILE THERE IS GREAT POTENTIAL FOR REWARD TRADING COMMODITY FUTURES, THERE IS ALSO SUBSTANTIAL RISK OF LOSS IN ALL TRADING. YOU MUST DECIDE YOUR OWN SUITABILITY TO TRADE OR NOT. FUTURES RESULTS CAN NEVER BE GUARANTEED. THIS IS NOT AN OFFER TO BUY OR SELL FUTURES OR COMMODITY INTERESTS.
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