Here’s part two of the most recent webinar. Miss the first webinar? Click here to watch. First, we start off with a review of the Super Year. We already had a good trade with a retracement from the previous 50% level for about 22 points around March 16. If price breaks the most recent highs, John Paul expects for another good long trade. Don’t expect the market to go straight up! That’s why we use a large stop. The market rarely goes in one direction consistently. Therefore, your stop loss has to be large enough to allow for regular price movement. What about a time-based stop? Watch the video to find out.
You’ll also see the first Atlas Line signal of the day plotted live. It’s configured to play a doorbell sound when a Dbl Bar Long or Dbl Bar Short trade appears. The profit target for the first Atlas Line Dbl Bar Long is 2.25 points (rounded down from 2.4) or 2097.75. The first stop in place would be the catastrophic stop (4.5 points – 2x the ATR). If the profit target or catastrophic stop is not hit, then we’ll manage the trade by getting out at four candles (20 min.) on a 5-min chart. In 20 min. time, that could be a small profit, break-even, or loss. A prove-it stop is another type of stop whereby a closing candle on the opposite site is the point at which you close your position. You’ll have to watch the video to see if this trade works.
One of the things John Paul teaches in Power Price Action and Mentorship is trend identification. A trend on a 5-min chart looks different from trends on an hourly, daily, or weekly chart. For 5-min charts and the E-mini S&P, John Paul uses the 6/6 rule to identify trends. Six candles plus six points occurring is a trend. This is explained further in the video.
Near the end of the video, you’ll see how to calculate the ATR value on the 6E and how the Atlas Line performed.
Click here to find out more about our next Group Mentorship session that begins April 22, 2015. All courses and software are included.
You may recall a live webinar conducted by John Paul on January 8, 2015 and another webinar with NinjaTrader on January, 9, 2015. In these webinars, John Paul taught how to look for specific setups as per the 2015 Super Year strategy.
It turns out that today, price surpassed the strategy’s 50% point, thus confirming a valid entry. John Paul entered long on this move up. From the screenshot, you can see this is a large move with a large trade: +21.5 points. With 10 contracts in the trade, the profit is currently above $10k. The expectation is for the E-mini S&P 500 to reach the prior highs from December 26, 2014. If you’re Long on this trade, trail a stop to protect yourself.
We recommend watching the video again so you can be on the lookout for future entries…
Click here to watch the video
Click this screenshot for a larger view
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Last week, John Paul conducted a live webinar showing traders that 2015 is a “Super Year.” Historically, years ending with a “5” (e.g. 2015, 2005, 1995, 1985, etc.) all the way back to the opening of the financial markets have exhibited consistent behavior. What is it? All of these Super Years ended at a greater price than the price at which they opened. That’s right – they trended bullishly. How can you take advantage of this? In this video, John Paul shows you how to spot breakout moments and position yourself for success. And of course, it’s all based on price action.
When following along, you will be using a clean chart and just the ATR (Average True Range) with a Period value of 4. This period value of 4 means that the green line on the bottom of the chart will be based on the last four bars. The last four bars can be minutes, days, weeks, or years depending on your chart time frame.
With this Super Year method, you will be looking for long trades using two methods. In the first method, you’ll spot the highs and enter above the most recent highs, about two points above. Watch the video for more details and learn the second method!
Remember, Group Mentorship begins in just a couple of days – January 14, 2015. Enroll today and get the ATO (At the Open) course ahead of time. You’ll be able to study and practice in advance. During the eight weeks of training, you will be provided all of our courses and software. John Paul will train you twice a week and build your understanding of how to successfully trade the E-mini and other markets. Click here to find out more and submit your despot to enroll.
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In this video, John Paul uses the Atlas Line and takes a loss and then a win. October 13, 2014 was a very volatile day with many trading opportunities. It’s important to stay out of the market when it’s too volatile and too slow.
In the beginning of the day at around 10 a.m. US/Eastern, a Short signal appeared with price at 1895.25. John Paul followed the Atlas Line’s direction, placing a Short trade. The profit target and stop loss were preconfigured in the ATM strategy, allowing for the horizontal green and red lines you see on the chart. With the Atlas Line, you are always watching for the first stop loss rule to take place. Since the market is so volatile, a four point catastrophic stop loss is used, which is based on the market’s ATR value at the time of entry. The prove-it stop rule was hit first with price closing on the opposite side of the Atlas Line on the 10:05 bar. John Paul then manually closed out of the trade with a loss.
Next, it was time to wait for another Atlas Line trade. John Paul was waiting for two consecutive closing bars above or below the Atlas Line, which would generate a Double Bar Long or Double Bar Short trade, respectively.
Another short trade occurred again. You’ll have to watch the video to see what happens! Remember that the Atlas Line is included with the Mentorship Program that begins October 20, 2014. You can also purchase the Atlas Line separately:
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On October 9, 2014, John Paul presented his style of price action trading to a large audience of traders. Quite a few traders followed along and placed the live trades, which worked to their favor. Many questions were asked and answered during this live webinar event.
In the video:
• The importance of proof and reading price action
• How to use the ATR to gauge whether you should be trading
• Common mistakes traders make and how to correct these mistakes
• Atlas Line signals on multiple markets
• First live trade at about 10 min. in
• Why limit the amount of time you hold a trade?
• Prove-it stop and other stop strategies used with the Atlas Line
• Retracements and re-entering trades
• Second live trade at about 39 min. in
• Why use minute charts?
• Assessing current conditions and ATR in markets besides the E-mini S&P
• Plotting of the Atlas Line Strength Trades
• Third live trade at about 1:09 min. in
• Questions and answers about products and the strategies
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Here’s an update to last week’s video where John Paul said to watch out for a potential E-mini breakout. There’s been a lot of talk about a forthcoming reversal in the market. Load up a 1-week chart in your platform of choice and look for the large red candle for the first week of August. Based on this weekly movement, many institutional traders, trading advisers and individual traders likely went short. The following week, the market went down a bit more, came back up and closed as a doji candle. There was no confirmation whether the market wants to go higher or lower. We’ve started a new week here on August 15, so the currently plotting bullish candle may be a sign that the market will go up and test the most recent “high area” of 1978. The market may turn around on a dime and drop later today, next week, etc., but watch what happens if price hits the 1978 level.
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On July 30, 2014, the Atlas Line produced a short trade around 10:00 a.m. US/Eastern with an entry price of 1967.25. Many Pullback and Strength trades occurred, which provided additional opportunities to the short side.
In the July 31 portion, you can see how a typical E-mini morning session begins while using the Atlas Line At around 10:00 a.m. US/Eastern, a second consecutive bar closed below the Atlas Line, generating a Short signal at 1950. Using NinjaTrader’s ATM Strategy area, John Paul defines the profit target and stop loss before the trade is placed. The profit target is always based on current market conditions. In this case, the ATR (with a Period setting of 4) shows a value of 3.4, which is rounded down to the nearest whole tick value, being 3.25 (remember that the E-mini works in .25 tick increments). This is a big trade – 3.25 points. The three stop strategies he uses work to minimize risk. Fortunately, the profit target was quickly reached. Two Strength trade signals appeared, which provided another entry. John Paul was happy with the $1,950 in profit trading 12 contracts, so he opted not to continue further.
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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.
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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.
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