Power Price Action is a four DVD trading course that you get in the mail. Each DVD teaches very effective price action trading methods. The most powerful of these methods is the Blueprint Trade, also called the Blueprint Setup. In this video, John Paul takes a Blueprint trade on the E-mini S&P 500. By recognizing the Blueprint pattern and trading the rules, you can be consistent with your results just like John Paul.
What is the Blueprint trade? You’ll have to get the course to know exactly. You’ll learn how to interpret what price is doing, and a very specific entry, stop, and profit strategy that works whether you’re trading stocks, futures, currencies, or forex.
The ATR (Average True Range) dictates the Blueprint trade’s profit target. In this video, it’s six ticks. At this point in time in the video, we can reasonably expect the market to move this amount based on current volatility.
The eight weeks of live training included with Power Price Action ensures you’re trading the method correctly. It’s easy to read a day trading course and misunderstand the rules. John Paul makes sure you fully understand by sharing his charts with you once a week while going over all the recent trades.
The bonus X-5 guide, also called the Floor Trader Secrets Manual, teaches you an entirely separate method of trading nothing but price action. You’ll learn additional entry, profit target, and stop loss rules to be used in conjunction with your current strategies or standalone.
We’ve posted before about how important it is to keep your Windows time in sync with official time servers. NinjaTrader references your computer’s clock (aka Windows time) to perform many of its calculations. Now we will show you how to keep your computer time clock accurate without any 3rd party software.
At Day Trade to Win, we’re big fans of NinjaTrader’s Bar Timer tool. You can add this tool to your chart by right clicking the chart > Indicators > Find “BarTimer”and double-click it > Click OK. Provided you are connected to a working data feed, in the bottom right of your chart, you should see a countdown of the time remaining for the current plotting bar. This countdown is based on the time frame of the chart. For example, a five-minute chart’s Bar Timer will count down from five-minutes when a new bar appears. Pretty simple, right?
Here’s where things normally go wrong – by default, Windows 7 syncs your computer clock with official time servers once a day. In our tests, our computer clocks went out of sync by a couple of seconds each day. When it came time for trading, this was enough of a difference to cause inaccuracy problems with the Bar Timer’s countdown. We would see extra time added to the bar timer and it would appear to be a bit “jumpy.” Other areas of NinjaTrader are also inaccurate because of this, such as the Time and Sales window.
What’s the fix? You can use the Windows Task Scheduler to force your time to sync with the official time servers at a regular interval – every half-hour or hour in this example:
1. In Windows 7, go to Start > begin typing “Task Scheduler” without quotes > click on Task Scheduler when it appears
2. Go to the bottom of the Task Scheduler window and find the Active Tasks box. Scroll through the Active Tasks box, find “SynchronizeTime” and double click it
3. In the new screen, double click the SynchronizeTime entry at the top and go to the Triggers tab and click Edit
4. Make sure “On a schedule” is in the top box, “Daily” is selected along with Recur every 1 days. Under “Advanced settings”, check” Repeat task every” and change the value to 30 minutes (or one hour if you prefer). Set the duration to indefinitely.
5. Make sure Enabled is checked at the bottom and click OK. Close the windows you opened and you’re all set.
Note that you will need an active internet connection to keep your clock perfectly synced. This shouldn’t be a problem as you’ll need internet access to trade. You will also need Windows administrator privileges to create the task.
Windows will execute the task at the interval you have set. Windows will barely consume resources as the task is launched and then closed automatically. The task is also persistent through computer reboots.
Update: a NinjaTrader representative has confirmed with us that Windows 8 should be compatible with 3rd party software, such as our Atlas Line. Previous incompatibility issues may have been due to an earlier build of Windows 8. NinjaTrader has stated that when Windows 8 is officially supported, the NinjaTrader system requirements will mention Windows 8.
Whenever NinjaTrader releases a new version, bug fixes and improvements are mention in the release notes. There haven’t been any fixes related to Windows 8 yet. Windows 8 launched publically on October 26, 2012.
As a general rule, most computer experts agree that it is wise to wait six months after launch for upgrading to a new Windows operating system. This allows time for software developers to iron out bugs found in the real-world. Adopting a new version of Windows out of the gate is also more expensive than waiting for price to decrease in time (and you are also getting a more stable product). Businesses may even want to wait a year.
If you want to get familiar with Windows 8 in the least bit, consider installing Windows 8 on a non-business computer to experiment with the operating system’s new look. Also, note that Windows 7 will be supported far into the future. Windows XP launched October 25, 2001 (11 years ago!) and its official Microsoft support is scheduled to end April 8, 2014.
Why would you even want to upgrade to Windows 8? You probably won’t have a choice if you’re buying a new computer as new machines will have Windows 8 preinstalled. For traders who are in a position to upgrade their operating systems, Windows 8 won’t offer much of an advantage beyond faster boot up, shut down, menu navigation, etc. Most traders leave their computers on for days on end and are looking for better performance in their platforms (not Windows), so this is insignificant. What about the overall number-crunching computational performance? Well, nothing really tests computer performance like computer game benchmarking. In general, retail day trading is far less strenuous on the processor and other components. A recent Tom’s Hardware reviewhas indicated Windows 7 and 8 to be relatively equal in application performance.
Today’s webinar was filled to capacity. This video is for all of you who were unable to get in and those who want to see how our systems performed.
John starts the live presentation by showing two charts: the E-Mini and Euro. The Atlas Line produced a Long signal on each market. The Long signal is an advisement to buy the market at the given price. Most traders would have been hesitant, thinking price was overbought (based on the rise in price within the previous 25 minutes).
At about four minutes in, John reviews a recent overnight E-Mini chart for May 11. Yes, the Atlas Line can work premarket very well, as demonstrated by the Short signal given at 1351.
Attendees were filled with great questions. Yes, the Atlas Line does work with free data feeds. If you’re using CQG, Rithmic, PFG, etc. you can paper trade with the Atlas Line until you feel comfortable to use a live account. If requested, our support team helps customers with installation of the Atlas Line via remote support.
At the 10:00 mark, John runs through a typical play-by-play scenario showing how he uses the signals, the ATR (Average True Range) to dictate a profit target. The most preferable scenarios are when price intersects the Atlas Line and you immediately get either a Long or a Short. The live trade that occurred near the start of the webinar showed a different situation, where price climbed from far below to the Atlas Line to tag the 1.7 point profit target.
How many times have you had price hit your profit target without a fill? Probably over and over again on the same trade, right? And to make matters worse, price then runs away from you, so you’ve lost out on the trade entirely. Yes, it happens to everyone. It’s not just bad luck.
Trading is a zero-sum game. Unless price trades through your profit target limit price, you may not get filled. All electronic markets have a “first come, first served” rule. Your profit target is waiting in line with all the others placed before it. Now, let’s take a look at how we can use NinjaTrader’s automation to achieve better fill results. We’ll accomplish this through the ATM Strategy panel.
The ATM Strategy area can be access through the lower part of the Dynamic / Static SuperDOM. The SuperDOM is also referred to as the “price ladder.” You probably trade with a SuperDOM already, but if not, you can open one via NinjaTrader’s Control Panel > File > New > Static (or Dynamic) SuperDOM. The ATM Strategy feature’s main purpose is to preconfigure profit targets and stops for your trades. There are quite a few options available to configure, including multiple profit targets, different templates to save and load, even alternate stop strategies. For this blog post, we’ll focus on the basics.
With the “first come, first served” rule, speed is important. The faster we place our limit orders for profit taking, the better positioned we are to be filled once the price is tagged. In a roundabout way, we are cheating a little by beating others to the punch. As an example, I have two methods I use to scalp the markets – Price Action Scalping and The Trade Scalper. Each method risks 6 ticks for a stop and 3 ticks for a profit on average. Once I enter into a trade by hitting the market button or entering on a limit order, I need to place my target and stop immediately. If I spend precious seconds fiddling with placing the stop and profit manually, how many other orders have possible been placed ahead of mine? As you can see, automating this process is vital for timely execution. Templates can be created ahead of time for scalping (3 tick profit target with a 6 tick stop), or for any other strategy. To create a template, right click on the DOM in the bottom right empty grey area. A menu should pop up. Since the E-Mini S&P (ES) has been slow lately, my primary template is 8 ticks profit and 16 ticks stop. I can easily adjust up or down once the order is placed if I need to increase or decrease the ticks. I recommend having multiple templates for different markets and different methods accordingly.
Send me your feedback on using the ATM and I’ll offer my feedback if you have questions.
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.
Here’s a trading video showing today’s Atlas Line short trade. Prepare to be held in suspense – the outcome is shown at the end of the video. In between, John describes three consecutive days trading the E-Mini S&P using the Atlas Line software. You’ll also hear John identify Strength and Pullback trades. These unique setups are taught in the included live training along with stop strategies. Remember, the Atlas Line will plot on your charts just as you see it here, so there’s no second guessing your entry price. If you make it through to the video’s end, you’ll see a candle tag the profit target, eventually hitting for +1.75 points.
Traders – you should already know what today (March 8, 2012) is. Contract rollover day! Yes, this is the day when we (traders of equity futures contracts) switch to the next contract session – in this case, June. We always roll over the first or second Thursday or Friday of the expiring contract month. These expiration months are March, June, September and December. Your day trading platform may automatically warn you of the rollover. Why is it important that you roll over the contract? Well, you can’t trade an expired contract. Also, follow the volume and liquidity.
Here are some instructions on how to roll over a contract to the new contract session in NinjaTrader:
1. Navigate to NinjaTrader’s Control Center > Tools > Instrument Manager
2. Find the expired contract in the left panel and select it > click the right arrow button (>) to remove the expired contract
3. Find the new contract for your market / instrument of choice in the right panel and select it > click the left arrow button (<) to add the new contract to the instruments list
4. In your charts, remember to change to the new contract.
This applies to CME markets like the ES, 6A, 6E, etc. Note that NinjaTrader behaves inconsistently when changing to the new contracts - the ES automatically jumps to 6-12, but for currency futures, you will manually have to select 6-12 for each of them.
As you’re probably aware, we at Day Trade to Win always use NinjaTrader when trading, in our videos or otherwise, as our preferred trading platform. Kinetick is NinjaTrader’s solution for fast, unfiltered, real-time market data for Stocks, Futures and Forex. Kinetick is optimized for NinjaTrader 7 and designed to exceed the expectations of the most demanding traders. This is why Kinetick is our preferred Market Data Service.
You can join a free Kinetick presentation to learn more. Upcoming product demonstrations will teach you how to supercharge your NinjaTrader 7 experience with fast, unfiltered data. You can email [email protected] or visit www.kinetick.com for more information.
What makes Kinetick a superior data service?
Speed – quotes are sent directly from the exchanges to your desktop instantaneously
Unfiltered – see the world’s futures, forex, stocks, ETFs, and market metrics at a tick-by-tick level
Reliable – professionally managed, fully redundant data centers guarantee high availability
Optimized – brought to you by the same folks who know NinjaTrader the best – NinjaTrader!
Affordable – take advantage of FREE end-of-day-data (10 year’s worth of stocks, futures and forex) and eliminate those pesky CME fees
Real-time News – although we (at Day Trade to Win), always advocate staying out of volatile news announcements, you can stay in the clear with Kinetick’s real-time news (RTT News, PR Newswire, etc.)
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.
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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