We know you like checking back and seeing how the signals are doing from time to time, so here’s the latest video showing the Trade Scalper. Essentially, this is an E-mini S&P 500 signal review/recap for today, Aug. 18 starting at about 10 a.m. US/Eastern and looking forward. This period produced four signals total: one Long, two Short, and one Double Wick (DW) Short. You’ll learn the differences in the training video and course that are included with purchase.
You’ll notice John Paul gives an indicator of the profit potential for each signal. That first Long signal was worth +2 points. How did he arrive at that number? By looking at the ATR (Average True Range) at the bottom of the chart. The ATR can be configured to constantly plot – you guessed it – the average true range – of however many candles of recent history. Accordingly, we use a value of 4 so the ATR value is derived from the activity of the last four candles. Since the ATR is always plotting, we can see its values through time, observed as a squiggly or jagged line on the bottom of the chart. In this case, it is configured to be a yellow color. If we look at the ATR the signal was provided, the ATR was approximately 2 points in value. Thusly, the profit target was 2 points. Straightforward, right? That’s how we like to day trade.
The same approach is used to calculate the profit target value of the remaining signals. Total, we are looking at +5.25 points scalping within a 1 hour period. That is a significant amount, and certainly a goal for many traders who want to be in, out, and done trading for the day – doing other things rather than sitting at a computer watching charts all day (though we understand that can be exciting as well!).
I’m sure we’ll get some email questions about how John Paul is measuring the number of bars and distances among them. NinjaTrader has, in its drawing tool menu option (look for the pencil/pen icon), then find the Ruler tool among the list options. With the cursor now set to the ruler, your first two clicks will serve to measure the distance between two points on the chart. Your third click is where the measurement information will be displayed (click some place with enough space to read the four lines of information). If you see the Y value is a negative number, that just means to consider the absolute value per your high school algebra – simply, make the negative number a positive number if you’d made profit on a short trade.