If you’ve been following our videos for some time, you’ll notice we use the ATR to gauge volatility. In the video, the ATR value is > 10. Take a look at that green line and value near the bottom of the chart. Very volatile conditions!
The Atlas Line signals were good. After a Long signal, price went up. After a Long signal, price went down. The signals look like winners. The first trade had a profit target of three points. Trading one contract, that trade would have been worth $150 before any broker or exchange fees. Not bad. If you have the funds to trade using more contracts, you could multiple that profit value (but remember to factor in broker and any exchange fees). Notice how the ATR value was much lower than 10 at the times those signals were produced. Would you place a trade with an ATR of 10 or higher if the Atlas Line or another system told you to?
We often advise staying out of the markets when they’re that volatile. If you’re in a trade and the market becomes volatile, you can close your position. However, you may incur a loss or smaller profit. The Atlas Line and our other methods incorporate multiple stop loss rules. For example, although a trader typically uses one stop loss at a time, the rules for the Atlas Line get you out of the trade if 20 minutes have passed or a candle closes on the opposite side of the line.
In some cases, when a market suddenly gets really volatile, the trade can still work out in your favor. The second Atlas Line trade was worth 3.75 points (18 ticks * $12.50/per tick on the E-mini = $187.50 profit before broker or exchange fees). If you were trading two contracts, that would have been $375 before any additional fees. A decent daily wage for many in just a few minutes. Of course, day trading is not like a typical occupation, so be sure to read through the risk information we have on our site.
Want to see the Trade Scalper performance? Jump to 7:20. Skip to 9:45 to see an example of how a Trade Scalper trade looks in real-time.