Take a look at all of these great Trade Scalper signals as they appear in our latest video from Aug. 3. In total, you’ll see about five total signals for the day. In addition, John Paul places a real-time trade according to a live Trade Scalper signal. We want you to have the same signals on your charts, so you can see what we see, and trade how we trade. There is no optimization or complex configuration of the Trade Scalper software involved.
Why did John want to place a long trade at 4407? The underlying methodology indicated market conditions were ripe to place such a trade. The signal comes from the software that has these rules “encoded” within it; making your job as a trader much easier. In fact, you do not actually need to memorize the rules that you’re taught as to how and why a certain market pattern brings about a signal.
Your job is to wait for the signals and correctly place the trade (in a timely fashion) according to the profit target, stop loss, and trade management rules. These rules are basically the same across a variety of market types with some difference in terms of how the ATR (Average True Range) is used on different tick scales. For example, the CL (Crude Oil) market uses a different scale for ticks, so the ATR needs to used a little differently – but we cover that in the training, so no worries. The included live training helps with this.
What was this long trade worth? The ATR said it was reasonable to go for a point (4 ticks) to 1.25 points (5 ticks) of profit. For this opportunity, John Paul went for the 1.25 point profit target using 5 contracts.
For the E-mini S&P 500, each tick is worth $12.50, so this trade is worth $50 to $62.50 if trading one contract. This may not seem like much, but remember, this is only one opportunity of several that occurred throughout the day. In addition, if your broker and funding situation allows, you can trade with multiple contracts. Remember that John Paul, here, is using five contracts with a profit target of 1.25 points (5 ticks). The math works out like this: $12.50 * 5 ticks * 5 contracts = $312.50 and this is what you can see price approaching at around the 3:00 mark. Please keep in mind that broker fees and other fees are excluded from this calculation. To make things easy, he has his NinjaTrader platform configured to show dollar amounts.
Before trading live with real money, we recommend spending some time practicing with the real-time simulator because it’s about as close as you can get to the real thing. Some traders then prefer to graduate to the Micro E-mini where the tick amount is lessened, so any profits and losses due not impact one’s finances as heavily as the regular E-mini.