The Atlas Line produced a nice long trade on Nov. 21. This trade was similar to those we’ve seen lately based on the January Effect. John Paul expects more of these trades to occur as we pass through the remaining weeks of 2017. When the market retraces back to the 50% level or tests the prior high, it’s time to enter according to the January Effect strategy. If you followed it, you would have entered in around 2577 or 2578. When you’re trading with the Atlas Line and the January Effect method, you will need to switch between the 5-minute and daily chart time frames, respectively. For example, if you’re seeing that the January Effect’s daily chart is showing the market is likely to move up, confirm that direction with the Atlas Line on the 5-minute chart. With two confirming methods, you may have a better chance at a successful trade.
As a reminder, tomorrow, November 22 is Thanksgiving Day here in the U.S. Expect the markets to be closed and to reopen in the evening, US/Eastern time.
On November 16, 2017, the Atlas Line produced a nice long trade before the market trended upward. Remember that our previous video shows how the January Effect may have predicted this move up. This video shows you how the Atlas Line signal was traded. Because of the Long Atlas Line signal, John Paul placed a Buy market order. In the DOM window, you can see how he had an ATM Strategy selected called “fast 3 point market.” Because Chart Trader was enabled, you can see the green profit target and red stop loss lines directly on the chart. This is a visual indication of where you want price to reach for profit (green line) and where you want price to stay away from (red line).
With the Atlas Line, multiple stop loss strategies are used in an attempt to limit risk and maximize profits. In total, about four different stop strategies are taught for use with the Atlas Line: catastrophic, prove-it, time-based, and pivot stop. We use stops that are specific to current market conditions. That is also true with profit targets, as explained by John Paul in this video at 2:40.
The Atlas Line is useful for the January Effect because it may help you find winning long trades that expected to occur throughout the remainder of the year. It’s always important to take time to practice. If you need help getting set up with NinjaTrader and live data for practice, we can point you in the right direction with our free trading guide. You don’t need a broker or to purchase the trading platform to get started.
Here’s a quick video to show you the long opportunity that is happening right now in the E-mini S&P market. It’s based on the January Effect, which is a yearly market forecast technique taught by John Paul. This is a follow-up to the recent January Effect videos that describe how you can find great trading opportunities by waiting for “up moves” in the market. Based on the rules, a trading opportunity has presented itself. After reaching a new high, there were multiple days retracing downward. Now the market is turning around and testing where it has been before. John Paul predicts the market will go higher by the end of the year and believes now is a great time to buy. He says you can also go long once price breaks the recent high (2594.50) and closes a point or two above. This activity could happen towards the end of November or sometime in December. Remember, this is all consistent with the rules for the January Effect, as we have explained in other posts.
Speaking of those rules, look at the recent price action. Look at the 100%, 50%, and 0% lines on the chart in the video. The 50% line is the approximate place you could enter for the ride up. If you want intraday confirmation, consider using the Atlas Line software. At around 2:10 into the video, John Paul begins to explain how the Atlas Line can provide an indication of expected market direction. Look at that nice Atlas Line signal to go long right at the close of the 9:55 a.m. EST candle. Price shot up right after.
Remember, you can get the Atlas Line and coaching on all of our strategies by attending the next eight-week Mentorship class. This next class begins Nov. 21, 2017. Training is twice a week. Each class is about an hour long. You receive all courses and software with lifetime licenses. In the training, you can hear John Paul talk and see his charts as he teaches you live. We break the payments into three installments. Click here for details or send us an email at [email protected]
Take a look at the last two days of Atlas Line and ATO 2 trading performance in this video. To get both systems, sign up for our next eight-week Mentorship class, which begins Nov. 21, 2017. All courses and software are included with lifetime licenses. Click here for Mentorship details.
The beginning of this video starts off by showing the Atlas Line and ATO 2 producing signals soon after the market opened (10:00 a.m. EST) on 11/13. Both of the 11/13 signals are long. John Paul believes that when multiple strategies tell you the market is headed in one direction, there may be a higher probability of that trade being a winner. For this trade, the profit target is around 6 or 7 ticks. The profit target is based on the ATR (Average True Range). For reference, 7 ticks of profit on the E-mini is worth $87.50 before any trading feeds (such as broker fees) are applied. If you trade more contracts, you can multiply this value by the number of contracts traded.
For the 11/14 trade, both the Atlas Line and ATO 2 produced short signals. The Atlas Line short trade was successful. The ATO 2 also called out nice bearish movement ahead of time. The main focus in the video are the pullback trades. These pullbacks are symbolized by the red Ps. Think of them like follow-up trades for the main signals. The rules for these strategies are explained in the live training as well as our eight-week Mentorship Program. Note that this video is sped up to show the systems in a short period of time.
A new Group Private Mentorship class begins January 31, 2018. Eight weeks of live training with John Paul will teach you everything you need to know to successfully trade futures and currencies. All courses and software are included with full, non-expiring licenses. This new session has classes twice each week.
We expect this new session to fill up quickly. It’s a good idea to reserve your seat as soon as possible.
Click here to submit your $500 deposit. This deposit secures your seat and provides you with the first week’s materials ahead of time. You’ll be able to receive the ATO 2 course and software for NinjaTrader right away!
• Live coaching with Day Trade to Win founder John Paul
• Atlas Line® software
• Roadmap method
• Blueprint method (as taught in Power Price Action)
• X-5 method (as taught in the Floor Trader Secrets Manual)
• At the Open 2 (ATO 2) Course
• Trade Scalper Course
• Price Action Scalping Course
• ABC Pattern
• How to Filter Trades
• How to Trade the News
• How to Set Up Your Charts
• How Manipulation Works
Today was one of those days where despite the E-mini chopping back and forth a number of times. Despite this often being a problem for most trading systems, the Atlas Line was on point nearly every time. Take a look at the six trades in the screenshot below. As you can see, there are a number of Atlas Line “Short” signals. These are the main signals the software produces. In addition, the small “S” and “P” signals are for Strength and Pullback trades, respectively. Combining all of these Atlas Line signals together, John Paul estimates the winning total at +24 ticks. When trading one E-mini futures contract, all of these trades would have been worth about $300 (excluding broker or other trading fees). If trading two contracts, approximately $600. You get the idea. Keep in mind that this total is ideal – you may have encountered slippage or other factors which may not have resulted in this exact total. Trading is risky, so it’s important that you’re careful with your money. We recommend starting off in simulated mode first to ensure your understanding and working up from there.
One of the most interesting things about the Atlas Line is how price seems to bounce off the diagonal line. That’s why some people say it’s like a support or resistance line, but we tend to disagree. Support and resistance lines tend to be horizontal, and therefore do not have the same implications for trading. And of course, the Atlas Line has a proprietary internal calculation that decides the line placement. Once price breaks through the line and closes twice above or below, a signal is generated. How to use these signals is fully explained in the included live training and online video provided after purchase.
CME Group, responsible for the E-mini S&P and other global markets, has been producing some great videos lately. This one discusses tick movements. If you’re a beginner trader, you should really watch this.
All futures contracts have a minimum price fluctuation. This minimum movement is called a “tick.” Although a market’s price movement is seemingly random, the value for each tick is always the same because it’s defined by the exchange. In the case of the E-mini S&P 500, the CME (Chicago Mercantile Exchange) has structured the E-mini S&P 500 so that each tick is worth $12.50. Each market (aka “contract instrument”) can have a different tick value. Specifically, the CME has decided that each index point (“contract unit”) of the E-mini S&P 500 is worth $50. They also decided that four ticks equal one index point. That’s how you arrive at the $12.50 per tick and the market’s tick size of 0.25. Further, $50 (contract unit) * 0.25 (tick size) = $12.50
Here’s another example using the Crude Oil market. The tick size is 0.01. The contract unit is 1,000 barrels. Therefore, 1,000 (contract unit) * 0.01 (tick size) = $10 tick value.
Okay, okay, but why does the E-mini use $50 per index point and the Crude Oil use 1,000 barrels? Again, that’s decided by the exchange. In defining these values, the exchange considers the “size of the financial instrument” and the “requirements of the marketplace,” as mentioned in the video. The goal of the tick size is to provide traders, investors, corporations, etc. with optimal liquidity and tight bid-ask spreads. Also, if you’re talking about a physical commodity like oil vs. the derivative value of a stock index, the contract unit will most certainly be different!
Curious about other markets and want to try calculating the tick size yourself? The CME Group’s website has contract specification pages for each of their markets. One of the best ways to use their site is to simply search for the market you’re interested in on their search page.
Other important topics discussed:
2:30 – Navigating the DayTradeToWin.com website
3:30 – Assessing current market conditions (1-min chart, 5-min chart)
6:00 – How to use the free news indicator
9:00 – Optimization and pitfalls of common strategies
12:00 – Smart stops for risk vs. reward
20:00 – Live winning signal for Trade Scalper (front-running)
21:20 – Live winning signal for the ATO 2 strategy
24:30 – Understanding trading commissions
26:19 – Live winning signal for Atlas Line strategy
29:00 – Working with choppy market conditions and trends
33:00 – Markets day in and day out
36:18 – ATO 2 Trade Chaser signal
36:44 – About the X-5 method
38:00 – Additional Trade Scalper trades
40:00 – Next Mentorship class begins Nov. 1, sign up today and get ATO 2
Take a look at this video John Paul shared from one of his live, one-on-one Mentorship lessons. You will be able to hear the student ask questions as John Paul shows him how the Atlas Line and ATO 2 work in live market conditions. If you trade with only one trick up your sleeve, the market will take you by surprise. What makes our Mentorship Program so strong is the amount of strategies you learn and how well they fit together to form a trading plan.
Want to get similar training? We have a Group Mentorship class that begins Nov. 1. Click here for details. If you prefer this one-on-one style, email us at [email protected] and we’ll send over the information. When you submit your Mentorship deposit, we’ll send over the first week’s downloads so you can get started right away.
Let’s see what happens when you combine the ATO 2 and the Atlas Line. When multiple methods confirm the same direction, some traders think that’s a good thing, and take trades they wouldn’t otherwise take or go for larger profits. Let’s see what happens to John Paul in this video…
The Atlas Line software provided a short signal at 2548. By applying NinjaTrader’s Chart Trader, you can see exactly where the profit target and stops were placed. Notice the ATM Strategy in use (bottom of SuperDOM window), which applied the profit target and stop loss right when entering the trade. In John Paul’s training, he covers how to spot overbought and oversold markets (risky conditions). Look at the distance between the blue dashed Atlas Line and price down below. The best trades occur when price is closer to the Atlas Line because generally, the stops will be smaller.
The profit target for this high-risk trade is two points, which is based on rounding down the current ATR value. According to the strategy, current market conditions potentially allow for these two points of movement (8 ticks of profit). Trading is relative – the slower the market, the smaller the profit target. The faster the market, the larger the profit target. However, conditions that are too fast and too slow exist. We cover those rules as well during the training.
John Paul applies the ATO 2 software at around 3:20 in the video. Look at how the signal matches the Atlas Line exactly. Of course, these two methods and their calculations are very much different. Normally, John Paul may have ignored this Atlas Line trade because of the overbought/sold conditions. The additional confirmation is helpful in this case.
Part of the Mentorship Program is learning how to combine all of our strategies into a sort of mental flowchart, where different conditions will trigger your use of various techniques. The market needs to “tell you” that it’s ready, then it’s up to you to apply the method.
Spoiler alert – the trade resulted in a seven or eight tick winner. If you are interested in either the ATO 2 or Atlas Line, let us know. You can always contact us regarding special pricing when purchasing multiple strategies at once.
All trades should be considered hypothetical. No guarantees or claims of performance are offered. Past performance is not indicative of future results. Day trading is risky and may cause substantial financial loss. Individual performance may vary, as trading subjects your finances to new, unexpected market conditions. You are responsible for executing trades. Before trading, consult with a licensed broker and a financial expert see if day trading is suitable for you.
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.