E-Mini Trading – 11 Ticks in Under 3 Minutes

Use the coupon code 10OFFATLAS to get 10% off your choice of a
6-Month or Lifetime Atlas Line license.

Here’s a quick example of how to take the guesswork out of trading by using the Atlas Line software. The first trade on Nov. 15 is a Short at 1251.25. This order signal was automatically produced by the Atlas Line based on real-time market conditions. The trade was taken live through NinjaTrader’s DOM, allowing for enough time to capitalize on the reversal, or “bounce” that occurred off the plotted Atlas Line. On November 15th, we logged at least four separate Atlas Line trading opportunities, generating a total of +34 ticks for the day. Be sure to check out our results page to see the details.

As demonstrated, when working with limit orders, it’s important to leave them where they are, as moving the order’s position will send you to the back of the line. Order types, targets along with the three stop strategies (Time-based, Catastrophic and Prove-it) are discussed in the free live training that’s included with purchase. In addition, the training covers the three trade setups that are unique to Atlas Line trading: the Pullback, Strength, and Bounce trades. The Atlas Line is compatible with the latest versions of NinjaTrader, TradeStation and eSignal.

Economic Uncertainty Benefits Futures Traders

eurozone tradingIn these times of great economic uncertainty, Germany is in the spotlight as the country assumed to take part in saving its debt-ridden Eurozone counterparts from total collapse. Due to a weakening Euro, German exports became more attractive to the world marketplace. Investors, noticing the decline of Greece and Italy, then invested in Germany. This transfer of money has made borrowing much easier in Germany compared to other Eurozone countries. In many ways, the European debt crisis has made many Germans wealthy; however, there is concern about its financial role in assisting the country’s less fortunate neighbors.

Italy’s newly appointed lead economist, Mario Monti, is said to share Germany’s modus operandi in terms of economic principles. These principles consist of a capitalistic free market, fair competition and social equity. As stated by an Italian newspaper journalist, “His (Monti’s) idea of a social market economy is very near the German model. You do have competition, you have capitalism. But at the same time, the government is very active in the economy, you have a generous welfare state.”

The U.S. dollar is considered to be the world’s benchmark for comparing the relative costs of country exports. In many cases, the values of non-U.S. currencies are fixed to a set level to reduce export costs for these countries. A perfect example of such price fixation comes from a report released just yesterday (Nov. 14, 2011):

“The yen dropped as low as 79.55 against the dollar following the intervention (by Japanese authorities) after it reached a record high of 75.31 yen earlier that day. On Monday the dollar was around 77 yen.”

On the other side of the coin, there are also those who want to shift away from the Euro. Instead of a total (and likely chaotic) dismantling into self-sustained country units, the belief is that a gradual breakup will ease debt management. Countries would then be able to manage their own currencies and exports. In fact, a British CEO is offering a $400,000 prize (second only to the Nobel in terms of monetary reward) to the person who comes up with the best plan for one or more countries to leave the euro.

What can we learn from these recent events?

  • The world operates on a delicate framework of money deliberately pushed around by governments and private financial institutions.
  • Exports are used to determine a country’s financial health and worth in comparison to others
  • There is great disparity in proposals for coming up with a solution to debt resolution

Since we at Day Trade to Win are primarily futures traders, we can profit in the short term with minimal leverage, unlike stocks. Stocks are usually longer-term and are less liquid and are less affordable (more expensive). Additionally, our trading is based on price action. We trade real-time conditions. If the Euro is on the ride down, there is usually a direct correlation in the E-Mini S&P, and we’re entering to make profit all the way down. We do trade the Euro and other currency futures as well, but this is just an example of our preferred market (the E-Mini). This is why we’re seeing an influx of interest coming from former stock traders who want to get in on futures volatility. For the next year at least, it looks as though the ride will continue.

What are your thoughts?

  • Is the manipulation of currency values essential for maintaining worldwide economic stability?
  • Will there be a ‘trigger’ moment that will cause Eurozone countries to abandon the Euro? If so, do you think this trigger event will be social, political or (hopefully not) a natural disaster or act of war?
  • Is there a fix to the world’s current economic tension? Is this the cause of an increasing population and income disparity?

NinjaTrader Chart Basics Part 2

 

Figuring out how navigate NinjaTrader charts can be tricky at first.
This guide takes you step by step over some of the most commonly used functions.

 

How do I show the target, stop and other order information on the chart itself?

  1. NinjaTrader has a feature called “Chart Trader” that draws tagged lines according to input placed using the DOM or the toggleable Chart Trader order placement panel.  Instead of referring to the DOM to check placement, Chart Trader is a quick and easy way to gauge distance.  To use Chart Trader in NinjaTrader 7, simply click the fifth icon from the right on top of the desired chart.  The icon graphic should contain red and green candles.
  2. Instead of using Chart Trader’s blue / grey order placement panel, we prefer to manage trades using either a Dynamic or Static SuperDOM.  You can hide the Chart Trader order placement panel by clicking the grey arrow button in the upper right corner of the chart

 

What is the difference between a Dynamic and Static SuperDOM?

Dynamic SuperDOMs automatically ‘scroll’ to vertically center current price (as indicated by a yellow highlight) within the price ladder.  Static SuperDOMs require traders to manually scroll the price ladder up or down, as price is in a “fixed” (or static) position.

DOM availability depends on the broker you’re using.  The Static SuperDOM uses patented technology and applies a minimal fee on a per trade basis.

 

How can I make the DOM window longer?

For many traders, the default size of the DOM window is too short.  Some trading styles or volatile market conditions require a larger display of price for trade management.

To extend the height of the DOM window:

  1. Right click the empty space to the right or left of the price ladder.  Select Properties.
  2. In the Properties window, scroll down to the General section.  Under Number of price rows, enter a new value.  This is the height value.  We typically use 40 for our 22 inch monitors in the office.
  3. Click OK and the DOM should resize.

 

How can I compare values such as candle placement, price and time across multiple charts?

  1. With each chart that you would like to “link together,” navigate to the top of the chart and click the cursor button.  The cursor button, by default, uses a crosshair or mouse pointer icon and it’s placed near the middle.  Select Global Cross Hair.  Alternatively, you could use Ctrl+G to select Global Cross Hair with each chart.
  2. Resize your charts so that they are visible on the same monitor or across multiple monitors.  When moving the mouse over a Global Cross Hair-enabled chart, the position of the pointer will stay relative across all charts with Global Cross Hair enabled.  This is especially useful when comparing values on charts that use multiple strategies or those who prefer to always have one clean chart.

 

How do I save my chart layouts / configuration?

To Save your trading setup:

  1. Right click on each chart you want to save > select Templates > Save As
  2. Enter a unique name for each chart that you’ll remember and click OK.
  3. The chart with its current configuration is now saved.

Remember that you’ll have to go to Load instead of Save As in to load your chart.

When exiting NinjaTrader, you will be prompted to save the workspace.  This saves the configuration of all charts and Control Center parameters.  We recommend saving the template on each exit (or as frequently as needed), so your trading layout will be maintained across reboots, power outages, and similar events.  Saving the current layout as default will make the current settings automatically load when NinjaTrader is next started.

Sifiso Reviews Atlas Line & Floor Traders Secrets Manual

Sifiso purchased the Atlas Line trading software after finding out about us through NinjaTrader. During the last two and half months, Sifiso tested the Atlas Line using a NinjaTrader demo (sim) account. He states “…my experience has been very very positive. There were few losses.” He also purchased the Floor Traders Secrets Manual (also called the X-5) and experienced similar successful results. Sifiso now uses the Atlas Line with a live account, looking forward to a confident career as a day trader.

This week, we’re offering $60 off the Trade Scalper Course by using the coupon code 60TRADESCALPER at checkout. Purchase also includes the Floor Traders Secrets Manual (also called the X-5 course). With the Trade Scalper, you can scalp futures, forex, currencies and financials at any time of the day using one minute charts and stops under six ticks. A recorded, free live training session is also included.

E-Mini Volatility Increasing by End of November?

Back in August of this year, you can probably recall the increase of volatility in the ES (E-Mini). This jump in market activity was caused by elected U.S. House and Senate members attempting to reach a debt consolidation compromise. With each side of the political spectrum preferring a different resolution, a deal was formulated in the 11th hour to manage the $1.2 trillion dollar debt reduction plan. On November 23, 2011, the debt ‘super-committee’ is to finalize this spending cut plan that is to go into effect January 15, 2012.

Considering the uncertainty of Greece and the Euro, there is a good chance the ES and other markets may become even more frenetic as November 23 approaches, depending on the action (or inaction) of the super-committee.

At Day Trade to Win, our primary method of determining a market’s ‘tradeability’ is the ATR (Average True Range) value. Using the ATR of the last four bars provides a real-time look at current market conditions. During the deliberation of the compromise (and for some time after), markets reacted with the ATR (Average True Range) hitting 9 or 10 points regularly. By comparison, for several consecutive months prior to the congressional negotiations, E-Mini traders experienced a relatively lackluster year with the ATR remaining under two points consistently.

As rule of thumb, the E-Mini natural ATR range on a five minute chart is between two and three points. Activity above three points is considered to be moving at a good clip, however, at five points or above, expect chaotic volatile action. It is always best to stay out of chaos. Any time the ATR is below one point, consider the market dead and not worth trading.

While a reasonable amount of volatility improves the trading experience (preferably two to four points), such high volatility makes for difficult trading. For example, a volatile day can be just as choppy as a less active day, with no clear direction (trend). When the market swings widely back in forth in such short periods of time, stops (and profits) are hit in a wild manner. Since we are retail traders (not robots), we must have time to gauge price action then act accordingly.

Let us know what you think…

Are these last-minute dealings of the super-committee meant to affect markets in the same way additional ticket sales are a result of stretched final game series in sporting events?

Is there a reason for the possible upcoming volatility other than ‘uncertainty’ such as political jockeying?

Will standard, market-influencing reports such as those dealing with employment and real estate have less of an impact than normal due to the breath-holding surrounding the November 23 deadline?

Are any E-Mini traders planning to buy the ES now and hold for several months in hopes for a sizeable, early 2012 profit?

NinjaTrader Chart Basics Part 1

 

Figuring out how navigate NinjaTrader charts can be tricky at first.
This guide takes you step by step over some of the most commonly used functions.

How do I open a chart?

  1. Go to NinjaTrader’s Control Center > File > New > Chart
  2. On the Data Series, select the market symbol (also called an instrument) for the chart you wish to open by double clicking your selection in the left pane.
  3. Make sure the symbol is using a contract month that has not yet expired (if not, you will have to add the new contract term through Control Center > Tools > Instrument Manager.
  4. At this point, you may configure additional chart parameters in the right pane.
  5. Click OK and a chart will load.


How do I set up a tick chart?

  1. Continue from the last instruction block.
  2. With a symbol selected in the lower left pane, click the Type setting and select Tick.
  3. Additionally, you will probably want to specify a value other than 150 ticks (the default).
  4. For volatile markets, the lower the value, the quicker (and more detailed) price will plot.
  5. By a comparitive example, a higher tick value of 2500 will wait for each bar to plot 2500 ticks before drawing the next bar (thus taking longer and allowing for easier trading / analysis)
  6. Experiment with the Value setting to find what works best with the markets you trade. Our scalping courses directly specify the best settings to use.


How do I get back to the Data Series window to make adjustments after I open a chart?

  1. Right click the chart (and open space that is not an indicator / drawing tool), and select Data Series.
    After reconfiguring, the chart will reload with the new settings.


How do I get rid of all these entries, stops and profits? They’re cluttering up my chart!

  1. Go to the Data Series window, scroll to the bottom of the right pane and under Plot executions, select DoNotPlot.


How can I quickly toggle between a chart’s time frames?

  1. In the upper left corner of the chart, second button from the left, time duration values are shown as a drop-down list.
    Note that for non-time based charts (Tick, Volume, Range, etc.), you will have to manually configure settings through the Data Series window.


When I load a chart, I can see that price is moving but the candles are nowhere in sight!

  1. In the upper right corner of the chart, you should see the letter F in a box (we call this the focus button).
  2. Click this button and the chart will automatically move into position at the current price.
    When scrolling through history, the focus button will keep you from having to reposition the axis, as the chart is automatically adjusted.


How do I manually scroll the X or Y axis? There was a large trending day and I want the candle size to remain constant when I look at the history.

  1. Easy enough – hold down the Ctrl key and drag (with the mouse) over the X value labels (time) and the y value labels (price).
    Make sure the mouse is covering these labels while dragging or the chart will just become crunched.

Frank Reviews Our Coaching Program (Private Mentorship)

>> Sign up for the Next Group Mentorship Program <<

After purchasing the Atlas Line and a couple other courses, Frank decided to take his understanding of the markets one step further by joining the eight week Private Mentorship Program. In this video testimonial, Frank gives his results and opinion of the course material thus far. He’s currently midway through the education, and has learned many E-Mini trading techniques that have produced consistent results. In fact, he’s averaging four points a day and is done trading by 9:30 a.m. (he starts early in the morning).

You can join a new eight week semester of Private Mentorship that begins Monday, Nov. 7. Classes are held twice a week. All Day Trade to Win courses and software are included and discussed in greater detail along with many other techniques you can only learn through Mentorship. In addition, each training session is recorded so you always have a video reference.

MF Global Bankruptcy – A Concern for Day Traders?

As of midnight on Monday, MF Global, a brokerage firm, was about to be acquired by Interactive Brokers due to MF’s irrecoverable position. The deal fell through and MF Global has filed for bankruptcy. More surprisingly, at the final hours of the original deal’s negotiation, MF Global disclosed that approximately $700 million dollars in customer money is missing. In many cases, the announcement of missing money during acquisition talks is considered normal; however, the amount in question is much higher than expected. As the investigation is still underway, additional money is expected to trickle in to reduce the unaccounted for $700 million. MF Global believes that this money is “stuck in the system,” existing in banks.

Leading to MF Global’s downfall, the company had purchased large debt holdings from Eurozone countries with the expectation of quick profit through crisis resolution. Upon the revelation of such filings, MF Global was pressured to put up more money to support its trading positions, thereby destabilizing the company’s remaining cash.

Another contributor to the demise of MF Global was a downgrade to “junk status” (as determined by two rating agencies) after its loss of more than 67% of market value. MF Global, facing investor desertion and raised borrowing costs, could not stay afloat.

With the company devalued, a pending investigation and banks refusing to do business, MF Global’s only option was bankruptcy.

As a side note, brokerage firms, as regulated by the government, are not allowed to use customer funds for any purpose other than facilitating the direct buy and sell of derivatives between a buyer and a seller. Brokerage firm capital must be kept separate from customer money. In the case of E-Mini trading, for example, brokers require regulation that prevents the selling of courses, automated systems, etc.

What do you think?

Was MF Global gambling too much with the company’s assets instead of considering the finances of its customers?

Should brokerages be required to submit regulatory filings more frequently? Would this increase transparency?

Do you expect MF Global or its agents to be accused of a financial crime?

If anyone has used MF Global, what was your experience like with their services?

How does this impact you as a futures day trader?

How to Use Market Replay with NinjaTrader 7

Why should you use NinjaTrader’s Market Replay?

  • To practice placing trade in simulated, real-time conditions
  • To back-testing a strategy to see its effectiveness when trading live
  • To bypass the need for a live data feed (although live trading with a free demo account is always recommended)
  • Few other day trading platforms offer such a feature
  • When your schedule doesn’t allow for real-time paper trading, this is the next best thing.
  • Don’t wait until tomorrow to practice under live trading conditions!

With NinjaTrader 7, it’s possible to replay market activity for nearly any given day. After downloading a given day’s replay data, NinjaTrader uses the data (either minute or tick) to plot price at the exact values at the exact time as recorded. More specifically, you can see price plot on your charts and DOMs as though the day (or night) is unfolding in real-time. Orders can be place and success can be tracked using the Replay101 account (similar to Sim101 account). Replay101 is NinjaTrader’s designated Market Replay account. Unlike previous versions of NinjaTrader that require the user to record the data locally for replay, NinjaTrader 7 lets users download history for free on a per request basis.

Here’s how to use Market Replay:

1. If you are currently connected to a data feed, disconnect from it.

2. Download the latest Replay Data through NinjaTrader’s Control Center:

File > Utilities > Download Replay Data
Choose the market you want data for
Choose the date you want data for
Check both L1 and L2 boxes
Click OK

3. In the bottom right corner of the Control Center, you will see that the Replay Data is downloading. This will take a few minutes. Before continuing to the next step, please wait until the downloading status disappears.

4. Go to File > Connect > Click Market Replay Connection. Open a chart and a DOM if you don’t have them available. Make sure that the replay connection is selected in the chart and DOM. You should also see the Replay player. With this tool, you can pause market activity, fast forward and play. Drag the slider to advance to a specified time frame.

5. Trade like you’re using a real account.

Keep in mind, the data on the DOM won’t contain every increment / decrement in the Buy and Sell columns as experienced during the day’s live trading. The packaged history is optimized in terms of file size and useability.

If you run into problems missing historical data in Market Replay mode, you may both download and view the historical data that you have saved on your local computer by going to the NinjaTrader Control Center > Tools > Historical Data Manager > Edit tab. As long as you have data for the days you are requesting in the Edit tab, then you will see that data when you are using the Market Replay.

Over 15 Points Possible Using Atlas Line the Last 3 Days on E-Mini

In this video, John Paul recounts the performance of the Atlas Line trading tool for the last three days. At least 15 points of profit were possible in total for the last three days based on the trades the Atlas Line pointed out. The Atlas Line automatically tells you when and how to enter the market. These signals appear on the chart as Long or Short signals exactly at the price you should enter, prior to the big moves. In addition, the line plotted on the chart serves to provide confirmation – stick with Short trades if price is currently plotting below the Atlas Line. Go with Long trades if price is above the Atlas Line. The signals the Atlas Line generates are the same for all users across all supported platforms (NinjaTrader, TradeStation and eSignal).

Free live training is included with purchase. In the live training, you will learn several unique trade setups that can only be identified when using the system. These are the Bounce, Pullback and Strength trades. John Paul conducts each training session personally, so you are able to ask questions and receive answers directly from the expert.

Visit the Atlas Line page to purchase or attend a webinar.