Interested in getting a deal on both? We have a special sale going on right now for the ATO 2 and Atlas Line when purchased together. Contact us at [email protected] for details. The Mentorship is also a great way to get all of our courses and software (see below).
The ATO 2 and Atlas Line produced a long (buy) trade signal that matched up really well. When multiple strategies confirm the same direction, we tend to feel more confident. In this video, the E-mini S&P is being trading with NinjaTrader 8. Look at the Long signal generated by the Atlas Line at 10:20 a.m. EDT when the bar closed at 2822.75. We placed a buy market order soon after the signal appeared.
By the way, you can set up these signals to play a sound file in case you’re away or doing other things on your computer.
Take a look at the profit target and stop loss in play. See how they automatically appeared with a green line on the chart? That’s because prior to this trade, an ATM Strategy was set up. ATM Strategies let you predefine profit targets and stop losses. The ATM Strategy in use here uses a profit target of 2 points and a stop loss of 4 points. If the profit target is hit when trading with one contract, that’s a profit of $100 on the E-mini S&P. Of course, you can trade with more contracts (providing you have enough funds in your broker account). For example, 2 contract would produce $200 in this example, before any broker commissions are applied. Remember that you can fully practice sim trading the Atlas Line and ATO 2 with NinjaTrader. If you need help with this, let us know. NinjaTrader is free to use for sim trading (as well as MetaTrader).
Yes, you can change your profit target and stop loss while in a trade in order to adapt to real-time conditions. However, doing so places you “at the back of the line” so only do this when it’s necessary. If the trade is going against you (according to the rules of the strategy), then it may be best to simply close the position via the DOM.
In case you’re new to trading, a profit target is your “goal” for how much you want to make (always keep it within reason) on a trade. The stop loss is how much you are willing to lose (keep this within reason as well). Too small of a stop loss can result in an early loss that may have turned into a profit had the stop been larger. A stop that is too large simply opens you up to too much risk if the trade goes against you.
With both the ATO 2 and Atlas Line strategies, we use the ATR (Average True Range) to first determine whether the market is good to trade (a good amount of volatility). Next, we use the ATR to determine our profit target and stop loss for each strategy. As mentioned, we like to keep the profit target and stop loss within reason. There’s a quick mental math formula for this that is explained in the training materials provided with the purchase of both strategies. In short, the market can possibly produce a bigger profit in faster conditions, so we use a larger profit target when the market is more volatile. The inverse of this is true, where slow conditions require a smaller profit target. The same idea is used for stop losses. For the Atlas Line, we actually have three different stop strategies we teach for various conditions. It sounds advanced, but most people get the hang of it rather quickly.
The light gold market in the price axis of the chart indicates the entry position. Price movement relative to the entry position dictates the profit or loss. The DOM shows profit and loss in real-time, as does the text (green in this case because of the profit) that’s “connected” to the entry position on the chart.
Overall, the main idea of our strategies is to let price “show us what it wants to do.” We follow price action. Get in and get out with the least amount of risk and using confirmation as much as possible. We want to keep it simple and realistic. No need to stay in trades for longer than we have to.
The next Group Mentorship class that begins on Aug. 14, 2018 is the best way to get all of our courses and software with live training. Training occurs over eight weeks. We teach you all the strategies. Every class is recorded for later playback/review. We can also provide remote support to help with installation and configuration of your trading platform. The live training room allows you to ask questions. We also provide email support for your trading questions.