WELCOME TO THE ELITE STOCK TRADING COLLEGE WEEK #3
WELCOME TO THE ELITE STOCK TRADING COLLEGE WEEK #3
STOCK STRATEGY #4
DISCLAIMER
Hypothetical or simulated performance results have certain inherent limitations unlike actual performance record: simulated results do no not represent actual trading. Also, since the trades have not actually been executed, the results may have underor overcompensated of 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 presentation is being made that any account will or is likely to achieve profits or losses similar to those predicted or shown.
MY GOAL IS TO TEACH YOU HOW TO TRADE WITH THE SPECIALIST’S EDGE
WEEK #2
REVIEW
STOCK COLLEGE WEEK #2 Strategy #1 Highlights / Donchian Indicator
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Intensity Level = 2
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Designed To Trade Pullbacks For Swing Trading
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Aggressive Version / Conservative Version
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Trading Variations / Indicator Settings
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Homework Assignment
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STOCK STRATEGY #4
Strategy #4 Highlights • • • • • • • •
Strategy Is Based On Concepts #1 and #2 Designed to Trade Quick Momentum Moves Intensity Level (1-3): 2 Main Indicator – Buy/Sell Line Only One Standard Version - Quick Gains Any Time Frame / Any Direction / Any Market Learn the FULL Strategy – Paper Trade First! The Specialist’s Edge - Consistency
STRATEGY #4 INDICATORS • 50-period Simple Moving Average (sma)
STANDARD VERSION All Members (Beginners – Advanced)
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Pattern Recognition Strategy
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Traders Looking To Catch Quick Momentum Moves
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STRATEGY #4 RULES - BUYS TIME FRAMES:
(ALL TIME FRAMES)
STRATEGY RULES:
1. Price must be above the 50-period sma. 2. Look to buy when a price bar closes in the top 25% of it’s range. (SET UP BAR) 3. Either the SET UP BAR or the bar previous to the SET UP BAR is the lowest low or equal to the lowest low of the last 5 bars. 4. Enter to buy when price trades 1 tick above the SET UP bar’s high. (If the price bar does NOT trade 1 tick above the SET UP bar’s high on the next bar, then negate the trade). 5. Place protective stop below the lowest low of the pullback. 6. Sell (exit) at the 200% Range Extension of the SET UP BAR .
STEP BY STEP
Step 1 Price must be above the 50-period sma.
Step 2 Look to buy when a price bar closes in the top 25% of it’s range. (SET UP BAR)
25%
SET-UP BAR
Step 3 Either the SET UP BAR or the bar previous to the SET UP BAR is the lowest low or equal to the lowest low of the last 5 bars.
1
2
3
4 5
Step 4 Enter to buy when price trades 1 tick above the SET UP BAR’S high. (If the price bar does NOT trade 1 tick above the SET UP bar’s high on the next bar, then negate the trade).
ENTER
Step 5 Place protective stop below the lowest low of the pullback.
ENTER
ENTER
STOP
Step 6 Sell (exit) when price reaches the 200% Range Extension of the Set-Up Bar .
ENTER
STOP
100% ENTER
STOP
200%
100% ENTER
STOP
EXIT
200%
100% ENTER
STOP
EXIT
200%
100% ENTER
STOP
EXIT
200%
100% ENTER
STOP
EXIT
200%
100% ENTER
STOP
EXIT
200%
100% ENTER
STOP
+1.48 pts.
EXIT
200%
100% ENTER
STOP
STRATEGY #4 SELL RULES
STRATEGY #4 RULES - SELLS TIME FRAMES:
(ALL TIME FRAMES)
STRATEGY RULES:
1. Price must be below the 50-period sma. 2. Look to sell when a price bar closes in the lower 25% of it’s range. (SET UP BAR) 3. Either the SET UP BAR or the bar previous to the SET UP BAR is the highest high or equal to the highest high of the last 5 bars. 4. Enter to sell short when price trades 1 tick below the SET UP bar’s low. (If the price bar does NOT trade 1 tick below the SET UP bar’s low on the next bar, then negate the trade). 5. Place protective stop above the high of the pullback. 6. Cover (exit) at the 200% Range Extension of the SET UP BAR .
+.99 pts.
STOP
100%
200%
ENTER
MORE STRATEGY #4 TRADE EXAMPLES
ENTER 26.01
+1.87 pts.
ENTER 24.43
ENTER 25.13
ENTER 23.83
STOP
ENTER 23.71
ENTER 23.56 STOP STOP
+9.79 pts. EXIT 225.35
200%
ENTER 215.56
STOP
+1.16 pts.
STOP ENTER 36.11
200% EXIT 34.95
+1.57 pts.
+1.20 pts.
EXIT 156.93
EXIT 156.98 200%
200%
ENTER 155.78
ENTER 155.36
STOP STOP
+7.34 pts. EXIT 110.44 200%
ENTER 103.10 STOP
+28.35 pts.
+15.26 pts.
STOP
STOP ENTER 441.61
200% 200%
EXIT 413.26
ENTER 450.47
EXIT 435.21
+4.01 pts.
200%
EXIT 43.36 ENTER 39.35
STOP
STRATEGY #4 50% RULE
50% Rule (suggestion) You have the option to move your stop to unchanged once price travels half the distance to the exit point
EXIT ?
ENTER
STOP
EXIT ?
50% ENTER
STOP
EXIT ?
50% ENTER
STOP
STOP
ENTER
EXIT ?
STOP
ENTER 50% EXIT ?
STOP
ENTER 50% EXIT ?
HOW I TRADE STRATEGY #4
MY STRATEGY #4 • • • • • • •
All Charts – Intra-day, Daily Steep ascending/descending 50-period sma Only take signals closest to or touching the 50 sma Enter with limit orders Standard stop placement, 50% rule Exit entire position at 200% range extension Variation - Exit half my position at 50% point, exit balance at 200% RE
+.50 pts. EXIT
ENTER STOP
+.50 pts. EXIT
50%
ENTER STOP
+.50 pts. EXIT
50%
ENTER STOP
POINTS TO REMEMBER
Be Mindful of the 50 sma
1 2
3 4
5
EXIT ?
ENTER
1 2
3 4
5
EXIT ?
ENTER
1 2
3 4
5
EXIT ?
ENTER
1 2
3 4
5
Advanced Traders Place Your Protective Stop Below The Set-Up Bar
ENTER
STOP
ENTER
STOP
ENTER
STOP
STOP
ENTER
STOP
ENTER
Advanced Traders Exit When Price Reaches the 200%, 300%, and 400% Range Extension of the Set-Up Bar
+2.90 pts.
400% EXIT
+1.93 pts.
300% EXIT
+.96 pts.
200% EXIT
ENTER
STOP
STOP
ENTER
+.83 pts.
+1.67 pts.
+2.51 pts.
200% EXIT
300% EXIT
400% EXIT
STRATEGY #4 REVIEW • • • • • • • •
Strategy Is Based On Concepts #1 and #2 Designed to Trade Quick Momentum Moves Intensity Level (1-3): 2 Main Indicator – Buy/Sell Line Only One Standard Version - Quick Gains Any Time Frame / Any Direction / Any Market Learn the FULL Strategy – Paper Trade First! The Specialist’s Edge - Consistency
HOMEWORK ASSIGNMENT
IDENTIFY RECENT STRATEGY #4 TRADE Time Frame – ANY 1. Buy or Sell? 2. Identify Price of Entry, Stop Placement, and Exit Price. 3. Profit or Loss?
MY GOAL IS TO TEACH YOU HOW TO TRADE WITH THE SPECIALIST’S EDGE
ELITE EMINI TRADING COLLEGE WEEK #4 STRATEGY #8
QUESTIONS
[email protected] [email protected] 1-310-844-7220
DISCLAIMER
Hypothetical or simulated performance results have certain inherent limitations unlike actual performance record: simulated results do no not represent actual trading. Also, since the trades have not actually been executed, the results may have underor overcompensated of 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 presentation is being made that any account will or is likely to achieve profits or losses similar to those predicted or shown.
