Nexgen Software Training Manual August 2016 Page 1 T

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T-3 Fibs ProTrader Trading Plan and Objectives
The goal of every trader is to make money. To make money you must have a plan.
When you set goals you will have the greatest chances of achieving success. Here is
an example plan that you can use when learning the software, and make changes to
suit your needs. Please note this is for educational purposes only and Nexgen
provides this document as a generalized guideline and does not offer any personal
trading advice.
Once you have made this plan your own through practice and study, you will have an
accurate picture of yourself, your expectations and your trading rules.
Goal= average a minimum
I must have minimum
$250 dollars per contract per day.
$5,000 dollars per contract in capital.
Maximum loss per trade is
$80 dollars
Maximum loss per contract per day is
$300 dollars
General Guidelines For a Trader
Every one of these boxes must be answered yes to achieve your goals

yes
I am 100% responsible for my analysis and my trades

yes
I physically / mentally feel good

yes
I free of any technical issues before trading starts

yes
I have spent at least 30 minutes with my charts prior to first trade

yes
I have a well written plan of my own based on Nexgen’s teachings

yes
I can anticipate my risk and reward before my trade happens

yes
I have proven the trades in my plan will give me a positive outcome

yes
I know my rules 100%

yes
I understand the nuances of each trade setup and work to get better

yes
I always spend time analyzing my trades and get Nexgen’s feedback if needed
Nexgen Software Training Manual August 2016
Page 1
The following is an overview for the educational path to learning the T-3 Fibs ProTrader and
how to apply it correctly to your market.
This document will provide you with the most efficient use of your time and effort as well as spell out
conditions that must be met in order to achieve a high level of success with the software.
General principles for all users of T-3 Fibs ProTrader Software
·
RULE #1: DO NOT use real money during the learning process. Typically the
process is lengthened by focusing on the money rather than the education.
·
During the education process you will become familiar with the software and learn to
recognize the winning edge as defined by a profitable win percentage and win-loss ratios.
·
Understand that your participation in class is vital to success. If you cannot attend class
arrangements for private tutoring must be made for feedback on your progress.
The minimum goals for your educational success will be defined below. Keep in mind this is minimum
standards and we expect you to achieve much more than this using the software.
·
During your demo and throughout your learning process ,Nexgen will be teaching using
the Crude Oil. (CL futures market. You may also test any other market that you wish to
using the software during your demo and our technical support will help you set up other
markets. Other markets may be used in class depending on volatility.
Our goal for you is to teach you how to read the software properly and consistently prove
you have the potential to make money using the software.
·
Your measure of educational success will be met once you have achieved at least a weekly
average of 250 dollars per day or greater on simulator for at least two consecutive weeks.
(250 + dollars per day average) This may go much higher!
·
This will equate to at least $1250 dollars per contract per week during your simulation
period.
·
Once you can achieve $1250 dollars per week on one contract you will then be able to use
money management principles and profits generated by your trading to increase your
contracts traded as you make the move to real money.
After your educational path is complete you will then be able to take the T-3 ProTrader and
apply the principles that you learned to any other market and timeframe that you wish to
trade.
Page 2
Learning the Setups by Annotating and Posting your Charts

When first learning the software, visual feedback is very important to make sure you are
interpreting the indicators/ trade setups correctly. This will be important when posting charts
in the room and working with the educational department. When you have completed your
education this will be an invaluable tool for self-analysis after the trading day.

How to properly mark your charts for maximum effectiveness.
o All reasons for trade setups and exits should be written in a yellow box with text
inside. This will help you to determine, with the help of the educational department, if
your reasons for a particular setup are correct. We will cover how to do this in our
online classes.
o
All entries should be marked with 3 arrows on the bar you entered or would have
entered on. All exits should be marked with 1 arrow on the bar you exited or would
have exited on.
o
After the trade is complete or the day is complete you will then go back and mark “the
best” entry and exit with a magenta circle. This is done after the heat of battle so you
can study the potential for any changes you may want to make in your entries and
exits and how to recognize more clearly the “most profitable” trading situations.
o
During your initial stages of learning you will not only markup today’s action but you
will go back in time and mark up at least 5-10 historical days’ worth of trade setups.
o
Once you have mastered your marking of charts ( LEARNING THE SETUPS) and have
the ability to easily recognize the trade setups you should continue to mark 3 days of
“historical” charts to keep you sharp.
o
o
o
o
Save all charts as a GIF or PNG files in a dedicated folder on your hard drive. You may
use any screen capturing program you wish. We recommend SnagIt.com as an easy to
use program. Do not store them as BMP files as they have a large file size and
are not easily uploaded and needlessly waste hard drive space. How to do this will be
done in the class daily or with your salesperson.
During the trading day post your charts and questions in the NexGen
Pro’s room for instant feedback from the educator running the room
during the trading day. If you do not post your charts you will not get
the full educational benefit you need during your learning process.
You should by rule of thumb post at least 2-4 charts daily in the Pro’s
room.
Making sure your trade setups and interpretation of the software are correct is vital for
achieving the highest level of success. NexGen is committed to your success and we
ask that you have the same level of commitment when marking and posting your
charts.
Page 3
When to start using a simulator
o
Once you have successfully proven that you understand the rules only then can you
effectively will run a “live market simulation” program. We recommend and use Ninja
Trader for ease of use. It will allow you to trade as if it was a live account during live
market times without risking real capital. Ninja Trader will also allow you to do market
replay and historical review.
o
Once you start simulation you must still mark up your charts using the same boxes,
arrows and circles in addition to placing “simulated” trades on the market. This must
be done so you will have the tools you need to continue to improve during educational
sessions.
o
Again you should continue to mark up your charts. You may find it easier to trade first
and write quick descriptions and clean up reasons after the trade. You may also opt for
writing reasons first then making the trade depending on your typing ability.
o
You will have completed successful simulation once you have a string of a minimum of
100 and up to 200 simulated trades with a 60% or higher win percentage and a
greater than 1:1 win loss ratio that are generated by your own version of the plan.
When to use real money for your trading (if you have to ask, you are probably not ready!)
o
Most traders will start with one contract and will only raise the level of contracts with
money that has been created with profits generated by the first contract. This is a
good practice no matter how much money you have or wish to have. Trade your
software properly and you should add contracts on quickly.
o
You must establish a profit per contract level that you will use when analyzing how
many contracts to trade each day.
o
To determine your contract level take your account value and Divide by that number.
o
For example – If you use $5,000 per contract as your base value.
$5,000- $9,999 = one contract.
$10,000-$14,999 = two contracts.

Real Time Trading Performance Guidelines
o Live Results should be comparable to your simulation results, otherwise you should
return back to the simulator and work with educators to define where the
discrepancies in analysis are between live and simulation. This is generally a result of
not following your trading plan.
o Every day you should make a GIF or PNG file of your trading platform results and keep
them on your hard drive so you can evaluate your performance daily versus the charts
that you have marked up. Also, print up a weekly performance report so you will be
able to track your weekly performance.
Page 4
TREND TRADE
DEFINE TREND
1. Small triggers are above or below synthetic triggers (LOCATION). Synthetic triggers crossed
favoring the trade (minimum one) however both crossed is best. After Fibonacci area breaks prior
Fibonacci areas to create new one), support becomes resistance, or resistance becomes support.
2. Exception: In strong trend and when your larger synthetic triggers are still crossed in favor. Trend
Trades may still happen until faster synthetic triggers cross and roll against. The synthetic triggers
will be the "trouble" spot and protective stops must be moved up to dramatically reduce risk when this
area is tested by price. Large Chart Help : when you have a “stab back look“ on a larger chart, this
exception trend trade will be more likely to win.
AREA TO TRADE - BEST AREA= Fibonacci(s) + Mid Band/165 EMA + Synthetic Triggers in a
relatively small range. Note if small triggers are very wide into the area, and there are multiple
choices, try to use the farthest away support or resistance line.
Fib2Fib OCSCILLATOR – Line value of 75 or 100 “sharp point” for a short order or 25 or 0 “sharp
point” for a buy order. Exception will be at (50) if both synthetic triggers are crossed and at the
Fibonacci areas for sell in a strong trending market. (usually during change of Fibonacci colors)
DO NOT GET IN IF AREAS ARE VIOLATED If the small triggers are wide and strong and violate the last area wait until they roll back across the
area and are helping the area crossed in the right direction.
MAKE SURE BEFORE TRADE
The market has not already reversed from target or trouble spots. if so NO TRADE.
MAKE SURE YOU HAVE ROOM TO YOUR TARGET
You must have room to target areas so your risk will be well rewarded.
ENTRY OPTIONS 1. get in AT the best spot if stops can be placed beyond ALL synthetic triggers and areas. This is
especially true if you use multiple timeframe charts and both charts agree to the areas and direction.
2. Market Flow shifts from buyers to sellers or sellers to buyers if using MF or PRIOR HVA’s
3. Pullback to small triggers after they roll if entry has been delayed due to strong small triggers.
STOP PLACEMENT -
Your max stop value if getting in at area, then 2 ticks above/below pivot.
TRAILING STOPS- Wait for pullbacks then new highs or lows to trail stop behind pivots or tails.
Note: “tails” on bars to use should exceed the last 2 bars prior highs or lows. Larger tails are better.
INDICATOR BASED EXIT
Divergences usually end trend trades. Reversal bars at synthetic trigger trouble spots when taking
exception trend trades will also be an exit.
EXITS – note: Patiently waiting for your profit targets is key for higher reward to risk ratios if your
trigger lines are strong and small triggers have not violated the “farther” away synthetic triggers.
If the indicators no longer support the setup and there is no support or resistance areas near to
protect your trade, exit.
Page 5
COUNTER TREND TRADE
ABILITY TO DEFINE FIBONACCI AREAS WITH HIGH PROBABILITY TO HOLD IS KEY
1. ZERO trigger lines breaking through the Fibonacci areas is key
2. BEST PRACTICE- Use multiple time frame charts with Fibonacci areas that overlap. For
example, have a "trend trade look" area from higher timeframe chart, with lower time frame
chart Fibonacci areas, 165 EMA or divergence helps this trade.
3. If small triggers break through Fibonacci areas but the synthetic triggers do not, you can still
trade the Fibonacci areas after the small triggers roll back up through the Fibonacci area and
small triggers are crossed in your trade direction. If too much momentum exists in both
synthetic triggers, wait for the small triggers to break above the synthetic triggers (both) and
then look for the trade on the retest of the Fibonacci areas after synthetic triggers pinch and
roll with a trend trade look( see rules above) or a Fib2Fib divergence look.
AREA TO TRADE - BEST AREA= Fibonacci(s)+ Small triggers in a relatively small range of one
another. Note if small triggers are very wide into the area, and there are multiple choices, try to use
the farthest away support or resistance line.
Fib2Fib Oscillator - If you have potential/actual divergence this is very favorable/ not needed when
larger chart has a perfect trend trade spot.
DO NOT GET IN IF AREAS ARE VIOLATED If the small triggers are wide and strong and violate the last support or resistance area wait until they
roll back across the area and are helping the area crossed in the right direction.
MAKE SURE BEFORE TRADE
The market has not already reversed from target or trouble spots. if so NO TRADE.
MAKE SURE YOU HAVE ROOM TO YOUR TARGET
You must have room to target areas so your risk will be well rewarded.
ENTRY OPTIONS 1. get in AT the best spot if stops can be placed beyond ALL synthetic triggers and areas. This is
especially true if you use multiple timeframe charts and both charts agree to the areas and direction.
2. Market Flow shifts from buyers to sellers or sellers to buyers if using MF or PRIOR HVA’s
3. Pullback to small triggers after they roll if entry has been delayed due to strong small triggers.
STOP PLACEMENT -
Your max stop value if getting in at area, then 2 ticks above/below pivot.
TRAILING STOPS- Wait for pullbacks then new highs or lows to trail stop behind pivots or tails.
Note: “tails” on bars to use should exceed the last 2 bars prior highs or lows. Larger tails are better.
INDICATOR BASED EXIT
Divergences or reversal bars at synthetic trigger trouble spots exit.
EXITS – note: Patiently waiting for your profit targets is key for higher reward to risk ratios if your
trigger lines are strong and small triggers have not violated the “farther” away synthetic triggers.
If the indicators no longer support the setup and there is no supports or resistance near to protect
your trade, exit.
Page 6
Reading Fibonacci and Triggers Properly For High Probability Setups
You must spend the majority of your initial learning focused on the relationship between Fibonacci
areas and the trigger lines. This is going to be vital to your ability to spot low risk high reward setups
and be absolutely comfortable taking trades. The following are the key points.
1. Small trigger relative to BOTH synthetic triggers. (LOCATION when touching FIBONACCI)
a. when the small triggers are above all of your synthetic trigger longs will be easier.
b. when small triggers are below all synthetic triggers shorts will be easier.
2. Synthetic triggers location and "crossed in" the trade direction is key.
a. if both are crossed down or below Fibonacci areas shorts are easier
b. if both are crossed up or above Fibonacci areas longs are easier
3. Never trade into an support or resistance area that caused a reversal if trigger line has not
significantly broken Fibs. Only multiple wide synthetic triggers + prior break of Fibonacci by small
triggers allow a trade setup to happen with the anticipation the Fibonacci area will break.
4. If the small triggers are BETWEEN two synthetic triggers without much distance between them.
This is especially true if one is crossed up and one is crossed down, the market may be choppy and it
is better to wait for a clear breakout before trading.
5. If small and synthetic triggers make a very strong push into an area , wait for some confirmation
the market is going to turn at that area before placing a trade.
6. If the trigger lines BREAK through a Fibonacci area, it is likely to break.
7. If there is a large gap between price and small triggers and the synthetic trigger the market will
generally work to close that gap.
8. If small triggers are very strong into a Fibonacci area you wish to trade, or small triggers breakout
beyond the first synthetic triggers, a reversal bar confirmation entry will avoid trades that continue in
the strong small trigger direction.
9. Pullback entries at small triggers that are WIDE and FAVORING the entry will have a high
probability of working especially when small triggers and Fibonacci areas line up.
10. At double tops and bottoms, monitor your small trigger positioning and watch for potential
reversals when the small triggers are not also making highs or lows. " trigger divergence "
11. If in a trade and small triggers are below BOTH sets of synthetic triggers, do not move your stops
to quickly if you have not yet reached a target. Wait for large tails and new pivots before training
your stops.
12. In the following section, you will see 35 examples of trigger line setups that will help you spot the
areas where Fibonacci support or resistance will be more likely to win.
Page 7
Example Trigger Lines Pictures
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Reading Fib2Fib Oscillator
The T-3 Fib2Fib Oscillator is a proprietary blend of the most accurate comments of time tested moving
averages , oscillators and momentum indicators.
1. When the Fib2Fib line is breaking the 100 or 0 line for mutliple bars it is telling us that the market
is trending.
2. When the market is trending the 75 ("sell') line becomes a visual reference for short trade setups.
The 25 ("buy") line becomes a visual reference for long trade setups.
3. When the Fib2Fib line make a divergence pattern at a key support or resistance area that pattern
will add confidence to that area.
4. When the Fib2Fib line makes a divergence pattern mid trade , it may signal the need for an exit.
This is particularly true when you have a small trigger line pattern of lower highs or higher lows as we
have shown you in the trigger line examples.
5. Sharp points from buy or sell areas , especially those that are isolated pivots, will generally be a
great reference for an entry at a key area.
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T-3 Market Flow Indicator
1. This indicator will help you to further define your low risk entries by highlighting key discrepancies
between the amount of buyer versus sellers on any given bar highlighted by "colored dots "
2. This indicator will also show you where the highest volume was traded inside of a given bar which
we will show us " high volume area " HVA's.
3. We will use this indicator to help us further define when the market has made a top or a bottom
with a "high volume " breakouts of all synthetic trigger lines or volume reversals at Fibonacci areas.
4. When all of the volume falls directly on a Fibonacci area that our trigger lines tell us will hold it will
also allow us to enter with a very small risk on what we will define as a HVA tiny reversal bar.
5. This indicator will also help us not get into a trade too early and will also gives us the ability to stay
in trades longer when there are no reasons to exit at Fibonacci areas.
6. This indicator is best run on Tick or Volume charts. Testing on Crude Oil has been very successful at
1000 share volume bars. S&P E-mini testing has also been very successful on 2000 tick bars.
Below we will give you examples of general bar structures and patterns you will use for entries/ exits.
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Fibonacci Areas +Triggers & Market Flow create Trade Entries
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Nexgen Software Training Manual August 2016 Page 1 T

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