Trading Plan - Day Trading Software

Transcription

Nexgen Software Services
Trading Guide June 2016
© 2016 Nexgen Software Services Inc.
Please read and understand the following disclaimers before proceeding:
Futures, FX and SECURITIES and or options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a
result, clients may lose more than their original investment. In no event should the content of Nexgen Software Services Website or
Software be construed as an express of an implied promise, guarantee or implication by Nexgen Software Services that you will profit or
that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information
provided on this website, publication and or software program is intended solely for informative purposes and is obtained from sources
believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future
conditions are attempted.
No information accessed through this program (s) constitutes a recommendation by Nexgen Software Services to buy, sell or hold any
security, financial product or instrument discussed therein. This information neither is, nor should be construed, as an offer, or a solicitation
of an offer, to buy or sell securities by Nexgen Software Services. Nexgen Software Services does not offer or provide any investment advice
or opinion regarding the nature, potential, value, suitability, or profitability of any particular investment or investment strategy, and you
shall be fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial
circumstances, investment objectives, risk tolerance, and liquidity needs.
In using the T3 ProTrader and associated software you will also need access to several other programs such as, Ninja Trader , Data
providers, Internet Connections, and any other program deemed necessary for its use. By using the T-3 Fibs ProTrader and associated
software you agree to hold harmless Nexgen Software Services and any of its agents for any failures caused by third party programs.
The CFTC requires the following disclosure statement in reference to hypothetical results.
Please read and acknowledge this risk disclosure to proceeding. The risk of loss in trading commodity futures contracts can be substantial.
You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. You may sustain a total
loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain a position in the
commodity futures market.
THE PERFORMANCE TABLES AND RESULTS OF THE TRADING SYSTEMS PRESENTED ARE HYPOTHETICAL IN NATURE AND DOES NOT
REPRESENT ACTUAL TRADING RESULTS.
Required Warning!
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do
not represent actual trading. Also, since the trades have not actually 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 profits or losses
similar to those shown.
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO
REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN
FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS
SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.
ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF
HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN
COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR
TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY
AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE
IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF
HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.
T-3 Fibs ProTrader Trading Plan and Objectives
The goal of every trader is to make money. To make money you must plan. Plan for
the good and the bad and if you set goals you will have the greatest chances of
reaching them. Here is an example plan that you can use when learning the software.
Please note this is for educational purposes only and Nexgen provides this document
as a generalized guideline for reading your indicators and does not offer it as trading
advice.
Once you have a complete plan, you will have an accurate picture of yourself, your
expectations, and will have a solid plan for success that you can follow.
I want to average
$250 dollars per contract per day or more.
I will trade
2 CONTRACTS to start my trading.
I must have
$4,000 dollars per contract - Total $8000 dollars to trade two
contracts.
My maximum loss per contract per day is
$350 dollars
General Guidelines for Trading
Every one of these boxes must contain a yes answer before you can put a trade on every day.

yes
 no
I am 100% responsible for my trades and my analysis

yes
 no
Am I of sound mind and body before trading?

yes
 no
Am I free of any technical issues before trading starts?

yes
 no I have spent at least 30 minutes with my charts before the market
opens so you can be in rhythm with what is happening now.

yes
 no
I know what my profit target area will be for each trade.(reward)

yes
 no
I know how much I will risk on this trade (risk)

yes
 no
Do I have enough room to my profit target to justify the risk?

yes
 no
I know my rules for this trade setup 100%

yes
 no
All indicators support entering the trade and placing stop.

yes
 no
I bought or sold with stops in place and will now manage trade.
Nexgen Software Training Manual June 2016
Page 1
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 2
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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STOP PLACEMENT - As a general rule , 8 ticks is max stop set up in the Ninja Trader ATM. This stop may
be reduced dramatically if your HVA or Tiny Reversal Bar holds immediately. Many time the average risk
per trade is closer to 5 ticks per trade when done correctly. Generally the market will not exceed a
prior HVA by 6 ticks in most cases.
TRAILING STOPS- Wait for pullbacks then new highs or lows to trail stop behind pivots or tails. ALWAYS
BE PATIENT if small triggers have not yet violated both of the first synthetic triggers. You may also trail
stops AFTER very large multiple dot volume bars - 2 ticks behind high of bar is generally also the Tails or
pivots on the Nexgen Renko bars. If HVA on new bar tested and holds, can trail down 2 ticks behind
that new pivot.
DELAY TRADE IF...
Strong move of small triggers into the areas , delay the trade until you get a reversal bar AND the small
triggers have not violated the " area ". You will also use the T3 Market Flow for reversal identification
that will have multiple high volume dots and will close beyond BOTH synthetic triggers.
ROOM TO TARGET IS OK ?
You must have room to target areas so your risk will be well rewarded.
INDICATOR BASED EXIT
If you get a trend change , or divergence against your position or the indicators no longer support your
position , get out and look for next setup.
EXITS - AT targets, Stops... or IF indicators no longer support the setup.
Page 53
The following is a basic overview for 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.
·
You do not and will not need to trade real money to learn how to read the T-3 Fibs Pro
Trader.
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 our educational Dept. will be
teaching using the Crude Oil . (CL). You may also test any other market that you wish to
using the software and our technical support will help you.
Your goal as a trader is not only to learn how to read the software but to be able to
consistently have the potential to make money using the software.
·
The minimum 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 54
Learning the Setups by Marking and Posting your Charts

When first learning the software, visual feedback is very important to make sure you are
interpreting the indicators 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 mark up today’s action but you
will go back in time and pick one chart timeframe (preferably higher timeframe) and
mark up at least 5-10 historical days worth of trade setups.
o
Once you have mastered your marking of charts and have the ability to easily
recognize the trade setups you should continue to mark 3 days of “historical” charts to
keep you sharp. Once you have moved to live money, historical charts will no longer
be needed.
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.
o
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.
o
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 55
When to start using a simulator
o
Once you have successfully mastered marking your charts properly and have shown
yourself you can achieve a consistently profitable winning % and win loss ratio you will
run a “live market simulation” program. We recommend Ninja Trader for ease of use.
It will allow you to trade as if it was a live account during live market times. 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 will 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
When to start using real money in your trading
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 will 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 $4,000 per contract as your base value.
$4,000- $7,999 = one contract.
$8,000-$11,999 = 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.
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 56

Trading Plan - Day Trading Software

Transcription

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