Signals for Futures Traders: Price Action E-mini on NinjaTrader

Two important lessons we see traders miss time and time again:

  1. Stick to the rules you’re taught. If you’ve found a way to improve, by all means, do that, but try not to lose the foundational aspect of what’s been tried and true for years.
  2. Avoid a fixed approach to profit targets and stops. If you have “big money” in mind and only trade this way, you will expect too much when the market is too slow. Rather, it’s better to adapt based on what the market can reasonably provide at a given moment. For this, we use the ATR (Average True Range) with a Period value of 4 (last four bars).

Regarding #1 above, this video clearly demonstrates why one should avoid fear and remember training. If you closed the trade too early, that would have been a good-sized loss. If you waited and respected the rules, you would have seen success, as John Paul did here.

We should add a third main lesson, which is this:

3. If possible, use one or more trading methods to confirm the direction or types of trades you’re taking. Here, the Atlas Line shows price is below the line, so stick with short trades. When the Trade Scalper provides short signals beneath the Atlas Line (dashed line), we have confirmation that selling the market is better. The Atlas Line’s short Strength and Pullback trades, also short while under the line, were good to take as well.

To learn more about day trading and price action techniques, visit the DayTradeToWin.com website. There is a new Mentorship class that begins Nov. 2. Enroll early to download and install signal software like what you see above.

Price Action Indicator Signals Demonstrated Live

When comparing trading systems, it’s easy to get mixed up and not know which one is best. Should you scalp and go for more trades with smaller profit targets? Or should you go for fewer but larger trades? Well, the DayTradeToWin.com Trade Scalper and Atlas Line day trading methods reflect both concepts. They can be used independently from one another or they can be used together to get the best of both worlds.

In the beginning of the video, you’ll see many Atlas Line Long signals. Price drops big right after the first Short trading signal. That looks to be a big winning trade, had you taken it. Hang on to your hat as the two next signals, both Long (buy), look to be winners as well. A short (sell) signal follows; another winner.

Now, every day won’t be like this. It’s about looking at the big picture. Day trading as a source of income is possible, but the market is not like a typical boss. Normally, when you get paid from a traditional job, the next day, your boss doesn’t reach his hand in your pocket and says, “You owe me 1/8 of what I paid you.” This is why with trading, we must look at time frames such as 30+ and 90+ days to gauge success. Of course, it is crucially important to start with practice trading (sim account) regardless of your level of wealth. NinjaTrader has this ability to generate a report indicating win rate, loss rate, and other factors that will help you gauge your performance. That’s covered in a different video.

Later in this video around 3:30, we see the other trading system in use, the Trade Scalper. A signal and trade are demonstrated in real-time. This is much like how one would experience trading for oneself, having the proper software and configuration established. This is no problem, though, because I hear the DayTradeToWin crew gladly help set up clients with the proper config to get the most out of the markets.

The Roadmap From DayTradeToWin Tells Us Exactly What We Need to Know

Rarely can you find a trading tool that is as robust as the Roadmap from DayTradeToWin. The theory behind this tool is that the market prefers balance. When the amount of buyers and sellers is no longer equal, an opportunity arises. These opportunities, or zones as identified by the indicator software, are boundary areas.

Without going to too much detail, the software plots entry signals for you to take, either Long or Short, it can tell you of anticipated market direction, whether a trend is expected to continue, whether a reversal is expected to occur, and so much more…

We can see why this method has been available exclusively in the eight-week coaching program!

As you can see from the video, there are A, B, C, and D horizontal lines for each zone. The colored up and down arrows are entry signals. Traders love to use the Roadmap in conjunction with other methods. In fact, the Roadmap is considered the first tool to use for identifying trades, even before the Atlas Line! Yes, that means you can use the Roadmap and Atlas Line together to filter trades from other methods, including the Trade Scalper. These three tools together, plus all the other techniques taught in the eight-week Mentorship Program may be the difference between you becoming a pro trader or not.

How do you get the Roadmap? For now, it seems like the only way to get the Roadmap is to enroll in the eight-week Mentorship Program. Click the link to get details on the next class date and time.

2 Videos: Multiple Days of Price Action Trading Reviewed

When evaluating any day trading system, it’s important to look at multi-day performance. How did the system perform over multiple days? What about consecutive days? How big were the wins, if any? How big were the losses, if any? What’s the recommended trading account size? What markets can be traded? What is the underlying mechanism – price action?

DayTradeToWin.com’s Trade Scalper and Atlas Line price action day trading systems are seen in many day trading videos. We can see signals that promise to be the same as what a regular trader would see via their personal computer. Long and Short signals are equivalent to Buy and Sell, in trading vernacular. When a signal appears, the trader is supposed to follow the rules and place a trade. If the market is too volatile or too slow, it may be best to wait until conditions return to normal. This is one example of many. Fortunately, the rules for those two price action trading systems appear to be relatively straightforward.

Both allow customization of the signal text including color and size. This is especially useful if you’re older and prefer not to squint. The NinjaTrader platform allows dark and light charts. Some traders are colorblind, so offering the ability to change colors to contrast with background is very important and overlooked in indicator development.

On the bottom of the charts, you will see a gold-colored line. That’s the ATR (Average True Range) and included with many trading platforms, such as thinkorswim and Trading View. It should be configurable, allowing you to specify the time frame or period value for the primary “averaging” calculation. Four bars is recommended, as greater values consider longer periods of time. This depends on the type of chart in use, of course!

How to Day Trade After-hours Using NinjaTrader 8 Market Replay

If you work during the day and only have time to practice at night, Market Replay is the way to go. Market Replay, accessed via NinjaTrader 8’s Playback connection, lets you replay market activity as though it’s occurring live. It’s the next best thing (and in some ways superior) to real-time practice. You can rewind, fastfoward, and pause playback. This makes Market Replay ideal for getting a sense of how your trading signals work in relation to market conditions. For example, many trading systems have signals that appear when a bar closes. During playback, you can see exactly when the signal fires.

Before you can use Market Replay, you must download replay data. Follow the steps in the video to navigate to the correct area in the platform. Next, select the instrument (aka market) and date you want to download. Then you may connect to the Playback Connection. Upon doing so, the Playback window will appear. Playback begins at midnight, so you’ll need to drag the slider or fastforward to market open, if that’s your focus. Keep in mind that every time you move the slider, you have to wait for the data to plot again up until that point.

All trades placed while connected to Playback Connection occur within the Playback101 account rather than Sim101. Sim101 is reserved for real-time NinjaTrader Continuum connections. You should be able to monitor your performance using Playback101 using the same Trade Performance area of NinjaTrader 8 (see the New menu item). Try to use Market Replay data rather than historical data, as the former has Level II data. Some traders like to see the buyers and sellers in the SuperDOM and this is only available with Level II data.

Trading Tip: Sync Your Windows 10 Computer Clock

If your computer clock is off by mere seconds, you could experience unwanted behavior in your NinjaTrader 8 trading platform. The NinjaTrader 8 software “grabs” the current time from your computer clock. In turn, the indicators running within NinjaTrader reference that time or schedule operations accordingly. For example, if the Bar Timer indicator is running on a computer with an incorrect Windows 10, the Bar Timer may fail to countdown and could remain at zero.

In an ideal situation, your Windows 7, 8, or 10 version should automatically recalibrate (sync) with official time servers on a regular basis. This is supposed to be done by the operating system automatically every once in a while to correct any “drift” in time caused by, well, physics essentially as related to the battery on your computer’s motherboard. The official time servers are maintained to ensure great precision. You can check how “off” your computer clock is with the official time via https://time.is. Note that this is not an official time server, though it is frequently used to gauge computer clock accuracy. When time.is recognized your time is pretty much exact, it will tell you so.

Fortunately, there is an easy fix to the Windows time inaccuracy issue. We will go over instructions on how to set up a shortcut you can use every couple of weeks to manually correct/update the time.

  1. Right-click the Windows Desktop and select the option to create a new shortcut.
  2. For the location, type in timedate.cpl. Make sure there is no trailing period if you copied the text from here. Proceed forward and give the shortcut a name, such as Time Sync.
  3. Now that the shortcut is created, you’ll need to perform the remaining steps every two weeks or so to correct time drift. Double-click on the shortcut.
  4. Click the Internet Time tab a the top. Then click Change settings.
  5. Click Update now. It’s actually normal to see a failure message. When this occurs, select the other time server and try updating again. Repeat among the time servers until success occurs. Upon success, close out of the time area. Wait five minutes for the time to “permeate” the Windows OS.
  6. If NinjaTrader is running, restart it.
  7. Optionally, visit https://time.is to confirm your computer clock is now accurate.

Pro Tips for Aspiring Day Traders: Parts 1 & 2

Here’s a question that may confuse you at first: what do you not know that you do not know about trading? The unknown may be your biggest downfall. In this two-part video series, John Paul from DayTradeToWin.com endeavors to clarify common trading misconceptions. The general approach is price action. This means letting a chart’s price movement tell you when and how to trade.

By using the ATR (Average True Range) as an indicator for volatility, profit target, and stop loss, you can mitigate some risk. How? The ATR with a period setting of four gives you a picture of the average price variation for the last 20 minutes when a five-minute chart is in use. If you use this value to determine each trade’s win and loss settings (profit target and stop loss), you can mitigate some risk compared to those traders who use large, fixed values. We prefer an adaptable approach because price is always shifting. Tune in to the first video at 5:50 for an explanation in conjunction with the Trade Scalper. If the ATR is above five points, that’s considered too fast. If below one point, that’s considered too slow. There are exceptions and ways to trade really volatile conditions. Those approaches have been shared in recent videos.

Do you know how to quickly measure the points and ticks between two points on the chart? NinjaTrader 8’s ruler tool is useful. Select it from the drawing drop-down (click the pencil at the top of the chart). Next, you’ll need to click three points on the chart. The first is the start point. The next is the end point. The last is the point at which you want the measurement to display. Practice by measuring the distance between candles. You can quickly determine price ranges this way.

DayTradeToWin offers a free trading news indicator. News events can take a trader by surprising and plunge them into big loss territory in a jiffy. Wouldn’t it be better to know when a planned news event is going to happen so you can stay out of the market? The news indicator plots upcoming, scheduled news events directly on the chart. You can customize the number of displayed events. You may want to change it to five or so as the default value can take up much vertical space with overlap.

John Paul expects the E-mini S&P 500 to go up overall during the remainder of 2020. He explains how to find long (buy) opportunities once price exceeds a specific 50% level. He explains later how this long bias can be used intraday in combination with other signals, such as those from the Atlas Line and Trade Scalper. Use a daily chart to see recent highs and lows. You can configure the Fibonacci tool to draw three horizontal lines. The middle line is the 50% line. Look for retracements above the 50% mark to previous highs. Watch for situations where the market may stagnate or pause for one or more months on approach to higher levels. The specific midpoint value is defined as 2,782.

Avoiding Common Mistakes Traders Make

Sometimes traders can make mistakes due to too many historical order text displays that appear near the candles. If you place many orders in NinjaTrader, your charts can become cluttered with this order text. You can remove all the order text and disable it from occurring again by right-clicking the chart > Data Series > scroll down to Plot executions and select the “DoNotPlot” setting.

Another common point of failure is subjectivity. If you are using a trading system that allows for too much interpretation, the guessing aspect can lead to big losses. We prefer to stick to objective rules and follow those rules closely. This way, we avoid temptation of risking too much or staying in a trade for too long. The Trade Scalper is one such trading system that has concrete rules. Watch all the buy and sell signals that appear.

Indeed, a 2.25 point winner occurred with five contracts in place. With the E-mini S&P 500, each tick is worth $12.50. A point is considered to be four ticks. Therefore, one point equals $50. If you take the 2.25 points and multiply that by $50, you get $112.50. If you trade five contracts, multiply by five and you get $562.50. Remember, we are describing theoretical profit before any broker and/or exchange fees. Before trading, speak with a financial professional and a broker to see if trading is right for you.

Traders can also get tripped up when they enter trades too late. For many systems, the Trade Scalper included, it’s important to place the trade as soon as possible after the signal appears. In most cases, you will have to wait for a certain condition to occur before the rules of the method allow an action. Wait too long and the market could take on a new personality. If you are too greedy, “forcing” an entry may cause significant loss. Hopefully, your trading method accounts for timing. You may want to preconfigure commonly used profit targets and stop losses using the ATM Strategy feature within NinjaTrader.

3 Market Entry Methods: Webinar Video

Webinar Video

Did you miss the live trading webinar video? As you know, most traders sit in and watch the signals happen in real-time. So, John Paul goes into the details and answers questions from the audience. Watch the replay below. The webinar, which took place on 22 November 2019, is recent. The presentation begins with a general description of John Paul’s markets.

So, if you missed the live webinar video on Friday morning here is your chance to review the trades taken, the questions and answers are given, and the explanations of the webinar for each trading were over an hour broken down into three parts.

This is provided for Part 1: Order forms, Phantom Orders, Live Market Scalper Orders, Questions, and Responses. While part 2: Phantom orders, Atlas Line Live Trade, Trade Scalper Live Trades, Filtering Trades, Q & A

Want to learn more about how to trade the market? Check out our blog post here: https://daytradetowin.net/2019/11/21/price-action-trading-learn-more-how-to-trade-the-market/