Summer day trading is known to be difficult. People take time off. The markets traditionally lose volatility. You’ve seen what happens during a Friday holiday. In the summer, can we see the ATR (Average True Range) below one point regularly and for larger portions of each day. How do you combat this? Small-time retail traders need to think differently. John Paul from DayTradeToWin has an idea: go long-term.
If your brokerage account can substantiate the extra risk involved in holding large positions for multiple days, it may be worth taking a look at the January Effect strategy. The January Effect can best be described as a predictor for how price may behave for the rest of the year. The prediction is based on how price behaved in January of the same year. If you see that price closed higher than it opened for the month of January, then expect the end of the year to also end on a high note. Of course, there’s no such thing as a true prediction. John Paul believes in this strategy’s accuracy, but you should do your own testing and come to your own conclusions.
How do we know when the January Effect will apply? Early February, of course. From that point forward, you can follow the rules to spot bullish retracement trades. The video demonstration is better, but essentially, you’re looking for price to drop. Once the bottom is reached, wait for the 50% recovery and then look to enter a bullish trade. You can find one of these setups almost every month. There’s no guarantee of profitability. Price may turn around and continue lower. Be sure to test with a practice simulation account first. Also, check with your broker and a financial expert.
Beyond Summer Day Trading
Other than summer day trading, John Paul discusses a number of other tricks to possibly improve performance. He talks about groups of days, trending days, and how to spot cycles. He discusses why 5-min charts are superior to most others, the ATR (Average True Range), and much more. To learn everything he knows about day trading, join the next eight-week trading class, Group Mentorship. All trading courses and software are included with lifetime licenses. It’s a great deal.
One of DayTradeToWin.com’s most popular free trading strategies is the January Effect. Just look at the winning possibilities within the last few months:
March 2017: +18 to +40 points
May 2017: +18 to +30 points
June 2017: +17 to +24 points
Will July 2017 produce similar big winning trades? John Paul provides his prediction in the video below.
What is the January Effect? Firstly, remember there’s no such thing as an accurate trading prediction. The market activity is anyone’s guess, so trade at your own risk. Consult with a licensed broker and financial professional before considering trading, especially when holding high-risk trades for multiple days (as described in the video). John Paul believes the direction of the market for the overall year can be predicted based the market’s behavior during January of the same year. For example, because January 2017 closed higher than it opened, he believes December 2017 will also close higher. From there, it’s a matter of finding additional entry opportunities throughout the year.
How to Find Retracement Opportunities
To find those additional trades throughout the year, John Paul looks for periods of downward movement. When price retraces upward, climbing 50% back up to the previous high, that’s the January Effect entry point. How do you know where the 50% point is? Sure, you can eyeball it. John Paul prefers using NinjaTrader’s Fibonacci tool. However, he’s not using it in a typical way. For the January Effect, only values of 0%, 50%, and 100% are visible. In a previous video, we recovered configuring the tool. Free trading strategies and tools are a primary focus of DayTradeToWin.
To discover more ways to trade the E-mini and other futures and currencies, participate in the next eight-week live trading school, Group Mentorship. John Paul reserves his most powerful strategies for this all-inclusive program. Yes, all courses and software are provided plus eight weeks of live training with a pro. All lessons are recorded, so you can play them back in the future.
Subscribing to the DayTradeToWin YouTube channel will provide you with automatic notifications when a new day trading video is uploaded. It’s really the best way to see every video that gets posted, and we know there’s a lot of them. We know for a fact there’s over 300 videos currently, and recently John Paul is producing a new day trading video every week or two. Many videos focus on free education and show real-time charting conditions.
Remember, subjects your finances to substantial loss. Only trade with money you can afford to lose. Too many traders are eager to jump in and start making money right away. It doesn’t work like that. There are no overnight millionaires. Successful day trading may require, but is not limited to, the following: the ability to properly assess risk, a strategy that has profits that exceed the losses and other costs of day trading, proficiency using the trading software, and stability in terms of computers and a broker.
This video shows an Atlas Line trade. Yes, this trade occurs right after market open. The Atlas Line almost always provides a trade within the first 30 minutes of market open. To provide a signal, the software waits for two candles to close either above or below the plotted line. When the second candle closes, a long or short signal appears on the chart. If price is above the line, it will be a long signal. The opposite is true for a short signal. One way to potentially filter out losing trades is to look for overbought and oversold conditions. This is taught in the included live training.
Signals in the Day Trading Video
When the second candle closes and a signal fires off, that is the point in which you can place a trade. To make trade placement faster and more convenient, you may want to use NinjaTrader’s ATM Strategy feature. Ahead of time, you can define profit target and a stop loss values. When a trade is placed with the desired ATM template selected, you will see the profit target and stop loss applied in the SuperDOM. If you also have NinjaTrader’s Chart Trader enabled, the profit and stop will also be visible there, too. In fact, Chart Trader lets you drag and drop the profit and stop. Be careful in doing so, as you essentially put yourself behind the orders of other traders. DayTradeToWin.com is home to hundreds of other trading videos.
Yesterday, the E-mini produced great trades for the Atlas Line and ATO 2 proprietary indicators. The first of the NinjaTrader entry signals was generated by the Atlas Line at 2442.75. Soon after, an ATO 2 entry signal appeared at 2443. These signals occurred about 10 minutes from each other. You can count on the Atlas Line generated a generate within the first 30 minutes of market open (and usually one or two more later in the day). Because the Atlas Line can provide an indication of expected market direction so early, the ATO 2 is a perfect accompanying strategy.
All clients who use the Atlas Line and ATO 2 receive the same signals as John Paul. You are taught a total risk/trade management strategy. The ATR (Average True Range) is used to assess risk in the moment. This ensures trading goals are within a reasonable amount. There’s no need to extend your account and take on more risk than is necessary. The Atlas Line and ATO 2 are sold separately. The only time they are included is in the eight-week Mentorship coaching program.
Later, an ATO-C trade appear. This denotes an ATO 2 Trade Chaser setup. These are potential money-making opportunities that occur after the main signals. Watch the full video to see how this trade panned out in real-time. Notice how the Atlas Lines Strength trades (small S letters near the candles) coincide with the ATO signals. Again, another example of synergy between the two strategies.
Beyond NinjaTrader Entry Signals
John Paul was able to place the profit target and stop loss quickly because of predefined values. Configure an ATM Strategy and select it in the SuperDOM. The next time you place a trade, the profit target and stop loss will be placed for you. When using a 5-min chart, timing is very important. Combine an ATM Strategy with the Bar Timer to time each trade perfectly. Yes, ATM and the Bar Timer are included for free as part of NinjaTrader.
If you want to be a professional trader using the ATO 2, Atlas Line, and a whole bunch more methods, sign up for the next Group Mentorship class. The next eight-week class begins Aug. 28, 2017. Classes are Mondays and Wednesdays at 5 p.m. EDT. All courses and software are provided with lifetime licenses. Each training session is recorded, so you can log in and refresh through playing back videos.
On June 13, the ATO 2 software for NinjaTrader 8 generated a signal worth 7 ticks or 1.75 points. The entry price was 2432 and the profit target, based on the ATR (Average True Range) was 2430.25. To compute the profit in dollars, remember that the E-mini is worth $12.50 per tick. This trade is worth seven ticks, so do $12.50 x 7 for a profit of $87.50. If you were trading 10 contracts, the profit would have been $875. Note that the profit here is an estimate and does not include broker costs, slippage, or other potential trading expenses.
Of course, the best time to trade the ATO 2 is when the ATR is at least one point. At market open, certainly on the E-mini S&P, price often exceeds the one-point minimum. On average, the ATO 2 fires off a couple signals per day. You may also see a Trade Chaser trade (notated as ATO-C on the chart). These Chaser trades provide additional opportunities. It’s sort of like the ATO 2’s Pullback or Strength signals, only a much different pattern. The ATO 2 works for markets other than the E-mini. Think of how many markets become volatile when they first open for the day or around the time the big markets open for trading (e.g. 9:30 a.m. US/Eastern).
What Else Is Included With the ATO 2 Software?
In conclusion, with purchase of the ATO 2, you will receive the digital course and live training. The training covers all aspects of finding the patterns manually and using the signal software. In addition, you receive a training video from a previous live training session. Combined with email support for trading questions and optional remote support for installation, it’s a great deal. What else is included? The bonus ABC software and bonus “How to Trail a Stop” video. Yes, you are given an additional signal software that compliments your ATO 2 trades.
Don’t you just love it when multiple trading strategies agree on market direction? That’s what we see here on this E-mini chart using the Atlas Line and ATO 2 software on NinjaTrader 8. The Atlas Line’s Strength and Pullback trades are also in the long direction. Later in the day (in section B as John Paul calls it), the Atlas Line produces a Short signal. Two closing trades below the line is what caused the signal. Based on the ATR, the profit target is around two points. Price did reach the profit target. Price action has been slow lately, but because the market tends to operate in cycles, John Paul believes volatility will soon pick up.
You’ve probably seen other videos explaining how the ABC method works. On the June 9 chart from the video, notice the A section of the day (shaded yellow). The market tests this range. Subsequently, short Atlas Line Strength and Pullback signals occurred. In addition, notice how the ATO 2 short signal appeared right outside the range of A. The ABC software seen on the chart produces signals. An ABC signal appears right after the ATO 2 signal. John Paul advances the video, and sure enough, look at that trend. What a great display of three separate strategies confirming market direction.
The ABC generates a signal late in the day around the late-day sell-off time. Volatility is good at around 11 ticks or three points. Remember to have your stops ready. Use NinjaTrader’s ATM Strategy feature to have the platform apply them automatically. Follow what price action tells you – don’t guess!
Multiple Trading Strategies, One Program
What’s the best way to get these three trading strategies at a low price? We have a new Mentorship class that starts June 19, 2017. All of our courses and software are included. You’ll walk away a pro trader with over 10 price action strategies in your arsenal. You’ll be able to spot the same trades John Paul sees on a daily basis. In addition, you’re provided a full practice environment that DayTradeToWin.com can help setup for free via remote support.
Do you know how to roll over contracts in NinjaTrader 8? If not, now is the time to learn! Very soon, if your contracts are not rolled over, you will end up with empty charts. The official rollover date for CME equity index futures was June 8, 2017. The next roll date is in September, 2017. For example, you will be rolling from the ES 06-17 to ES 09-17. These types of markets expire on a quarterly cycle: March, June, September, and December are all expiry months. The exact date of expiration varies, but NinjaTrader provides a warning message when it’s time.
Rolling over in NinjaTrader 8 is much easier than in NinjaTrader 7. In version 8, simply go to the Control Center > Tools > Database Management > all instruments (markets) needing a rollover will automatically appear in the list > click Rollover. If you have any charts open, they should immediately update to the new contract period. If not, go to the upper-left corner of the chart and select the market, e.g. ES 06-17, go to Futures, and select the new contract period.
Do You Have to Roll Over Contracts on the Expiration Date?
Some traders do not roll over on the expiry date. Instead, they wait until the bulk of the trading volume transfers to the new period. This usually takes a a day or more. See the CME website for updated trading volume. As of today (a day after the expiry date), the September contract’s volume is finally greater than June’s.
What happens when a market opens? Most often, volatility increases and the market maintains a direction for a few candles. The ATO 2 (At the Open 2) strategy from DayTradeToWin.com focuses on finding such trades. Yes, a specific pattern exists that you can apply to find winning trades in markets like the E-mini S&P. To make it even easier, the ATO 2 indicator for NinjaTrader 8 plots entry signals on your chart. These signals tell you exactly when to place trades and the anticipated direction.
What about the profit target and stop loss? The ATO 2 is designed with risk in mind. The ATR indicator (common on most platforms) is used to determine profit target and stop loss. Configure the ATR with a period value of four. Go back to the chart. See how the ATR line increases when there’s more movement? Well, if the ATR value is above 4.5 points or so, then the market is moving too fast to trade. Similarly, if the ATR is below one point, the market is too slow. Don’t trade and avoid the chop. Overall, the ATO 2 is adaptive based on realistic goals for current market conditions.
What About the ATO 2 Signals?
The ATO 2 produces two types of trades: regular Long and Short signals. There are also ATO-C trades, which stand for Trade Chaser signals. Trade Chasers are follow-up trades you can take to try to recover or add to existing gains. All of the signals are taught during the live training and included course.
At this time, the ATO 2 software is available for NinjaTrader 8 only. If you need to download NinjaTrader 8, DayTradeToWin.com support can assist. You will be able to practice with real-time markets and log performance in simulation mode. It’s a great way to practice.
Recently, the E-mini has been volatile. On the day this live webinar was recorded, there was a scheduled FOMC news event. Generally, market activity is choppy right before the event comes out. That’s because traders are waiting on the sidelines. Once it comes out, expect increased volatility.
Day trading is intimidating. Learning how to use NinjaTrader, or your preferred trading platform, can be difficult. A trading platform is the main or base software a trader uses to interact with a market. NinjaTrader 8 is an example of such a platform. Within NinjaTrader, there are hundreds, if not thousands of individual features and settings to be used and configured. Day trading is risky as it is. When you add the platform’s complexity, it’s difficult to know if you’re doing it all correctly.
DayTradeToWin has attempted to simplify the process of learning how to day trading. In this video, a presenter tackles the basic setup and operations of the NinjaTrader platform. Learn day trading using the accompanying Get Started Trading Guide.
NinjaTrader 8 has numerous performance improvements. Most traders find it easier to use compared to the previous version. For example, you can easily open a chart via New > Chart > navigate through the type of market/instrument (e.g. futures) > configure the settings on the right > click OK. A chart will appear. On the top of the chart, enable Chart Trader’s hidden mode and the crosshair. Optionally add new charts to the same floating window via the tabs at the bottom.
How to Use NinjaTrader Video
Downloading and installing NinjaTrader
Obtaining a live futures data feed for practice (sim) trading
Correctly applying a data feed
Opening a chart and recommended settings (Chart Trader, crosshair, etc.)
Navigating between charts using tabs
Installing and applying indicators
Saving configurations (presets, templates, and workspaces)
Tracking performance using Account Performance
Installing indicators is straightforward. Go to Tools > Import NinjaScript Add-On > navigate to the folder containing the downloaded indicator .zip file and select it > click Open or OK > the indicator should import successfully. Next, right-click the chart > Indicators > find the imported indicator and double-click it > configure any desired settings on the right > click OK.
The E-mini S&P operates in trading cycles. Periods of volatility are meet with periods of stagnation. When there is considerable rise, the market will eventually stall and drop. In this webinar, John Paul discusses how to anticipate these conditions and what to do when they occur. He advises trading when the ATR (Average True Range) is between one and four points. Generally, these conditions occur within the first 2.5 hours of the day.
Be careful when trading at the end of the day. Traders are squeezed out of positions near the close of the session. A rise in volatility is also common at the close.
As seen in the video, the Atlas Line’s backend for NinjaTrader 8 is straightforward. You can set an alert sound that plays when a signal fires. You can set the market’s open time. This is the basis for the software’s internal calculation. There are a few different types of signals provided. There are regular Long and Short trades as well as S (Strength) and P (Pullback) trades. The goal is to manage each trade with a variety of exit strategies (profit and loss).
The news indicator for NinjaTrader 8 provides noteworthy financial news directly on the chart. Watch for high-priority events for countries that are related to the market you’re trading.
Roadmap Software vs. Trading Cycles
One great way to determine when cycles may start or end is to use the Roadmap software. Trending days typically occur back-to-back. Switch to a daily or hourly chart to see how long the candles are (red or green) and look for groups of three or more candles.
The Mentorship Program gives you an opportunity to work directly with John Paul. Learn all of his trading methods, from the revised ATO 2 strategy to the Roadmap and the Blueprint trade. Students receive about 10 different strategies taught live. You will receive all trading courses and software with lifetime licenses. You will learn from recent charts, including the current day.