NinjaTrader Trailing Stop Guide for Price Action

Do you know what trailing stops are? Do you think they can only be used to “lock in profits?” In this video, John Paul from DayTradeToWin explains a whole new way to use them. Essentially, he uses trailing stops to more cautiously go for greater profit targets. This is what you see via the 2x and 3x ATR text in the video. If you apply a trailing stop too early, it’s possible you’ll get stopped out with random market fluctuations. Thus, John Paul proposes adding the trailing stop later when the time is right.

Long and short signals can excite all sorts of possibilities in the trader. Are you disciplined enough to stop trading after a few wins? Scalping is one of the most alluring ways to trade because of the constant opportunities and fast pace. You’ll need to quickly size up market conditions to know whether the trade is viable. Because speed is important to scalping trades and trailing stops, it makes sense to use NinjaTrader’s ATM Strategy feature to preconfigure common profit target and stop loss values.

The SuperDOM presents a drop-down list containing preconfigured ATM Strategies. After experimenting with the Trade Scalper for some time, configure the most common ATM Strategies you’ll need. When you’re in a trade, you can click the most appropriate one. This will help ensure your passions or aloofness won’t get the best of you. Successful trading is about finding winners AND mitigating loss. Having a good, low-cost broker is important, too, because of the round-turn commission rates on each trade.

Do you need to take every signal? No, in fact you can filter the signals using the ATR. This is taught in the Trade Scalper course. You can also combine it with your existing trading methods. John Paul often uses the Trade Scalper and Atlas Line together. The Atlas Line can be used like a long-range estimation of where price may go. While price is beneath or above, scalp in that direction when the scalping signals present themselves.

Learn to Trade: Beginner and Intermediate Traders Welcome

Advanced traders are encouraged to watch these videos as well. DayTradeToWin has taught thousands of people about trading using price action. There’s no doubt some of these people are advanced traders. In fact, some of the DayTradeToWin testimonials say that success was finally achieved after many years of trying various types of systems. Does that sound like you? They’ve also helped people who have never even looked at a trading chart for more than a half-hour. And if you’ve had some time to get familiar with charts and trading, but do not consider yourself a pro, then there’s much to learn as well. You see, the approach John Paul, founder of DayTradeToWin, takes is much different than anything else out there.

Here we have his latest price action webinar split into two parts. He begins by discussing his general approach, risk management and what price action means. The ATR (Average True Range) is the indicator that dictates much of his trading. For just about every trade he takes, he looks at the ATR to determine the profit target and stop loss. You can think of the profit target and stop loss as the reward and risk potential, respectively. In the NinjaTrader chart, the ATR typically appears at the bottom. John Paul has thickened the line and changed the color to a yellowish gold.

The Long and Dbl Wick Long signals that you see belong to the Trade Scalper indicator software. There are different price options for the course and software: 6-Month or Lifetime. If you’ve been following John Paul for some years, you may be ready to jump into a Lifetime license. If you’re just getting your feet wet, by all means, consider a 6-Month License. Toward the end of this first video, he explains what counter-trend trading means.

Moving forward, we continue with John Paul’s explanation of counter-trend trading. He discusses more price action dynamics then goes into overbought and oversold market conditions. This is similar to the large candle explanation he gave in another recent video.

There’s also some time spent scrolling through the charts, so you can see all of the recent Trade Scalper signals: good and bad. He readily points out a Long signal that wasn’t so great, as the market soon turned around. To mitigate against some losses, he recommends using three different stop strategies: a time-based stop, a prove-it stop, and the catastrophic stop. The catastrophic stop is used as safety net and is the default stop applied when he places a trade using an ATM Strategy. If the trade doesn’t go well, he can try to lock in profit or close it out according to the other two stop loss rules.

Big Buying/Long Opportunities Predicted for End of 2020

Day by day, we move closer to 2020’s conclusion. DayTradeToWin’s John Paul, for many years, has used a technique called the January Effect to determine whether or not the year will be an “up year.” Determining whether 2020 will be an up year is determined fairly easily.

In preparation, it’s best to switch to an ES (E-mini S&P 500) daily chart. After doing so, scroll back in time so January 2020 is in full view. Compare price at the beginning of the month with the end of the month. Did price close higher at the end of the month? If so, the January Effect says the year, meaning by the end of December 2020, price will be higher than in January. This was the case for 2020, so we can say the January Effect says that 2020 will be an up year.

The January Effect is a predictive technique. There are no guarantees of its accuracy. John Paul, for many years, has vouched for the January Effects accuracy, however. As with any trading method, strategy, technique, etc. use your own discretion and read disclaimers on this day trading site and any other.

Well, what’s the use of an “up hear?” Well, my friend, if you have a strong indication price will move up during the year, could you not look for buying (long) opportunities? Indeed and that’s what’s described in the video above. In fact, John Paul relays an exact method for identify these long opportunities. According to him, they occur after price has dropped and regained at least 50% of its prior high. Once the 50% value is surpassed with requisite closing bars/candles, that is the entry opportunity.

Wait a second, are you talking about holding a position through multiple days? Exactly – this is not intraday trading as you have commonly seen associated with DayTradeToWin’s other techniques. This free trading strategy focuses on much larger profits over longer periods of time. The common term is “swing trading.” Generally, brokers require a larger account size to allow overnight trading.

We hope you find this compelling, if not useful!