T3 ProTrader & T3 Trade Setups Indicator/Strategy User Guide.

Transcription

1 T3 ProTrader & T3 Trade Setups Indicator/Strategy User Guide. 1. Nexgen Educational Online Chat Room Access A. Disclaimer...(Pg.2-3) B. Accessing Nexgen's online chat room...(pg.4) 2. Ninja Trader Charting, Data and Execution Platform A. Opening Ninja Trader Platform.. (Pg.5) B. Opening a Ninja Workspace (Pg.6) C. Closing a Ninja Workspace..... (Pg.7) D. Moving and Scaling your Charts......(Pg.8) E. Adding Chart Trader to Place Trades....(Pg.9) F. Adding Automated Stops and Targets.... (Pg.10-11) G. Applying pre-made Templates to Chart.... (Pg.12) H. Turn on Trade Entries Exits on Chart.... (Pg.13) I. Adding or Building a New Chart... (Pg.14) J. Adding "right margin" space to Chart... (Pg.15) K. Adding New Symbol, Rolling Contracts... (Pg.16) L. Ninja Data Trouble Shooting... (Pg ) 3. Nexgen Indicator Descriptions A. Fibonacci Support and Resistance (Pg.21) B. Trigger Lines Indicator (Pg.22) C. Synthetic Trigger Lines (Pg.23) D. Nexgen Dynamic Renko Bar... (Pg.24) E. Changing Size of Nexgen Dynamic Renko... (Pg.25) F. Trend Bands -Moving Average Use... (Pg.26) G. Fib2Fib Oscillator... (Pg.27) H. T3 Trade Setups Indicator... (28-32) 4. T-3 Trading Rules, Entry Exit Techniques & Reading of Software A. Trend Trade Rules (Pg.33-34) B. Fibonacci Retest Trades (Pg ) C. Fibonacci Area Trades... (Pg.37-38) D. Fibonacci Areas Holding or Breaking... (Pg.39) E. Price Versus Synthetic Trigger Reading... (Pg.40) F. Trade Management...(Pg.41-42) G. Discretionary Opportunities...(Pg ) H. Entry Techniques...(Pg ) 5. T-3 Trade Setups Strategy A. Enabling the Strategy on your chart...(pg ) B. Strategy Input meaning and descriptions... (Pg ) 6. T-3 Trading Plan Basics A. Define Profit and Loss Parameters...(Pg ) B. Define your Trading Rules... (Pg ) C. Marking of Historical Charts / Study...(Pg. 85 ) D. When to use Simulator & Live Money...(Pg.86-87)

2 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.

3 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.

4 Access Nexgen's Live Training Room Online using Hotcomm Lite Nexgen Software Services runs a live educational room from 9 am ET - 12 Noon ET in which live markets situations as they pertain to the software and setups are taught. From this room you can ask questions and post your own charts and trades for feedback from the teacher. To join the room double click on your Hotcomm lite icon that was installed during your installation. Then to join the room type in relay1:nexgenpros and then please put in your password of the month supplied in your with your Nexgen Setup Files. If you do not know it please info@nexgent3.com and the password will be sent to you.

5 What is the proper way to OPEN NINJA TRADER? Find the Ninja Trader Icon on your desktop and double click on it. How do I close Ninja Trader down after I am done trading for the day? From the Control Center click FILE > EXIT - please remember to save your workspace when you close.

6 Open a workspace. If you open your ninja and you do not have any charts, you may need to open a workspace with charts or you can rebuild them if you deleted them on accident or download from Nexgen's site. To OPEN WORKSPACE : click FILE > WORKSPACES > OPEN WORKSPACE and select your workspace. If you have deleted your charts on accident, you may download them from the resources page on Nexgen Software's website. To rebuild your charts please refer to the section : How do I add a chart to an existing workspace?

7 What is the proper procedure for closing one workspace if I have more than one open? In the Control Center, go to File>Workspace>Close Workspace>Yes to All when asked to save it. Why can t I close my workspace? Ninja says that it cannot close the last open workspace. Ninja Trader requires that all at least one workspace remain opened when the platform is shut down. Click File > Exit to close this last workspace if you only have one open.

8 How do I move and scale my charts so I can see the data clearly? using your mouse in the right data or bottom time axis you may move your price bars closer together or farther apart. Use the CONTROL + MOUSE in the price axis to move charts up and down manually. the Play Button will return your charts to the right edge and current price, the "f" will focus your charts to the current data and price scale. There is no way to currently " auto center " the price data in Ninja.

9 How do I add the Chart Trader to a newly created chart or my existing charts so I can place trades? Above the chart, there are several small button icons. The 5 th icon from the right is for the Chart Trader. Click the icon to activate and deactivate the Ninja Trader chart trader.

10 How do I set up my Stops and Profit Targets so they will be active when I place a trade? From your chart trader select the 3 dots icon below the Qty of contracts to trade. Set up your stop and target levels then right click to save your ATM with your desired name.

11 then use the Drop Down Menu on your chart trader to select which ATM you wish to use. Once you place a trade on simulator with your ATM selected you may move stops or target levels by LEFT CLICKING on them and moving them to new location and left clicking again.

12 How do I apply a premade template to a chart? Using one of Nexgen's Pre-made or one of your own templates that have been saved to Documents>Ninja Trader 7>Templates>Chart, then you can right click on your chart and select Templates, then Load, then select the template that you wish to apply to the chart.

13 How do I set Ninja Trader to show on the chart the trades that I have taken? Right click on the chart and select Data Series. Scroll to the very bottom of the listing and find Plot Executions. You can choose between Do Not Plot, Markers Only, and TextAndMarker.

14 How do I add a chart to an existing workspace? In the Control Center, go to File>New>Chart. Select your instrument from the default instrument list and press New. Next, you will set your chart parameters on the right. Under the Period category, set the Type to Nexgen Dynamic Renko and set the Body Size and New Bar inputs to your desired settings. Under the Data category, set your Days to load input to a value between Set your session template to Default 24/7 ( should be by default with instrument settings listed). Lastly, select the chart template that you wish to apply by selecting it from the drop down menu listed below the chart parameters. Load the following Chart Template

15 My charts are too close to the Price Axis. How can I set Ninja Trader to allow more room between the price action and the price axis? Right click on the chart and select Properties. Under, Window increase the value of the Right Side Margin Most clients find a value between to be optimal.

16 Adding a new symbol that is not currently listed- Also rolling over futures contracts From the control center CLICK > Tools Instrument > Manager from this menu type in the name of the symbol and search, you can use the description if you do not know the name of the symbol. Then highlight the symbol and use left arrow to move it to your list.

17 I have created a new chart and applied the indicators, but I am seeing no fib levels. Right mouse click on your charts, go to DATA SERIES. Make sure that your days to load input is set to at least 10 days for smaller timeframes, 30 days for midrange timeframes and 90 for higher timeframes.

18 Ninja Crashes every time I try to open it. This is usually from a corrupted workspace that causes Ninja Trader to crash when I launch the platform. You will need to keep this workspace from automatically launching when Ninja Trader is launched. To do this: Upon launching Ninja Trader, the platform opens all workspaces that were left open when it was last shut down. If you need to stop a workspace from automatically launching, go to Documents>Ninja Trader 7>Workspaces and delete the _Workspaces.xml file there. This will result in Ninja Trader launching only a single untitled workspace the next time that it is launched. Ninja did not automatically connect to the data when I launched the platform. It is likely that your free trial to the data has expired. You can sign up for a new Username and Password for your trial here : I receive the following message when I try to connect to my data manually. LOGIN FAILED; UNSPECIFIED LOGIN ERROR It is likely that your free trial to the data has expired. You can sign up for a new Username and Password for your trial here : Will the Nexgen software plot in the 64-bit version of Ninja Trader 7? Not at this time but we are making plans to release a 64-bit version later in 2015.

19 I am connected to the data in the Ninja Control Center, however, my data is not moving. First, you will want to make sure that the chart that you are viewing is set to pull data for the correct and current instrument and that instrument is not expired. You can check to see which instrument is loaded to the chart by looking in the top left corner. Once you have verified that the correct instrument is in place, then you may wish to repair the database and reset the instruments within Ninja. To do this, disconnect from the data and go to Tools>Options>Data>Reset DB>Repair DB>Reset Instruments>Close and Reopen Ninja.

20 I have upgraded the hardware in my computer and now my Nexgen software will not plot. When certain pieces of hardware in the computer are changed, the authentication server will not recognize the computer. To protect itself, the software will not be granted authentication to plot. In order to get the software running again, the Nexgen DLL will need to be refreshed. You may do this yourself with your " PERSONAL NAME machine 1 T3setup.exe " file by double clicking on it with Ninja Trader closed. Or if you still have trouble please contact Tech Support and we will get your software up and running for you again. I will be travelling and would like to install software to my laptop. Depending how many machine licenses you have purchased you may load this computer with your software. If you wish to add a new license you may purchase that at any time by visiting the website. Where can I find the latest updates to the Nexgen Software. All software updates are posted to the Resources page of the Nexgen website. FOR BEST RESULTS PLEASE FOLLOW THESE COMPUTER RECOMMENDATIONS Fastest Available processor Intel Chip 3.0 GHz or Higher Minimum 4 gigabytes of Memory or more recommended Hard Drive- most new available HD's are fine Min 100 gig +, Solid State Drive is faster for sure! Dual Video Card - that will run two monitors. Not needed but very highly recommended. Monitors- 2 or more recommended Operating System- Windows 7 or later. Internet- FASTEST available.

21 INDICATOR DESCRIPTION SECTION Fibonacci Support and Resistance that is a combination of 10 timeframes of 4 different types of Fibonacci Projections and Retracements. For YouTube video description please visit our site

22 T3 Trigger Lines - Small triggers is what we call them and they are moving averages generated using a linear regression calculations. Nexgen's setups are timed by a close of a bar above or below the small trigger lines.

23 T-3 Synthetic Trigger Lines This indicator is the " SAME " as our T3 Trigger Lines, the difference in this indicator is that it has the ability to plot a " higher timeframe" or " larger chart's" small trigger lines ( left chart ) super imposed on a smaller timeframe chart ( right chart below ). Nexgen uses this indicator for TREND recognition and for many of its trading setups. The values of the indicator are identical on both charts. Another benefit of this indicator is its ability to "warn " you about Fibonacci Areas breaking or holding.

24 Nexgen Dynamic Renko Bar Type - this custom bar type allows us to choose any size chart we wish to display and to be able to alter the OPEN and REVERSAL size of the bar to " smooth " price data

25 To Change Bar Size - You may wish to change the bar size. To do this click the data series icon, or right mouse click on your chart and select data series. Note: the larger the bar size ( typically best practice is a 3-1, 4-1 or 5-1 Ratio ) for example 5-1, 10-2, 20-4 or 12-3, 24-6 ratios are commonly used.

26 Trend Bands and Moving Average Use Nexgen will use a 55 period moving average or 165 period moving average for support and resistance, these areas will be used in " Trend Trades " The upper and lower bands are deviations of the 55 period moving average and can be support or resistance.

27 T-3 Fib2Fib Oscillator This proprietary oscillator will help to define trend, help paint the background colors, define divergences as well as generate buy and sell areas for trade setups. Please see our instructional videos on YouTube for a in depth description of its use.

28 T3 Trade Setups Strategy / Indicator This powerful addition to the T3 Fibs ProTrader will plot trade setups, trend changes, divergences from the T3 Fib2 Fib Oscillator, the Synthetic Fibonacci Levels and Synthetic Trigger L from a higher timeframe. Please see our instructional videos on YouTube for a in depth description of its use. CLICK FOR VIDEO DESCRIPTION T-3 Setups Indicator/Strategy Input Descriptions

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30 Software Plots from the T3 Setups Indicator

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33 Trading Rules & Software Reading The Trend Trade is one of the most common trades. The T3 Setups indicator will assist you in recognizing this trade setup when set to TRUE and also provide an alert in yellow prior to trade. TT LONG Rules: UP TREND ( GREEN ) background then Fib2Fib Oscillator reaches 25 Price Bars touch mid band or Fibonacci, Synthetic Triggers Crossed in trade direction, then Reversal bar with close beyond small triggers. The less indicators in the way to the target the better.

34 TREND TRADE short Rules: DOWN TREND ( RED ) background then Fib2Fib Oscillator reaches 75 Price Bars touch mid band or Fibonacci, Synthetic Triggers Crossed in trade direction, then Reversal bar with close beyond small triggers. The less indicators in the way to the target the better.

35 Fibonacci Areas Trades- There are two types of Fibonacci Trades, 1. Trades that are against the direction the synthetic are crossed, 2. Trades that are in the same direction the synthetic triggers are crossed. Rules : when synthetic trigger lines are crossed UP, And Background is RED ( for down ), Buy Fibonacci Support areas and change the background color to Green ( UP ). This trade will many times look like a trend trade.

36 Fibonacci Trades AGAINST Synthetic Trigger Direction. Rules : Adjust Input to tune this trade Must have X # of bars ABOVE synthetic triggers crossed down to start trade setup. Price must reach Fibonacci Support. At time of reversal bar BOTH synthetic triggers must be greater than support value.

37 Discretionary Reading of the Nexgen Software Areas and Expectations In order to achieve MAXIMUM benefit from Nexgen's software you must learn some basics of reading the charts and the indicators. Nexgen's live chat room will focus on a few key principles that are reinforced daily. This will also help you to understand which trades will provide the highest probability. Fibonacci Areas - Holding or Breaking. This is a key concept to understand when to trade WITH the Trend or AGAINST the trend. A quick comparison of indicator values versus Fibonacci levels is key.

38 Comparisons of PRICE BARS versus Synthetic Triggers When price bars are above synthetic triggers the market will generally trade up. When price bars are below synthetic triggers the market will generally trade down. Trends start to "weaken" when price bars are on the opposite side of the synthetic triggers. Using Fibonacci areas enhances your "expectations" of this concept to be true.

39 Trade Management - this is where the battle for trading profits is won or lost. General principles: Risk no more than a couple of ticks above ( for shorts ) or below ( for longs ) of the entry bar. Trail your stops when you have new pivots or very large " tail " bars that violate the prior two bars high or lows to no more than a couple of ticks above ( for shorts ) or below ( for longs ). Once price bars are completely inside the synthetic triggers ( Exit Look ) then trail stop very tightly on your position to maximize profits. If you stay in after exit look and second attempt in direction fails that is absolute exit.

40 In strong markets or with WIDE synthetic triggers, you may choose to initiate a trade on the " opposite " side of the synthetic triggers, manage your position if price fails to break through synthetic triggers or gets through and then reverses back through. Also Divergence plots will generally reduce risk and alert you to the end of a trend.

41 Reading the Synthetic Triggers relative to Fibonacci Areas will also help you to understand when to take a profit AT the Fibonacci level. If the synthetic triggers are far away then you will generally maximize profit exiting at the Fibonacci Level. If Triggers are AT or Pushing through ( not shown ) you may elect to trail your stops in an effort to break the Fibonacci Level and trade to the next one.

42 Discretionary Trend Trading Opportunities - you may choose to initiate a trade that does not originate with an arrow from the T3 Trade Setups indicator. The most common is when the market breaks through a Fibonacci Support or Resistance and pulls back to the new area of support or resistance that lines up with one of our two moving averages. No arrows will plot on this trade if filters will not allow the arrows to happen. KEYS TO TRADE : Wide synthetic triggers in direction of trade. Minimizing risk when price returns to the synthetic triggers. Continuation through the synthetic triggers to target is important. If trade fails to reach target, a conservative exit after reversal bar that closes above synthetic triggers. If synthetic triggers cross against the trade direction this trade is less likely to achieve the profit target.

43 Discretionary Trend Trading Opportunities - you may choose to initiate a trade that does not originate with an arrow from the T3 Trade Setups indicator. The most common is when the market breaks through a Fibonacci Support or Resistance and pulls back to the new area of support or resistance that lines up with one of our two moving averages. No arrows will plot on this trade if filters will not allow the arrows to happen. KEYS TO TRADE : Wide synthetic triggers in direction of trade. Minimizing risk when price returns to the synthetic triggers. Continuation through the synthetic triggers to target is important. If trade fails to reach target, a conservative exit after reversal bar that closes above synthetic triggers. If synthetic triggers cross against the trade direction this trade is less likely to achieve the profit target.

44 Discretionary Trading Opportunity - you may choose to initiate a trade that does not originate with an arrow from the T3 Trade Setups indicator. Spend time studying the synthetic triggers and when they make their first crossing and get retested by both price and the small trigger lines. This trade is powerful if there is a support or resistance areas helping the trade or if the original move started from a key area.

45 Discretionary Trading Opportunity - you may choose to initiate a trade that originates after an arrow from the T3 Trade Setups indicator for a Fib Trade. Sometimes the Fib Trade is not originally the best look if trading into areas that may be detrimental to the original position, you can still take advantage of this setup after price and small triggers penetrate the synthetic triggers and price retests the synthetic triggers for a 2nd chance opportunity.

46 Stop Order Entry Technique - Some common ways traders will enter the market with a setup. Recognition of the setup rules prior to entry allow you to place a stop order at or close to the reversal bar price. Stop orders become market orders when touched. This technique will allow your market order to be placed at your specified price so you do not have to try to push the button after the setup takes place. To do this, make sure your ATM strategy* is active. ( *see page 10 ), then right click on the chart and place a stop order below the market at your specified price.

47 Entering Early - Some traders after gaining experience with the software will recognize high probability setups early and may choose to enter the " potential setup prior to the setup actually creating the reversal bar. The benefit to this is less risk on the position and higher reward. The downside is that if the trade setup never materializes the trader will take a small loss.

48 Trend Trade Entry Techniques - Trend Trades that have a very tight grouping of supporting indicators, and do not have anything in the trades way between entry bar and price target should be taken immediately.

49 Moving Entry Orders as Market Moves -As an opportunity presents itself such as a second chance Fib Trade opportunity to may choose to " move " your stop order for entry up as the market retests the areas as seen in this Fibonacci second chance opportunity.

50 Limit order Entries - You may choose to use a limit order as an entry. To do this right click on your chart and place your limit order. You may place it will above or below then click the line to move it.

51 Better price Limit Order Entries - You may choose to wait for the arrows then attempt to get a better price using a limit order. NOTE: using this technique, you will never miss a loser but you may miss winners so it is important to understand the probability of the setups and condition of your indicators.

52 Strong Trigger Lines into a trade area- You may choose to watch the small trigger lines into the trade area. If they are very strong into the areas you may choose to wait and then try to get a better price after they start to roll over and get tested. Again the word of caution is that you may miss the winner if the market does not retest the area.

53 Strong Small Triggers into a Fib Trade - Another example of limiting risk after a Fib Trade Arrow has plotted by placing limit order just above small triggers to get in on a pullback.

54 Small Trigger positioning is key on Fibonacci Trades. If the small triggers are on the wrong side of the Fibonacci Level, watch for a rolling and widening of the small triggers on the "correct side " of the Fibonacci level then look to enter at the small triggers on a pullback with a market or limit order.

55 Enable the T3 Setups Strategy To apply the Strategy, make sure your chart trader icon is not active, then right click on your chart and apply the T3 Trade setups strategy. When you apply it, make sure you make the BACKTEST INPUT "TRUE" if you wish to see historical results, if you wish to see live trades make the BACKTEST INPUT " FALSE ". Then you set must " ENABLE " strategy to TRUE. Note: this input will be false each time you open Ninja trader as a protection so trades will not happen until you enable your strategy each time.

56 Making Changes to Strategy While it is running. Ninja Trader designed strategies to not be able to be altered while running. You must first " UNENABLE" the strategy and click APPLY to make inputs active. Once active you can then make changes, and then "ENABLE" the strategy again and click OK or APPLY. This is true if making stops or target changes or switching from Backtest to Live Signals mode. RIGHT CLICK ON CHART, choose "STRATEGIES ", highlight and then make changes.

57 Nexgen Chart Trader The Nexgen chart trader will allow you to enable or disable the system on the fly. You may also use the chart trader to enter long or short at the current market price. You can also cancel a pending trade or close an existing position using the " close " button.

58 Additional Chart Trader Features - Placing Stop or Limit Entry orders As a trader, there may be times when you want to enter with a limit order or stop order manually. To do this, right click on the chart at the price you wish to place your order and place your stop or limit orders.

59 Viewing Historical Performance Reports Make sure your BACKTEST input is set to "TRUE". Run your strategy with the inputs you wish to test. After the system runs, right click on your chart and select, "STRATEGY PERFORMANCE". then move mouse down the long inputs row and select " HISTORICAL".

60 Once you have run your report you will find useful information you can use to make adjustments to your stops, targets, trade management and filters to achieve the most desirable historical performance for your trading goals. You may wish to make adjustments and then re-run the historical performance. From this report you can run a summary ( shown below ), you can test time of day ( periods ) and run graphs on your performance.

61 Plots From Strategy The T3 Setups Strategy will plot a very small thin line at your past entry prices. It will also plot white Dashes for your stops, and a blue line for your profit targets. If you move these orders the strategy will plot your historical and live placement of stops and targets. You can later use this as a tool to review your past performance.

62 T-3 Trade Setups Strategy Supplemental Descriptions Synthetic Triggers #1 and #2 This will allow you to control the size and bar type of your synthetic triggers that the system will use for trade management and entry filtration. T3 Fibs ProTrader This will allow you to change the Fibonacci Settings used by the Strategy. T3 Trend Background This will allow you to change the number of bars the Fib2Fib occilator needs to be at 0 or 100 for a strong trend change. Also a key input is how close does price need to be to a Fibonacci Support or Resistance before a trend change can occur. This is instrumental in FIB TRADES!

63 Signals This section allows you to turn on or off any of the strategy signals by making them true or false. TREND TRADES

64 FIB RETEST TRADES FIBONACCI TRADES

65 Target #1 and Target #2 Trailing Stop & Profit Target logic. If you set (input ) Move Stop at Fixed Target #1 or #2 input to FALSE then the system will place LIMIT ORDERS to EXIT at the designated profit levels on the chart that you can move if you wish. If you set (input ) Move Stop at Fixed Target #1 or #2 input to TRUE then the system will then Trail each stop for Profit Target #1 OR Profit Target #2 independently based on: (input) The Ticks to Trail from prior open input # of ticks for each of the profit targets. in the following example we wish to have two(2) different profit targets active ( limit exit orders on screen you can move) after entry is achieved at 100 and 200 dollars respectively. False = limit order on chart

66 in the following example we wish to have 1 profit target at 100 dollars ( limit exit order on screen) and we wish to trail our stop after ( 100 dollars profit is achieved ) on the second contract using the Trail Stop from Prior Open Input # of ticks for Profit Target #2. in the last example we wish to trail stop tightly after 100 dollars is reached, then trail stop less tightly after larger 200 dollar target is reached.

67 Synthetic Trigger #1 Trailing Stop USE ( true or false input ) When TRUE : this will trail the stop using " synthetic trigger #1 " high or low +/- ( input ) Synthetic Trigger #1 Trigger Stop Offset # of ticks beyond the highest trigger in a short, or the lowest trigger in a long position. Caution this will be active if you reach triggers from the " opposite " side. ( example of trailing stop +/- 4 ticks offset from Synthetic trigger #1)

68 Use Pivots & Tails Trailing Stop This input will trail the stop behind a new pivot in price or " any " tail that exceeds the prior 2 bars high or low. This stop becomes "active " after you have reached (input) Trailing Stop Trigger ( dollars per contract in open profit ). This stop will be trailed with (input) Trailing Stop Offset # of ticks " beyond ( positive number ) or inside ( negative number ) the pivot or tail high or low. ( example of positive number - stop beyond pivot or tail )

69 ( example of negative number- stop inside pivot or tail, positive for beyond )

70 Use Breakeven Exit If TRUE then this will move your stop to the ENTRY PRICE plus or minus the number of ticks you designate after you reach a predetermined level ( Breakeven Trigger ). Exit Divergence TRUE FALSE input. If any divergence happens the system will exit at the market price

71 Exit Fibonacci This input if TRUE will monitor your Profit Target #1 level. If your Fibonacci Support or Resistance is CLOSER than the profit target value, it will exit with a limit order AT the Fibonacci area Plus or Minus the # of ticks you designate. Exit Trend Change If TRUE : any change of the background color by strong move, Fibonacci Holding, or Divergence happening will make the strategy Exit at Market Price. Daily Profit or Loss This input will force the system to stop taking signals if you reach one of these levels ( TOTAL PROFIT OR LOSS for ALL CONTRACTS ) in a given trading day. You may still use the MANUAL TRADE FEATURES.

72 T-3 Fibs ProTrader Trading Plan and Objectives The goal 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. This worksheet will assist you in formulating a financial plan for yourself when using the T-3 Fibs ProTrader and setting up goals and objectives for your trading. Please fill out each of these goals to the best of your ability and then end result will be a SIMPLE well laid out plan of attack on the market. Once you have this sheet complete you will have an accurate picture of yourself, your expectations, and will have a solid plan for success that you can follow. NOTE: The average daily expectation for Nexgen traders will be $ 250 dollars per day per contract net of commissions and fees. This simple premise will be the base of our teaching and what you should expect to learn how to duplicate during your educational path. ANNUAL goals this year I would like to make- in dollars $500,000. To make my annual goal I will be entering the market with and account size of $. This will be a % gain on my account. ($ made / $ started with). My weekly goal will be $. Now you should have a clear picture of your financial objectives and what it will take for you on a daily weekly and monthly basis to achieve them. This next section will help you with market selection and expectations based on each individual market. The market I will be trading is CRUDE OIL The average daily range over last year is 218 ticks per day Number of contracts/ shares I will trade based on my trading account size is 10 contracts To reach my daily goal trading the number of contracts I can trade I must take out what % of the daily range in order to reach my goal %. Is this realistic? YES OR NO YES

73 Do I have at least 4-5 times the required capital to trade my markets? _$1000 per contract to trade " margin" $5000 per contract. RISK MANAGEMENT- Let s face it no trader will win all the time so put rules in place to keep yourself from doing more harm than good and calling it a day when things are not going right for you. Here are examples. I will be willing to lose this much money on a daily basis before I quit trading$. (Usually 2-3 times daily average is max which normally equates to no more than 1-3% of your account total on any given trade, if you lose more than that then you will have a hard time to recover. Is there a point at which I will stop trading on the winning side? What is that number in dollars? $ What is my maximum expected drawdown to my account based on my thorough back testing of the software? Although we don t like to face this question it is important so that you may allocate enough trading capital to cover this drawdown. $ With these dollar goals in place, once you go live money how much will you lose before you reach your max loss and have to go back to the simulator to practice $ Have you given yourself enough room for mistakes and learning to continue trading?. Should you make adjustments to the # of contracts/ shares that you are trading if your risk is too high?.

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75 Trader Self Evaluation Check List Every one of these boxes must contain a yes answer before you can put a trade on every day. 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 searching for confluence areas and reviewing past trades from the prior days on my major timeframes before the Market opens. yes no I have defined at least 3 confluence above and below yesterday s prices. This will help you stay focused on the key areas and will get you ready to trade to the next levels if key areas are broken. yes no I know at what price area I will look for my first short and long. yes no I know what my profit target area will be for the trade.(reward) yes no I know how much I will risk on this trade (risk) yes no I have reached a key area from which to trade from. yes no I know my rules for this trade setup 100%, if not, do not trade. yes no All rules have been met for entering the trade and placing stop. yes no I bought or sold with stops in place and will now manage trade.

76 T-3 Fibs ProTrader Reports ( things you " SHOULD " know) Date: Market: Key Economic reports due out today: Time Market mover? Time Market mover? Time Market mover? Time Market mover? KEY SUPPORT AREAS: Fibonacci areas and general market support and resistances that have been tested lately. Support #1 rate this support strength Support#2 rate this support strength Support#3 rate this support strength KEY RESISTANCE AREAS: Resistance #1 rate this resistance strength Resistance #2 rate this resistance strength Resistance #3 rate this resistance strength After the trade you should fill in the blanks and track this information for later review. My risk on this trade was points. My potential profit was points.

77 I ended up making points. yes no I followed my plan. yes no Could I have done anything better on the trade? If so then say what.. Save all of this information in spread sheets and journals and in pictures using a screen capture program such as snagit.com or something similar. This will be useful information for you in your own personal evaluation and study after market hours.

78 TREND TRADE EXAMPLE FOR WRITING OUT YOUR RULES DEFINE TREND 1. Position of small triggers above or below Synthetic triggers. 2. Background color of the charts. Watch for small triggers clearly on new the correct side of the Larger triggers so trend is easily determined. SETUP - Small trigger MUST BE TIGHTLY STACKED with the areas that I wish to trade from, price bars and small triggers " ATTACHED" to the area both price and Synthetic Triggers. Fib2 Fib Oscillator in the correct position? ENTRY- Do I need a reversal bar to initiate the entry of the trade? Price Bar Action to stop me into a trade beyond prior bars open? STOP PLACEMENT - INITIAL STOP BEYOND PIVOT DELAY TRADE IF... IF very strong move small triggers into the areas, delay the trade until the small triggers roll. MAKE SURE BEFORE TRADE. If targets already in place or satisfied prior to the setup NO TRADE.

79 ROOM TO TARGET IS OK? You must have room to target areas so your risk will be well rewarded. GRACEFUL EXIT Watching for Fib2Fib Divergence. You can always get back in later. Study the Failure of the trend trades so you can properly control risk. TRAILING STOPS- Wait for pullbacks then new highs or lows to trail stop. Trail Behind Larger Tails that exceed 2 bars ago highs or lows. EXITS - AT targets... or IF divergence

80 The following information is to help you think through some of the nuances you will see in the trade setups. Trend Trades: waiting until the small triggers on the chart to roll and turn green(up) or red(down) depending on direction of trade, not just taking the trade on close on correct side if small triggers are still against the trade. An exception to this is when the price action has consolidated enough that the small triggers have started to roll or flatten out but may not have actually crossed and turned in the direction of the trade. Targets for trend trades are the outer bands on the chart but they can give bigger gains occasionally. Exit strategies requiring a LOM or divergence will usually keep you in the big winners and maximize profits on extended moves. Patience at targets must be used. Extended Targets for Fib Trades are the outer bands & Fibonacci Areas, which usually allows for the possibility of a larger winner. When reaching the mid-band (first target area), caution needs to be taken if the trade starts showing LOM ( loss of momentum). Reading the small trigger strength and their relationship to the mid band helps in determining the likelihood of the midband breaking. If any trade starts losing momentum there is no need to hold through a lot of retracement if there is a Large Gap between current price and indicators areas.. The entry rules help to pinpoint entries so well that on most trades it is possible to re-enter if the trade continues. Although some trades may continue without an opportunity for re-entry, it is not the rule it will be the exception. In those cases it is important to let the indicators show the next setup and not worry about missing some of the move. There are always good setups when using these setups. If there is a strong one way move before LOM, holding through some retracement is acceptable. No matter what, when a trade is a solid winner the stop should be moved to break even. If the gain is more than 2 times the risk of the stop, moving to breakeven plus cost of commission is a must. Never turn a nice winner into a losing position. There will always be more setups to come.

81 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 crude oil market. (CL). You may also test any other market that you wish to using the software and our tech. Dept. will help with setup if needed. 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 80 CL points or greater on simulator for at least two consecutive weeks. (200 + dollars per day average) - UP THIS if needed! This will equate to at least $800 dollars per contract per week during your simulation period. Once you can achieve $800 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. A very modest 4 lot in the CL at $3200 dollars per contract per week will yield you $12,800 per month, which is $ annually The PROCESS of learning to extract 20 points or more per day is the most important thing you will focus on. Become consistent and how much money you make will be up to you. 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.

82 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. ( F-12 ) on Ninja Trader. 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 o o o o o 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. ( ALT - F2 F3 ) for up and down arrows. 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. 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. 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. 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 101 class. 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.

83 When to start using a simulator o o o 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 but any simulation program will do. Typically by now you will be an owner of the software and it is not recommended for non-owners to run a simulator as it will distract you from the lessons on your demo. 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. 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. 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

84 When to start using real money in your trading o o o 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. You must establish a profit per contract level that you will use when analyzing how many contracts to trade each day. To determine your contract level take your account value and Divide by that number. For example If you use $10,000 per contract as your base value. $10,000- $19,999 = one contract. $20,000-$29,999 = two contracts. If you fall below a level you must return to lower contract amounts. Real Time Trading Performance Guidelines o Live Results should reflect 75% or better of 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.