NEXGEN DEMO TRADING & EDUCATIONAL PLAN SIMPLIFIED

Transcription

1 NEXGEN DEMO TRADING & EDUCATIONAL PLAN SIMPLIFIED Please watch the intro Video so you understand Nexgen's expectations for your demo time and what you should expect from us during your demo. CLICK TO WATCH INTRO FROM DEVELOPER LINK Load Ninja Trader and download the Demo Study Workspace and templates from the website resources page. You will end up with ONE or TWO charts when you open the workspace. Watch videos by clicking links Step 1 : Apply the tutoring Triggers Only Template. Instructions in video below. Start with lesson one video on trigger lines only - VIDEO ONE TRIGGER LINES LINK Step 2: Apply the tutoring Triggers and Macd only template. Watch Video for lesson on triggers and Macd BB lines only and Momentum Trades - VIDEO TWO TRIGGER LINES AND MACD BB LINES LINK Step 3: Apply Fibonacci areas with Trigger Lines and Macd BB and learn about Trend Trades & reinforce Momentum Setups by alternating the Momentum Trend Change Entry with the new Trend of Market Entry to enhance your plan. VIDEO THREE FIBONACCI - TRIGGERS and MACD BB LINES Step 4: Apply all indicators Template, Learn Trend Bands, Review Momentum Trades, Trend Trades, and add in Final Trend Trade rules. VIDEO FOUR - ALL INDICATORS, 3 TRADE SETUPS VIDEO LINK When studying, USE ONLY ONE CHART OF with the Renko Hybrid when learning the rules. For example use a GOLD (6- tick renko hybrid), CL(6- tick renko hybrid), TF(4- tick renko hybrid), EC(4- tick renko hybrid) or FDAX(6- tick renko hybrid) so that learning and applying this plan is simple and easy and no confusion with multiple timeframes can occur. Once you have mastered the rules you may test this method on any market and any timeframe you wish. All trades that you will do using the Nexgen Software will meet these 4 basic rules 1. Small Trigger Positioning relative to Large triggers- ABOVE = BUYS ONLY BELOW = SELLS ONLY 2.Price Bars at entry must close in proper direction and " HAVE STACKED CONDITIONS TRUE" meaning price bars, small triggers and at least one other indicator all touch the price bar. 3. Small Triggers and Macd BB lines must have an angle that is favoring the trade setup. 4. You must not have any "lines" "indicators" in your way. Successful trades typically move in path of least resistance. In summary, you want MANY indicators protecting your trade from entry price to stop price and few if no indicators in the way between your entry price and your profit target area. Now let's break that down into specific rules and show you examples of each setup.

2 MOMENTUM TRADE RULES SHOW SUSTAINED MOMENTUM- Parallel Small triggers that are WIDE apart. Macd BB dots outside Bollinger Bands for at least 3-4 bars. Bollinger Bands Widening - exception I will allow for tiny loss of momentum for bar or two then trade can happen. IF small triggers lose momentum, if Bollinger bands come together, no trades. STACKED AREA- Combination of price bars ( high to low including tails if present) plus small triggers & one of the following (Fibonacci areas, the Mid Band or Large Triggers). ONE TO SKIP - Many times the first Momentum Trade following a very large move in the opposite direction reverse quickly. These setups are to be avoided with the momentum trade. A normal move in the opposite direction is ok, or the second hit of mid band is ok. ENTRY TIME - Longs on UP bars, Shorts on DOWN bars at close of bar, not before. Small Triggers must be at or cutting through my areas at time of entry. STOPS- placed below or above entry bar ( AND OR indicators ) for maximum protection and minimum risk in your position. TRAILING STOPS- Stops trailed to break even after both small trigger lines pass entry point. Stops can be trailed behinds new bars with "tails" that are inside small triggers. EXITS Profit taken at areas of Fibonacci or Outer Bands. Loss of Momentum Exit - if loss of momentum happens, close beyond small triggers and Macd dots rolling AND no indicator protection available, GET OUT NOW!

3 EXAMPLES OF MOMENTUM TRADES

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6 TREND TRADE DEFINE TREND 1. Position of small triggers above or below large triggers. 2. Strong trend days. Wait on strong days for large triggers to roll over to change trend. 3. Trend exceptions if small trigger don't pass the mid band or Fibonacci and LT's still strong with direction of trend.. then trend still intact with large triggers. Watch for small triggers clearly on new the correct side of the Large 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. ENTRY- Small triggers MUST be rolling and Macd dot rolling ( most of time the color change is a good indication of rolling) to initiate the entry of the trade. Price Bar must close beyond the small triggers by at least 1/2 of a bar. STOP PLACEMENT - INITIAL STOP BEYOND PIVOT DO NOT GET IN AGAINST STRONG MOMENTUM- - if Macd is outside LOWER Bollinger band NO LONGS until it rolls inside. - if Macd is above UPPER bb then NO SHORTS until it rolls inside. DELAY TRADE IF... IF Strong move on Macd and small triggers into the areas, delay the trade until the small triggers roll. MAKE SURE BEFORE TRADE. If Divergence or targets already in place or satisfied prior to the setup NO TRADE. ROOM TO TARGET IS OK? You must have room to target areas so your risk will be well rewarded. GRACEFUL EXIT if outer Bollinger is not exceeded and bounce from weak retracement on Macd when price closes above the trigger lines. NO exceptions, 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. EXITS - AT targets... or IF divergence

7 EXAMPLES OF TREND TRADES

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12 TREND CONTINUATION TRADES FROM AREA- Original move in price MUST originate from an area of Fibonacci or OB 1:1's with Divergence (helpful but not needed) and price bars make a strong move from the "area" with price action pulling away from that area. MACD BB CONDITION MACD BB LINES must make STRONG MOVE followed by a "weak retracement" that does not cross opposite Bollinger band during the retracement. SETUP- Price Bars Small Triggers and an " AREA" must stack up and then you get to next step, Price must close on correct side of small triggers with MACD bb lines breaking the Bollinger bands again showing strength and continuation of the trend. STOP PLACEMENT-Optimal stop is behind pivot that was high or low prior to entry. Indicators that "protect" the position should be used if possible. EXITS- Exits at targets or; loss of momentum if the large and small triggers are far away from each other (LOOSE ALLIGATOR MOUTH LOOK) and wait for the next setup. TRAILING STOPS- Wait for pullbacks then new highs or lows to trail stop. EXAMPLES OF TREND CONTINUATION TRADES

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16 ADDITIONAL EXAMPLE SETUPS

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19 Revolution Software may be used as an add on program to the T-3 Fibs ProTrader for $500 dollars per month. This software has automated the above 3 trade setups. The software is unfiltered, meaning that it will show you every time you have the rules met for a Momentum Trade, Trend Trade, or Trend Continuation trade. Your job will be to master exits and which trades to take and skip based on rules. Examples of the Revolution trades on Crude Oil Here is two examples of a Momentum Trade to be avoided on Gold after a VERY STRONG MOVE in the opposite direction which is also into a Fibonacci Support, would be same for green mid band.

20 This same pattern is very consistent on almost every market. Here is the same Momentum Trade on AAPL stock. The Revolution software generates it's profits based on 100 shares of stock. Trading into indicators is also to be avoided as you see here on a EURUSD Forex chart.

21 Again, sometimes the rules for a trade setup will be met directly into a key area. Remember the 4 basic principles we discussed on the first page. All trades that you will do using the Nexgen Software will meet these 4 basic rules 1. Small Trigger Positioning relative to Large triggers- ABOVE = BUYS ONLY BELOW = SELLS ONLY 2.Price Bars at entry must close in proper direction and " HAVE STACKED CONDITIONS TRUE" meaning price bars, small triggers and at least one other indicator all touch the price bar. 3. Small Triggers and Macd BB lines must have an angle that is favoring the trade setup. 4. You must not have any "lines" "indicators" in your way. VERY IMPORTANT with REVOLUTION: Successful trades typically move in path of least resistance. In summary, you want MANY indicators protecting your trade from entry price to stop price and few if no indicators in the way between your entry price and your profit target area. An Example of when you need to apply this rule with the revolution software so you can stay in the correct trades and SKIP the trades that are into key areas you should not take.

22 NO trading into a used target that has been hit. Especially hit and then tested with divergence. Breaking Down the Anatomy of the Revolution Signal, Stop Dots and Max Profit Numbers

23 We suggest you turn ON and OFF each of the trades and study them on the chart one at a time. Then put together combinations of them on different markets and timeframes to find what suits you best. To do this just right click on the chart and set each trade to 1 = ON or 0= Off and click OK. Keep in mind, it is how well YOU use the T-3 Fibs ProTrader and the T3-Revolution that matters. Please work on staying focused in class, make sure you post charts of your trades and your understanding of your markets to our educators. This is the only way to achieve maximum effectiveness with the software. Should you find questions you need answered outside of class time, we will schedule a private session with our educational department that afternoon and get your questions answered immediately. I wish you the best with your trading and look forward to helping you achieve your trading objectives. John Novak - CEO and developer