Keep the losses small.......

Hi Everybody,

Yesterday was a brilliant example of why it is so important to keep the losses small. What most amateur traders never realize is that losses can and do happen, but the trick is keeping them small and under control.

On the 3min YM yesterday we had 4 automatic trades, 3 were losers BUT (and this is the important point) the 1 profit make +3R (ignoring slippage and commission). To have 3 losses and only 1 Profit and to come out break-even on the day is a brilliant result. Amateur traders must understand that losses can and do happen. We are one of the few companies that talk about losses, and it is important to understand that losses will happen in this industry.....

Thanks, Steve,

Please see the Advanced Blog, where I will show a trade I talked about a few days ago that would have made yesterday Profitable overall.

3min ES follows the Dax

We have already seen that the 3min Dax gave us a lovely TS4 sell at 8:54EST. So let’s take a look at the 3min ES, using 24hr data and see what unfolded around then. As you can see, the 3min ES did indeed follow suite with an automatic TS4 sell unfolding at 9:06EST.

Normally I use the “day session” times for the US e-minis (9:30 - 16:15EST), but we can get some nice setups just before the open, and that is when having a look at the 24hr data can come in.

As we can see, the ES followed the Dax down, resulting in a nice +7R Profit as DP support came in. For the Advanced Traders among you, notice how this decline unfolded as a minor 5-waves, with the low at the Typical Wave 5 WPT. Also, notice the Stochastic divergence on the entry as well as the exit. For the Advanced Traders among you this was a perfect trade ! And one that I hope the newer traders among you can start to fid for yourselves. Again, all the tools are in MTPredictor and the setups are there, it is just up to you whether you which to take the time to learn how to find them......

Thanks, Steve

Holy Grail trade on the 3min Dax

Hi Everybody,

The 3min Dax had another brilliant “Holy Grail” trade yesterday. Please remember that just because there is a History Triangle, it does not mean that it was a losing trade. In this example, the Dax made a double top, so the initial TS4 short trade was not stopped out.

As you can see, this nailed the high, just before the Dax collapsed. With +14.4R Profit (ignoring slippage and commission) available as DP support came in, this was another amazing trade. If you would like to see how this TS4 sell came in at a “larger degree” Wave (2) please see the Advanced Blog, where I take a more detailed look at this setup.

I know that some of you don’t trade the Dax, so in the next post I will take a look at the 3min ES (using 24hr data) to see what unfolded at the same time as this Dax sell setup

Thanks, Steve

A quiet day – the time to go Advanced

Hi Everybody,

We have had a couple of quiet days on the US e-minis for the automatic setups. But that is OK. So now is a great time for me to remind you all that you all have some brilliant tools already in the software that you can make use of. For this please take a look at today’s Advanced Post on the 5min YM – here MTP nailed the very high of the day for you !!

There are too many people who simply rely on the Automatic signals, without taking the time, and making the effort, to learn how to use these more Advanced techniques. When you do, you will be amazed at what additional trade opportunities you can uncover !

Thanks, Steve

The result - a massive +20R Profit !

Hi Everybody,

And here is the result - a massive +20R Profit (ignoring slippage and commission) !!!

Yes, this TS4 long trade turned an initial risk of just Eur 350 into a massive profit of approx Eur 7,000 !!!

What an amazing trade............... And all found and then managed using the Standard MTPredictor trade guidelines.

Thanks, Steve

Dax doing well this morning..

Hi Everybody,

A quick post on a lovely TS4 trade that is unfolding at the moment on the 3min Dax.............

Steve

BIG Profits and small losses....

Hi Everybody,

The 3min ES yesterday was a perfect example of how MTPredictor is designed to keep your losses small and yet allow you to have Big Profits. Here there were two automatic trade setup, the first was a loss, but (and this is the important part), the loss was kept small as just -1R, or 1 risk unit.

Then the TS 4 sell (which nailed the high of the day for you !) then had you short as the ES declined for the rest of the day. The result was a nice +5R Profit (ignoring slippage and commission) at the end of the day.

But do you all see the important point here, in that the profit was much much larger than the loss. BIG Profits and small losses, this is the key to successful trading..........
BTW, please see the Advanced Blog for a lovely "Gap Open" play on the NQ yesterday

Thanks, Steve

Gartley 222 pattern

Hi Everybody,

One user wrote in yesterday asking about the Gartley 222 pattern, and was surprised to hear that the TS1 setup that we have in MTPredictor can already find this setup. For those of you who don’t know, the Gaetley 222 is a pattern described on page 221 and 222 of a book written by .M. Gartley’s book, “Profits in the Stock Market”. Basically it is an abc correction that reverses at either a 61.8% or 78.6% retracement of the prior swing. This is very similar to the abc correction in an Elliott Wave (2) correction, as such we can find it in MTPredictor.

If you look at the chart, you can see a perfect example on the 5min ES from yesterday, where the TS1 sell (abc correction) unfolded right at a 61.8% retracement....

This is why MTPredictor is so powerful and is far more than just a bunch of automatic setups, if you all take the time to learn you will understand the setups and why they are so good........

Thanks, Steve

Beware the News........

Hi Everybody,

For those of you who have not been trading for very long, I would like to show you all what “typically” happens on days when there are big news announcements. Yesterday we can see how the markets just drifted sideways, while everybody was waiting for news to be released. Then as the news hit, the markets make sharp, quick and big swings. All of this is NOT the kind of market you want to be trading in...........

So the advice that all experienced traders will give you is to either avoid completely, or be very very careful, on days when a big news announcement is due.......

Days like this are risky and can lose lots of money for you, so be very careful on days like this........... Always take a note (in advance) of the days when announcements are due.

Thanks, Steve

The Cyclical Nature of Trading

Hi Everybody,

Yesterday was a quiet day on the US e-minis. But this is OK and just part of the cyclical nature that markets unfold. If you remember, we get quiet times as well as hard times (when small losses unfold) as well as the good times (when we get the good Profits). WE have had a number of good days recently, so a quiet day was only to be expected........

Having said that, when the automatic setups are quiet, the more experienced traders among you can use the additional tools in the software to uncover more “manual” trades. Please see today’s Advanced Blog for a good example.

Thanks, Steve

YM 3min Chart – lovely TS3 long trade....

Hi Everybody,

Friday was a good day, with this lovely TS3 buy setup on the 3min YM catching a nice +3.2R Profit(ignoring slippage and commission) (Ninja 7 with DTN.IQFeed data), using the Standard trade management guidelines.

So even though, on the surface, the day seemed hard as the market only moved sideways in a narrow and choppy range, MTPredictor still came out with a nice Profit.

Thanks, Steve

5min charts.......... again.

Hi Everybody,

Again, yesterday was a good example of why I say to keep an eye on the 5min Charts as well as the 3min ones, as the best trades yesterday were on the 5min charts.

For the Standard Traders among you, the 5min NQ was the one to consider as the TS3 buy came in on a blue/black STF. The NQ then rallied nicely into the first project profit target, where a nice +3R Profit (ignoring slippage and commission) was available. (eSignal data in MTP v6.5)

But the markets did continue higher later in the day, so was there a way to take advantage of this ? Yes, and that is what I will look at in the Advanced Blog.

Thanks, Steve

TS3 long on the 3min NQ

Hi Everybody,

The day ended well yesterday with a nice TS4 buy setups that unfolded on the 3min NQ (eSignal data on MTP v6.5). This was a completely standard setup with the TS4 buy coming when the STF was black. The trade then rallied into the first projected Profit target for a nice +3.2R Profit (ignoring slippage and commission).

I do have to remind people that because data can be different using different data sources that different Traders can and will get different setups. This is the same for “any” trading system, it just a fact of Trading life, and there is nothing we can do about it as Traders. Therefore, it is no good trying to compare your results with a friend, it is best to focus on your own trades. Few amateurs realize or fully appreciate how different data can be, and find it surprising that it is different, but it is.

Thanks, Steve

Nice TS4 sell makes +5R Profit.

Hi Everybody,

It was another good day on the US e-minis yesterday, with a lovely TS4 sell in the afternoon yesterday on the 3min YM that gave us a very nice Profit.

As you can see from the chart, there were a few invalid setups in the morning (against STF) and then a -1R loss before a small +1.5R Profit on the way up this TS4 sell. Please note: different data feeds are different so not all data feeds will give exactly the same signals.....

This TS4 sell was a completely standard setups as the STF was black at the time. When the YM reached the Profit target is was so near the end of the day, simply banking the +5.4R Profit would have been a good idea. This would have still been a nice +4.9R profit if held into the close.

So overall, it was a very good day yesterday on the 3min YM for MTPredictor yesterday.....

Thanks, Steve

DP sell nails the high of the day !

As an Advanced Trader, I always like to look at Advanced trades as well, because that is where the true power of the software is and to be honest I still find it amazing how good MTPredictor can be at times, so wouldn’t it have been nice to be able to catch the high of the day as well !

Well, as you can see, we did have a DP sell at the high of the day. What I like about this was that although the STF was red it was on stochastic divergence and also on a high volume (VSA) bar. The only thing that I also look for is “larger degree support or resistance”, so let’s take a look in the Advanced Blog for this.

As you can see, the YM decline nicely off this high for a possible +5.7R Profit (ignoring slippage and commission) as the TS4 buy came in......

So here we are with MTPredictor nailing both the high and low of the day for you – now I find that absolutely amazing !!

Thanks, Steve

TS4 buy nails the low of the day !

Hi Everybody.

What an amazing day on the YM yesterday !!

I will start by looking at the TS4 buy setups, as that was completely standard, as it was on a blue STF. The only question was when the TS2 sell arrive a little while later, but as the STF was still blue at this time, this should have been ignored. As such, the TS4 long should have been held into the close for a very nice +3.8R Profit (ignoring slippage and commission).....

Plus (for the Advanced users among you), this TS4 buy was also on a lovely high volume (VSA) spike as well ................

What a lovely trade...........

Thanks, Steve

A good start for the European Traders...

Hi Everybody,

The European Traders among you had a very good start to the week, with a very nice TS3 buy setup on the 3min Dax just this morning.....

As you can see, this was a completely standard TS3 buy setup as it was on a blue STF. Profit were taken at the first target as the STF was weak, all for a very good +5.9R Profit (ignoring slippage and commission.

What a great start to the week !

Thanks, Steve

Don’t forget the 5min Charts

Hi Everybody,

I have mentioned this before, but please do not forget the 5min Charts, as they very often have some lovely setups. Here is a great example from Friday on the 5min NQ chart, where a TS4 sell gave us a very nice +3.3R Profit (ignoring slippage and commission).

As you can see, the first projected profits target nailed the very low of the day, so was the perfect place to look to bank profits.

It is all too easy to look for shorter and shorter time frames and forget that that slightly longer (5min) charts very often give us smoother swings and as such very nice setups.

Thanks, Steve

A good day for the US e-minis - Part 2

But it was when this DP buy came in later in the day on the 3min NQ, which added a nice +2.6R Profit (ignoring slippage and commission), that the day started to look good.

Again, this DP buy was a standard setup as it unfolded on a black STF (Dec contract, with eSignal data), and the hit the initial target with a weak STF.

Thanks, Steve

A good day for the US e-minis - Part 1

Hi Everybody,

After a quiet day on Wednesday, yesterday was a good day. Let’s start by looking at the 3min YM. But first, I hope you all remembered to move forward to the Dec contracts yesterday, as they are now the “front month”.

On the 3min YM, you had to wait until late in the day for the TS2 sell, that gave you the best profit of the day. This was a standard setup, on a red STF. Although the Profit was small at +2.4R (ignoring slippage and commission), it more than made up for the -1R loss earlier in the day.

Thanks, Steve

+9R Profit on the DAX

Hi Everybody,

Just because the US e-minis have been quiet, it does not mean that all markets have been. Here is a brilliant long trade off an automatic DP buy that has just made +9R Profit on the 3min Dax just this morning !

As you can see, first we had a -1R loss. But (as usual) this loss was kept small and under control, then the automatic DP had you long from the low, after which a strong rally unfolded. As the first target was reached, the STF was strong, so standard traders would have swapped to the ATRStop. This held you long as the Dax continued to rally.....

The result was a massive +9.2R Profit (ignoring slippage and commission).........

Amazing – and all from a standard and automatic setup !!

A quiet day

Hi Everybody,

It was a quiet day on the US e-minis yesterday, but as we all know, because of the Cyclical Nature of Trading quiet days do unfold.

On quiet days I look to use more “manual” and “Advanced” techniques to uncover additional trades. Please see the Advanced Blog to see a High Volume (VSA) spike trade that I was following myself on the 3min FTSE yesterday. This shows what is possible with the tools you already have in the software.......

Thanks, Steve

Russell does the job

Hi Everybody,

I still find it amazing how different the individual e-minis (ES, NQ, YM and TF) move. You would have thought that they all move together but they don’t, there are differences. A great example is on the 3min Russell Index from yesterday, where we had a massive +8R Profit (ignoring slippage and commission) which did not unfold on the other e-minis. This is why I suggest that you need to look at all 4 of the US e-minis, as you can get a setup on one market that is not the same as on another.

Either way, the TS3 sell on the Russell was completely standard (red STF) as well as the trade management (STF weak, so take profits at the WPT target), so was a very nice Profit indeed.......

Thanks, Steve

The Profits come in !

Hi Everybody,

Well, I did say in yesterdays post that we were now overdue for some nice profits, and that is exactly what we got on the 3min YM ! As you can see, this TS4 buy setup nailed the low of the day for you. The YM then rallied all day to reach the first target just before close, but as the STF was strong, the ATRStop was used to hold the long trade into the close.

One trade and one bib profit of +5.4R (ignoring slippage and commission) – brilliant !

Now are you all starting to understand the Cyclical Nature of Trading, and how profits and losses go in cycles. I have seen this day after day for over 20 years. This is why I spend so much time trying to educate you all how the markets unfold in the “real world”. That is why yesterday I knew that after a harder period we were due for a nice profit – and that is exactly what unfolded !

Thanks, Steve

A quiet day.

Hi Everybody,

As part of the Cyclical Nature of Trading, the markets also have quiet days, when few (or no) setups unfold. Yesterday was one of these days. Quiet times are just part of trading, again amateurs are always after excitement and action (which is wrong), where the professional has the patience and discipline to wait for the low risk setup to come to them.

We have had a hard period recently, with not many big profits, so that just tells me that we are nearing the part of the cycle when a string of big profits are about to unfold. It is usually at this time that most amateur traders get bored, just before a big trade.

So let’s see how the rest of the week unfolds.

Thanks, Steve

What it means to be a professional trader.....

Hi Everybody,

A lot of new amateur traders struggle with what it means to be a professional trader. They have the wrong impression that trading is easy and they will make big profits every day. This “myth” is banded around buy non trading Gurus and salesmen in an effort to sell system that don’t work. The hard reality is that trading is hard, not technically by psychologically. This is because most of the time you are just “treading water” controlling your losses or making small profits. It is only a small number of BIG profits that make the money over time. Please read this PDF:

http://www.mtpredictor.com/support/documents/How%20Profits%20and%20loses%20unfold%20in%20the%20real%20world.pdf

This is the same for the vast majority of successful approaches to the markets, and is on of the main reasons (I believe) that most amateur traders never make it to become a professional because they simply do not understand how profits and losses unfold in the “real-world.

I hope this “reality check” helps you all understands what it means to become a successful trader – forgetting the “myths” that are banded around on the Internet and accept the reality of how trading “really is”

Thanks, Steve

PS, having said that, the Advanced Traders among you will always be able to find more trades using some of the more Advanced techniques in the software, please see the Advanced Blog