MASTERCLASS Laser-Focused System to Unlock Proﬁts from … · Laser-Focused System to Unlock...

MASTERCLASSEntry to Exit

START

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Laser-Focused System to Unlock Profits from any Market

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MASTERCLASS - Macro Overview

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1. 3-Principle Method2. Some Recent Trades3. My Rules for Success

1. Chart Setup2. Trading Vehicles3. Trading Time Frames

1. Finding the Trade2. Entering the Trade3. Exiting the Trade

PART 2:PART 1: Part 3:

PART 1: Micro Overview

3-Principle Method (Detailed in Part: 3)

The Power of this method

Pivotal Concepts for Trading Success

Recently Executed Trade Examples


Entries and Exits - The 3 Principles

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1. Regression Channels 2. Measured Moves 3. Fibonacci Extensions

ManagementEntry Exit

Principle 1:

Regression Channels



Principle 1: Regression Channels - Middle Line

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50%of price action below

Entering during outlier price action.

Creates the Middle Line: Very Powerful Trendline

50% of Price Action Above


Regression: Middle Line

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Regression Channels: 1st Standard Deviation (STD.)

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1st Standard Deviation

Statistically: 68.2% of price action will be contained within here

1st Standard Deviation


Regression Channels: 1st Standard Deviation (STD.)

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Regression Channels: 2nd Standard Deviation

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2nd Standard Deviation

Statistically: 95.4% of price action will be contained within here

2nd Standard Deviation


Regression Channels: 1st & 2nd Standard Deviation

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Regression Channels: Overbought/Oversold

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OVERBOUGHT

OVERSOLD


Regression Channels: Overbought/Oversold

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Regression Channels: 2nd STD. OB/OS

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Principle 1: ConclusionRegression Channels are

statistically the best way to enter overbought and

oversold markets.ManagementEntry Exit

Principle 2:

Measured Moves



Measured Moves: Trade with the Trend

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A

B

C

D A

B

C

D


Measured Moves - Uptrend

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BULLISH MEASURED MOVE | Higher Highs and Higher LOWS.

A

B

C

D


Measured Moves - Downtrend

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BEARISH MEASURED MOVE | Lower Lows and Lower Highs.

A

B

C

D


Measured Move within our Regression Channel

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Measured moves within our Regression Channel.


Measured Move within our Regression Channel 2

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Measured moves within our Regression Channel.

Principle 2: ConclusionMeasured Moves are the

best way to quantify a trend once you’re in a trade.


Principle 3:

Fibonacci Extensions



Fibonacci Extensions

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PRICE: Fibonacci Plotting Point: Fibonacci Extensions:

A

B

C

1.61 EXTENSION (target)




Fibonacci Extensions - Chart

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Fibonacci Extensions - Chart 2

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Fibonacci Extensions - Chart 2

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Principle 3: ConclusionFibonacci Extensions allow me to PRE-SET price targets for my exit.



Entry and Exit - if/then walkthrough

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Price Moves to +/- 1 or 2 STD. on the Regression Channel

Price makes a MEASURED MOVE ENTRY

Simply Kill the trade trust me there are thousands of these setups A DAY.

buying/selling pressure is just to great

(somewhat common) EXIT

PROFITS ARE RUNNING

Fibonacci Price (128% - 162%) Targets are pre-set and ready to book PROFITS. EXIT

THE EDGEDefined

Entering trades when the price is either overbought/oversold. Regression channel statistically shows when price is ready to revert back to the mean. 95% of all prices are contained within the channel.

EDGE 1

Occasionally there are outliers so I wait for the price to change trend using the Measured Moves Principle

EDGE 2

After a measured Move 68% of the time price reaches the 127.2% Fibonacci extension.

EDGE 3


Proper Trade Size

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Average loss of trade 25% >> $500/25%= $2000

With 20 Equities in the portfolio >> Max 20 Trades

20 trades * $2000 = $40,000 (cap. Allocation)

Risk only 1% per Trade >> $50,000*.01 = $5001.

3.

4.

2.


Expected Returns per Trade:

[( .782*$555 ) – ( .218*$497 )]

$434 - $108

326

Calculating Expected Return

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Let’s Assume:

Trading Account Size: $10,000

Trade Size: $1,000 (4 TLT Credit Spread contracts)

Trades Per Year: 78 for 21 months >> 45 per year

Expected Returns per Trade:

Profitable percent times rewardTrade

(minus -)Losing percent times risk

Trade

This is executing this system on 1 asset class...

Expected Returns per Year

$326 * 45 =

$14,670

Concepts of Master Traders

Stand on the shoulders of giants

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Trader’s analytical tools are the known variables that put the odds of success (the edge) for any given trade in the trader’s favor.

Concepts From Master TradersSuccessful traders have virtually eliminated the effect of fear and recklessness from their trading.

If you can learn to create a state of mind that is not affected by market’s behavior, the struggle will cease to exist. When the internal struggle ends, everything becomes easy. At that point, you can take full advantage of all your skills, analytical or otherwise, to eventually realize your potential as a trader.

The Principles eliminate fear and greed

Principles will disconnect you from market behavior

The 3 Principles our my edge


The number-one trading rule was the rule of limiting their losses when they had them.

Concepts From Master TradersThe number one skill required that was common to all these traders was a strong work ethic. (10,000 hrs.-“Outliers”)

Do not enter into an invested position without an exit plan.

I have spent 35+ years trading and honing these simple yet powerful Principles – you don’t need anything more – keep it simple

Principle 3. Go it!

When a Measured Move goes against the trade I am out


Methodology - “Simpler the Better”

Concepts From Master Traders

There is no need to be invested in the market at all times. Be patient and free to stand aside until matters clarify.

Trading with an edge is what separates the professionals from the amateurs.

Wait for price action to extend to outlier levels. Regression channels overbought/oversold.

Financially Strong and small market basket, and the Principles

That’s why I trade with a principled method.

Edge: Portfolio selection, entry signals and exit signals.

LOVE IT!


Real-Time Trade

SPX Weeklys

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Enter Tuesday 4/12/16 with APR(4) 2045/2040 Bull Put @ $2.50 credit –Exit @ $0.40 debit – 85% return


Real-Time Trade

Stocks

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Enter GOOGL stock Thursday 6/14/18 @ $1158Exit 7/25/18 @ $1278– 10.3% return


Real-Time Trade

E.T.F.

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Enter SPY - Tuesday 8/7/18 @ 272.5Exit Thursday @ $269.2– (1.2%) loss


Real-Time Trade

FOREX

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Pairs: USD/JPY, EUR/USD, AUD/USD, GBP/USD

Continue to MASTERCLASS Part 2

MASTERCLASS Laser-Focused System to Unlock Proﬁts from … · Laser-Focused System to Unlock...

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