Pro Picks Quick Reference - Online Trading Academy

1Online Trading Academy – Pro Picks Version 20120301

Pro Picks Quick Reference

Asset Tabs – The tabs in the upper left allow you to view the summary page for a specific asset class as well as the Asset Performance Summary on the left hand panels.

Portfolio Performance Summary – The blue section in upper left entitled “All Asset Classes” always appears. This section totals the profit and loss of all asset classes combined since the date specified in the panel.

Asset Performance Summary – This panel contains two tables specific for the current, selected asset tab.

• AccumulativeResults(Perassetclass)

º Percent Gain – (Current account balance minus initial balance) divided by initial balance

º Average Win – Winning trade profits divided by the number of winning trades

º Average Loss – Losing trade losses divided by the number of losing trades

º Total (Profit/Loss) – Current total balance (Green=Profit, Red=Loss)

• TotalTradeCount(Perassetclass)

º Total Picks – Sum of all trades Open, Pending, and Closed

º Pending – Entered into Pro Picks system but has not met entry price

º Open – Trade has met entry price and is not yet closed

SUMMARYPAGE

TradeListingPanel

Filter Bar

Multi-select Filter Drop-downlists

Asset Tabs

Portfolio Performance Summary

Asset Performance Summary

Subscription Status



º Closed for Profit – Met entry, met exit, with a gain

º Closed for Loss – Met entry, met exit, with a loss

º Closed no Entry – A trade that is closed that never met entry

º Closed Break Even – Met entry, exited at break even

Subscription Status – Pro Picks are based on an annual subscription. Each Pro Pick Asset Tab can have a different subscription expiration date. The Subscription Status indicates the expiration date for the corresponding Asset Tab that is being viewed. When a subscription is within 30 days of expiration, the Subscription Status will turn red and display the number of days remaining.

Filter Bar – The Trade Listing Panel can be filtered by; (Trade) Style, Symbol, Pick Date (Range up to 3 months back), and Status. Both Style and Status filters have multi-select capability.

TradeListingPanel – Listing of all trades contained in Pro Picks as filtered by the detail filter. Each column can be sorted in ascending or descending order when clicking on the column header. Clicking on the specific row will take you to the detail page for the specific trade.

TradeListingPanelColumnDefinition

• PickDate – This is the date that the specific Pro Pick was entered into the system.

• Style – Three styles of trades used; Intraday, Swing and Position Long Term.

º Intraday – Stock positions not held overnight. Futures and Forex positions may be entered and exited during the Overnight session, but generally last less than 24 hours

º Swing – A trade typically held more than a day and less than a month

º Long Term – A trade typically held longer than a month

• Symbol – Market symbol of the trading instrument.

• Outlook(OptionsOnly) – Directional bias of the trade, Bearish, Bullish or Neutral.

• Status – Six statuses that track the life cycle of a specific trade.

• P/L– Amount of dollars gained (or lost) as calculated by the move (Points +/-) in the market from entry value to current price or exit value, multiplied by quantity or size of the trade.

• Points+/-(Stocks,Forex,andFuturesonly) – Amount of “movement” the trade has made from when it met entry, during the trade, and through final exit. The amount of movement is measured in specific units of measure based on the specific asset class as follows:

º Stock – Dollars (currently other currency is not available in Pro Picks)

º Futures – Points or Ticks

º Forex - Pips

• NewTrade – Indicates a new pick entered within the previous 24 hours.


DETAILPAGE

Accessing the detail page can be done by clicking anywhere on the specific trade-pick row in the Trade Listing Table.

SpecificMarketInformation – This section includes the essential information about the specific market including the asset class, the trade style, the market symbol and name.

SpecificTradeInformation – This section includes the essential information regarding the specific trade-pick including the Type of trade (Long or Short), Average daily volume and Trends both Short and Long Term.

TradeParameters – This section contains detailed parameters defining the trade including:

• PickDate– The date the pick was entered into the Pro Pick system.

• EntryRange – The range the specific market price must reach for the trade to meet entry. This range will determine share quantity. A zone is used for entry in order to provide Pro Picks users the flexibility of responding to the trade pick based on their individual trade plan. The Active Trader monitoring their trades in real-time within the live-markets, is able to constantly evaluate their initial trade plan, and based off constantly changing market conditions make necessary changes to their trade plan, which may translate into better odds for success. These updates will show in the trading Log when the trade is opened and will provide educational information to our students.

TradeStrategy

ChartArea

SpecificMarketInformation

TradeParameters

SpecificTradeInformation

TradeResults

TradeLog



• Stop– The stop value is a suggested value; this will give students the proximate location. The stop location placed by the instructor will be determined by entry, live market price action and position size. This will show in the trading log when the trade is opened and will provide educational information to our students.

• Target1,2,&3 – Each trade will have at least one target and sometimes more.

TradeResults – This section contains the current status of the trade from its initial state based on the current market movement and the adjustments made to the trade (i.e., moved stop, etc). The detailed parameters defining the trade results include:

• EntryDate– The date the pick met entry and the specific market price went into the Entry range.

• Quantity – The size of the trade.

• EntryRange – The range in which the specific market price met entry. NOTE: An actual value is used for measuring performance, but only a range is displayed.

• Exit – The closing value of the trade, if multiple exits only the first exit will display.

• P/L – Amount of dollars gained (or lost) in the trade.

• Points+/- – Amount of “movement” the trade has made from when it met entry, during the trade, and through final exit. The amount of movement is measured in specific units of measure based on the specific asset class as follows:

º Stock – Dollars (currently other currency is not available in Pro Picks)

º Futures – Points or Ticks

º Forex - Pips

ChartArea – This section contains a chart with notations of the initial setup of the trade-pick.

TradeStrategy –This section includes the specific thoughts, rationale and strategies for why this trade-pick has been selected.

TradeLog – This section contains a step by step commentary of the activity associated with the life cycle of the trade from entry to exit including date stamps for each entry.


DETAILPAGE–OPTIONS

The Options Detail Page is similar to Stocks, Forex, and Futures except where explained below:

SpecificTradeInformation – This section includes the essential information regarding the specific trade-pick including the Option Strategy, Market Outlook, Volatility Level, example Trade Strategy Risk Profile, Strategy Overview (click to view), and Trends.

UnderlyingParameters – This section contains detailed parameters regarding the underlying:

• PickDate– The date the pick was entered into the Pro Pick system.

• Entry – The range the specific underlying price must reach, for the trade to meet entry. An entry range (as opposed to a single value) is used for entry in order to provide Pro Pick users the flexibility of responding to the trade pick based on their individual trade plan.

• Stop– The initial protective stop value(s) based on the underlying.

• Target1,2 – Each trade will have at least one target based on the price of the underlying.

OptionsTradeStrategy

ChartArea

TradeParameters

SpecificTradeInformation

TradeResults

TradeStrategyDetailsandTradeLogTabs

RiskManagement



TradeResults – This section contains the current status of the trade from its initial state based on the current market movement and the adjustments made to the trade. The detailed parameters defining the trade results include:

• EntryDate– The date the pick met entry.

• Status – The current status of the trade as based on previous Status definitions (above).

• Quantity – The number of contracts/spreads based on $500/Risk per Contract.

• Credit/DebitEntry – The premium received/paid per contract/spread to open the trade based on whether the trade is a credit or a debit.

• Credit/DebitExit – The premium received/paid per contract/spread to close the trade based on whether the trade is a credit or a debit.

• P/L – Amount of dollars gained (or lost) as calculated by the Quantity times the difference between the entry and exit premiums.

OptionsTradeStrategy – This section contains the details for each leg of the option trade including:

• Bias– Short or long the option.

• Unit – Number of contracts for that particular leg depending on the strategy.

• Expire – Option Expiration Date.

• Cycle – Weekly, Monthly, or Quarterly Expiration Cycle.

• Strike – Option strike price.

• Type – Put or Call.

RiskManagement – This section has various factors affecting risk management and position size:

• NetDelta– The Net Delta of the combined legs of the option strategy based on one contract/spread estimated at the entry based on the underlying price.

• RiskPerContract – Theoretical dollar risk per contract/spread based on the underlying stop.

• MaximumReward – The maximum profit that could be received per contract/spread.

• MaximumRisk – The maximum loss per contract/spread.

TradeStrategyDetailsandTradeLogTabs – This section has two clickable tabs. Click to view each:

• Details– The specific thoughts, rationale and strategies for why this trade-pick has been selected.

• Log – This section contains a step by step commentary of the activity associated with the life cycle of the trade from entry to exit including date stamps for each entry.



TargetAmountAllocation – In real-world trading, the amount of size given to each target position may vary based on each individual trader’s trade plan. Unless otherwise stated in the Trade Strategy or the Log, Pro Picks uses a percentage allocation based on the following table (see Figure 2).

StopManagement – In real-world trading there are many strategies for managing (adjusting) the movement of a protective stop. Stop Management will show in the trading log for educational purposes when the trade is opened. As price moves toward the first, second, or third target, check the log on the detail page for potential stop and target adjustment. Once positive, Pro Picks may choose to:

• Utilizeanintradaytimeframetechnialstop,and/or

• Usetheinitialstoplossamountasatypeoftrailing-stop,and/or

• Oncetheinitialtargethasbeenreached,theymaymovehardstoptobreakeven

Online Trading Academy – Pro Picks Page 3 Version 20101022

DEFINITIONS AND PARAMETERS Initial Balance – Each asset class account begins with an initial balance of

Stocks - $100,000 Futures - $50,000 Forex - $50,000

Initial Position Size– The position size (shares, contracts, etc) of each trade-pick is variable, based on the distance of the initial stop loss from entry price (risk) and a fixed amount of capital at risk. No trade-pick will risk more than $500. The smaller the stop, the larger the position size. Reference the following table for examples of stop-size-position-size relationships (see Figure 1a & 1b).

STOCKS

Max Risk = $500 FUTURES

Max Risk = $500

Stop Size Position Size Stop Size Position Size

$.10 5,000 shares 1 point 10 contracts

$.20 2,500 shares 2 points 5 contracts


$1.00 500 shares 10 points 1 contract Figure 1a Point = $50 Figure 1b

Target Amount Allocation – In real-world trading the amount of size given to each target position may vary based on each individual trader’s trade plan. For consistent tracking, Pro Picks uses a percentage allocation based on the following table (see Figure 2).

Target Allocation Amount

No. of Targets

First Target

Second Target

Third Target

One 100%

Two 60% 40%

Three 40% 30% 30% Figure 2

Stop Management – In real-world trading there are many strategies for managing (adjusting) the movement of a protective stop. For consistent tracking, Pro Picks uses a single rule-based strategy as stated:

If and when the first target is met, the initial stop is moved to breakeven. If and when the second and/or third target is met, check the log on the detail page for updated

protective stop price. If and when price is closing in on third target, check the log on the detail page for potential

target adjustment.

DEFINITIONSANDPARAMETERS

InitialBalance – Each asset class account begins with an initial balance of:

• Stocks-$100,000

• Futures-$50,000

• Forex-$50,000

• Options-$50,000

InitialPositionSize– The position size (shares, contracts, etc.) of each trade-pick is variable, based on the width of the Original Entry Zone and a fixed amount of capital at risk. No trade-pick will risk more than $500. The smaller the zone, the larger the position size. Reference the following table for examples of zone-size-position-size relationships (see Figure 1a & 1b).

Online Trading Academy – Pro Picks Page 3 Version 20101022

DEFINITIONS AND PARAMETERS Initial Balance – Each asset class account begins with an initial balance of

Stocks - $100,000 Futures - $50,000 Forex - $50,000

Initial Position Size– The position size (shares, contracts, etc) of each trade-pick is variable, based on the distance of the initial stop loss from entry price (risk) and a fixed amount of capital at risk. No trade-pick will risk more than $500. The smaller the stop, the larger the position size. Reference the following table for examples of stop-size-position-size relationships (see Figure 1a & 1b).

STOCKS

Max Risk = $500 FUTURES

Max Risk = $500

Stop Size Position Size Stop Size Position Size

$.10 5,000 shares 1 point 10 contracts



$1.00 500 shares 10 points 1 contract Figure 1a Point = $50 Figure 1b

Target Amount Allocation – In real-world trading the amount of size given to each target position may vary based on each individual trader’s trade plan. For consistent tracking, Pro Picks uses a percentage allocation based on the following table (see Figure 2).

Target Allocation Amount

No. of Targets

First Target

Second Target

Third Target

One 100%

Two 60% 40%

Three 40% 30% 30% Figure 2

Stop Management – In real-world trading there are many strategies for managing (adjusting) the movement of a protective stop. For consistent tracking, Pro Picks uses a single rule-based strategy as stated:

If and when the first target is met, the initial stop is moved to breakeven. If and when the second and/or third target is met, check the log on the detail page for updated

protective stop price. If and when price is closing in on third target, check the log on the detail page for potential

target adjustment.

Zone Size Zone Size



PROPICKSDISCLOSURE

The Pro Picks service is for educational purposes only and is intended to demonstrate how the lessons taught in the Online Trading Academy courses may be applied to the financial markets. Online Trading Academy Professional Staff and employees do not recommend, advocate or solicit the buying, selling or holding of any investment, the use of any investment choosing methodology, the use of any particular financial tools or particular trading platform, or the use of any particular financial planner, advisor or broker dealer. Trading and investing always involves high levels of risk. Any money allocated to trading and investing may be lost in its entirety, at any time. Moreover, the Online Trading Academy Pro Picks service should not be construed as a recommendation or an offer to buy or sell any security or the suitability of any investment strategy for you. The purchase, sale or advice regarding any security, other financial instrument or system can only be performed by a licensed Industry representative such as, but not limited to a Broker/Dealer, Introducing Broker, FCM and/or Registered Investment Advisor. Neither Online Trading Academy nor its representatives are licensed to make such advisements. All students of the Online Trading Academy training programs or products are encouraged to speak with a licensed representative of their choice regarding the appropriateness of investing/trading or of any particular investment/trading strategy.

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options http://www.cboe.com/Resources/Intro.aspx (ODD). Copies of the ODD are available from your broker, by calling 1-888-OPTIONS, or from The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, Illinois 60606. The information from this service is provided solely for general education and information purposes and therefore should not be considered complete, precise, or current. Many of the matters discussed are subject to detailed rules, regulations, and statutory provisions that should be referred to for additional detail and are subject to changes that may not be reflected in the information provided. No statement provided in this service should be construed as a recommendation to buy or sell a security or to provide investment advice.

USINGPROPICKS

Pro Picks is simple yet powerful. The filtering and sorting capability on the Summary page for the Trade Listing Panel will provide you with the tools you need for your analysis.

• ViewProPicksthathavenotmetentry – Filter the Trade Listing Panel by selecting “Pending” from the Status drop down filter.

• ViewProPicksthathavemetentrybuthavenotmetfirsttarget – Filter the Trade Listing Panel by selecting “Open” from the Status drop down filter.

• Viewnewpicks – Sort the last column (“New Trades”) in descending order by clicking on the column heading. All of the picks marked as “New” will sort on the top.

• ViewonlySwingPicks – Filter the Trade Listing Panel by selecting “Swing” from the Style drop down filter. (NOTE: Can also filter by Intraday and Long Term for other Trading styles)

Pro Picks Quick Reference - Online Trading Academy

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