Automated Trading System; Futures, Stocks, FOREX, its YOUR decision

Hi guys! We earned over 170 ticks today with our discretionary trading model; now let’s review how the auto trader did in these challenging markets today.

Let’s start with Gold Futures, one of our favorite futures markets to use with this auto trader.

Gold had an incredible run this month on the auto trader, you can see the 30 days results are amazing, even though our recent trading today didn’t look so great.

We took 5 trades in the past 48 hours on Gold, 1 winner for 60 ticks and 4 losses at 20 ticks each.

Now under NORMAL auto trading conditions this would NEVER make money in the long run, but we have a secret to our success:

- Only 1.5 trades per day = no getting chopped up
- Low Risk/Reward Ratio, so losses wont kill you
- These numbers are PER CONTRACT, so slippage and commissions are almost a NON ISSUE.



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Now lets take a look at Crude Oil Futures and this automatic trading software…

Crude is one of our favorite markets to trade discretionary, and many people think you could NEVER use an automated trading system to day trade crude oil future…read it and weep ladies n gents.

Today we took a monster winner off the highs on crude oil for a plus 80 ticks, or $800usd, and you can see we are just getting into a long trade here at the end of the morning and looking for our second winner of the day at the target of 89.22.

Low risk reward ratios, never over-trading, and a low cost to get started makes this auto trader something VERY exciting for 2011.

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We cant forget about the Euro futures, and remember this works amazingly well on ANY CURRENCY future, im just using the euro as an example.

The Euro is a lot higher volume, and im using a 21-range chart, so you will NOT see as many trades on the euro, but our results are amazing.

We took only 1 trade the past 36 hours, but you can see it was a nice big winner. Chances are high that once the price action returns to normal after the New Year this automated trading system should produce more trades each day on the euro.

IN the meantime, im pretty excited to make 80 ticks or $1,000usd per contract.

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Please remember, this automated trading system to can be used on anything you wish. I can trade futures, forex, stocks, ETF, the sky is the limit.

I can run this auto trader 24 hours a day, or I can use a smaller account and only trade intra-day, its 200% custom-fit to your trading goals.

Questions? Sales@SchoolOfTrade.com or post the question on the blog.

As Always We Love Your Feedback

Price Reversal Strategy Gold and Crude Oil using Dollar Index Futures Correlation

Click Here To Review Our Auto Trader Results From This Morning

Holiday Schedule:

- Last day in the trade room is today, Monday 13th
- Trade Room is closed until we re-open the room @ 745am on Monday January 10th, 2011

o 2nd week of the new year

- Support and Sales offices are OPEN

- Members Materials, Auto Trader, Your charts, your data, tech support team will all STILL BE WORKING.

Here are the reasons I take such a long break:

- Because ive been watching charts for almost a full year now, I want to rest, and find my passion again

o Come back in January with a few good books under my belt, some time with the family, and emotional clarity, and ready to focus for another 365 days

- Because you’re really not missing any good price action
- You’re not going to learn from the poor price action
- I challenge myself to improve my trading results

o Reflect on the previous year, use your experience to make an educated decision based on your future goals.

Our day begins the same way each morning with our morning routine, so lets check the news

08:30 Canada Q3 Capacity Utilization

11:30 US Treasury's 3- and 6-month bill auction

There’s no US news scheduled for today, so the only major event will be the US open @ 930am EST.
Now that the news is under control, we look at the dollar index futures because its correlation gives us a great heads up on the day ahead.

Open your slower timeframe on the dollar and begin to analyze the market you see today:

- Draw trend lines from highs and lows
- Looking for wedge patterns
- Looking for price channel
- Then look for trading ranges from one day to the next and look for ‘inside trading days’

What do we see on this 21range chart of the dollar index?

- Bottom of the price channel
- Bottom of the wedge
- Bottom of the trading range INSIDE the range from last week.

o Notice we are inside the last WEEK’s trading range
o Not just an inside day from the day before, but the WHOLE WEEK BEFORE.
o Inside days = sideways and sluggish on markets we trade.

- Average true range is showing a narrowing trend, and the lower the ATR the more difficult it will be to trade today.

- Speed has been slow all morning, but we can always wait to see that increase as the day develops

We have the dollar at the lows of the 34 range price channel, and as you know, we want to buy the lows, so we expect the dollar to rise off the support levels, the lows of the price channel.

With the dollar expected to rise, lets now prepare to profit on Gold, Crude, Euro, going to fall.

So im looking for shorts on the markets we trade as the dollar is anticipated to rise.
Gold Futures:

- We have the gold futures in the middle of the larger trading range on the 55range chart
- We’re day traders, so this means we can trade 2-sided, long or short

o However, if you are a swing trader, you need use caution, trading in the middle is more dangerous

- With the dollar at the lows of its range, and the dollar expected to RISE, im looking to sell the highs of the sideways trading range on gold.

- Day traders can buy the lows and sell the highs in a sideways market, and that’s all we need to do.

- We define our sideways trading range from 1393.8 down to 1372.7 and we’re looking for the gold market to reverse and drop back into it for a short trade.

930am EST

- We’re seeing the dollar drop, making new lows and breaking the lows of the price range from late last week.

- The odd thing is that while the dollar is dropping, so is gold and crude oil
- Volume is low
- This is the Monday morning of the transitional week ahead of the holiday season
- We have NO NEWS to act as a catalyst

- The dollar is moving, but we’re seeing lack of conviction, lack of speed, and the lack of consistent correlation.

Questions:

- Too many charts, what do we look for?
- How should we trade the end of the year?

o Lower volume with less people in the markets to provide consistency

o More traders with HAIL-MARY trade ideas that are similar to the WACKY Wednesday price action

 Large, unexpected orders on the tape

o Be very careful b/c the combination of low volume, and market manipulators along with the last minute hail mary trade attempts can lead to very confusing price action and a very tough market to trade with confidence

- TRADING WITH OR WITHOUT BIG MONEY
- 3-STRIKE RULE
- 3 SIGNS OF PRICE REVERSAL


Click Here To Review Our Auto Trader Results From This Morning

Daily Prep on the Euro, Momentum, High and Low of Day Trading Strategies

- Weak vs scared market on gold

o Capital protection (indecision) = speed higher in the middle

 Avoid this market, high risk

o Weak Market = speed is higher at the edges

 Avoid buying or selling the breakout
 Buy the pullback for a long
 Sell the retracement for a short

- Using the PHOD and PLOD

o Above these the bulls are in charge
o Below these the bears are in charge
o Im always looking for trades to use this simple strategy

 Buy the break above the PLOD/PHOD
 Sell the break below the PLOD/PHOD

- When momentum goes from overbought to oversold in a short period of time

o 21r pointing down
o 13r now oversold on a short trade
o Expect the fast timeframe to be choppy
o Expect the slower timeframe to be loss choppy, more trend

- Auto Levels

o Finds the best price levels for my potential trades and then automatically moves those levels to our other timeframes.

o Slow = daily chart
o Fast = 60/30/10/3 min

 Slow = 34Range
 Fast = 21/13/8/4Range

- Trading a 10 lot

o I always recommend speaking with someone you trust before you invest any capital in your trading.
o Always begin in your DEMO to learn
o 2 weeks of learning
o 2 weeks of practice on DEMO
o Then go live with 1 contract

 If you have the cash, start with 2 contracts
 Very similar to 3 contracts, just drop the runner
 1 contract is a completely different type of trading style

o If my goal is to grow my account, I need to have a plan of attack.
o Every 2 weeks I will add 1 more contract

 Every 1000 they make they add another contract
 This is NEW equity

o 1 contract into 2, 2 into 3, and then we start structuring the trade management

- Average True Range

- Using momentum on different timeframes

o More timeframes that line up the better
o Most important momentum to watch is the one on the chart you are using to trade
o 13-range pattern = 13r momentum is important
o 4-range pattern, looking at ALL of the momentum indicators to confirm

- Automated Trade Management Strategies

- Why don’t we use Renko? They don’t show me the OHLC of the bar as easily as Range charts do.

o Im somewhat unfamiliar
o They blur the lines of the highs and lows

- Do you need a special computer?

o Don’t spend the money on a trading computer
o Easiest way to find a good one is to look locally and find a professional that can build you one.
o TigerDirect.com
o Dell.com
o Craigslist.com and look locally for a college kid

 Most ram
 Fastest processor
 Second-best video cards money can buy

• $1000
• $150

 Save your money on all the bells and whistles

• Video editing
• Music
• Use the smallest HD you can find (cheaper)

 Buy the best mouse, the most comfortable keyboard

o Make sure you have anti-virus
o ESET NOD32 (yearly sub, 40)
o 2 x 24” monitors, get them refurbished online (DELL)

- What should we expect for trading over the next three weeks?

o Less volume and less opportunities to trade
o Price action will be slower, and the day will end earlier

o You will not see those big dramatic daily moves, look for end of the day short covering rallies, runs on the stops, market manipulation

- Continuous contracts:

o They are a blend of the recent front month contracts
o They will NEVER be the same as the current front month
o Most professional traders will use the front month
o Wisdom of crowds…we have to follow the masses.
o More volume on the front month contract than on the continuous

- Fully-Automated Trading System

o Members training on Wednesday are the best times to ask auto trader questions
o Check out the video on the auto trader that is all the way at the bottom of the ADV course
o Recorded members training this week

- What is the AVG on the auto trader?

o 1500usd / contract / 30 days
o Open an account to be able to trade multiple markets and multiple contracts all at the same time.
o $20,000

 Euro $500 margin
 Crude: 1000-2000
 Russell $500
 Es $500
 Gold
 Dax
 Fesx
 Zb

As Always We Love Your Feedback

Automated Trading System Review

Hi guys! Once again we had a great day of discretionary trading with our simple rules and easy to learn patterns, but lets see how our automated trading system worked on these Friday morning markets.

Gold Futures was the big winner of the day.

Short off the highs for +600usd

Long off the new swing lows for -200usd

Short from the swing highs for another +600usd

And then we go back to the lows for another long for +600usd

3 winners = 1800usd

1 loss = -200usd

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Now lets check out the Euro currency future, another one of our favorite day trading markets that also does amazingly well with our automated trading software.


The euro only took 2 trades in the past 2 days, and you can see 1 winner and 1 loss. Normally this would be a problem, but with our wide targets and tight stops we aren’t worried at all.

Our drawdown is ROCK BOTTOM, we only take 1/5 trades per day…its almost the perfect situation for an auto trader. Take a look.




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And lastly, lets check out the Crude Oil Futures, one of our personal favorites. We make a LOT of cash trading the crude with our simple rules and patterns, but lets see if our auto trader can handle this whippy rollercoaster futures market.


We can see an easy short off the highs (we took the same trade in the room today shortly thereafter with a wave pattern short off the highs) for a winner, and then took a loss trying to buy the lows.

We earned 90 ticks coming down, and then gave back 30 ticks on the stop.

Not a bad day taking 2 trades and earning $600usd (60 ticks) on only 1 contract.

Remember, these stats are only 1 contract, the sky is the limit folks

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As Always We Love Your Feedback 

Dollar Index Pops while Crude Oil and Gold Drops Day Trading Strategy

Click Here To Review Our Auto Trader Results From This Morning

830am EST


- The dollar index is trading in the middle of its sideways trading
- Its also now in the narrowest portion of the wedge pattern, so looking very narrow and sluggish
- We know that sideways dollar = sideways markets on crude, gold, euro, Russell, etc.
- Use your price alert indicator to mark the highs and the lows
- When the alarm goes off, you know it’s a better time to be looking for trading patterns.
- Trade balance news @ 830am was higher than expected, so lets see how the markets react.

- Dollar average true range is rising after the news, lets hope it continues to rise b/c the ATR on the dollar is also something that will directly affect the profitability our trading today.

- The wider the ranges on the dollar, the wider the ranges on everything else, so look for RISING ATR as a sign of good trades coming.

- The markets are very sluggish on the holiday season Friday ahead of the end of the year

840am est

- Crude oil futures are trading sideways

945am est

- Waiting on the 955 consumer confidence news
- We have the dollar still in the middle of the price wedge
- Average true range is falling on the dollar
- Very concerned over speed of the tape
- Very concerned over lack of movement

- It appears that the drop we saw at 845 is now turning into a bounce back up into the previous sideways range.

- Trying to tell if the gold buyers or sellers are in control

o Are we trading sideways at these new lows?
o Or are we simply reversing off the lows and going to back up into the HOD?

- We are trading sideways now at the PREVIOUS LOD, which is a transitional area on our charts

o Above PLOD = bulls are in charge
o Below PLOD = bears are in charge

GOLD TRADES:

- 955 NEWS, consumer confidence came out higher than expected
- Dollar bullish
- Gold bearish
- Sell gold
- Dollar had lots of room to run
- Dollar goal was to test the highs of the price wedge


1100am est

- Friday mornings are expected to be an early close, so we’re watching the pace of tape and other indicators to tell us when the market is slowing down.

- We’ve had a great day so far, lots of winning positions, and we want to protect that capital
- Pace of tape is RED across the markets we trade

Click Here To Review Our Auto Trader Results From This Morning

Divergence Day Trading Method; Day Trading Euro with Dollar Index Futures

- The divergence method

o Watch the video, and follow along with the notes that are posted in the adv course
o When does the trade signal become invalid?

- Using the dollar to trade the Euro

o Buying pullbacks and selling retracements
o How many bars in a pullback?

 Never know how many bars in the pullback
 You will know what a GOOD pullback vs/ a BAD pullback
 You will know the reversal before it takes your money from you.

• Watch the video in the advanced course
• Ask questions in the trade room when you see pullbacks you need help confirming
- Inside days vs Outside days

o Inside = we are trading inside the range from yesterday (above the lows and below the highs)
o Outside = we trade above / below the range from yesterday
o Why does price move?

 People react on their opinions, biases, their emotions of fear and greed

o Why would price be moving?

 Because traders see more/less value at that current price level
 If price is rising into the highs of day, then we assume people see price as TOO CHEAP
 So why would price move nowhere?

• Traders don’t KNOW if the price is too cheap or too expensive

- Profit targets and trade management

o Section 11, managing the trade
o Scalpers will use the same standardized trade management

 6-8 tick stop
 5/10/Runner
 4/8/Runner
 Never touch our first 2 targets unless 3 strike rule

- Sharing volume during contract rollover

 o How do you know when the markets roll over?

 Your broker will usually email you
 Go to the exchange website
 Use our blog and look for the contract specifications

- Contract Rollover today on the e-mini, currencies, bonds

- Why range charts?

o ALL the pattern look the same b/c all the candlesticks have the same range inside them
o Compare that to a minute chart and the range charts look nice and clean
o I make money when the market has trading range

 Do I make money when the market uses a lot of TIME? No.
 Do I make money when the market uses a lot of TICK? No.
 Do I make money when the market uses a lot of VOLUME? No.
 Do I make money when the market uses a lot of RANGE? YES

o Easy to predict the risk on the trade

 Assuming you enter a trade at the highs of the bar, and your stop is placed at the lows of the bar
 We always know the amount of risk

- Auto Trader, fully-automated trading system

o 20 tick stop
o 75 tick target
o Very low RRR
o Very low drawdowns
o Takes on avg 1.5 trades per day

Day Trading Gold, Euro, Crude Oil, Russell Futures

Trade room is OPEN, Click here to join the room

Click here for help entering the trade room

Lets begin our day with the economic news, we have some important announcements to keep an eye on this morning.

830 Trade Balance / Import Prices

955 Consumer Confidence

1100 Beginner’s Training

Now lets check the US Dollar Index Futures market to see where our direction is headed today.

click me

We can see the dollar index is trading sideways at the highs of the bearish price channel (yellow trend lines)

We notice a few things about this 21-range chart:

-          Long term sideways range from 80.425 down to 79.000

-          Most recent range from 80.425 down to 79.700

-          We are trading INSIDE DAYS for two days now

-          We are not at the highs or the lows of this recent range

-          We are in the MIDDLE of this range

-          Slow Speed of the tape

-          Rock-bottom Average True Range

This information on the dollar chart tells us a lot of what’s going on in this market, and this wil affect the markets we trade dramatically, so we pay close attention to the dollar.

Trading in the middle is my biggest concern.  Sideways and choppy dollar will often mean the same for gold, crude,euro, Russell and more.

The best thing we can do right now is realize the dollar is telling us to be careful, and be looking for price to break out of this ‘inside trading day’ and test the highs or the lows 80.425 or 79.700

If the dollar stays flat we need to be extra careful today, being a Friday before the holiday season, this market may go nowhere, but we wont know till we see the news at 830am

Now that we know the dollar index, lets check the Gold Futures market to see where we are today

Gold has been trading sideways at the lows of this price channel for a few days now.

We can see the blue trend lines define this price channel, and after the new highs from late last week, we’ve dropped off those highs on dollar strength and now it looks like gold is looking for some clarity on its next move.

One things we notice right away is the SIDEWAYS trading range we have on this 34-range chart.

Trading sideways markets are easy, just buy the lows and sell the highs, so lets look at the most likely support and resistance levels.

Im going to sell the highs of the recent trading range of 1393.0 and buy the lows of 1382

Inside of this trading range I need to avoid trading in the middle, and wait to buy support and sell at resistance.

One thing I will also be looking for is a breakout, and I have a plan of attack for that too.  Since we can see sluggish price action at the highs and lows, im not going to buy the breakout or sell the breakout, im going to use a more efficient way of getting into rising or falling price, selling a retracement or buy the pullback.

Trading sideways markets aren’t difficult, so sell the highs, buy the lows and remember to buy the pullback if we break new highs and sell a retracement if we break new lows.

Lets check out the crude oil futures market

Much like gold, the crude oil market is trading sideways into this morning’s 830am news as well.

We have the price channel (blue trend Lines) and you can see we are the highs of the price channel and in the upper third of the sideways trading range.

As we said with gold, trading sideways markets are easy, buy the lows and sell the highs.  Im also going to keep the sideways trading range in mind as well.

Sell the highs of the range below 88.35 support

By support at 88.00 on the way down, or cover your short trade at 88.00 on the way to the bottom of this price channel.

if we break new highs im looking for 89.00 up to 89.42, and I will take profit at the highs and sell the highs of 89.42 taking it back down.

Sell the highs and buy the lows, this is how we will be trading this crude oil market today.

Lets check the euro futures market

We’re trading sideways at the highs of the price channel, so im looking to sell these highs, taking profit at levels of support on the way to the bottom of the price channel.

We see a sideways market, so remember we can buy support and sell resistance.

So look to for a short term day trade buy at 1.3163, and a long term sell at 1.3284

We look for short term bounces, and long term drops because we’re at the highs of the price channel, and since we’re trading sideways there is not short term trading bias.

I can also keep an eye on new highs, and look to buy the breakout.

One thing to concern is that buying the highs or selling the lows in a sideways market can be very tricky.

Fake-out breakouts are always happening on sideways markets, so don’t try and predict, react to the breakout with buying a pullback and selling a retracement.

Automated Day Trading Software System Review

We had another exciting day of discretionary trading today, but lets see how our fully-automated trading system is doing today on some of our favorite markets.


Lets see how Gold Futures did today

Gold has been on FIRE the last 90 days on this automated trading system. I'm using tight stops and wide targets on this (60/20)

We took a loss at the end of the day yesterday for a -20ticks, and then you can see we grabbed the highs for a short and took profit at the lows for a 60-tick winner.

With such a low risk-reward ratio we cant lose with this strategy.

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The Euro is our favorite currency future, and as you can see, the automated trading system works amazingly well here too.

Over the past 2 days on the euro we took 4 trades; 2 winners and 2 losses.

Normally this would be a losing strategy, but with such wide targets and tight stops, and only 1.5 trades per day, this automated trading system is almost bulletproof.

We lost a total of 40 ticks, but earned 120 ticks on the winners, for a net profit of $800usd in 2 days on only 1 contract.

Yes, I said only 1 contract. That is 80 ticks profit PER CONTRACT.

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Some basic information about this automated trading system, available for our advanced members only.

- Included with Advanced Membership
- Has no monthly fees
- Runs on NT 6.5 and 7.0
- Does 100% of the work for you
- Start with only $500usd in your account
- Entry, Exit, Trade Management, everything
- Trade as many markets as your account will bear
- Flat Overnight = Low Risk = Low Margins
- Small Drawdown = Great equity curve
- Low Risk Reward Ratio (20tick stop / 70 tick target)
- Licensed to the individual trader
- Includes all future up-dates and 24/7 tech support
- Easy to incorporate with our Live Trade Room discretionary trading methods
- Set it & Forget it Day Trading

As Always We Love Your Feedback

Another 300 Ticks Day Trading Gold and Crude Oil Futures; Automated Trading System

Click Here To Review Our Auto Trader Results From This Morning

830am

Jobless Claims came out lower than expected, but within range

Markets are moving slowly right now, let’s be patient.

830am

We took our first two trades on crude oil, 1 tick loss, and a 16 tick winner

We see resistance holding at the highs of this channel, so im going to look to sell the highs based on the tape reading we are doing.

900am

Breaker pattern LONG on gold was a winner, took profit at the highs of the channel

Looking for gold to break the highs of this wedge pattern, or we will sell the highs with a 2-step reversal pattern.

We don’t know when the trend line will break, so let it break first, and then buy the pullback.

1000am

We took the breakout on gold and made $500usd with 2 wave patterns buying the pullback.

This was EXACTLY what we were trying to do, great work!

1030am

Gold tested the highs after 10am news and then came off the highs

We had to avoid the first trade on the way down because the 10am news

Grabbed a short entry selling a retracement on the way off the highs at 1015am


1045am

Crude Oil is testing the lows of the price channel

I will buy these lows if we hold above 88.00

I will sell the breakout below 88.00, but as always, im looking to use a wave pattern short.

Click Here To Review Our Auto Trader Results From This Morning

Day Trading Morning Prep for Gold, Russell, and Euro futures

Click here to join the live trade room

Click here for help logging into the trade room

Lets start with the economic news for today

08:30 US Initial Jobless Claims, Continuing Claims
10:00 US Oct Wholesale Inventories
10:30 DoE Natural Gas Inventories

I'm going to avoid the news today 5 minutes before and 5 minutes after.

Now lets see how the dollar index futures are looking today

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The dollar index futures are still playing with this bearish price channel, but the past three days we’ve trading above and below the channel, but never seeming to find price INSIDE the channel.

Now we have the USD holding above the highs of the price channel, and we notice an INSIDE TRADING DAY on the dollar.

Trading inside the range from yesterday is a sign of indecision.  If the price has NOT broken new highs or new lows, the market participants on the dollar index are searching for something new to tell them future direction.

News events this morning at 830 and 10am est may be what the dollar is waiting for to find that direction.

The dollar index is looking for clarity, searching for conviction on the direction for today

We need to wait to see that direction, then we use the dollar index correlation to make educated decisions.

One way to make it easier to be patient and wait for the dollar to move first is to use the price alert indicator to mark the highs and the lows of the recent trading range.

When the alarm goes off you know the dollar is moving and a moving dollar will bring moving gold, euro, crude oil, Russell.

Crude Oil futures are trading at the lows of the price channel.

click here

 As day traders, we LOVE seeing price at the highs or the lows of a price channel.

Buying the lows of the price channel is a common trading technique we use.

Yesterday the crude oil was in the middle of the channel, so we had sideways markets on Wednesday

Today we’re at the lows of the channel, so we’re looking to buy the support at the lows.

This is the LONG TERM chart, so day traders and scalpers looking at shorter timeframes will have long and short trading opportunities.

The higher percentage will be trading to the long side this morning.

Keep an eye on the trading range we are in currently.

Highs of 88.75 and the lows 88.0, don’t be afraid to buy the support of 88.0 and sell the resistance at 88.75.

We had a divergence method buy signal on the crude oil futures this morning at 755am EST.

Notice the 13r fired off long, then confirmed by the 4range firing off long with a 2-step pattern for your entry.

Gold futures are trading at the middle of longer term channel, and the lows of the shorter term price channel.

click me please :)

 We want to buy the lows on gold futures at the support of the lows of the price channel.

I also see a trend line coming overhead as resistance, and this creates a wedge pattern.

Buy the lows and sell the highs of the price wedge.  

 This wedge will be the major overhead resistance keeping this market from rising off these lows.

Look for the break of the overhead trend line resistance (1387)for a long term buying opportunity.

The market is trading sideways from 1393.3 down to 1373.0, so buy the support lows and sell the resistance highs.

Longer term traders will want to buy above 87.1, and shorter term day traders and scalpers can trade in either direction.

 Click here to join the live trade room

Click here for help logging into the trade room

Automated Strategies, Backtest, & Optimize Without a Live NinjaTrader License Key

Yes – you can load automated strategies, backtest, & optimize without a Live NinjaTrader license key.

You can enter this free version license key into NinjaTrader by going to Help > License Key

License Key:   @SIM-F82F-D583-40B1-AE74-B79F-705D-1952

*Please note that the license key is case sensitive. Be sure not to enter any extra spaces.

Please let me know if you have any additional questions.

Sincerely,
Chip McEwen
NinjaTrader Customer Service 

Support@NinjaTrader.com

Day Trading E-Mini Russell and Crude Oil Futures with Automated Trading Software

We had an incredible day in our discretionary trading, but the REAL action was quietly piling up profits on our automated trading software.

I wanted to start with crude oil today so you can see just how SOLID this automated trading system is.

You would NEVER think of using an auto trader on Wednesday…crude oil inventories at 1030am…that would be day trading SUICIDE…right?

Crude Oil futures make easy profit with this automated trading system, even in the hardest trading environments.

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Remember, these results are PER CONTRACT guys! I know!

You can see the last 2 days on crude oil have been HUGE. 6 trades, 3 wins, 3 losses, and we earned $900usd…when was the last time you hit 50% winners and made $900? Oh yea…while you were asleep.

I like trading commodity futures personally, but im also running this on the e-mini futures as well. The Russell is my favorite e-mini market to trade, and as you can see, we also make great automated profits when trading the mini Russell (TF)

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The Russell was not as active as the crude oil chart above, but you can see 3 trades. 1 loss, 1 winner, and we are waiting to fill our profit target @ 771.0 on the long trade this automated trading software took @ 3am EST today.

As you can see, we lose 20 ticks per loss, and we earn 75 ticks for every winner…do the math…this is going to add up quickly guys!

Our risk/reward ratio makes this strategy a no-brainer, and im excited to share more of this with our members in the near future!

Remember, your feedback is always appreciated!

Record Breaking Day Trading Profits Crude Oil, Gold, Russell and euro futures strategy

Click Here To Review Our Auto Trader Results From This Morning

- Three signs of price reversal

o Decreasing speed
o Momentum curls against you
o Big money confirms the reversal

- Trade Management

o Scalpers = always the same
o Day & Swing Traders will use levels of support and resistance to place their stops and target
o Stops = 6-tick (scalper), 10-20-tick stop for day trader
o Targets = ALWAYS at support or resistance

- Trading Crude Oil on Wednesday and what to expect

o Wed @ 1030am EST we have CL inventories
o Expect to see sluggish and indecisive price action ahead of the news

 We often never get a trade before 1030am

o After 1030 when the news is released we need to try and understand what the reaction to the news is trying to tell us.

- Where do we find the best 2-step patterns?

o Never happen in the middle of the range
o Sell the highs
o Buy the lows
o Best 2step patterns come at support and/or resistance
o I wait to see the TEST of the highs or the lows, then take the reversal trade.

 Not ‘close’ to the highs or lows, but actually TEST that level.

- Benefits of multiple timeframes

o Patterns = more patterns to confirm your trades
o Momentum = use multiple timeframes for momentum to confirm
o Use our AUTO LEVELS indicator to find all the most important levels of support and resistance.


- Time and Sales properties in the advanced course

o Check the adv course download section

- Why do I move my stop sometimes, and why do I leave it?

o When the momentum indicator has not 100% confirmed yet (cheating)
o When we see support or resistance that may prevent the 2nd and 3rd targets from being filled

 Expect a small ‘bounce’ and therefore we give the trade more room to breathe

- Holiday Schedule

- Last day of trading = next Monday the 13th

o Trade room is closed from Tuesday 14th
o Re-open in the new year on 10th of January

- What do we do when we hit our profit goal?

o Move to demo, keep trading
o Stop trading and take a nap
o Keep trading LIVE, but try to limit your risk

 Trade smaller size
 Be more selective
 Look for more filters to confirm

Click Here To Review Our Auto Trader Results From This Morning

Day Trading Strategy for Ags/Grains; Corn, Wheat and Soybean Futures

Questions:

- Ags / Grains (Corn, Wheat, Soybeans)

o Corn = ZC
o Soybeans = ZS
o Wheat = ZW
o Big moves in grains markets have new traders always asking for more information on how to trade them
o Not suitable for new traders

 Margins are SO high
 Liquidity is very low (very dangerous if the markets go limit-up/down)
 They have an open PIT, so the fees are also higher
 You need to know almost everything that’s going on in the world we live

• Economic reports are tough
• Add Crop reports

 The trading day is VERY short

• 1030am OPEN
• 215pm close

- Auto Trader

o What’s coming up next?
o 25% completed
o $1500/mo/contract
o No overnight margin needed
o Download it NOW in the advanced course
o Training on Wednesday @ 1130am est for members

 Finalizing the software (complete the beta this week and posted on Monday)
 Adding in the wave pattern next
 Adding in trailing stop
 Adding in multiple profit targets

- Holiday Schedule

o Last day of trading is Dec 13

 Trade room closed on 14th, Tuesday

o We return to the markets Jan 10, 2011
o During this time the trade room will be closed, however…

 The auto trader will still work
 All of your charts, templates, indicators will still work
 The market will be challenging
 Our sales and support teams will be available via email and skype, live support
 Over the break…

• Trade with market replay using old data, not the current price action
• Make sure you’ve watched all the videos, practice the patterns
• Look at multiple timeframes

- Increasing your execution speed

o Don’t try to do too much
o Trade within your means

o Members training on nov 10 talks about preparing for a trade ahead of time so you are more prepared for it.

- NT 7.0 and using indicators

o Any day now they will done
o Once they are done, we will then convert everything over to NT7

- Trade Management chart
- All the different arrows on the charts, what do they mean?

o Red / Green = divergence indicator
o White = added manually by Me

- What different indicators do we use?

- NT7 Indicators are ALMOST done, they are done, but the download isn’t working on them, so im waiting for that to be fixed on Monday the 13th.

day trading strategies for crude oil, gold, dollar index, russell and euro futures

Day trading morning prep for 12-08-10

Our live trade room is open for members and guests.

Click here to join the live trade room

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Lets begin our day with the economic news reports for today

Click here for today’s news

http://schooloftrade.com/news.php

830 – Housing Starts

1030 – Crude Oil Inventories

1130 – Live Members Training

Now that we have the news for today, lets take a look at the dollar index to give us the correlation for the day ahead.

Dollar Index Futures

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 We can see the dollar index has travelled from one extreme to the next in only 1 trading day.

This is exactly what we expected.  Yesterday the dollar is at the lows of the price channel, and the goal is to get the price to the top of the channel, and you can see that was accomplished.

With that said, we’re now looking for a few scenarios at the highs of this price channel.

1.  The market may sit here at the highs and go sideways

2.  The market may keep going

3.  The market may reverse and come back down

Using those 3 options as our guide, lets look at what the opportunities will be.

If we go sideways…expect to see a sideways day on the markets we trade most.

If the market keeps going above the top of this channel look for the markets we trade most to fall, so im looking for selling opportunities if the dollar keeps rising

If the price reverses and falls back down I will be looking for buying opportunities on the markets we trade.

IN closing, we use the correlation to the dollar to make educated decisions about whats coming up today.

Right now we need to wait and see what happens next.  If we go sideways at these highs be ready for a higher risk trading day.

If we move up or back down look for another day filled with trading opportunities.

Lets see what happens, ill be trading it live in our trade room this morning @ 8am est.

Gold Futures:

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 Look at gold tumble off the highs of the price channel from yesterday.

We had gold at the highs on Monday and Tuesday, and as expected, the market came off the highs of the price channel for nice selling opportunities on Tuesday.

Now here on Wednesday we can see a few options:

The market may go sideways from 1400 to 1391, and if that is the case we buy the lows and sell the highs of that narrow trading range.

Im expecting the gold price to drop all the way down to the trend line support at 1380

I will be looking at buying support levels on the way down.

As price comes off these highs on gold we will continue to see levels of support hold and give us chances to profit from ‘buying the bounce’ on the way down.

The highest percentage trades coming down off the highs will be selling the break of support, or selling the highs, so keep that in mind.

Look for gold to go sideways today or to continue dropping. 

The dollar index will help tell the story, so we will wait and see.

Crude Oil Futures

Hi!  click me please :)

 Crude oil and gold look very similar once again today.  Crude oil was trading at the highs on Monday 

and Tuesday and we profited in our trade room by selling those highs and buying at support on the way down.

Now we see price has come off the highs and back into the price channel.

87.65 is the bottom of the price channel, so I will be looking for buying opportunities at 86.74, 87.00, 87.14, 87.67, and 88.00

The key to trading a price channel is buying the lows, and keep an eye on the support level needed to be broken to violate this channel.

If we break below 86.74 expect the sellers to take control and we will be looking for shorts.

With that said, we need to assume this bullish price channel will be the most important aspect, so buy the lows and sell the highs of the channel.

Again, the dollar index will lead the way on this today.  Falling USD will result in crude oil jumping back up to the highs of this trading range, so we will trade accordingly in our live trade room.

Euro Futures:

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 The euro has reacted exactly as we wanted it to, making it easy to profit from this simple price pattern we can see on this slower timeframe.

We all know how to trade price channels, buy the lows and sell the highs

We bought the lows on the euro last Monday at 1.3100 and sold at the highs of 1.3300 for an easy swing trade for a few hundred ticks of profit.

Then we sold the highs of the channel late last week at 3350 and we’re taking profit on this swing trade short on the way down.

Now we can see breaking the bullish price channel and trading sideways at 1.3200.

The dollar index will tell us what to do next…

If the dollar falls today, expect this euro to test the top of this bearish price channel at 1.3300.

I will be looking to sell short at 1.3300 to add to our short position while this market is falling.

Remember, if the dollar goes sideways I will expect the euro to be a VERY rough day, so use that as your guide.

I want to see a MOVING DOLLAR to have a moving euro.

More to come on this in the trade room today as we read the tape and identify the control of price on the dollar.

E-Mini Russell

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 The Russell is the only futures market that DID NOT tumble off the highs from late last week.

The certainly tells us that the mighty e-mini Russell is searching for answers at these highs.

The dollar has been dropping for a week (until Tuesday’s rally) so the equity index are overbought and trading artificially at their highs.

It looks like we have a few options on the Russell with its sideways trading range.

If the dollar goes sideways today expect the Russell to stay moving sideways.

Sideways markets are easy, buy the lows and sell the highs, so be patient for the price to TEST the lows or the highs before looking to execute a trade.

Don’t fall victim to fake-out breakouts, I would expect the Russell to trade sideways unless the dollar pushes it up or down, so again, we rely on the dollar to give us some feedback FIRST, and then we can make an educated decision on the direction of the Russell.

If we break new highs I will sell the highs or buy a pullback

If we break new lows I will buy the lows or sell a retracement.

Trading sideways ranges you always need to worry about fake-out price reversals at the highs or lows, so that is why we buy pullbacks and sell retracements instead of trying to predict the price breakout in the first place.

As always, I will review this in our live trade room today @ 8am est.

Our live trade room is open for members and guests.

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