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Edition 739 - August 10, 2018

trading education

 

Over the last two weeks, over $7,500 in profitable trades!  Scroll down to
Marco Mayer' s Ambush Trading Method, this deal you won't want to miss!. 

 

Master Trader Joe Ross shares trading education

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed

Chart Scan with Commentary:  Spreads

Recently, during our Italian spread seminar, May 24-25 I gave two examples of observation spreads.  With an observation spread you truly trade what you see—one market going up while the other goes down; or, one market going up while the other is moving sideways; or both markets going up or down, but one is moving much faster than the other.

In the Live Cattle-lean hogs trade shown below, cattle prices are rising, but hog prices remain in a sideways trading range.

 Joe Ross shares trading success with Traders Trick Entry and Ross Hook trading methods example trading education Joe Ross shares trading success with Traders Trick Entry and Ross Hook trading methods example trading education

In the soymeal-soybean trade above, prices in each leg of the spread are falling, but soybean prices are falling faster, and more steeply than soymeal prices.

In any event, if you stop staring at a day trading screen and look around you’ll see plenty of opportunities like the spreads above.

© by Joe Ross. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.

 

 

Master Trader Joe Ross shares trading education

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed

Trading Article:  Perspective: Winners VS. Losers

We all want to feel like winners. Winning makes us feel on top of the world, as if we can do anything. But in the trading business, the bottom line is how much money you make in the end. As I’ve mentioned in past issues of Chart Scan, best way to monitor your performance is to use a win-loss ratio, but there are many different ways to calculate this statistic, and each have advantages and disadvantages.

The first issue to consider when calculating a win-loss ratio is to decide on a reference point to use for your calculation. It's up to you, and it depends on how many trades you make. If you only make 10 trades a year, it makes sense to use a year as your reference point. If you make 10 trades a day, in contrast, you may want to use a day as a reference point. Most people would probably use a week or a month. Specifically, the win-loss ratio would be based on all trades made in the reference point. For example, if you decided to use a month as your reference point, you would calculate the win-loss ratio based on all the trades you made in a month.

The second issue is to decide which formula to use to calculate the win-loss ratio. There are at least three ways. In the first way, traders compare the number of winning trades to the number of losing trades. The dollar amounts are ignored. For example, if you made 10 trades in a week, and 6 trades were winners and 4 trades were losers, you would divide winners (6 trades) by losers (4 trades), and end up with a value of 1.5. Values greater than 1 indicate that you are winning overall (based on a reference point of a week), whereas values less than 1 indicate that you are losing overall. Some trading experts criticize this approach because it is easy to distort this statistic. If you know, for example, that you have made 5 losers and 5 winners, you can make a few small winning trades that produced relatively little profits and make yourself come out as a winner. It is argued that because the dollar amount is not built into the ratio. it provides a biased picture.

A more formal approach, which is often used in the money management strategy developed by John Kelly, uses the average dollars won and lost across a series of trades in a reference point, such as a month. For example, if you made 20 winning trades and 80 losing trades in a month, you would calculate the mean dollars won across the 20 winning trades and the mean dollars lost across the 80 losing trades. Once you have the two averages, you would simply divide the average dollars won by the average dollars lost. Again, values greater than 1 indicate that you are winning overall, whereas values less than 1 indicate that you are losing overall (across the reference point). The advantage of this approach is that the actual dollars won or lost are taken into account. The disadvantage is that an average, or mean, may not provide an accurate view of how much money is won or lost.

The disadvantages of these two approaches have led us at Trading Educators to suggest using a modified version of the win-loss ratio. We suggest taking the total amount of money you won across a series of trades and divide it by the total amount you lost. For example, if you made 20 winning trades and won a total of $5000, and made 15 losing trades and lost a total of $4000, you would divide your wins by losses and end up with a value of 1.25. (It may also be useful to multiply this value by 100 to remove the decimal).

There is no one right way to trade, and there is no single correct way to calculate the win-loss ratio, but whatever you decide, it is useful to monitor your performance. By calculating a win-loss ratio, you remove some of the mystery and uncertainty in trading. You know where you stand, and you will be more aware of where you have been and can think more clearly about where you are going.

© by Joe Ross. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.

 

Philippe Gautier shares his Instant Income Guaranteed trading education

by Philippe Guartier:  Administration and
New Developments of Instant Income Guaranteed

Trading Example:  Instant Income Guaranteed

KEY Trade

On 19th Jul 2018 we gave our Instant Income Guaranteed subscribers the following trade on KeyCorp (KEY). Price insurance could be sold as follows:

  • On 23rd Jul 2018, on a GTC order, we sold to open KEY Aug 31 2018 18.5P @ 0.15 , with 37 days until expiration and our short strike about 10% below price action.
  • On 30th July 2018, we bought to close KEY Aug 31 2018 18.5P @ 0.05, after 7 days in the trade for quick premium compounding.

Profit: 10$ per option

Margin: 370$

Return on Margin annualized: 140.93%

Philippe

Receive daily trade recommendations - we do the research for you.

Joe Ross and Philippe Gautier share trading success with Instant Income Guaranteed options selling example trading education

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© by Joe Ross and Philippe Gautier. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc. 

 

 

Andy Jordan Educator for Futures Trading Strategies on Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook

by Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, Day Trading, and 
Editor of Traders Notebook Complete

Trading Example:  Traders Notebook

This week, we're looking at -ZLZ18+2xZLN19-ZLZ19 Butterfly Spread: short 1 December 2018, long 2 July 2019, short 1 December 2019 Soybean Oil (CBOT on Globex).

Andy Jordan shares a position trade success trading education

Today we consider a Soybean Oil Butterfly spread: short 1 December 2018, long 2 July 2019, short 1 December 2019 Soybean Oil. The spread looks a bit wild with many ups and downs but has found support around 0.6 several times and has been following nicely its seasonal pattern. As long as this level holds, the spread has a good chance to move higher. Traders have to “leg-in” into the spread by selling and buying each leg separately or by selling and buying the spreads involved (December 2018 – July 2019 and July 2019 – December 2019).

Do you want to see how we manage this trade and do you want to get detailed trading instructions every day?
Click here for additional information!

Did you miss our 50% off Summer Sale?

Use Coupon Code During Checkout
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Andy Jordan is the editor for Traders Notebook which shows you Futures Trading Strategies in Spreads, Options, and Swing Trades. Learn step-by-step how to trade successfully.

Click Here for Valuable Information about Traders Notebook

© by Andy Jordan. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.

 

 

Marco Mayer shares trading success with Ambush Trading Method example trading education

by Professional Trader Marco Mayer
Educator for Forex, Futures and Systematic Trader
Creator of Ambush Trading MethodAmbush Signals, and Head of AlgoStrats.com

In two weeks, Ambush Trading Method made over $7,500 in PROFITS!

Ambush Trading Method has a proven track record.  The last few Chart Scan Newsletters have given you examples of winning trades and you can be in on them:

Edition 738

Edition 737

A SPECIAL DEAL IS COMING YOUR WAY!!

Be on the look out for next week's Chart Scan Newsletter, just for our subscribers!

Here is a recap of last week!

Ambush Traders keep on dominating the Natural Gas market

The Ambush trading method is specialized in catching intraday market tops and bottoms in a variety of Futures markets. Including the Natural Gas Future (NG) traded at the NYMEX, where Ambush Traders are having an amazing run for months now.

Ambush day trades on an end-of-day basis so there’s no need to even check the markets during the day.

As you might know, Natural Gas is one of the all time favorite markets for Ambush. And looking at the following chart it becomes clear why. It’s one of the least trendy markets out there. Like all markets it goes sideways most of the time but even when it trends it’s doing so in a slow manner. Just have a look on the chart and ask yourself what kind of trader you want to be. The one making money on the rare occasion of NG trending (blue arrows) or during the remaining 90% of the time (red boxes).

Marco Mayer shares trading success with Ambush Trading Method example trading education

Here’s the result of all of the trades you can see on the chart, trading one NG contract, including $10 commissions per trade. Yes, that’s over $4620 trading just one contract with a winning rate of over 75% and a profit factor of over 4!

Marco Mayer shares trading success with Ambush Trading Method example trading educationMarco Mayer shares trading success with Ambush Trading Method example trading education

Don’t miss the next trade and become an Ambush Trader!

The most popular and easiest way to follow Ambush is Ambush Signals. It does all the work for you, allows you to customize what markets you want to see and has a position sizing tool implemented to automatically adjust the positions to your risk preferences. Learn More about Ambush Signals!

If you’d prefer to generate signals on your own and want to know the exact trading rules of Ambush, purchase the Ambush eBook.

Happy Trading!

Marco

Feel free to email Marco with your trading questions, This email address is being protected from spambots. You need JavaScript enabled to view it..

© by Marco Mayer. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.

 

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A WEALTH OF INFORMATION & EDUCATION:
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Note: Unless otherwise noted, all charts used in Chart Scan commentary were created
by using Genesis Financial Technologies' Trade Navigator (with permission).

Legal Notice and Copyright 2018 Disclaimer - Published by Trading Educators, Inc.
Chart Scan is a complimentary educational newsletter.

© by Trading Educators, Inc. Re-transmission or reproduction of any part of this material is strictly prohibited without prior written consent.

Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.