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Edition 760 - January 18, 2019

trading education

 

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:  ETF Trading

At times in the past I got so wrapped up in day trading that I no longer could see the forest for the trees. I convinced myself that I needed to day trade because I don't have much time for trading. So I limited my day trading to 1-1.5 hours per day. Then along came a student, and I realized for about the thousandth time that if I really didn't have a lot of time for trading, I ought to be trading the weekly charts.

My friend John and were going over some strategies, and I was telling him about someone I know who trades only the weekly charts and who is making a lot of money.

I said to John, "All he does is trade Exchange Traded Funds (ETFs) from the weekly chart. The rest of the time he spends on the beach. He follows the sun, and for him it is springtime and mild summer wherever he goes."

Is that not an enviable lifestyle that many, if not most, traders dream about? I will show you just one of the many ETFs available for trading. By trading them from the weekly charts, you avoid all the confusion and noise of daily and intraday charts.

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

On the chart above, the green arrow indicates the first clearing of the consolidation. Its low was 20.08. The high of the consolidation was 20.07. The red arrow points to a Traders Trick Entry to trade short. The black arrows all point to unfiltered Traders Trick Entries to go long. Each Traders Trick is preceded by a Ross Hook. Although there may be fewer trades per ETF, an even better way to trade any market is with “filtered” Traders Trick Entries. The percentage of winning trades is exceptional. Here is a link to Traders Trick Advanced Concepts.

© 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:  Covalency

Someone asked, “What in the world is 'covalent bonding of futures pairs?’”

Covalent bonding of futures pairs is said to create the best trading system portfolio structure. After the most stable individual futures parameters have been selected, the optimal portfolio should be created. Atoms share electrons to form molecules of a substance. This same covalent bonding process finds the trading system's most profitable futures, then tests all futures to find the best futures pair, and then the best possible futures for the optimal portfolio. Often the best futures, most profits divided by lowest draw-down, will not be part of the best futures pair. Covalent bonds share the daily equity runs so when one futures or pair loses money, another futures or pair should gain equity. Adding the euro to T- Bonds, or Japanese yen to the British pound, may lower the combined maximum equity draw-down to a figure lower than the maximum equity draw-down of either individual futures. This is the function of covalent bonding applied to optimal portfolio construction.

The optimal portfolio structure is completed when the percentage of individual futures equity gain increases less than percentage of maximum equity draw-down. Portfolio A makes $500,000 with a maximum equity draw-down of $25,000. Adding a new futures increases the profits by 10% to $550,000, buts also increases the equity draw-down from $25,000 to $30,000. While a $5,000 draw-down increase is small in comparison to a $50,000 profit increase, the futures should not be added, since it increases maximum equity draw-down by 20%. Adding more contracts of a futures already within the optimal portfolio with less risk may be safer than a risk increase of 20% for a gain of 10%. It is a little known, or understood, fact that some futures, within a system portfolio, may add up to four contracts and successively lower the maximum equity draw-down while profits are increased with each addition.

Having said all that, I have no idea what it means. Do you. All I did was answer the question.   : )

© 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 Idea:  Instant Income Guaranteed

MOS Trade

On 1st January 2019 we gave our Instant Income Guaranteed subscribers the following trade on Mosaic Company (MOS). Price insurance could be sold as follows:

  • On 2nd January 2019, on a GTC order, we sold to open MOS Feb 15 2019 23P @ 0.25, with 43 days until expiration and our short strike about 21% below price action, making the trade very safe.
  • On 8th January 2019, we bought to close MOS Feb 15 2019 23P @ 0.10, after only 6 days in the trade.

Profit: 15$ per option

Margin: 460$

Return on Margin annualized: 198.37%

Philippe

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

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

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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 Article:  Trading System

You will need a system or plan if you want to succeed in trading. The usual way of attaining such a system is...read more.

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.

© 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

With Ambush Signals you can easily follow Ambush, a system specialized in catching intraday market tops and bottoms in the Futures markets.

Sign up for Ambush Signals Today!

LEARN ABOUT AMBUSH TRADING METHOD

With Ambush Signals you can easily follow Ambush, a system specialized in catching intraday market tops and bottoms in the Futures markets!

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

Each day around 6:30 pm NY Time the Signals are available for you on the Dashboard. You can then place your orders and literally walk away until the next market close! To find out more about the details of Ambush and how Ambush Signals works, have a look at the Ambush Signals Website.

Let’s be realistic. Following any System can be tough, especially in the beginning. It simply needs time to build the confidence needed to make it through inevitable drawdowns. So what if you are unlucky and don’t catch a good start right away?

I want you to succeed trading Ambush Signals, so here’s something for you that will strongly increase your odds of success and allow you to easily gain the confidence you’ll need to become a long-term profitable Ambush trader.

Find out more about Ambush and Ambush Signals!

Did you come up with questions?  Don't be shy, email Marco Mayer, he wants to hear from you!  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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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.