- NLT Top-Line, for the Independent investor, where we install real-time analysis software.
- NLT HF-Stock-Trading: For frequent traders, able to trade the markets every day.
- NLT Wealth Building: If you are trading two times a week/month.
- NLT Income Generating: For day-trading futures and options.
Friday, November 30, 2012
How To Identify Sideways Moving Markets In Advance
Looking
at a chart, you always know in retrospect that prices moved sideways, but how
to know in advance?
In
the NeverLossTrading concept, we integrated a study, which measures changes in
implied volatility and informs the trader by painting a "Purple Zone"
on the chart, indicating, that the
price/volume development of a share has reached this critical stage of consolidation.
Then, we either apply short term sideways strategies, or wait for the breakout
signal, to trade along with the direction after the breakout.
In
the “Purple Zone”, we find little directional movement with various counter
price trend activities until a breakout to the up- or downside occurs. To
support the visibility of such price development, we shade the price chart for
the time-period purple and produce a very powerful indicator, signifying:
-
Apply
short term sideways strategies, with limited risk or do not to initiate trades when
the Purple Zone continues, by not knowing when it ends and in which direction
prices might breakout.
-
Trend-trade
when the Purple Zone is over, if the first candle outside the Purple Zone shows
an arrow pointing to the trade direction:
o
Purple
Arrow: To the upside
o
Purple
Arrow: To the downside.
GE Daily Chart
At
times we get asked why the zone is purple?
The
answer is: It marks a time-zone of indecision where the market forces negotiate
until an upside or downside price-move concludes the decision making process.
The color purple is achieved by mixing red (down-color) and blue (up-color).
For
the beginning financial market investor, the best is not to trade in the
“Purple Zone”, but right after, when a trend is established.
More
advanced traders gauge the price range in the zone and take trades already at
the first break out. By being aware that even light-tower-candles that occur
can quickly be reverted while the “Purple Zone Indicator” is present.
If
we are in a trade that enters a “Direction Change Zone”, we either exit the
trade or adjust the range for the stop not to be taken out by radical price
movements. If we are unwilling to accept additional risk and still want to stay
in the trade, the stop line (red line) of the Double-Decker at entry into the
“Purple Zone” builds the point where we put our stop.
A
directional arrow after the Purple Zone identifies a high probable trade entry.
If
there is no arrow on the first candle after the Purple Zone, the study
recommends not to enter into a directional trade.
The
best trade entry for a trend trade is two ticks above/below the trade proposal
painted on the chart.
The
same functionality applies for Intra-Day-
and Swing-Trading Charts. After
our new software update, we are now allowing in the NLT-Purple-Zone-Indicator
to put a computer generated price proposal at the end of the Purple Zone
arrow:
SPY Hourly Chart
The
trade direction-pointing arrow after the Purple Zone now resides on the price
level of the cloud and identifies the new price direction to trade.
The
width of the cloud can be adjusted from the factory setting of 2 to a higher or
lower level:
If
the level is set to zero, the Purple Zone Cloud disappears.
If
it is set to 1, it narrows the width of the cloud.
A
setting above 2 widens the cloud setting.
Further:
The alert sound and the end of Purple Zone alert can be set to individual
preferences.
Additional Switch
Functions:
-
If
you want the computer generated trade proposal, set the switch on “Yes”.
-
To
receive a sound alert, when the End-of-Purple-Zone -Indicator is triggered, put
the switch on “Yes”.
The
“Purple Zone Indicator” is an integral
part of our software package. See, how you can integrate it in your trading. We
offer four mentorship programs, geared to the need of the individual Investor:
Schedule
for a private consultation: contact@NeverLossTrading.com
Tuesday, November 27, 2012
High Frequency Stock and Futures Trading (HFT)
Our latest edition to the NeverLossTrading concept family is
the HF-Concept. It offers:
- Frequent trades on key reference time- and tick charts.
- Clearly defined entries and exits.
- Human interaction (not automated).
The indicator family applies measures and proposes trade
entries based on:
- Momentum changes: Short-term price movement, trend in the trend. Dark-Green-Signal.
- Volume differential changes: Following institutional money flow: Light-Green-Signal.
- Trend positioning and price composition reversal potentials. Pink-Signal.
- Price Breakout after consolidation: Purple-Signal.
Today, we tested the NLT HF-Trading-System based on the input of a Linkedin-Group, where we asked for securities with proposed time and tick relations to test our indicators
on. The focus of the indicator-test is on the Momentum Change and Volume
Differential, the other indicators we leave aside: Pink signals (reversal opportunities) do not show on the
chart.
AMZN (Amazon): 1-Hour chart
The hourly chart for AMZN provided highest probability trading:
- 13 trades, 13 gains.
- The average entry to exit price move calculated: $2.
- Applying the NLT Delta-Force option trading concept, this trade provided an average return on capital of 30% per trade, which is an outstanding result, quadrupling the risk capital in 5-days.
Russell 2000 Futures on a 233-Tick Chart
Actually, the Russell 2000 and trading tick-charts is not
where we have the most expertise. By the request of a trader, we simulated the
233-tick chart and indeed it provided high probable entries and exits.
To not overcrowd the chart, we display the afternoon session
of November 27, 2012.
- The light-green and dark-green indicator provided 11 trades:
- Nine trades with an average gain of $60/contract = $540
- Two trades with an average loss of $90/contract = $180
- A net positive result of $360 in 2 hours.
We simulated a 333 tick chart and still had a positive
outcome of 8 gains and 4 losses.
Hence, the trader who proposed the 233-tick
chart gave us a higher probability tick-reference to trade on.
The chart below
shows the morning session. In Purple framed zones, we do not trade.
If you want to learn how to trade like this: contact@NeverLossTrading.com
Thursday, November 22, 2012
1 New Volume Differential Indicator for Stock and Futures Trading
Institutions try to hide their market actions by using
robotic traders, placing orders in small increments, however, by the sheer
volume of their investments you can spot their actions on the volume graph our software puts on your screen. In our latest project, we developed an indicator, which takes the volume
differential as basis for trade entry.
The way our new indicator works:
When the gradient (slope) of the Indicator changes direction,
the high and low of the referring candle is marked and a directional trade
proposal is generated:
Buy-Target; and Sell-Target; signals occur, spelling out a minimum calculated price threshold.
The trade entry will only occur, when the price threshold is
surpassed by the candle following the candles associated with the volume
gradient price move.
The target for the trade is 1/2-SPU (SPU is the calculated price-movement
per observed time unit).
To integrate power users in the development and test of our
new indicator, we posted It at the Linkedin group: "Algorithmic Trading for Real
Traders", and ran the
indicator on SPY (ETF of the S&P 500 Index) between November 7th
to November 21st , 2012. A 1-hour chart was chosen as key reference time-frame for SPY.
SPY 1-Hour Chart NLT Volume-Differential-Indicator (click the chart to magnify)
Summary:
The new NLT Volume Differential Indicator produced between November 7th
and 21st
- 10 trades with the expected gain of ½-SPU.
- 1 failure.
- 2 trades, which did not get initiated by not fulfilling the minimum threshold.
By the trading method, we teach to trade SPY, you will
learn to pick specific options suited for day trading. The goal is to achieve
an return of about 10 cents on a 50 cent investment per share controlled.
When approved by positive forward and back testing, this
indicator will be integrated into the NLF HF-Trading Concept. http://www.neverlosstrading.com/HF_Trading.html
Let us know your input or schedule for a private
demonstration.
Find a 25 minute introduction to NeverLossTrading at:
Friday, November 16, 2012
Spot the Footprint of Money on the Stock Chart
Institutional investors dominate more than 85% of the
financial markets.
However and how hard they try to hide their orders, private investors
can easily spot them:
- Algorithmic trading is a key word, which signifies the majority of today’s market interactions.
How do we as private investors cope with
this?
- Easy: “However Institutions place their orders; the Differential of Volume (orders exchanged per time unit) shows their actions on our charts, for us to trade along with”.
Hence, we do not battle or worry that most institutions have
superior trading technology; we take advantage of making their action visible
on our charts.
Attached a link to simple video, of successfully trading
along with institutional price moves:
The video shows how to trade Crude Oil futures on the two-minute
chart, while the NeverLossTrading Indicators work on every time frame. Below a
daily chart for MSFT.
This is what the chart shows and how we trade along
with it:
- The orange box frames the volume-change initiated price range. When the price breaks out of the box, this is the direction we trade.
- We color the candles by a specific algorithm and use them for trend trading: If the high/low of the second opposite colored candle is taken out by the following candle, it provides a trade entry or the trailing stop level on a longer trend trade.
- The lines on the chart show key price accumulation levels (support and resistance).
- The lower study shows the average and expected price move per time unit (here one day) and builds the first trading target.
- Stop-levels are either in the middle of the box or at outside the bottom or top of the box.
- The blue skyline looking bottom of the price chart shows the actual daily volume.
- We teach multiple trading strategies with options to harvest
along the price movement of the observed stock and developed a market scanner,
which give us daily stocks, setting up for a volume based price move.
Here another example: Trading AAPL (Apple Computer) with NLT
Indicators
The shown concept explains the key principles of
NeverLossTrading. In our mentorships, we align multiple indicators for high
probability trading with stocks, commodities, treasuries, currencies and their
derivatives.
Check out our offering at http://NeverLossTrading.com
Schedule for a private demonstration: contact@NeverLossTrading.com
We are looking forward hearing from you.
NeverLossTrading
Subscribe to:
Posts (Atom)