Spot and Trade Institutional Money Moves

Algorithmic Trading with Human Interaction for:

Day Traders, Swing Traders, Long-Term Investors

Showing posts with label . Trading Education. Show all posts
Showing posts with label . Trading Education. Show all posts

Saturday, January 13, 2024

Trend Reversal Indicator & Free Magazine

Embark on a dual educational journey with us today:

NLT Trend Reversal Indicator:

Discover the cutting-edge NLT Indicator designed to forecast trend reversals. This latest addition enhances our suite of tools, marking significant turning points in price movements.

Complimentary Trading and Investing Magazine:

Dive into a wealth of insights from diverse perspectives by exploring the free trading and investing magazine. Gain valuable knowledge and stay informed about the ever-evolving landscape of financial markets through the Traders World Magazine.

Don’t miss out on this enriching experience that arms you with tools and perspectives to navigate the complexities of trading and investing.

Unveiling the NLT Trend Reversal Indicator, a fine-tuned precision tool to identify high-probability price reversal points. This study paints your price chart with dynamic green signals, strategically guiding your entry, exit, and position adjustment. These signals denoted as Buy_R> or Sell_R<, exclusively manifest within the live NLT trend channel, ensuring real-time relevance.

Distinguishing between two signal types:

Buy_R> or Sell_R< (launched 2023):

Occurring in the current NLT trend channel.

Buy_X> or Sell_X< (launched now):

Signals are designed for longevity and tailor-made for meticulous backtesting.

In a head-to-head comparison, X-Signals stand out, boasting a probability exceeding 70% to pinpoint a crucial turning point, aligning perfectly with system-defined targets marked by dots on the chart. The mechanical execution of X-Signals offers a steadfast approach, delivering around a 70% probability of reaching the target, with box lines as optional considerations.

Unlock a threefold strategy in response to reversal signals:

Initiate Counter-Trend Trades:

Enter with defined parameters, either at the signal or the subsequent NLT signal.

Exercise Caution in Trend-Related Positions:

Prudently refrain from establishing positions aligned with the prevailing trend.

Close Open Positions Within the Trend:

Swiftly secure profits or minimize losses by closing positions within the ongoing trend.

Let us illustrate the R-Signal’s power through a compelling chart example from TradeColors.com. Elevate your trading precision with the NLT Trend Reversal Indicator, your beacon in the complex landscape of financial markets.

Gold Futures, with the NLT Reversal Indicator

The chart exemplifies five distinct reversal opportunities from October 23, 2022, to January 10, 2023. Remarkably, four of these reversals successfully reached their targets, underscoring the efficacy of our trading approach. One instance (11/9/22) encountered a stop, serving as a valuable learning experience.

Each reversal trading opportunity yielded an approximate $1,000 price change in the underlying contract, illustrating the potential for substantive gains. Beyond these highlighted instances, numerous additional trading opportunities abound, along with the emergence and continuation of trends.

In a personalized consulting session, we can delve deeper into these opportunities, assisting you in identifying the optimal system combination tailored to your preferences. As a glimpse into our latest innovation, consider the example of our cutting-edge X-Signal:

Elevate your trading prowess with NeverLossTrading, where each chart is a canvas of strategic opportunities awaiting exploration.

NLT Reversal Signal on the NLT Top-Line Chart

AMZN Daily NLT Top-Line Chart

AMZN Daily NLT Top-Line Chart

Day traders like to operate with the NLT Timeless Chart, where we focus on price increments rather than time changes.

NLT Timeless Chart Example with Reversal X-Signals

E-Mini S&P 500 Futures NLT Day Trading Chart

E-Mini S&P 500 Futures NLT Day Trading Chart

Exciting news: The NLT Trend Reversal Indicator is now available as part of a special introductory package when combined with TradeColors.com or any other NLT System. This indicator is designed to complement and enhance your trading strategies.

Elevate your trading prowess with the NLT Trend Reversal Indicator.

If you like to read our documentation on the new NLT Trend Reversal Indicator, email us:

contact@NeverLossTrading.com, Subj.: Trend Reversal

Gain valuable insights into diverse trading perspectives in Traders World Magazine #91. Our featured article on page 38, titled “What Matters the Most for Trading Success,” provides essential knowledge.

Secure your free copy for a limited time by downloading it here.

To succeed in trading, you must work with an experienced coach and learn much about trading. Our #1 competitive advantage is the support and customer service we offer. We work one-on-one with you to specify what we teach to your specific wants and needs; hence, if your knowledge base is not expanding rapidly, you are doing something wrong.

Ongoing education and mentoring are crucial to longevity in this business. Veteran traders have been through more ups and downs than you can imagine. So, experienced pros have probably experienced whatever you’re going through.

If you are ready to make a difference in your trading:

We are happy to share our experiences and help you build your trading business. Trading is not a typical career, and you best learn from those who are long-term in this business to cope with the rollercoaster of the financial markets. We are here to help and provide feedback on what you might be doing right or wrong.

Strive for improved trading results, and we will determine which of our systems or system combinations suits you best.

contact@NeverLossTrading.com Subj.: Consulting

The markets changed, and if you do not change your trading strategies with them, it can be a very costly undertaking.

Subscribe to our free trading tips and publications.

We are looking forward to hearing back from you,

Thomas Barmann (inventor and founder of NeverLossTrading)

www.NeverLossTrading.com

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Friday, April 15, 2022

Bitcoin NeverLossTrading Style

 Bitcoin is the world-leading cryptocurrency, and there are multiple ways for you to participate in the underlying price moves.  

Bitcoin NeverLossTrading Style

Upfront, in case you do not know us: the name NeverLossTrading derives from the concept of trade repair instead of accepting the stop loss, and Never Stop Loss Trading was a bit lengthy. We trade our own accounts and offer high-probability algorithmic trading systems and strategies for private investors.

People sometimes ask why it is called cryptocurrencies: because they use cryptography to keep it secure. There are no physical bitcoins; only balances are kept on a public ledger that everyone has transparent access to (although each record is encrypted). Bitcoin is the most popular of hundreds of other cryptocurrencies and is abbreviated as BTC when traded. At the time of this article, for trading one BTC, you need about $40,000. However, you can buy fractions of Bitcoins: One Bitcoin divides into 1,000 millibitcoins (mBTC); 1,000,000 microbitcoins (μBTC); or 100,000,000 satoshis (the name of the unknown inventor).

A simple and effective way for trading Bitcoin is to operate with the BITO EFT. ProShares is the fund manager of BITO and bases the ETF value on relation to investments in the Bitcoin Futures. The ETF provides a solid options chain and, on an average day, exchanges more than 10 million shares. Currently, one share of BITO is worth about $25 and offers a daily value change between 5% and 10%. Hence, an instrument that gives you multiple opportunities as a trader to participate in the volatile moves of the underlying. One thing to consider: when trading ETFs, you need to comply with SEC regulations for day trading and shorting stocks; you need account holdings of a minimum of $25,000. BITO is usually HTB (hard to borrow), and as such, you best operate with an options strategy to bet on a falling Bitcoin value with this instrument.

For retail traders, Bitcoin offers the possibility to participate in extraordinary strong price moves. To demonstrate the variability of the Bitcoin price, we compare it in a chart to the S&P 500.

Bitcoin Futures and S&P 500 Annual Price Development

Twelve Months Price Development of Bitcoin and the S&P 500

The chart shows the S&P 500 spaned a price band of 13% over twelve months, while Bitcoin Futures had a 60% variability. Hence, speculating for up and downside moves should be part of your strategy.

Futures traders have an easy way of trading for rising and falling prices. They have the choice of two instruments for participating in the price move of Bitcoin, both issued by the CME:

/BTC, the full contract is based on five Bitcoins. A value change of $5 represents one tick and shifts the future value by $25. The actual margin requirement for trading this contract is $75,000, and you control a notational value of $200,000 (five Bitcoins, each valued at $40,000).

/MBT, the Micro Bitcoin Futures Contract, with a contract size of 0.1 Bitcoin. Again, a value change of five represents one tick and shifts the value of the underlying contract by $0.5. For trading this contract, your broker will reserve a maintenance margin of $1,500, and you control a notational value of $4,000.

The question is, how to best forecast the price move of Bitcoin?

We recommend the NLT Timeless Concept and a combination of the NLT Trend Catching and SPU Move indicators, which helps you to find and act at crucial price turning points.

With the NLT Timeless Concept, you cut price moves into manageable sub-increments that simultaneously keep risk and reward in compliance with the system’s expected high probability forecast at or above 65%.

Hence, you will trade with a positive expectation, but you must learn and comply with the rules. Therefore, we teach the concept one-on-one on your best available days and times, tailoring our systems and concepts to your wants and needs.

We best explain some of the details to learn in a chart example, picking the /BTC Futures Contract. Then, you will see five situations we discuss based on a mechanical approach, where we take every signal as valid, and you learn in the mentorship which ones are higher probable.

/BTC on the NLT Timeless Chart

Bitcoin Futures on the NeverLossTrading Timeless Chart

Situation-1: We see two buy signals, the first one on February 24, 2022, and the second on February 28; both got confirmed in the price movement of the next candle and came to target (gray dot on the chart). Two winning trades.

Situation-2: Short signals and a price move to the red dot. A winning trade.

Situation-3: Long signal and a price move to the blue dot on the chart. Immediately after a short signal, which got stopped, producing one winning and one losing trade.

Situation-4: Three long trading opportunities, and all came to target.

Situation-5: The first sell signal came to its stop at the red crossbar – and we would not take this signal for multiple reasons. The second signal came to target, producing one winning and one losing trade in this sequence.

In summary: Eight winning and two losing trades between February 24 and April 11, 2022. Each transaction was good for a value change of about $10,000. 

Next, we pick a day trading example for the /MBT:

/MBT on the NLT Timeless Day Trading Chart

Micro Bitcoin Futures Contract on the NeverLossTrading Timeless Chart

On April-4, you see a long opportunity that came to target after the re-opening of futures trading at 6 p.m. ET on April 5.

April-5 shows a short signal that came to the red dot target.

April-6 shows multiple short signals that all came to target.

Three solid winning days. Trading one contract produced a value change of about $70 in each situation.

Let us now take a look at the ETF development on a swing trading basis and one rule to consider: do not trade candle #5, which is highlighted for this reason:

BITO on the NLT Timeless Chart, April 2-11, 2022

BITO ETF on the NeverLossTrading Timeless Swing Trading Chart

The chart shows seven winning and one losing trades.

When we get your interest in this, contact us, and we will show you live what our system can do for you.

contact@NeverLossTrading.com, Subj.: Demo

We have more than ten years in business and helped many traders get independent in the financial markets. If you like to read more about our concepts, subscribe to our free trading tips and check our blog.

Trading is not an easy career: when you add up what it costs you to not act at high probability price-turning points, you might be open to investing in a high probability system and appropriate education.

We highly propose following a business plan for trading success that shall entail:

  • Written rules on when to trade and when not
  • A financial plan that breaks down the number of trades needed to come to budget.

See our overview of learning elements we will go through in our coaching and training sessions, and we will focus with you on any asset class: Stocks, Options, Futures, and FOREX. The choice is yours. This is what we will share.

  • Acting with a system probability > 65%
  • Mechanical rules for entry, exit, stop
  • Trade at perfect moments only
  • Consider overall factors, patterns
  • Risk and reward in an acceptable balance
  • Risk-averse trading
  • Holding positions to target
  • Do not add to losers
  • Stick with a trading strategy. Follow a business plan – action plan and financial plan
  • Trade for meaningful price moves
  • Systematic trading
  • Having a mentor to learn from

Here is a schematic:

NeverLossTrading Learning Elements

The frightening truth: 76% of private investors lose money!

We base this number on a study we conducted, and if you like to experience why: write us an email, and we will share the details: contact@NeverLossTrading.com Subj.: 76%. 

Who had assumed such a high rate of losing traders?

If you want a different trading career, find a solid training and coaching program and contact us to find out what could work for you:

contact@NeverLossTrading.com Subj: Demo.

We are ready to share our experiences, helping private investors to build their trading business. Trading is not a typical career, and you best learn from those who are long-term in this business to cope with the rollercoaster of the financial markets. We are here to help and provide feedback on what you might be doing right or wrong.

Make a change to your trading results, and we will find out which of our systems suits you best.

We are happy to hear back from you,

Thomas Barmann (inventor and founder of NeverLossTrading)

www.NeverLossTrading.com

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Saturday, April 9, 2022

Trading Knowledge & Time

By entering the trading world, you are getting into a professional business, were the ones taking the other side of your trade are prepared to win. Hence, you need to ask yourself if you are fit for the task and ready to stand your ground.

Let us invite you to understand what it takes to be a successful trader or investor who takes money long-term from the markets.

Trading Knowledge and Time

Institutional activity dominates the financial markets: stocks, commodities, currencies, and treasuries and when you can spot and follow institutional investment activities, you can build yourself an edge: By the magnitude of institutional buy or sell programs, they scale into positions to not radically change the markets. As a private investor, you can open and close entire positions on the spot, and your edge can be speed in and out of a trade, but you need to pick the right side.

Trading is not a business where the fruits hang low. It is a professional business, and you better enter with a sound understanding, else money goes quick.

Let us start with a shocking statement: 76% of retail traders lose money, and there are many reasons for this. We are happy to share our study. If you are interested in how we come up with this statement, write us an email:

contact@NeverLossTrading.com, Subj.: 76%

For this publication, we take this as a given.

Malcolm Gladwell’s book “Outliers: the story of success reports what sets high achievers apart.” Gladwell says it takes 10,000 hours of intensive practice to achieve mastery of complex skills in a subject matter. Those are a lot of hours ahead of you; however, there is hope:

A coauthor of Gladwell, Anders Ericsson, a professor of psychology at Florida State University, added another critical variable that Gladwell did not focus on: how good a student’s teacher is. Hence, practice is essential, and it is surprising how much it takes to master something complicated. But Ericsson’s research suggests that someone could practice for thousands of hours and still not be a master performer. They could be outplayed by someone who practiced less but had a teacher who showed them just what to focus on at a critical moment in their practice regimen.

In essence: you have to be good at what you do to perform, and you better find somebody helping you to obtain the right skills, mindset, and dedication to master trading or investing: Just loading an app on your smartphone and pushing the buy or sell button does not qualify you to make money from the financial markets, but with the proper teaching on hand, you can certainly shorten your fairway to trading success.

We are more than ten years in the trading education business and trade our accounts daily. From our experience, we put together a matrix with four quadrants by the dimensions of:

  • Knowledge is the understanding gained through learning or experience in making trading or investing decisions and applying appropriate risk-limiting strategies.
  • Time Invested, we measure the hours you spent familiarizing yourself with trading and investing in successfully performing the skill.

We see the difference between trading and investing in the time you hold an open position. Trading specifies shorter-term, like day trading or swing trading. When investing, you have open positions for multiple weeks, months, or years; however, behavior-wise, both require the same knowledge and skills. As a short-term trader, you give yourself less time for sound decisions.

Trading and Investing Behavior & Time

Spinning a matrix of knowledge and time, we see four quadrants:

We chose the following nomenclature for the quadrants:

Matrix of Trading Knowledge and Time Invested

Losses: As a trader, you need a broker, no other qualification is required, and you can risk your money in the financial markets. Hence, there is a constant influx of traders with little experience that empty their trading accounts quickly by not knowing what they are doing.

Frustration: In this quadrant, we find long-term familiar people with the markets (I have 30 years of experience), but they learned very little of what is needed to be a successful trader, and as such, they possess little knowledge of how to risk-limit and size their investments. The worst traders have winning trades and such they celebrate their occasional success but do not make money trading long-term.

Gambling: There, we find people who have a sound knowledge of complex ways of trading or investing, but mostly they do not spend enough time learning money management, risk control, or following a business plan (action plan and financial plan). They produce winning trades but then hurt themselves by overstating their risk and giving back gains by significant losing positions. Hence, gamblers give their money long-term to the bank.

Success: Here, you find a small group of people with a sound knowledge base, familiar with trading/investing, and the financial markets allow them to be independent. They understand probability thinking and long-term take money from the markets.

After explaining the quadrants, let us put numbers to them, expressing the share of traders in each:

Share of Traders in the Knowledge and Time Invested Matrix

The shocking truth: only about 5% of the traders make money from the markets’ long-term, and if you want to be part of those, let us share some of the elements of knowledge and time investment to compare where you stand today and where you want to be. Are you following these success principles for trading and investing decisions?

Success Principles for Trading

  • Decide by a system > 65% probability of winning
  • Mechanical rules for entry, exit, stop
  • Trade at perfect moments only
  • Consider overall factors, patterns
  • Risk and reward in an acceptable balance
  • Capital preservation by risk-averse trading
  • Holding positions to target
  • Do not add to losers
  • Stick with a trading strategy and system
  • Follow a business plan – action plan and financial plan
  • High Participation Rate (number of system opportunities you participate in)
  • Trade for meaningful price moves only
  • Multiple streams of income to engage 80% of your capital
  • Apply risk-limiting strategies (day trading, stocks with options, options)
  • Finding a mentor to learn from

We sure can fill pages of details with what all this means. If you want to learn more about our approach, check out our latest book:

Read about what is needed to reach financial market success with many details and examples, published on Amazon as paperback and Kindle. A guideline to algorithmic-based trading/investing for retail traders: letting the chart tell when to buy or sell!

Let the chart tell when to buy or sell: Here are some examples of how this can go into action as a day trader or swing trader. For longer-term investing articles, check our blog for the topic Retirement Investment, e.g.

  1.  Stock Examples

Starting with a day trading example for AAPL. The chart applies what we call the NLT Timeless Concept: Instead of drawing the price happening over time, we trade for price changes and, with that, prevent long candles with unfavorable risk-reward setups:

AAPL NLT Timeless Trend Catching Chart, January 24, 2022

AAPL on the NLT Timeless Chart

A price threshold is formulated for every trade situation: buy > and sell <. This way, you can operate with buy-stop and sell-stop orders and only enter a trade when the threshold is surpassed in the price movement of the next candle. When you add up winning and losing trades, you see an example of high probability trading where we strive for winning 65% and above.

The chart shows pure mechanical appraisals of trade situations; however, in the mentorship, you will learn the rules of how to pick higher over the lower probable cases.

Let us now take a time-based example for swing trading: holding a position between one and ten days.

AAPL NLT Daily Trend Catching Chart, Jan./Feb., 2022

AAPL on the NLT Trend Catching Chart

The chart shows multiple situations from January 4 to February 9, 2022, where it reads no trade: A signal spelled out a trading opportunity; however, the direction was not confirmed in the price movement of the next candle as such, no transaction got accepted.

If you trade from an IRA, you would not be able to follow the short signals on the chart (SEC regulations do not allow short selling in IRAs). However, we teach appropriate Options trading strategies that you can profit from when stock prices fall.

  •  Futures Trading

The E-Mini S&P 500 Futures contract is an instrument many retail and professional traders operate with. Hence, let us pick a day trading situation and a longer-term trade setup:

NLT Timeless Trend Catching Chart for the E-Mini S&P 500

E-Mini S&P 500 Futures Contract on the NLT Timeless Chart

The chart shows multiple buy or sell opportunities:

  • Each opportunity formulates as a buy > or sell < a system-defined price threshold, allowing you to enter the trade direction only when the direction is confirmed.
  • Each price change ends at the target (dot on the chart) or the red cross line, indicating where to stop.
  • The system probability is ≥ 65%. The difference between entry to stop is about 1.2-times the difference of entry to the target. In the chosen example, entry to target was $350, and the risk was $420. Adding up three trades: two winners ($700) and one losing trade ($420), gives you a positive expectation of $280 per contract on a set of three trades.

Daily NLT Trend Catching Chart for E-Mini S&P 500

E-Mini S&P 500 Futures Contract on the NLT Trend Catching Chart

From left to right, you see:

  • A trade to the downside, breaking the price containment NLT Box and coming to target: gray dot.
  • Two trades with “No Trade” indication: on the first trade, the target was cut short by a box line – no trade. The second signal was not confirmed.
  • What follows are two winning trades that came to target.
  • Then two “No Trades” where the threshold did not get surpassed in the next candle.
  • A winning trade on Buy_T> $4,426 that came to target three candles after entry.
  • An open trade that did not reach its target or stop. We set the stop by the red crossbar on the chart.
  • FOREX

The most favored FOREX pair is the EUR/USD. There are multiple ways to participate in the price development, and we share a day trading and swing trading example:

Timeless NLT Day Trading Chart for EUR/USD

EUR/USD on the NLT Timeless Trend Catching Chart

From left to right:

  • No Trade, by NLT Box Line cutting the price move to target short
  • Wining long trade to target
  • Winning short trade, followed by another winning short trade
  • A losing short trade
  • Two winning long trades.

Daily NLT Trend Catching Chart for EUR/USD

EUR/USD on the Daily NLT Trend Catching Chart

When we sparked your interest, and you want to come on board with our systems and strategies, we invite you to a personal session to see how our systems work life.

contact@NeverLossTrading.com  Subj.: Demo.

We are more than 10-years in the trading education business, teaching one-on-one at your best available days and times.

Traders with little experience often overestimate their abilities. Learning a new profession from a book would be a simple task. However, the reality is different. It takes time to build knowledge and the skillset for building the competency to make money from the financial markets.

Elements of Trading and Investing Competency

Trading and Investing Competency Elements

It would go too far, explaining all trading and investing competency elements, but if you are interested, we are happy to share another article about the subject matter with you:

contact@NeverLossTrading.com, Subj. Competency

As humans, one of our psychological patterns is called the Dunning-Kruger effect. It tells us that we vastly rate our competence level much higher than it actually is – and this in multiple competency fields.

In competence tests, probands that lost four out of five competence challenges still rated their competency on the subject matter above 65% and rated the winners’ competency lower.

The question: How to get around it?

With an increased competency in subject matter, the level of confidence in the own ability and skill comes to a level where perceived and actual reality are more related.

The needed competency can be built and obtained. Just do not risk your money with high confidence and little competency.

The question is: Do you possess enough knowledge and skill to put what we shared here into action. Or do you instead want to take our offer for a complimentary session with an expert where we look where you stand and develop a concept to train and coach you with the help of our systems for making competent decisions?

We teach in a holistic approach the step in learning how to turn yourself into the trader and investor you want to be:

Experience in a live session what we can do for you:

+1 866 455 4520 or contact@NeverLossTrading.com

Schedule your consulting hour and consider learning all variables needed for trading and investing success.

Elements of Education in the NeverLossTrading Mentorship

The frightening truth: 76% of private investors lose money!

We base this number on a study we conducted, and if you like to experience why: write us an email, and we will share the details: contact@NeverLossTrading.com Subj.: 76%. 

Who had assumed such a high rate of losing traders?

If you want a different trading career, find a solid training and coaching program and contact us to find out what could work for you: contact@NeverLossTrading.com Subj: Demo.

We are ready to share our experiences, helping private investors to build their trading business. Trading is not a typical career, and you best learn from those who are long-term in this business to cope with the rollercoaster of the financial markets. We are here to help and provide feedback on what you might be doing right or wrong.

Make a change to your trading results, and we will find out which of our systems suits you best.

contact@NeverLossTrading.com  Subj.: Demo.

We are happy to hear back from you,

Thomas Barmann (inventor and founder of NeverLossTrading)

www.NeverLossTrading.com

Disclaimer, Terms and Conditions, Privacy | Customer Support