Spot and Trade Institutional Money Moves

Algorithmic Trading with Human Interaction for:

Day Traders, Swing Traders, Long-Term Investors

Saturday, August 6, 2022

Trade Signals, Not Noise

Summary: Successful traders distinguish potential price moves that are random happenings from price moves that can be forecasted with a high probability. The science or art is in detecting signals and staying away from Noise.

More than 85% of all financial market transactions are institutional decision-based. Therefore, big money decides the direction and if a price-movement-initiation spotted is followed or countered. Hence, the market creates signal patterns that are detectable and predictable with a high probability. As a high probability situation, we specify a 65% or above predictability of the happenings to continue in the forecasted price direction.  

Trade Signals, Not Noise

Let us take a signal transmission model: Filtering technology helps to detect the signal and filter out Noise. Even when a signal is distorted, models like the Hamming Distance help to identify the underlying movement and fill in what is missing to forecast the content to a specified target.

At this point, it might sound abstract; however, it builds a crucial part of our algorithmic trading systems with an AI component. For programming such a system, you first describe the natural happening, and such, we formulate some of the observations to take:

  • How do financial market transactions take place?
  • Who are the decision-makers, and what is the basis of their decisions?
  • How and when do price moves start and end?

Next is to find a mathematical model to replicate the actual market happening. Let me give you some examples:

  • We are assuming a Markov-Chain-Happening: forecastable action in a predictable frame of activities, instead of considering a Finetti relation of a random happening.
  • Mandelbrot iterations help us to consider the action of now: The result of each market action is used as the starting value for the next iteration. The values are checked during each iteration to see whether they have reached a critical “trade” condition or “bailout.” If a trade condition is found, the calculation is stopped, and a potential signal is drawn on the chart, spelling out the next price value to be reached and the statistical volatility to get to the examined target value without a high likelihood of getting stopped.
  • Filtering technology to express higher over lower likelihood happenings
  • Price expansion calculation and stop, considering the actual statistical volatility of the happening.

What we explain above and more happens in the background, and we wanted to invite you into our thinking. However, you do not need to understand and learn all this. Still, we wanted to express that simple moving average calculations, or similar iterations will never be able to provide high probability trade setups. So we calculated the difference between a model with a 55% probability to one of 65% and estimated the expected win rate of 10 trades by a Bernoulli experiment to win six or more trades out of ten. We explained how to put together an experiment with marbles, but let us take a shortcut here:

  • A 65% system gives you a 75% chance to predict and win six or more out of ten trades.
  • A 55% only gives you a 50.4% chance for six or more winners (random predictability).

You know now why we propagate high over low probability for retail traders.

We offer several systems: TradeColors.com is our beginner system and is included in all other systems. In this publication, we like to share a combination of NLT Top-Line, Trend Catching, and NLT Timeless Indications.

NLT Top-Line has multiple price charts and lower study indicators for trading at crucial price turning points:

  • Strong Price Turning Points: NLT Power Towers stand tall and point a direction (blue and red, buy> and sell<)
  • Tops and Bottoms: NLT Early Buy or Sell, pointing out more considerable directional price moves (orange buy>, sell<)
  • End of Purple Zone. We color up-moves in blue and down moves in red; when a time of ambiguity in price direction (purple buy> and sell <).
  • Strong money in our outflow, showing institutional engagement (lower study)
  • Correlated or uncorrelated to the overall market move (lower study)
  • Historical price projection to understand what others expect (upper and lower study)
  • and more

NLT Trend Catching differentiates

  • Trend Initiation Signals (gray buy > and sell <)
  • Trend Continuation Signals (gray Buy_C and Sell_C)
  • Balance of Power: Buyers or sellers in Charge (lower study)

Why to combine those systems?

For a higher participation rate: more trades and accuracy with indicators that take a different market cut by not being correlated.

NLT Timeless Day Trading Examples /ES

E-Mini S&P 500 on the NeverLossTrading Timeless Day Trading Chart

At the time of writing this Article: August 2, 2022, this was the chart situation on the NLT Timeless Chart (candles form price-based, not time-based). There are six trade situations to discuss:

  • We are taking a mechanical approach considering every opportunity when a signal appears on the chart.
  • The gray or purple dot on the chart specifies the target
  • The red crossbar is the stop

During your training, you will learn not to consider every situation painted on the chart. In this example, we accept all signals, with the condition to not enter, except for an opposite-facing candle signifying a new trade potential.

Situation-1: After a purple zone, indicating price ambiguity, and we do not consider signals, an end of NLT Purple Zone signal (NLT Top-Line), combined with an NLT Trend Catching signal announced a short potential that came to target two candles after entry: win.

Situation-2: NLT Trend Catching Signal: Sell_C<$4100.80, confirmed trend continuation entry to target (gray dot, reached in three candles): win.

Situation-3: Bottom reversal signal (and you will learn not to take this signal: in a downtrend, the first leg long is wrong!). However, we take a mechanical approach here: losing trade.

Situation-4: Short signal with a floating indication: Floating is part of the NLT Timeless Concept and specifies a situation where the price moves into open space and such has a high likelihood to come to the target: win.

Situation-5: Gray Buy signal that came to target.

Situation-6: End of Purple Zone buy signal, and at the time of writing this publication, the trade was open, but we took it, and it came to target: win.

Here is the trade entry photo of the account where we trade one /ES contract or never take an equity trade with a higher than $400 risk.

For day trading, we always operate with bracket buy-stop or sell-stop orders. The order is only filled when a pre-defined price level is reached and automatically stops and targets in place.

In our trading chart, we also consider price-volume happenings, and the colors on the volume bar tell a story of higher-level engagement on highlighted bars. The price-volume study is part of NLT Top-Line, and we run a summer special for the system combination, which we are happy to share with you in a demo. 

contact@NeverLossTrading.com, Subj.: Demo

NLT Timeless Day Trading Chart on August 2, 2022

Following specific rules in trading is essential, leaving only very little room for discretionary decisions. Very little interpretation:

Trade What You See!

Let the chart tell when to buy or sell!

By the way, the brand name NeverLossTrading does not promise never to lose a trade; it derives from the concept of trade repair and Never Stop Loss Trading was a bit lengthy.

The following example shows an NLT Timeless Swing Trading example:

NeverLossTrading Timeless Swing Trading Chart

NLT Timeless Swing Trading Chart

The chart shows NLT trade indications between July 25 and August 3, 2022, describing four situations we now explain:

Situation-1: After directional price ambiguity, the NLT Top-Line End of Purple Zone signal and the NLT Trend Catching Sell signal pointed down, and the trade direction was confirmed and came to target by reaching the gray dot on the chart.

Situation-2: A bottom was found, the buy signal confirmed, and an upside trade was initiated. The first target was at the gray dot. If you want to trail your transaction, use the red line of the blue frame and exit at the black dot or 3-SPU level.

Situation-3: A trend-continuation signal after a short retracement and another uprun to target or to be trailed with the red line the black dot: 2-SPU level.

Situation-4: on August 1, 2022, an NLT Purple zone opened and told us not to initiate swing trades until it was over.

In our prior publication, we used the same chart with continuation signals switched on, and you will see more swing trading opportunities along with the price movement.

After the NLT Timeless examples, let us dive into time-based trading: We use the same indicators and pull up a price chart for Apple Corp. (AAPL) from June 8 to August 3, 2022.

Do you see four or potentially five trading opportunities (one short – sell signal in red – and three long opportunities – buy signals in gray and red)?

If yes, you understand what we mean by letting the chart tell when to buy or sell; if not, challenge us for a free demo:

contact@NeverLossTrading.com Subj. Demo.

AAPL Daily NLT Chart: NLT Top-Line and Trend Catching

The trade situation on the chart is not magnified, leaving it up to you to test what you see.

Only if you have a solid decision-making base, supported by a system that helps you to identify high probability trade setups, will you have the chance to trade for constant income from the financial markets as a time-based or timeless trader. You can learn both concepts in our mentorships and more.

Here is a longer-term timeless chart, and please check yourself which situations to take:

NLT Timeless Longer-Term Chart March to August 5, 2022

NLT Longer-Term Timeless Chart

Even if you went long at the one trade we would never have taken, the chart would have given you five winning and one losing trade: we call high probability. Each trade was good for a price change of the underlying /ES futures contract of $7,500, with an associate risk, if you traded the /MES, 10% of it, $750.

We know and acknowledge that every trader is different. Hence, we tune our systems and teach to your specific wants and needs, supporting you to turn yourself into the trader or investor you want to be, teaching one-on-one at your best available days and times.

Let us share an overview of learning elements to take away from our training and coaching sessions, which vary based on the system you choose, from four to twenty hours of teaching.

Summary of learning elements:

  • 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

We also help you to journal your trades. Such a journal provides excellent feedback on how you are developing, and you find a perfect example in this article on our Blog: How to Control Your Trading Results

To succeed in trading, you best 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 whatever you’re going through, experienced pros have probably experienced it already.

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

contact@NeverLossTrading.com Subj: Demo.

We are ready 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 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

Disclaimer, Terms and ConditionsPrivacy | Customer Support

Friday, July 29, 2022

Trade Repeating Patterns

Summary: Price is the result of a change in supply or demand. The crowd follows the leaders and creates repeating price patterns you can spot and follow. We share some insight in this article that will change your approach to trading.

When the price is the result of the interaction between buyers and sellers, we have four dimensions of measuring the happening:

  • Frequency of Change or Statistical Volatility
  • Number of transactions or Volume
  • Price Development over Time or Timeless
  • Peaks and Valleys as Overall Patterns
NeverLossTrading Dimensions

The theory of BenoƮt Mandelbrot gave us a headway to consider trading decisions that are time-based and timeless (purely price-based). Let us share how we translated this different way of plotting a happening into finding trades at crucial price turning points and in continuation patterns.

Base Theory

A repeating calculation is performed based on the behavior of using the happening of now as starting values in a repeating, or iterating calculation. The result of each iteration is used as the starting values for the next. The values are checked during each iteration to see whether they have reached a critical “trade” condition, or “bailout”. If a trade condition is reached, the calculation is stopped, and a potential signal is drawn on the chart, spelling out the next potential value to be reached and the statistical volatility to get to the examined target value without getting stopped on a high likelihood.

Four dimensions are hard to draw, however, we hope we found a good graphical expression in the feature picture of this article.

Natural Model

Collective behavior creates cycles that repeat themselves; however, they are not repetitive in their frequency or rate of change, and this is where most mathematical models fail by assuming a constant phase of repetitiveness, while the re-shuffling phase in actuality is random; however, it is forecastable by using the theory explained above. Considering the history and going back to the school of Pythagoras (570 BC –490 BC) thoroughly: everything in nature is connected. The movement of one thing generates harmonic associations with all other things in the system. The key to revealing the truth behind these natural associations is observation and mathematics. The Natural associations of price change create patterns: “The pattern is said to emerge as a result of discontinuities in the perpetual processes of price expansion and contraction of the observed asset. According to this, human behavior is not random and creates predictable reactions in the whole market: collective human behavior forms a specific repeating pattern that unfolds through time or in the price action. Group behavior creates a distinct trading pattern, and by letting a computer algorithm with an AI component calculate where the pattern appears next, you can make high probability forecasts regarding when a price movement is starting and where it is heading.

To be able to let our models provide a highly accurate forecast, we consider the following:

  • We only trade active markets and assets. An active market means a liquid market where the bid/ask spreads are tight, making entry and exit easy. In addition, it is more difficult to manipulate an active market, which means forecasting becomes more reliable. Hence we developed a solid set of assets we categorize for our subscribers in the area of Stocks and their options tradability, Futures, and FOREX.
  • Trade along with rising and falling patterns, and we share those in our mentorships with you, helping you to experience the market from a totally new perspective.
  • Trading at solid opportunities only, avoid highly frequent trading that lets you accept mediocre opportunities. In addition, a great number of trades increases transaction costs.
  • Limit your risk by not allocating more than 5% of your trading capital to a single position.
  • Hold your trades to target and do not second guess your system: hardcode entry, exit, and stop decisions.
  • Journal your trades to create a scorecard, telling you what worked and what did not.

You will find more details in further articles we published on our blog. Following these principles, you will act as follows with NeverLossTrading:

  • You only act on confirmed signals when other market participants confirm the direction spelled out by the system. For example, our systems spell out a critical buy- or sell price, and you enter a position when the price threshold is surpassed in the price movement of the next candle.
  • At entry, the system defines a target price to close the transaction: Dot on the chart.
  • The stop is also defined at entry and gives the price an adequate wiggle-room to proceed to target with a high likelihood: Red Crossbar or line on the chart.

First, let us choose a time-based example: Jeff is a stock trader who waits for the right moment and then acts. He understands that the current environment is best for shorter-term-oriented trades (holding for a couple of days). Jeff combines NLT Top-Line and HF signals, works from an IRA, and buys puts according to the NLT Delta Force Options Trading Concept when going short and goes long through buying stocks. He liked our recent article: “The Trader Who Waits,” and responded: In his last 12 trades, he won 10 (high probability). Jeff has been a NeverLossTrading client since 2014, he does his own market analysis with the help of the NLT Top Line Scanners and the NLT Watch List Indicators, and we are in frequent contact.

Here are three examples of trades he conducted, and you will understand why we say: Trade what you see, let the chart tell when to buy or sell:

Daily NLT Top-Line Chart for UNH

Situation-1: UNH combined two NLT Sell signals: Sell < $467.26. The purple signal identified a price move potential after a time of directional price ambiguity (NLT Purple Zone). The red signal is an NLT Power Tower signal. The power tower stands tall and points in a direction. The exit was at the purple dot on the chart. The signal combination came on June 13, 2022, and came to target on June 16, 2022.

Situation-2: On June 21, a strong signal combination announced a 2-SPU price move potential, and the trade came to target on June 28, 2022

Daily NLT Top-Line Chart for COST

Situation-1:  On June 21, the COST chart shows an NLT Top-Line buy signal: Buy > $464.82, and the trade came to target on June 24, 2022.

Situation-2: On July 14, 2022, COST had an NLT Top-Line signal again: Buy > $513.27, and the trade came to target on July 18, 2022.

Daily NLT Top-Line Chart for MCK

On June 21, MCK combined two NLT Top-Line signals: blue and orange. The orange signal helps us find tops or bottoms and announces a 2-SPU price move potential carried out to target-2 on the chart and reached by June 27, 2022.

Jeff understands that individual stock price moves are either overall market correlated, like go with the S&P 500, or happen uncorrelated (unique stock price move). He prefers unique and uncorrelated stock price moves and finds the setups with the help of the NeverLossTrading Top-Line Scanners on his own created list of stocks that represent strong stocks in market sectors of demand.

Next, we pick a day trading example and a timeless chart where candles construct purely price-based. On the charts, we combine NLT Top-Line, NLT Trend Catching and NLT Timeless Indications, demonstrating how to find high probability setups by combining signal indications: multiple system indicators validate a high probability setup. We pick a swing trading chart first, where the average holding time of a position is about one to five days.

The timeless chart setup relates risk to reward in an acceptable ratio, producing arrangements complying with the system probability for a positive statistical expectation value.

We operate pure mechanical with buy-stop and sell-stop orders, where trades only get validated with the entry price threshold being surpassed in the next candle; stop, and exit is system-defined at entry. We take an entry signal when the following happens:

  • The frame around the price movement changes from blue to red or red to blue.
  • An NLT signal occurs at the crucial momentum change and spells out buy> or sell<, and the price movement of the next candle validates this by surpassing the set price threshold.

NLT Timeless Chart for /ES, July 13 to 19, 2022

Each price situation on the chart is suitable for a 25-point price move or a value change of the underlying contract of $1,250.

The red crossbar on the signal specifies the stop level, and if you are trend trading instead of trading for a momentum price move, the red line of the frame around the price move (NLT Double Decker) specifies the trailing stop.

In the shared chart, all signals came to target; however, we assume a system probability at or above 65% to forecast the future price movements.

There are additional signals on the chart that either help to take more trades or add to the target, which we neglect in this example. 

We apply purely mechanical rules while you learn how to qualify higher and lower probability setups in our mentorship.

Situation-1: Sell < $3801,30, July 13, at 8:30 a.m. The signal was validated in the price movement of the next candle, and the trade came to target the same day.

Situation-2: Buy > $3813, July 13, at 10.31 a.m.: A validated signal reached its target between 12:51 p.m. and 1:31 p.m.

Situation-3: Sell < $3788.50, July 13, at 3:50 p.m., validated at the opening candle at 6 p.m., and the trade came to target between 4:38 a.m. and 8 a.m.

Situation-4: Buy > $3766.50, July 14 at the 11: 08 a.m. candle, validated and came to target the same day.

There are additional signals and opportunities to catch trades along the tend move, which we are happy to share in a demonstration with you (ask for our summer special):

contact@NeverLossTrading.com, Subj.: Demo

In the next step, we pick a day trading example where we are trading for about seven points or a price change of the underlying contract of $350. Again, we take trades purely mechanical, while you will learn in our mentorships how to qualify situations and trade at higher rather than lower likelihood situations

NLT Timeless Day Trading Chart for the /ES

Between 7 a.m. and 3 p.m. that day, nine potential trade situations were painted by the NLT Indicators on the chart: six winners and three losing trades: 67% probability.

Let us share an example of a day trader who combines systems and trades at crucial price turning points.

Steve focuses on trading the E-Mini S&P 500 Futures and the Crude Oil Futures Contract. His preferred trading time is 7 a.m. to noon. He was used to trading very short time-frames, acting on about eight to ten trade constellations per day, and was constantly monitoring and working with open positions. His success was random. We introduced him to the NLT Timeless Concept combined with NLT Trend Catching and NLT Top-Line to form his decisions. We kept his focus on trading those two futures contracts daily, where he had his experience (why bend an arm when the preferred asset to trade provides enough trading opportunities). Instead of monitoring each transaction, he now walks away and lets the trade come to target or, at times, stop (losing is part of winning). He, on average, conducts a maximum of two to four transactions per day and finishes his trading day around noon, winning 70% of his trades, journals, and controls. You find a specific article on measuring and controlling trading success on our blog.

His focus is on two signal combinations:

  • NLT Buy, Sell with Floating, which reports when a price leaves a prior price containment area.
  • NLT Buy_T, Sell_T, which indicates an early price turning point.
  • He sets bracket orders two ticks above/below the set price threshold: Sell < $4203 will only lead to trade when the price reaches two ticks below; hence, he can operate with a sell-stop at $4202.50. If this price level is not reached in the price movement of the next candle, no trade will be initiated.
  • A gray dot specifies the trade exit on the chart, the stop by a red crossbar. By using bracket orders, target and stop get established at order entry.

Our introductory offer to algorithmic trading is TradeColors.com. You trade when two same-color candles are painted on the chart, and the set price threshold is surpassed in the next candle on initiation moves, and sure there are also continuation patterns we follow.

TradeColors.com Day Trading Example

The chart shows 11 solid trading opportunities for trading the E-Mini S&P 500 Futures Contract on July 20, 2022, combining NLT Timeless and TradeColors.com.

When you like to start with TradeColors.com, ask for our summer special of adding NLT Timeless:

contact@NeverLossTrading.com, Subj.: TradeColors.com

We know and acknowledge that every trader is different. Hence, we tune our systems and teach to your specific wants and needs, supporting you to turn yourself into the trader or investor you want to be, teaching on-on-one at your best available days and times.

Let us share an overview of learning elements to take away from our training and coaching sessions, which vary based on the system you choose, from four to twenty hours of teaching.

Summary of learning elements:

  • 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

We also help you to journal your trades. Such a journal provides excellent feedback on how you are developing, and you find a perfect example in this article on our Blog: How to Control Your Trading Results

To succeed in trading, you best 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 whatever you’re going through, experienced pros have probably experienced it already.

If you are ready to learn, meet us in a one-on-one session where we find out which learning program suits you best:

contact@NeverLossTrading.com Subj: Demo.

We are ready 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 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

Disclaimer, Terms and ConditionsPrivacy | Customer Support

Friday, July 22, 2022

The Trader Who Waits

 Summary: Trading and investing require an in-depth analysis before deciding to risk your money. Long-term, you only strive for solid returns when you have the patience to wait for the right moment to trade.

In all other businesses, aside from trading, increasing the frequency of actions increases the probability of creating a higher income. Read on and watch the video.

Trade at Perfect Moments Only!

Let me pick an example:

A salesperson who presents services to six clients daily has a 100% higher expectation value than one who offers three times a day, assuming both have the same abilities and density of customers.

Hence, our mindset is conditioned: when you work more, you produce more.

True or true?

Following this conclusion, people apply their typical success pattern to trading, and this is where the trouble starts:

  • Accepting lower probability setups increases the loss rate by trading every opportunity.
  • Substantially higher losses than gains.
  • Discretionary decision on entry and exit, instead of hardcoded entry, exit, and stop decisions.
  • Acting predicable, so your stops get stolen.

We can further elaborate; however, we are here to talk about what works, and as such, we want to share what is needed to be a successful trader:

  1. Trade Qualification over High Frequency

Successful traders find signal combinations that forecast the future price movements of assets with a high likelihood. They focus on what they do best and repeat proven success. It is not the frequency of participating in trades but the qualification process of combining multiple indications to accept high probability setups solely.

On their charts, they look for the following:

  • Signals that indicate and print critical price turning points on the chart and act upon them. Do you have proven success in operating and conducting those?
  • Combined signals to increase forecast accuracy when analyzing a price projection. By that, they increase the likelihood of an accurate prediction.

2. Mechanical instead of Discretionary Decisions

Many traders act discretionary; however, those actions are hard to specify and repeat; hence we encourage you to work by mechanical rules for entry and exit and share the details in our examples.

3. Risk Limiting Trading

The probability of your system defines how much risk you can take:

  • By choosing risk-limiting strategies, you prevent drawdowns.
  • Combining risk limiting and leveraging methods allows trading for extra income.
  • Working with strategies that let you participate in price moves to the up and downside allows you to trade in any market environment.
  • Choosing decision-making times or strategies must fit your life circumstances and the account type.

4. Predictability

Most trades are time-based decisions, where it is pretty obvious where your stops will sit. Hence, we developed the NLT Timeless Concept that proposes all actions purely price based, helping you to act less predictable and independent to not making obvious choices by being in and out of positions faster than other market participants.

Hence, you want to be the trader who waits until the perfect moment is there, and only then do you act. However, this implies that your system gives you a solid participation rate of trading opportunities, so it is not just a wait game.

Here are the variables and the actions your trading system needs to give:

The first charts we share will combine NLT Top-Line, NLT Trend Catching and NLT Timeless Indications, demonstrating how to find high probability setups by combining signal indications: multiple system indicators validate a high probability setup. We pick a swing trading chart first, where the average holding time of a position is about one to five days. By acting purely price based, your trading strategy will not easily expose where your stop is placed, taking care of point 4: predictability.

The timeless chart setup relates risk to reward in an acceptable ratio, producing arrangements complying with the system probability for a positive statistical expectation value.

We operate pure mechanical with buy-stop and sell-stop orders, where trades only get validated with the entry price threshold being surpassed in the next candle; stop, and exit is system-defined at entry.

Acting with NLT Timeless setups takes all the headaches of deciding for three out of four crucial success variables out of the cohesion, and you just qualify your entry signals:

In this first example, we take an entry signal when the following happens:

  • The frame around the price movement changes from blue to red or red to blue.
  • An NLT signal occurs at the crucial momentum change and spells out buy> or sell<, and the price movement of the next candle validates this by surpassing the set price threshold.

NLT Timeless Chart for /ES, July 13 to 19, 2022

NLT Timeless Swing Trading Chart for the E-Mini S&P 500 Futures Contract

Each price situation on the chart is suitable for a 25-point price move or a value change of the underlying contract of $1,250.

The red crossbar on the signal specifies the stop level, and if you are trend trading instead of trading for a momentum price move, the red line of the frame around the price move (NLT Double Decker) specifies the trailing stop.

In the shared chart, all signals came to target; however, we assume a system probability at or above 65% to forecast the future price movements.

There are additional signals on the chart that either help to take more trades or add to the target, which we neglect in this example. 

We apply purely mechanical rules while you learn how to qualify higher and lower probability setups in our mentorship.

Mentioned times are EST:

Situation-1: Sell < $3801,30, July 13, at 8:30 a.m. The signal was validated in the price movement of the next candle, and the trade came to target the same day.

Situation-2: Buy > $3813, July 13, at 10.31 a.m.: A validated signal reached its target between 12:51 p.m. and 1:31 p.m.

Situation-3: Sell < $3788.50, July 13, at 3:50 p.m., validated at the opening candle at 6 p.m., and the trade came to target between 4:38 a.m. and 8 a.m.

Situation-4: Buy > $3766.50, July 14 at the 11: 08 a.m. candle, validated and came to target the same day.

There are additional signals and opportunities to catch trades along the tend move, which we are happy to share in a demonstration with you (ask for our summer special):

contact@NeverLossTrading.com, Subj.: Demo

In the next step, we pick a day trading example where we are trading for about seven points or a price change of the underlying contract of $350. Again, we take trades purely mechanical, while you will learn in our mentorships how to qualify situations and trade at higher rather than lower likelihood situations

NLT Timeless Day Trading Chart for the /ES

NLT Timeless Day Trading Chart for the E-Mini S&P 500 Futures Contract

Between 7 a.m. and 3 p.m. that day, nine potential trade situations were painted by the NLT Indicators on the chart: six winners and three losing trades: 67% probability.

The chart shows a solid evaluation basis in the following dimensions:

VariableEvaluation
Participation RateNine trading opportunities in a day session
Decision Making TimeManageable order entry time between five minutes to one hour.
Risk LimitingThe red crossbar always limits the risk to a maximum per trade
Mechanical RulesWorking with buy-stop and sell-stop bracket orders at pre-specified price movements.
Act with low predictabilityDo not trade with the crowd; act independently by using the NLT Timeless Concept

Let us share an example of a day trader who combines systems and trades at crucial price turning points.

Steve focuses on trading the E-Mini S&P 500 Futures and the Crude Oil Futures Contract. His preferred trading time is 7 a.m. to noon. He was used to trading very short time-frames, acting on about eight to ten trade constellations per day, and was constantly monitoring and working with open positions. His success was random. We introduced him to the NLT Timeless Concept combined with NLT Trend Catching and NLT Top-Line to form his decisions. We kept his focus on trading those two futures contracts daily, where he had his experience (why bend an arm when the preferred asset to trade provides enough trading opportunities). Instead of monitoring each transaction, he now walks away and lets the trade come to target or, at times, stop (losing is part of winning). He, on average, conducts a maximum of two to four transactions per day and finishes his trading day around noon, winning 70% of his trades, journals, and controls. You find a specific article on measuring and controlling trading success on our blog.

His focus is on two signal combinations:

  • NLT Buy, Sell with Floating, which reports when a price leaves a prior price containment area.
  • NLT Buy_T, Sell_T, which indicates an early price turning point.
  • He sets bracket orders two ticks above/below the set price threshold: Sell < $4203 will only lead to trade when the price reaches two ticks below; hence, he can operate with a sell-stop at $4202.50. If this price level is not reached in the price movement of the next candle, no trade will be initiated.
  • A gray dot specifies the trade exit on the chart, the stop by a red crossbar. By using bracket orders, target and stop get established at order entry.

Our introductory offer to algorithmic trading is TradeColors.com. You trade when two same-color candles are painted on the chart, and the set price threshold is surpassed in the next candle on initiation moves, and sure there are also continuation patterns we follow.

TradeColors.com Day Trading Example

TradeColors.com Day Trading Chart for the E-Mini S&P 500 Futures Contract

The chart shows 11 solid trading opportunities for trading the E-Mini S&P 500 Futures Contract on July 20, 2022, combining NLT Timeless and TradeColors.com.

When you like to start with TradeColors.com, ask for our summer special of adding NLT Timeless:

contact@NeverLossTrading.com, Subj.: TradeColors.com

We know and acknowledge that every trader is different. Hence, we tune our systems and teach to your specific wants and needs, supporting you to turn yourself into the trader or investor you want to be, teaching on-on-one at your best available days and times.

Let us share an overview of learning elements to take away from our training and coaching sessions, which vary based on the system you choose, from four to twenty hours of teaching.

Summary of learning elements:

  • 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

Learning Elements to Trading Success

Learning Elements of NeverLossTrading Mentorships

We also help you to journal your trades. Such a journal provides excellent feedback on how you are developing, and you find a perfect example in this article on our Blog: How to Control Your Trading Results

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 whatever you’re going through, experienced pros have probably experienced it already.

If you are ready to learn, meet us in a one-on-one session where we find out which learning program suits you best:

contact@NeverLossTrading.com Subj: Demo.

We are ready 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 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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