If trading was easy, nobody would ever go to work; however, it is learnable – it needs time, a solid system, and a coaching program to beat the financial pros.
Listen to our Podcast and read the article to experience what is needed for producing trading success in 2022 and forward.
With the help of their system, traders make a best-guess prediction about what is most likely happening and take action by sending orders to the markets.
Trading is a challenge for your mind:
- You are dealing with constant probability and risks outside of what other professions require.
- You are working with a high level of ambiguity. Your brain translates this into uncertainty and relates to a negative stimulus of fear.
Unfortunately, the brain has a negative bias in its predictions, which is part of human survival. As a trader, constantly doubting your decisions is a path of producing a chain of doom: small win, small win, significant losses. Thus, conscious and sub-conscious decisions making chains are triggered and work against each other.
The only way around is using a high probability system with clear-cut mechanical rules to follow, leaving very little room for interpretation. Unfortunately, teaching your brain and unconscious mind new tricks will be a very long-term endeavor: habit change is one of the hardest to do for humankind. However, operating with a high probability system and learning new rules can get you the chance to make long-term income from the financial markets.
You are invited to experience through an interview what a solid system and rules can do for you and why. Experience through 18 questions, what can make a change to your trading results:
1. Why did you choose the name NeverLossTrading?
We are teaching concepts of adjusting trades instead of taking the stop loss. Hence, our brand name derives from Never Stop Loss Trading, but it was a bit lengthy. We are offering high probability algorithmic trading systems and strategies. We do not want to convey that you never lose a trade with our systems and concepts. But, we want to share that when you use our systems, apply the rules and strategies we teach, you operate in trade situations that lead by 65% or more to a predictable outcome. By that, you will have an edge in the market for producing long-term wealth and income, rather than lose in trading. If trading was easy, nobody would ever go to work. It is not, but it is learnable. In addition, the referring domains for the brand needed to be available too. NeverLossTrading and the hosting company Nobel Living, LLC (a Florida Company) was founded in 2008.
2. NeverLossTrading strategy developed?
The financial markets of the world are institutional money-driven. Big money has to scale in and out of positions, and such leaves a measurable trace to predict future price actions. Price is the result of a change in supply and demand. Our indicators measure the underlying shift in supply and demand to spell out directional price movement potentials with a high probability ≥ 65%. The NLT concept development is based on signal theory: filtering content from actual modulated happenings in price action, volume, and volatility. You can also say: we are filtering signal (a predictable incident) from noise (a random occurrence) to act at crucial price turning points. We have over ten years in the trading education business and solely work one-on-one with our clients to teach and coach our concepts and strategies. Classroom-style training for adults is inefficient. When you look back at years of Spanish classes and how many of the students today can speak the language, you see the inefficiency, which is why we train and coach one-on-one.
3. Do you consider the NeverLossTrading approach theoretical edge-based, fundamental, macro, discretionary, systematic, or a combination?
The NeverLossTrading approach uses the theoretical edge of entering and exiting entire positions as a retail trader; faster than institutions can. Private investors have no way to beat Wallstreet in analyzing fundamentals better than they can. However, when investments into assets occur or a sell-off, our indicators measure the underlying change in supply and demand and alert us about the opportunity. We then trade time-based or price-based and exit before the price move comes to an end. Finally, we teach risk-limiting strategies to operate and crucial price turning points with risk-contained approaches, creating an edge for you as a retail trader.
4. Why does it work?
We are happy to invite you to go through multiple charts together, letting you experience what our systems can do:
contact@NeverLossTrading.com Subj. Demo. You can also check out our YouTube channel or Blog for examples.
Here is the price move model we follow:
NeverLossTrading Price Move Model
Theory: Key asset holders will have a solid need to re-balance their inventories. Thus, at a particular price expansion, they will either float- or shorten supply, which will result in an opposite directional price move that will then take away from our profits. Knowing this, we pre-calculate how far the expected price move will reach, and there we take profit, assuming it will retrace or reverse after.
Our systems are productivity tools, and by combining them, you produce a higher participation rate and higher returns.
5. How many and which inputs are used to generate a signal? Are they similar for each market? If not, how do they differ? How many different signals per market?
Our indicators work in the same way for every asset, time frame, or price range. System-based, we use a combination of multiple indicators to determine crucial price turning point potentials and only participate in directional opportunities when other market participants confirm the trade direction. For example, in the NLT Price Move Model, the SPU (Speed Unit) is the determining factor to describe how far the system extrapolates the price movement and corresponds it with a stop level to determine if the trading opportunity is acceptable or not.
6. How many parameters are used?
It is system-dependent. In TradeColors.com, our entry-level system, we use pure price action to determine trading opportunities. In more advanced systems like NLT Top-Line, we use multiple parameters to select a trade situation: Price action, Volume Activity, Correlation to the Market, Money Flow, Statistical Volatility. All systems auto-calibrate and do not need resetting, updating or upgrading.
7. Is there any optimization?
There is no need for optimization; all indicators are autocalibrating, and such the systems auto-optimize themselves. We integrate optimization in our teaching and coaching: In a period of one to three months, we work together with our clients to find and execute trades. We also offer programs to do this continuously, helping our clients to perform at the highest rate of potential achievement. Journaling and discussing good and bad trades is an excellent way to optimize the usage of our concepts. We provide journals that help record and appraise trade entry, exit, time in the trade, and our trade adjustment methods instead of getting stopped out.
8. Are you always in the market? What determines if you are neutral?
In our systems: NLT Top-Line and NLT HF, we use a purple zone, which is a zone of no trades because the direction is unclear. Why purple? We indicate up-moves in blue and down-moves in red; when the direction is vague, red and blue mix, painting a purple zone, and we wait until it ends to continue trading.
9. What is your exit strategy based on?
Our tool to calculate the expected price move is the SPU = Speed Unit, and it indicates how far a price move shall reach until it comes to an end.
With our systems, you can operate with conditional buy-stop and sell-stop OCO orders (one-cancels-the-other). Without the need to be in front of your computer for the orders to execute. You are entering by price thresholds, ensuring that other market participants have the same directional assumption as you do and exit at the SPU target or adjust the trade at the stop.
By a change in the frequency and amplitude of the price movement over time, we specify indications to act on high probability price turning points, applying mechanical rules rather than leaving room for interpretation.
10. Describe your approach to risk management?
We teach risk-limiting strategies and specify by relating risk to reward (mechanical rules) if an opportunity is risky – no-trade – acceptable or favorable. This approach accounts for all asset classes, time-frames, price ranges, or ticks. We propagate for most situations to accept a maximum risk of 1.2-times the reward of the trade situation. With our more advanced systems: NLT Top-Line, NLT HF, NLT Trend Catching, a dashboard reading is telling the reward/risk relation of the actual situation.
11. Is a profit perspective incorporated in your system? How is it determined? How do you manage your portfolio?
We work with every individual to build a business plan that contains an action plan (when to trade and when not) and a financial plan. The financial plan considers trade preferences like day trading, swing trading, longer-term investing, available time, and preferred markets. We adjust to what people like to trade and do not determine what they need to do. Instead, we jointly build a concept that relates opportunities per time unit, times probability for building a portfolio strategy. Then, depending on the experience level, we create a portfolio that the individual student can manage. Here is an example:
The model shows that the student strives for 50% of the desired income from day trades by trading futures, while most of the capital engaged is invested in stocks. By this financial plan, the client strives for an 8.3% return on capital per month.
We are looking to engage about 80% of the capital in the financial model, leaving 20% for hedging potentials, leveraging, or protecting actual positions.
12. What markets are traded? What conditions have to be met for a market to be incorporated into your portfolio?
Our clients trade Stocks, Options, Futures, FOREX with our systems. You will learn which assets in each category offer favorable trade setups over others. We are open to working on a portfolio with price movers that suit the affinity of every trader. When one likes to trade stocks, we help with combined stock and options strategies to limit risk and leverage returns. We will teach the use of Futures strategies for speculation and hedging; however, we do not force students to apply all these; even so, we find them useful. We propose to our clients to create multiple income streams and always operate with risk-limiting strategies as the basis for long-term trading success.
13. What is the portfolio allocation model? For example, is there a minimum/maximum amount allocated per market?
Let us answer through an example: when combining stocks with options, the minimum unit of trading is 100 shares. When you choose to hold Futures longer-term, the allocated margin is the maintenance margin of the underlying. However, risk defines the portfolio holdings. Therefore, we promote allocating to the portfolio by risk units and potentially use futures to hedge the entire portfolio. This way, you are less exposed to a market turn in the overnight session where you might not be able to control your portfolio of holdings. We teach this in multiple hours of working together, and our clients experience more than we can put in a summary here, but what we teach is learnable.
14. Does the unit size ever change?
We take a percentage risk of the entire portfolio, and one holding shall not contain a higher than 5% risk of the account holdings per trade. To decide the level of risk to take, we are using a probability model, and by this, the allocated lot size per trade differs from opportunity to opportunity. We propose an up to 80% capital engagement rate. The remaining 20% of the capital is reserved for potential portfolio hedging.
15. What is the maximum margin to equity ratio? What would be the percentage loss of the portfolio?
Traders have a different affinity to risk, and we help individuals build a portfolio that suits their risk tolerance and income expectations. Again, we recommend taking a maximum risk of 5% per trade and no more than two positions in the same industry segment. Based on this, we calculate the maximum potential risk with each client and define where to put a hedge in place that auto-executes, in case of a market move in the overnight session, when neither stocks nor options can be traded. We leave excel-based financial models with each client to change and optimize. Undoubtedly we also offer to work with us continuously.
16. At what point in asset size would you say: performance can be diluted?
Performance always matters. For example, when you trade from a weekly chart, your maximum stay in the trade shall be five weeks. You exit your trade when either your SPU-based price target is reached or at the closing of the fives candle. We do not hold assets for pleasure. They are investment units that shall produce a return. We encourage you to re-invest into new opportunities and constantly turn your capital.
17. What is the minimum capital requirement to trade this strategy effectively?
The capital requirement varies by affinity to the asset classes one wants to trade: FOREX pairs can function as very applicable assets for small account holders. It would help if you worked with a broker that allows unit allocation; then, FOREX is the most flexible asset to trade for smaller account holders. Some futures traders allow day trading with a $500 margin unit; futures are great day trading instruments for smaller and bigger accounts. If you want to trade stocks and stock options effectively, SEC rules require you to hold a minimum of $25,000 in your account to short stocks and produce more than three day-trades per week. Hence, there is a strategy for every account size, and we work with our clients to find out what suits them best.
18. What are your infrastructure, manpower, budget needs?
You only need a computer or laptop with a sound graphics card, and you are in business. Our mentorships range from $2,500 to $9,997, and our monthly subscriptions to the NLT Alerts from $99 to $495. The choice is yours, and we work with you to find out which system and mentorship you get the most return. We are happy to meet with potential clients to determine assets and time frames to trade and demonstrate how our systems work at or above 65% probability. One hint, more than 50% of our clients, buy more than one system with us. Why is that? After their trading paid off their tuition for the first system, they added another for achieving a higher participation rate and higher returns.
Trading is a beautiful business with minimal setup costs and can be conducted from any place in the world as long as you have internet access, either as a:
- The main source of income
- Additional income
- Retirement planning
When we work together, our concepts range from Retirement account trading (IRA 401(k)) to swing and day trading from margin accounts.
A lot is possible, so do not hesitate to contact us:
contact@NeverLossTrading.com Subj. Demo.
We are happy to get together with you and find out which of our systems best suits your wants and needs, helping you to solve five major dimensions of trading, where many mistakes can be made:
- Trade entry decisions
- Exit decisions
- Stops (where to place them)
- Maximum time in a trade
- Risk to reward
In addition: we are offering a year-end special you do not want to miss out.
We are happy to hear back from you.
Thank you for your time,
Thomas Barmann (inventor and founder of NeverLossTrading)
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