If trading were easy, nobody would ever go to work; but it is learnable. So we want to share needed knowledge in two dimensions today:
With this link, you can read and download Traders World Magazine #86, where you will find several articles explaining what is needed for the current markets: Starting page 104 forward, we will relate to what is required to Be a Consistent Trader.
Further on, right from our research desk:
High Probability Day Trading by Combining Price and Volume
We want to demonstrate in this publication how we combine price move signals and volume for high-probability trading decisions, considering signals in a series. The concept aims to find fewer trade situations with higher accuracy on a mechanical decision-making process with few side conditions and considerations.
Research findings:
- Spotting and entering early into a price move had a higher probability of success than later entries (Early Price Move Signals)
- Focusing on price-based decision-making allows to bring risk and reward more often into an acceptable relation than time-based decision-making points (Timeless)
- Considering volume differentials helps to separate stronger from weaker price move setups (Volume)
Test Conditions
- signals are accepted mechanically (time: ET)
- no same-directional trades at 3-SPU levels
- Purple Zone signals are included in the test. Not a validated opportunity yet
- Each signal is taken individually but also considered as a signal in a series
Day Trading Summary: Applied Probability Thinking
- Sequential signal distribution is, of the essence, for high accuracy. By focusing on the first and maximum second signal in a sequence, we had a high trading accuracy of 78% winners in the observed time frame
- As a result of a drop in the probability, signals > #2 in a sequence will not be considered a trading opportunity
- The rule to not enter the same directional trades at the level of 3-SPU is essential
- Other signal combinations can be used for trading the NLT System; however, in this test, we look at PowerTowers and volume validated, Floating, T-Signals, and Trend Initiation signals
Between September 30 to October 6, 2022, we documented the instances for the four NLT system signals and rated their actual performance. In the test, there were multiple instances where NLT T-signals and Floating signals occurred at the same candle. However, when this happened, we counted only once under Floating (you will spot this on the chart example). As a result, this slightly underrates T-signals in their positive performance; however, the results also show that T-signals produced the only losing instances.
NLT Signal Distribution for the E-Mini S&P 500 Futures Contract
On average, we documented about five trading opportunities per day.
NLT Signal Performance
Here is the set of data acquired:
On the following day trading chart for the E-Mini S&P 500 Futures Contract, we highlighted the situations that led to accepting trades by our set conditions. In addition, the chart shows additional trading opportunities highlighted by our systems, which were neglected.
NLT Day Trading Chart for October 4, 2022, E-Mini S&P 500 Futures Contract
Past performance cannot always be taken as indicative of future results; however, if you are ready to experience high probability trade performance and strategies:
contact@NeverLossTrading.com Subj.: Demo
What we share is:
- 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
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, experienced pros have probably experienced it whatever you’re going through.
If you are ready to make a difference to 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 find out which of our systems suits you best.
Our blog and YouTube channel hold many examples of systems and decision-making points.
We are happy to hear back from you,
Thomas Barmann (inventor and founder of NeverLossTrading)
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