2024 has started, and serious traders embark on a ritual of refining their trading systems and setting ambitious goals for the year ahead. The process involves meticulous planning, goal setting, and measures to ensure accountability—standard practices borrowed from the business world. However, when it comes to trading, a critical element often disrupts these well-laid plans: emotional decisions.
While logical thinking excels at planning and envisioning success, it falters when faced with the unpredictable nature of trading. As the famous saying goes, “Everybody has a plan until they get hit in the face.” The illusion of control in the absence of immediate danger can lead traders to believe they have mastered the markets solely through their actions and planning.
The question of whether you have a chance as a trader is found in the basis of your decision-making, summarized in a couple of questions:
- Do you have a system to find and act on high-probability price moves of stocks, futures, or FOREX pairs, winning more often than you lose?
- Does your system give you hardcoded entry, exit, and stop rules, or do you decide discretionary?
- How much time and when in the day can you transact with the markets or pre-program your orders?
- What is your funding basis and expected return?
- Do you operate with clear-cut rules for capital preservation with clearly formulated risk rules?
A trading plan does not express the desire to make a specific income or return; it substantiates itself in clear action steps of answering when, how often, and why questions. This is where NeverLossTrading comes into play. We help you to form fact-based decisions, following clearly expressed rules:
| Base | Requirement | Example |
| When to Trade? | Trade finder for day trading, swing trading, longer-term investing | Win > 65% |
| How to Trade? | System-defined entry, exit, stop | Buy >, Sell <, to execute buy-stop or sell-stop orders, making sure the price moves in the desired direction, with the associated target, stop or trade adjustment |
| Risk Control | Risk Rules | Max Risk: 1.2-times return expectation, e.g. |
| Time of the day | Available time for trading | All day or at specific hours in the day |
| How often to trade? | Capital base and return expectation | 3% a month swing trading or 5% a week day trading e.g. |
We help our clients write business plans for trading success, including action plans (when to trade) and a financial plan (how often and return expectations) following the rules of our systems.
Trade what you see: Let the chart tell when to buy or sell.
We hold ourselves accountable for this mandate and teach in one-on-one sessions how to work with our systems, focusing on clients’ wants and needs.
Our entry-level system for fact-based algorithmic trading is called TradeColors.com. The system colors candles with up-momentum in blue and down-momentum in red. Trades are executed when the high of the second new two-blue color candle combination is exceeded in the price move of the next candle and the low of the second new set of two red candles.
Here are two chart examples for swing trading and day trading:
TradeColors.com Swing Trading Chart (QQQ)
The QQQ daily chart shows three trade potentials with two new same-candle-color-setups that confirmed and came to their system-set target in the price development of the following three candles.
TradeColors.com has integrated watch list indicators, and we also offer an NLT Alert that indicates which stocks, futures or Forex show the desired situation on daily and weekly charts.
Next, we check a 10-minute day trading chart for /ES from January 5, 2024.
TradeColors.com Day Trading Chart
On the chart, we highlighted four trade situations; three came to their system-set target, and Situation-3 did not. In our teaching sessions, you will learn why not to accept Situation-3; however, for the sake of accepting signals mechanically, three winners and one losing trade is a high probability.
Higher-level NLT systems highlight potential trade situations by formulating:
- Buy or sell thresholds: Buy >, Sell <
- Target dots on the chart and dashboard messages
- Stops at red crossbars or lines
In addition, we teach rules for rising and falling trends and how to prevent entering trades on the wrong side of the price move.
Next, you see an NLTdaily chart combining multiple systems for higher trading accuracy for December 6 to January 5, 2023, where our systems indicated five potential trading opportunities. We acted at three and will explain the reasons why.
AAPL Swing Trading Example: Trade What You See!
From the left to the right, the chart was telling us the following action:
- NLT Purple Zone: We color up-moves in blue and down-moves in red; when the direction is undecided, a purple zone is put on the chart, indicating not accepting trade indications as long as the purple zone is present.
- With the ending of the NLT Purple Zone, we got a buy signal (1): Buy > $194.72, which led to a trade to the upside with the target at $197.62 (dot on the chart)
- We disregarded the green buy signal (2) because we were already in a trade.
- Sell < $195.51 (orange signal, 3) gave an overall directional warning that the price of AAPL had top pressure to drop, but the direction of this signal was not confirmed in the price development of the next candle; hence, there was no trade.
- Green signal (4), Sell_M < $193.50, confirmed and initiated a trade with exit at $187.15.
- The NLT Cyan Zone indicates longer-term support and resistance; we mainly take zone breakout trades. The red signal, Sell < $183.89, provided the opportunity for a breakout trade that reached its system-set target of $181.23 (dot on the chart).
Here is a trading example that combines multiple systems for higher trade accuracy: it shows the /ES (E-Mini S&P 500 Futures Contract) one of our students experienced and took feedback on.
/ES Day Trading Example: Trade What You See!
The question is, why settle and close the trade?
We trade by rules and from the sell signal: Sell < $4814.80, a 2-SPU move was concluded (second red dot of the signal reached). Hence, we saw only a 15% chance for the price to drop further and such a profit point was reached, leading to an income of $575 per contract for the student who took the trade.
If you want to get ready to execute high probable plans for trading success, contact us for a consulting hour to find out which of our systems or system combinations best fit your goals for 2024 forward.
contact@NeverLossTrading.com Subj.: Consulting
Our Offer
We help our students simplify technical analysis by providing a holistic approach that combines chart patterns, trend analysis, and market indicators. Traders are equipped with practical tools and methodologies to identify high-probability trade setups, helping them make informed decisions based on market trends and price action.
Executing trades at the right time and price can be challenging, especially in fast-moving markets. NeverLossTrading offers techniques for precise trade entries and exits, allowing traders to capture optimal returns. With its focus on high-probability setups and systematic approach, NeverLossTrading helps traders improve their trade execution and timing, maximizing their profit potential.
Trading challenges are an inherent part of the financial markets, but with the solutions offered by NeverLossTrading, traders can overcome these hurdles and thrive in their trading endeavors. By addressing emotional biases, providing effective risk management techniques, simplifying technical analysis, optimizing trade execution, and fostering continuous learning, NeverLossTrading equips traders with the tools and knowledge needed for success. Embrace the solutions provided by NeverLossTrading and embark on a journey toward consistent profitability and trading excellence.
We add a daily crude oil futures chart to let you decide if you feel that you can learn to trade what you see:
NLT Trading Example: Trade What You See
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 suits you best. The markets changed, and if you do not change your trading strategies with them, it can be a very costly undertaking. Hence, take trading seriously, build the skills, and acquire the tools needed. Trading success has a structure you can learn and follow.
Thomas Barmann (inventor and founder of NeverLossTrading)
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