If trading
was easy, nobody would ever go to work again.
Just listen
to CNBC: Depending where the S&P 500 index stands in relation to the 50-day
or 200-day moving average, you know how to go long or short in the markets.
Simple, isn’t
it?
This trading
algorithm can be programmed and put on the chart in 15 minutes – set and done.
How comes
that the vast majority of traders and investors fail when it comes to achieving
their financial goals?
Conventional
technical analysis is a lagging the real market action and produces high risk,
low reward, low probability trading and investing setups. By the time those
indicators tell you to buy or sell, the low risk, high reward opportunity has
passed and the typical circle of doom starts:
Small
win, small win, big loss.
How to
prevent this?
Focus on supply and
demand patterns:
All
institutional buying and selling goes through the market makers. They recognize
a higher demand or supply and change their price offer immediately; this is
where you want to pick up your trade: At points where the supply and demand
levels moved the price for the first increment that others or all market
participants recognize that something is going on.
The crowd
follows the leader. When more participants enter with buy or sell orders, this
is when you want to trade, specifically when you can approximate how far the
market pressure can carry the trade. We use what we call the SPU (Speed Unit)
measure for this exercise; giving you clear cut entry and exit prices at the
beginning of every trade. The next challenge is to find your stop level: Best slightly
outside the price range so you allow the asset price to move to target without triggering
the stop.
On this
basis, we built the NeverLossTrading pricing or decision making model:
Institutional Money Moves Put into an
Algorithm by NeverLossTrading
When do you
trade?
When the odds
are in your favor; not when it is 9:30 a.m. ET:
Probability
of the Trade Setup (past performance) * Reward/ (Risk*Probability of Failing)
> 1.5
If your current
trading system does not give you the answer to those questions and you are not
making the desired income, you might want to ask yourself, why repeating the
same pattern should give you different results?
Depending on
the time and frequency you can dedicate to trading or investing,
NeverLossTrading developed various
programs for day trading, swing trading and long-term investing; helping you to
spot and follow institutional money moves.
Today, July
23, 2014, we choose a Crude Oil Futures Chart and with a 1-Hour Time Frame,
where signals from NLT
HF-Day Trading and NLT
Top-Line indicate directional price moves.
According to
the pricing model sown above, signals are only to be considered, when the next
candle surpasses the set price threshold.
In the
upcoming example, you will see how we calculate the minimum expected price move
after confirmed institutional engagement and mark it with a dot on the chart.
In addition we show you how we use a quantitative analysis model and put price
ranges on the chart where our algorithms foresee institutional engagement, which
drives prices from one NLT Lime Line to another.
This example
shall also show you the higher complexity to consider in trading. Assuming that
everybody can make money by using two moving averages sounds a bit too easy.
Indicators like MACD, CCI, Bollinger Bands, and many others are one way or the
other moving average based and most likely will not get you where you want to
be.
Hence,
trading is not easy, cannot be learned in 1-hour and needs a lot of dedication
and effort for every trader to get where you want to be. NeverLossTrading is
here to support you!
Crude Oil 1-Hour Chart with NLT HF and
NLT Top-Line Signals
The chart
above has multiple layers of information from the left to the right you see:
- Purple
Zone: A special indicator showing ambiguity. Usually after a zone of ambiguity
a directional price move happens after the spelled out price threshold is
surprassed.
- Red
signal to short Crude Oil (NLT
Top-Line signal). The signal was confirmed by the next candle ticking out
the low and a directional move happened.
- Purple
Sell Signal (confirmed). A directional price moves is happening and we can
trade along taking our target either at the marked dot on the chart or at the
NLT Lime Line.
- NLT
Lime-Lines derive from the Quant Theory, where you estimate price levels where
institutions rather buy when the price stays above them or sell when the price
falls below.
- Light-Green
NLT HF-Signal,
indicating institutional engagement spotted by a volume differential algorithm.
- Pink
NLT HF-Signal marking a potential turn around point, from where the price could
even go to the satellite NLT Lime Line and did.
- Blue
NLT Top-Line Buy Signals (confirmed), with target at the blue dot or NLT
Lime-Line.
- Purple
Signal (confirmed) with a target either at the dot or at the NLT Lime Line.
At times, we
are asked if a new trader can test run our systems.
Our answer is
twofold:
Yes, we are happy to give you an online demonstration, where
you call the symbols and time frames and we show you how the system performs,
counting good trades and bad trades.
No, in consideration that we cannot provide a free software installation:
We need four to six hours of programming. In addition, you will need about
20-hours of training (mostly catered in 2-hour session, individually recorded,
focused on your specific wants and needs) to put you in the position for
trading NLT HF or
NLT Top-Line to the
given rules and specifications.
Take the
chance to test us live. Schedule a free consulting hour, where we get together
online, share our screens with you and answer your questions:
Call: +1 866 455 4520
This will
also give you a glimpse, how you can develop yourself into the trader you want
to be.
In case you
are not yet subscribed to our free trading tips and market reports, sign up
here:
Please always
consider the risk of trading and that past performance cannot be taken
indicative for future results.
Good trading,
NeverLossTrading
A Division of
Nobel Living, LLC
401 E. Las
Olas Blvd. – Suite 1400
Fort
Lauderdale, FL 33301
