DayTradeToWin Reviews

Monday, May 28, 2018 is Memorial Day here in the U.S. Because it’s a fairly significant holiday, popular markets close early. Specifically, the E-mini S&P 500 halts trading at 1 p.m. ET and reopens around 6 p.m. ET. Yes, you will be unable to trade for about five hours. Other CME products will be impacted, specifically those in the equity, interest rate, FX, NYMEX & COMEX categories. If you’re in a different time zone, remember to convert the hours. ET is UTC-4 (New York time). Take a look at the official trading calendar from the CME. A number of trading holidays are listed.

Upcoming Trading Holidays

When is the next trading holiday? July 4, 2018 is Independence Day. July 4 is a Wednesday, so you can expect reduced trading hours. Expect another post on that closer to that date.

Friday, May 25, look for slower than normal market conditions. The Friday before a three-day weekend/holiday tends to be slower. Slower market activity tends to chop back and forth, which can increase risk.

Tomorrow, March 8, is rollover day for the E-mini and other index futures! You will need to follow the NinjaTrader rollover instructions below. Rolling over is important – otherwise, you’ll be trading an oudated contract that will soon expire. Outdated contracts will start to show weird-looking market activity, like many dojis during peak hours. If you see that type of thing, then you’re probably late in rolling over. Generally, we recommend that you check for rollovers about once a month. Just follow the same steps below and roll over any instruments (markets) that NinjaTrader detects.

Yes, we will be addressing this message that NinjaTrader produces as a warning for an upcoming rollover.

How to Rollover in NinjaTrader

1. In NinjaTrader’s Control Center, at the top of the window, go to Tools > Database Management.
2. Now you should be looking at the Database Management window. NinjaTrader should detect all of the instruments (markets) that need to be rolled over. Click the Rollover button and all of the instruments will be rolled over. Yes, it’s that simple! By the way, if you’re following these steps prior to March 8, you probably won’t see the ES listed. Remember, NinjaTrader is only showing you the markets that need to be rolled over on or after the roll date. What are the roll dates? Here’s a list from the official source, the CME.
   
3. Okay, now your contracts should be rolled over. Wouldn’t it be cool if you went back to your charts and saw that the markets automatically rolled over after you clicked that rollover button in the last step? Well, that’s exactly what should have happened. Look at the top-left of your chart and you should see ES 06-18 instead of ES 03-18. Yep, that’s all you have to do! Enjoy trading the ES 06-18 for another three months. In June, you’ll need to roll over to the September contract. Remember that the E-mini uses a quartlerly contract expiration cycle, so every three months, you’ll need to roll over. Some markets like the CL roll over more frequently. We recommend that you go to the Database Management screen monthly and roll over whatever NinjaTrader is showing. This way, you develop a good habit and better ensure your contracts are up to date.

Here are some pictures that may help with the above instructions:

Some trading platforms use a “continuous contract” that automatically rolls over for you. NinjaTrader takes a manual approach, but they make it pretty easy. Another thing to consider – some traders prefer to wait to roll over until the volume has shifted to the new contract. For example, a couple days later, the volume in the ES 06-18 contract may finally be greater than the ES 03-18, and at that time (days after the actual rollover date), they will switch. This is a “follow the volume” approach. Some traders like to trade where there is the most liquidity.

This 2018 stock market activity has been wild. In late January of 2018, the media reported on the stability of U.S. financial markets. Basically, the reports focused on the unwavering growth of U.S. stocks since the 2016 election. Many articles stated the markets seemed to be perpetually stable. Then about two weeks later in early February, the stock market was a much different place. The Dow experienced its largest single-day loss ever. By using an E-mini S&P 500 daily chart, we can see how price dropped over 300 points within a few days. Unquestionably, investors were hit hard. Many of the same media outlets now summarize the activity as a crash. Who would have thought such a thing would happen out of the blue at the start of a new year?

There are several theories as to why this happened. Perhaps it’s a combination of all of the following or none of the following contributed. U.S. economics is an extremely complex subject with many layers and variables.

Here’s what the experts think may be the cause:

• Concern/fears related to the Fed: high interest rates, bond yields, and inflation
• High-frequency trading algorithms that ran amok or (conspiracy) worked together to cause the fall
• Markets were on the rise for too long and it was simply a matter of time before they self-regulated

The bottom line is that we simply don’t know and we may never know. Where does this leave you as a standalone, retail trader? Well, if you’re tried to trade lately, you’ve probably noticed the increased volatility. “Increased” is an understatement. In some cases, we’ve seen the volatility quadruple what we normally consider high levels. For example, the ATR (Average True Range) can be used as a volatility indicator. We consider an ATR of four relatively high. Lately, we’ve seen the ATR approach 20. If you’re trading, your profit target or stop loss can be hit so quickly, that you don’t have time to prepare for the outcome. If you must trade, use ATM Strategies because it may not be humanly possible to react in time. A smarter approach is to practice in simulation mode, so that you can at least get a feel for the flow of the market. Many clients have been staying out entirely, and for the most part, we agree with this approach. Being a winning trader is about placing the trades and knowing when it’s too risky to bother trading.

What will happen in the 2018 stock market?

No one knows. However, we put together this video showing that 2018 may be an up year because of the January Effect. The January Effect was correct in predicting that 2017 would close higher in December than January. If the same holds true, we could be looking at a recovery in the coming days or weeks. This presents a potential winning opportunity to go long on a retracement. Yes, this is very high risk, so we understand if you want to wait until the E-mini’s volatility returns to that acceptable one to four-point range we typically see. Whatever happens, we’re in for a ride!

Here’s a recent Atlas Line trade. The Atlas Line is a day trading indicator that works with many different markets. The market being traded is the E-mini S&P March contract (03-18). The market has produced some great opportunities lately, despite some trading systems having difficulty with the chop. At around 10 a.m. on Jan. 29, the Atlas Line produced a short signal. Price was at 2869. The ATR was at 2.56. For the ATR, use a Period value of 4 and your ATR will look similar. An ATR of 2.56 translates to a profit potential of about +2.5 points, or +10 ticks.

John Paul was able to enter the trade within about one tick of the entry price. The result was a winning trade. If you had been trading about five contracts, for example, your profit would have exceeded $500. Keep in mind, this is an estimate and there are no guarantees of accuracy with any trading system.

Day Trading Tips

There are several key points to consider when using our trading systems:

• Stay in a trade for as short a time as possible. Get in and get out. Limit the amount of risk your account is being exposed to. It’s not worth holding onto a trade for over an hour. In fact, the Atlas Line rules say 20 min. is the maximum. Day trading means exiting your position before the day is over.
• Check for news events early in the day. Yes, scheduled news events can cause significant volatility, turning a normally profitable trade on its head. If you know an announcement is about to be made, stay out until volatility subsides. Then reconsider entering again or waiting for another signal.
• Trading does not have to be black and white, win and loss. Think long-term success. Even per trade, it’s possible to get out at a smaller loss, smaller profit, or even breakeven.

Here’s another example of how the ATO 2 and Atlas Line can be used together to find and confirm trades in the E-mini S&P. Many traders were expecting a bull market and were therefore looking for long (buying) trading opportunities. The ATO 2 and Atlas Line indicated the opposite, telling traders to go short with their automated signals. For example, the ATO 2’s short signal at 9:55 a.m. EST was based on the ATR (average true range). Take a look at the green line on the bottom. The profit target for the ATO 2 is usually over one point. Generally, you won’t see a profit target over four points. The same is true for the Atlas Line software. Remember, slower conditions cause lower profit targets and stop losses. Faster, volatile markets (unless too volatile) can be traded with larger profit targets and stop losses.

When multiple trading systems confirm the same direction, John Paul believes the trade has more validity. This is especially usefull in a bull market where the common belief is price will trend upward. The Atlas Line’s 10:00 a.m. EST signal confirmed the ATO 2’s short direction. With only one trading system in place, you may be less confident with the trades you place.

Two Systems Go Short in Bull Market

Live training is included with purchase for both systems. If you instead want to learn how to trade all of the DayTradeToWin.com methods, Mentorship is the best option. Each live training session is recorded. Play back each recording at your own pace. Lessons are truly live and are conducted entirely online. You attend a live webinar room where John Paul shares his charts and discusses his techniques. It’s one of the best ways to learn how to day trade.

In this video, John Paul discusses the January Effect, which is a free trading method with simple rules. Basically, we’re waiting to see if the E-mini closes higher on January 31, 2018 than the opening price on January 2, 2018. If price does close higher, then the January Effect says that 2018 will be an “up year” overall. Because the year is expected to trend up, John Paul believes that it’s worthwhile to look for long (buy) trading opportunities after consecutive days of selling (bearish) activity. By using the Fibonacci tool, it’s possible to apply visual indicators that help determine the point of entry. Follow the steps in the video.

Experiment with this free trading method in other markets. You may be surprised at what you find! Look for a minimum of three to four consecutive days of bearish activity. When price begins to surpass the 50% level on the way up, that’s your entry point. John Paul says that markets like to revisit levels they’ve previously reached. This is why the Fibonacii tool is configured to use a 100% level near the most recent high. Yes, conversely, you can use that for the bottom of the bearish trend. It’s really the 50% level that matters the most, and that will always be halfway.

Free Trading Method Alternatives

If you want to see how the ATO 2 and Atlas Line performed early in 2018, go to 22:40. Long signals were produced by both. These real-time signals were generated for everyone to see in the live webinar. Other DayTradeToWin clients should have seen the same signals. Occasionally, John Paul will take live trades in webinars. However, in this case, he was busy demonstrating the January Effect. When it comes to trading multiple signals, generally he advises taking whichever one appears first.

The eight-week Mentorship Program teaches about 10 different strategies. These are far better than the free trading method options you’ve seen. He will teach you how to filter out potential losing trades and pick potential winners. The goal is to turn you into an independent, professional.