Why don’t you publish official trade stats?
This is one of the most common questions we receive – and it is explained in detail below.
Our trading system involves a certain degree of discretion.
Think of this as a positive thing because you aren’t locked-in to only one way to trade along with the Alerts.
One of the main challenges of posting “Official Trade Stats” based off of Automated System Alerts is that not everyone will trade the signals in the exact same way. In other words, unless every variable, i.e. position size, initial stop placement, delta targets, trailing stop rules, scaling methodology etc. is strictly quantified, for every single trade, the concept of “Official Trade Results” is meaningless. Traders are at different levels and employ different tactics and money management rules in their approach to the market. Ten traders can end up with 10 different trade results all based off the same entry alert.
The Alerts from the software are not like a Trading Room
We developed our software to be an alternative to the “trading room” paradigm, which typically has tons of drawbacks.
There are 11 different algos (system choices) in our software – and different ways to trade each one
Your “win ratio” is going to depend on how selective you are in taking the trades – and the key is to be selective.
We have different types of entries that go with the different instruments and provide different types of trade configurations that can be used – depending on preference – and the type of market environment we are in. A critical part of trading along with the alerts is determining market conditions and trading accordingly. In other words you have to use a bit of discretion because you will trade dull market conditions differently than volatile, active markets.
For instance in a normal market (if there is such a thing) for the ES Scalper we recommend entering after a 1-minute close past the Trade Barrier (Alert Price). In a super-fast market we suggest placing a limit order to get filled 1-tick past the barrier.
For the NQ scalper the entry strategy is to wait for a penetration bar past the barrier and then pull the trigger.
In addition, the Scalper systems in the software run “around the clock” and issue Alerts at all times of the day and night. While most of our users are trading the cash session, there are some that trade the overnight session – and some that trade in pre-market. Some users prefer to trade the morning session and then wrap it up for the day – while others might attempt to trade the entire session. (We recommend avoiding lunch time hours if the market is dull).
You want to trade off the alerts based on the current market environment.
You can’t trade every alert – nor do you want to try to trade every alert.
No trading system will work in every type of market environment. Back in the Fall and Winter of 2018 (when the market sold-off -20%) the daily ranges were enormous. It was common to see a 4-6 point ATR on a 5-minute candle. While the system actually had some of the best performance ever in that volatile environment, our users had to adjust their strategy to compensate for it.
For instance under normal circumstances (if there is such a thing) we wait for a 1-minute close past the Trade Barrier to enter a trade, but under those kind of conditions it was typical to see a 1-minute candle blast through the barrier and move 10-points. So instead of waiting for a 1-minute close past the barrier the aggressive trader would set a “limit order” 1-tick past the barrier so they would get filled as the price broke out of the range.
Current market conditions change from day to day, week to week and month to month. They even change intra-day. I’m sure you’ve seen the “lunch time lull” where the ES chops around in a tight range on low volume, maybe it’s just zig-zagging up and down in a 2-4 point range, essentially sideways right? You can’t realistically expect that all of a sudden it’s going to blast off and move 6 points (until and unless you see it happen). As a discretionary trader you have to use common sense and avoid trading in a dull, low-volume sideways chop.
The Alert Software is designed to give an alert every time the price breaks through the Barrier – but that doesn’t mean you want to trade every alert. The ES Scalper might give 20-30 alerts per day during the cash session – but that doesn’t mean you can or want to try and trade every alert. You want to be selective.
There are multiple types of Trade Configurations you can use – and they are based on user preference
We have traders that are scalping ES with 10-20 contracts and just looking for a quick 1-point move. All-in and all-out.
Other users are trading 1 contract and looking to capture bigger moves – like 4-10 points – and using the system trailing stop to stay in a move as long as it lasts. We have multiple ATM strategies you can set up and use at different times – or utilize depending on preference.
There are good trading days and bad trading days – and it’s a good idea to avoid bad trading days
Our system thrives on active, volatile long-range days – and we recommend that users avoid dull market conditions.
It’s not a bad idea to focus your trading on the morning session and then wrap it up for the day. On days when the market is trending and there’s plenty of action (volume) you want to trade more aggressively than on dull days.
Here’s another example. There are multiple “trade configurations” that you can set up as ATM strategies and they are going to produce different results on different days – depending on the market. We can’t program “market conditions” into the software, so that’s where the discretion comes in.
For instance we have an ATM strategy that enters with 2 contracts and sets a 2-point stop. When the price moves 1-point in our favor it sells 1 contract and then moves the stop up 1-point, so the trade is at breakeven. Then it goes for a 4-point target on the second contract.
There are certain days (and times during the day such as lunch time) where the ES is dull and a 4-point move “just ain’t gonna happen”. Most traders can tell that by the chart and price action, so you might either sit it out – or take a trade that goes for 1-2 points.
PowerEmini Example Alert
Each individual discretionary trader can choose from different methodologies to Trade off the System Breakout levels. The System computes High Probability Trade Barriers and alerts us when price approaches and crosses these levels. (The system does not know if or where we decide to take a trade.) Individual Trader Results will be based on many personal factors. i.e. Trade Size, Trade Configuration and Scaling, Initial Stop Placement, Trailing Stop Movement, Price Targets, Instrument etc.
Because of this, no two traders are guaranteed to achieve the same exact trade results.
PowerEmini Example Trade
The screenshot above shows an Alert where price moved +12 points after it broke through the barrier.
How would you have traded it?
Would you have entered with 1 contract and sold when you were up 2 points? How about once it was up 4 points?
Would you have entered with 2 contracts and sold 1 up +2 points and hung onto the other contract using the trailing stop?
Would you have entered with 10 contracts and sold them all for a quick scalp when the price moved +1 point?
Would you have… There are dozens of other variations and we can’t tell you which strategy is the best fit for YOU and your style.
The good news is that you aren’t locked into just one way to trade the alerts. Our job as discretionary traders is to use the information from the Alerts and adapt them in a way that fits with our preferences and trading style – and current market conditions.
Above is an example of a typical Power E-mini Momentum Breakout Alert LONG with a corresponding 1 Minute Bar Chart to the right. The Alert Software always maintains the DYNAMIC TRIGGER RANGE (you can plot two horizontal lines on your trading chart for visual reference points) and alerts you with visual and audio signals when price starts to get close to either of the price barriers. (Called Proximity Alerts) The software gives us a TRADE PRICE BARRIER to work with. When price crosses the Alert Barrier and we get a 1-Minute Bar Close past the barrier we enter the trade. The Alert software also provides us with a Trailing Stop to work with. What we are looking for is the market to make an IMPULSE MOVE after crossing the barrier in our favor – and follow-through on that move.
Here is an important thing to understand about Performance Stats.
Each Individual Discretionary Trader can trade off the Alerts in a variety of ways. For instance, one trader might enter a trade with 1 contract and hold for the entire move to the Dynamic Macro Target. Another trader might enter with 2 contracts and take profits on both contracts at a quick scalping target of + 1.50 points, even though price could go much further. (Sometimes the moves can be substantial – in the example above price ended up moving over 12 points after passing the Trade Barrier). Still another trader entering with 4 contracts, may wish to scale out with half at our recommended ES DELTA TARGET of +1 point – scaling out another contract at +2 or +4 and then holding the remaining contract with a trailing stop for a potential significant run. Also keep in mind that trades could be added to as price works its way across the “playing field” from the Trade Price Barrier to the Dynamic Macro Target. So even though in the end, PRICE will move the SAME DISTANCE for everyone – individual traders will play these Impulse Moves with different trade sizes and configurations and may vary their approach from time to time, it is therefore impossible to track an official ROI based on actual trades based off a group following the system signals. The “Trade Traction” data therefore only shows Raw Price Movement past our trade barriers with the max point move recorded before the system resets for the next alert.
In the example above, where the price broke through the Barrier and proceeded to move 12 points… how would have traded it?