The Momentum Target Strategy is extremely easy to follow.
This system “quants out” with an extremely high degree of accuracy.
Trade Alerts are both to the Long and Short side, depending on the primary trend of the day.
Take a look at the Stats from the past few days.
Let me show you how you can trade along with this system – and how to read the stats.
The first thing you’ll do in the morning when the market opens is pull up your Alert Software and choose the Momentum System tab for the instrument you want to trade. This “automated system” is so successful we decided to make it available for all the symbols in the software which will be available in a couple weeks. Right now the system trades the ES or MES and we do recommend that you start off with the Micros to get the hang of it.
So 5-minutes after they ring the opening bell on Wall Street the system will generate the “Dynamic Trigger Range”. If you’re using our NinjaTrader indicator the range will appear on your chart automatically. If you’re using a different platform you just simply plot 2 horizontal lines on your chart at the Range High and Range Low.
What we are looking for – to take an entry – is a break out of the Range.
When the price breaks out of the range, the system will calculate a Trade Price Barrier, which is going to be above or below the range – depending on which way it breaks. Then, you simply wait for a 1-minute closing bar (or candle) past the Trade Barrier / Alert Price for confirmation – and enter the trade. You do have the option of setting a Limit Order to get filled at the exact Alert Price but generally speaking you can just pull the trigger and a few ticks of slippage either way isn’t going to make much difference.
As soon as there’s a 1-minute close past the Alert Price – the system will calculate the Initial Stop and 1st Target.
On your trading platform you simply place a hard stop at the Stop Price – and a Sell Order at the 1st Target. Since we are shooting for multiple targets based on the current trend, you’ll only take “partial profits” at Target 1. This is where some discretion comes in – you have different options as far as how you want to trade the system. On most days the system will generate up to 3 Targets but there are times – in strongly trending markets – where you can see up to 5 Targets. (Today, 10/1/2019 is one of them – all 5 Targets got hit).
Here’s how to read the stats.
It’s honestly as simple as it looks, but let’s start off with 9/27/19 which was last Friday.
Five-minutes after the market opened the system plotted our Dynamic Trigger Range. Shortly thereafter the price broke down through the bottom of the range and the system issued an Alert – Short – Trade Price Barrier 2983.00
As soon as there was a 1-minute close past (below) 2983.00 the system displayed the Trailing Stop and target. It just so happens that Friday 9/27 we were doing a Live Group Training so I didn’t note the trailing stop price – I was getting everything ready for the show. As you can see, each of the first three Targets got hit before the system was taken offline. Friday’s are a good day to wrap things up early – and tune into our training sessions.
Let’s look at the stats from yesterday.
Price broke out of the Trigger Range to the upside and shortly thereafter we got a Long Alert at 2973.00. You can see that the price managed to push up through the first 3 Targets (which was a substantial move) but never quite made it to Target 4 – that’s why the background is white instead of green.
Keep in mind that the Alert Software (and Ninja indicator) display the “next Target” and then once that target gets hit, it calculates a new target and depending on the trend, that can go on up until there have been 5 Targets generated.
Meanwhile the Trailing Stop is really the key to everything.
In the image above you see that the Trailing Stop finally got taken out at 2981.50. The Trailing Stop starts off fairly wide and then incrementally ratchets up along with price. We call it a Dynamic Trailing Stop because it uses real-time price action, ranges and market profile to automatically adjust – it’s not linear or just based on prior lows. So Once the 3rd target got hit, the price faded back to the Trailing Stop, which by that time was +8.5 points over the Alert Price.
A 1-contract trader might enter at the Alert Price and just hold on until the Trailing Stop gets hit, closing the trade there. Another trader might go in heavy and “sell it all” at Target 1. A third trader might go in with 3 contracts – shoot for 3 Targets and then be done. Like I said earlier, trading the system in real-life offers a lot of flexibility and we describe several ways to trade the system in our documentation.
Check out the stats from today – Wow!
As you know, the market started the day with a rally off the open and then 30-minutes into the session the ISM Manufacturing numbers came out and the market reversed – hard – and ended up in a big sell-off. Shortly after the open the trend was up so the system gave an Alert to go Long at 2991.50. The price continued higher past target 1 before reversing back down and triggering the Trailing Stop.
Then the system “reset” and issued a Short Alert at 2980.50 and you can see what happened next.
Today turned into a “trend day down” and as the price kept hitting the downside targets, the system kept calculating new targets – and adjusting the Trailing Stop until it finally got taken out 33.5 ES points past the Alert Price. Today was a perfect example of how the system adapts “on the fly” to changing market conditions and how it can really capture major points on days where the market makes a big move.
It also shows why you want to “stick to the system”, even if you take some stop-outs (which you will). Keep in mind that our system has no control over market conditions and there will be good days and tough days. But conceptually, the Momentum Target System is always going to get you in any major trend that develops – simply due to the nature of the “Range Breakout”.
One final thing about the stats. We are still in the process of enhancing the “graphical display” of the stats and getting them all wrapped up and automated to be displayed on the site on a daily basis. The images I used here are just the start and once we get the Momentum Target system working for all the different symbols, we’ll make daily stats available.
This system “quants out” with an extremely high degree of accuracy.
Try it for yourself – trade on Sim for a couple weeks – then trade it on the Micro Contract and track your results. Prove to yourself that it works and decide which of the strategies we will show you fit your style of trading the best.
The Benefits of Trading the Momentum Target Strategy:
1) It’s super-easy to follow along with the Alerts.
The system starts up 5-minutes after the market opens (cash session) and shortly thereafter you will get a Trade Alert. Simply wait for a 1-minute close past the Alert Price and pull the trigger on the trade. The software will show you the initial stop-loss and the 1st Target. Sell a partial position at the first target and follow the system trailing stop with the remainder of your contracts.
2) Scaling Out of a Trade Incrementally Keeps You In For the Big Moves
Since this is a “targeting system” we are looking to enter a directional move off the opening range and the system calculates high-probability targets. With multiple contracts we can pull some contracts off at each target and hold the remaining contracts for the next target. The Dynamic Trailing Stop keeps you in as long as the trend keeps going.
3) It’s easy to get started with very little risk and a small account size.
You’ll want to start off trading this system with the MES (ES Micro Contract) which is 1/10th the size of the regular ES contract. Each MES contract represents only $5 per point. You can trade the MES without fear of big drawdowns and it’s the perfect way for a beginner to get started and learn the ropes. Build your confidence trading live with the Micro contract and as you build up risk capital you can eventually move up to the full-size contract.
4) We’ll include the NinjaTrader on-chart indicator at no extra charge.
We’ll set you up with our “companion indicator” for NinjaTrader that plots everything right on the chart for you – making it even easier to follow along. You’ll see the opening range, trailing stops and Targets right on your chart – and they adjust automatically in real-time. Just let us know which version of NinjaTrader you’re using and we’ll send you the download instructions. If you aren’t using Ninja, no worries – the system is extremely easy to follow and trade no matter what trading platform you are currently using.
5) The strategy is consistently profitable and scores big points.
Some days the system will only generate just one trade – and other days there can be several. Since it’s a “targeting strategy” the idea is to enter with multiple contracts and jump in on the early trend of the day. If the trend changes the system will adapt. The Trailing Stop is designed to keep you in the current trend, allowing enough “wiggle room” for normal price fluctuation.
The system is designed to get you in and keep you in for the big point moves – as it takes partial profits along the way.
One of the best features of all is that most days it’s an “early session trading strategy” so you can trade it during just the first part of the day – score your points – and then wrap it up and go on to do other things.
Screenshot of the Alert Software running the Momentum Target Strategy
A High-Probability Targeting System
Simply wait for a 1-minute close past the Trade Alert Price to enter the trade.
The Momentum Target Strategy runs during the cash session and many days the action occurs early in the day. Some days the system will wrap it up early and no longer issue alerts, freeing you up to do other things. Other days like today when the market is trending the system stays in – capturing points as long as the trend persists.
A simple to follow – highly accurate – trading strategy specifically designed to capture major (and minor) trends in the market
Entry Price – Trailing Stops – Dynamic Targets
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