How to Easily Trade the Momentum System on Think or Swim

Updated Friday October 11, 2024

I wanted to clear up some confusion about the Power Emini Alert Software and which platforms it’s compatible with.

The Power Emini Alert Software is a “Stand-Alone” Windows program.

You can easily trade the Alerts no matter what broker or platform you’re using now.

It doesn’t matter if you’re using Think or Swim, Interactive Brokers, NinjaTrader, TradingVue, TradeStation, Sierra Chart or any other Futures trading platform. You don’t need anything besides the Power Emini Desktop Alert Software and the ability to execute trades.

We created the software specifically to be completely “platform independent”. Trading the signals using your current platform and broker is simple.

I wrote this post as an example of how you would trade the Power Emini Momentum System on Think or Swim, but the process is the same no matter what platform you’re using.

Here’s How Easy it is to Trade the Alerts On Your Current Trading Platform:

Shortly after the market opens (cash session) the Alert Software displays the “Dynamic Trigger Range” – and that’s your visual reference point for each trading session. The system is looking for the price to break out of that Range and trend in one direction or the other – at least enough to hit Target 1 – at which point the trade is at “breakeven”.

Here’s what you want to do:

When the Momentum system comes online in the morning in your ToS (or other trading platform) you simply plot a green horizontal line at the Range High and a Red horizontal line at the Range Low. Those will stay at the same levels all session.

(Use the “Price Level” selection from the Drawings section of ToS. This will create a horizontal line that extends to the right)

Here’s an example where I have the Range High and Range Low marked on the ToS chart:

You only need to plot those lines once and just leave them on your charts going forward. Then the following day, you’ll simply drag those same lines over to the right to adjust for the new Trigger Range levels for that day.

Those 2 lines are your visual reference point for the session. Honestly you could trade the Alerts without even plotting those lines because the software will alert you when a trade is pending. But it’s nice to see the range on the chart where the price needs to “breakout” from in order for a potential alert to fire off.

Remember, just because the price breaks out of that range doesn’t mean you’ll get an alert right then – or at all. The Trigger range is just the point of control in early trading and anything inside the range is noise. It’s the no-trade zone.

If you like, you can also plot an additional line (different color) to be used for the “Trade Price Barrier” / Alert Price. You can move this line around to correspond with the level for either a long or short Alert which is displayed in the software. In the image below it’s the orange dashed line.

You don’t need to plot any other lines on your chart. When you place a trade (either live or on Sim) your platform will place the lines on the chart for you. I went ahead and drew lines manually here so you can see how this trade played out. The blue lines on the chart are the 2 Targets – which you’ll see in the Alert Software the instant a trade is filled (Entry Confirmation).

Keep in mind when you actually place a trade, your ToS will plot a line at your Entry. Also when you set the Stop and Targets ToS will have lines on your chart for that too – and you can simply drag these lines on your chart to the proper levels that correspond to the levels displayed in the Alert software. So when you are trading live or logged in to Paper Trading you really only need to plot the Trigger Range lines and the Alert Price level.

Note that these lines you place on a chart will show up on each of your charts for that symbol. In other words you can have a 1-minute and 5-minute chart open and all the lines will display and correspond on both charts. When you move a line on one chart it will move on the others too.

This final image shows the Alert Software superimposed on a 5-minute Think or Swim chart to give you a good idea of how the levels on the chart correspond to the details in the System Notes section of the software.

Let Me Show You How Easy It Would Have Been To Trade The Alert You See Above:

1) At 9:52 the software gave an Alert to go Long at 5838.00

2) At 9:56 (4-minutes later) the Alert “triggered-in” at 5839.00 (That’s where you see the Entry Confirmation in the System Notes)

3) As soon as the order is filled, you can see the software displayed the Initial Stop and the levels for the 2 Targets.

4) At 10:06 Target 1 got hit at 5845.00 (+6.00 points). You can set a limit order or you can take profits at the targets manually.

5) After Target 1 got hit, the Trailing stop ratcheted up a couple times. Simply drag your stop to the corresponding level.

6) At 10:16 Target 2 got hit at 5859.00 (+20.00 points)

If you were trading 2 Contracts just shooting for the 2 Targets, then you’re done for the day.

This Alert captured a +26.00 point gain.

Imagine grabbing +26.00 ES / MES Points on one trade in the first hour of the session on a Friday and being done for the day!

That sure beats spending all day staring at the screens trying to find setups to scalp for peanuts. The Momentum System simplifies everything and is less work, less stress, and less commissions.

To Summarize:

The Alert software is going to show you all the pertinent levels and it’s extremely easy to manually draw them on your charts. Keep in mind that the Range High and Range Low are the important ones – so you definitely want to plot those. The others are optional since they will appear automatically on your charts as you place orders for the Entry, Stop and Targets.

We recommend that you just start off and just observe a few sessions, then trade on Sim for a bit. In Think or Swim you can simply log into “paper trading” and get a good feel for everything trading on Sim.

PowerEmini Alert Software For Futures Day Traders