In addition to the Power Scalper algo, the Alert Software also includes the Momentum Breakout Target Strategy specifically designed to capture large point gains on days the market has a significant directional move.
This easy-to-follow strategy was created to capitalize on major “impulse moves” that occur frequently in the market.
Here’s a simple overview.
Taking Advantage of A Trending Market
The Directional Impulse Move is a larger scale Price Acceleration in the direction of a Trending Market or a Market attempting to trend. If the market is going to attempt to trend to the UPSIDE for the day all the Directional Impulse Moves will be to the UPSIDE. If the market is going to attempt to trend to the DOWNSIDE all of the Directional Impulse Moves will be to the DOWNSIDE.
The ES / MES Momentum Breakout Target System does not generate alerts for wiggles or ripples in the market but is calibrated to alert you to the precise breakout levels most likely to get you into the BIG PRICE WAVES of the day when they develop.
Simply wait for a 1-minute close past the Trade Price Barrier to enter the trade.
The Benefits of Trading the Momentum Target Strategy:
1) It’s super-easy to follow along with the Alerts.
The software provides an Alert Price, Exact High-Probability Targets and a Dynamic Trailing Stop. This system starts up 5-minutes after the market opens (cash session) and the first thing you will see is the Dynamic Trigger Range appear in your Alert Software. Once price begins to break out of the range, shortly thereafter you will get a Trade Alert with a specific Trade Price Barrier entry level. Simply wait for a 1-minute close past the Trade Barrier (for confirmation) and pull the trigger on the trade. The software will show you exactly where to place the initial stop-loss and give you the 1st Target. Sell a partial position at the first target and follow the system trailing stop with the remainder of your contracts.
The system typically generates 1-2 Trade Alerts per Day.
2) High-Probability Targeting
Since this is a “targeting system” we are looking to enter a directional move off the opening Dynamic Trigger Range and trade the impulse move as the system calculates high-probability targets along the way. With multiple contracts we can pull some contracts off at each target and hold the remaining contracts for the next target. The Targets are based on the current market structure and calculated using a complex set of computations on the back-end. On a typical day the system will generate 3 Targets, which vary based on the current market structure and ranges in the market.
3) It’s easy to get started with very little risk and a small account size.
The MES (ES Micro Contract) is 1/10th the size of the regular CME ES contract so 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 in the Futures market and learn the ropes. Build your confidence trading live with the Micro contract. The Momentum Target System can be traded with ES or MES.
4) We’ll include the NinjaTrader on-chart indicator at no extra charge.
We have a “companion indicator” for both NinjaTrader 7 and 8 that plots everything 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. 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 still easy to follow and trade on whatever trading platform you are currently using.
5) The strategy is consistently profitable and scores big points.
The Statistical Edge is Gained Over The Series. The market is either trending strongly or it is not. Trading the Momentum Breakout Target System we attempt to catch the BIG runs. The Statistical Edge of the Momentum Breakout System mainly occurs over the series of trading sessions and not necessarily on a Trade by Trade basis.
The Momentum Breakout System can alert you to the ginormous price moves and help you stay in strongly trending ACCUMULATION Days or DISTRIBUTION Days where large point gains can be captured – which put the odds in your favor OVER THE SERIES. (If you want quick point scalping action use the ES-S Power Scalper tab in the Alert Software)
The system is designed to keep you in for the big point moves – as it takes partial profits along the way. The trailing stop ratchets up as price moves.
The 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.
One of the best features of all is that on many days this is a “morning 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. In other words, the market often trends strongly in the early part of the day – and we might see the first 3 Targets hit before lunch. At that point the system may just “go dormant” and no further Targets are issued. On rare occasions under specific market conditions the system may generate up to 5 Targets.
Screenshot of the Alert Software running the Momentum Target System superimposed on the NinjaTrader 8 indicator
– click for full-size
The Momentum Target System is Simple to Trade
The Momentum Target System is designed to play the market profile structure that exists near the open each day.
On a typical day there is 1 Trade Alert shortly after the market opens. Certain days it may issue a 2nd Alert if there’s a major trend reversal in the early part of the session.
Keep in mind that the Alert Price isn’t generated at the exact same time or price level that the price is breaking out of the range, however it plays the directional break. The range is generated 5-minutes after the open and on some days can adjust later in the session. Trades are based on the Alert “Trade Price Barrier” and you simply wait for a 1-minute close past the Barrier.
The System starts off with (what might be considered) a fairly wide initial stop. Remember we are trading the major directional move of the day and this is part of the strategy. The Trailing Stop automatically tightens up as price moves, but is calibrated to play the larger trend of the day without getting knocked-out by normal fluctuation.
This is one of the reasons we recommend starting off with the MES Micro Contract, which allows us to play the primary trend moves without fear of a stop-out. With the regular ES contract, using a 4-7 point stop is not always feasible for most traders, but with the Micro Contract it’s no sweat. In addition, you are able to trade multiple contracts and hold on for multiple Targets which is what makes this system work so well.
The system generates multiple Dynamic Targets and the current “Next Target” is displayed in the Alert Software. In other words, if the 1st Target gets hit you will see the Target change to the 2nd one – even though you may or may not still be in the trade. Typically there will be 2-3 Targets in play past the Trade Price Barrier. You want to sell some contracts at each of the Targets and continue to follow along with the system trailing stop.
The Trend Direction Arrow shows which direction the system will be giving alerts for. A Green arrow means we are trading to the Long side and a Red arrow means the system will be giving Alerts to Short. Note that the Momentum Meter does not move because it’s not used in this strategy.
The Momentum Target Strategy runs during the cash session and most days the action occurs early in the day. Many days the system will wrap it up early and no longer issue alerts after lunch freeing you up to do other things. We look to capture big points in the early part of the session and call it a day.