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Futures Trading

The Power of Purple — Extremely Profitable, Often Misunderstood

September 29, 2016 — by Troy Noonan0

Using the higher time frame chart without actually having to look at it.

I am referring to what we often call “The Purple Trade,’ which is a specific Counter Punch Trader setup that few completely understand and as a result, it often intimidates new Counter Punch users.  Yet it continues to deliver the goods, and the last couple sessions on the YM offers some excellent examples (see below).  If you take the time to learn this trade, you will see HOW it works, and WHY it is so effective.

First of all, let me explain a little bit about the setup.  The purple trade takes advantage of an ‘exhaustion level’ on a ‘higher timeframe chart,’ but ON the actual chart we would use to trade.  Moreover, it is dynamic in that the ‘higher timeframe chart’ it would be ‘referring to,’ is based on actual price action itself.  In other words, it is NOT a specific timeframe.  It is just a ‘higher’ timeframe of some sort.  The below example will hopefully better explain this interesting concept.  We’re using a 377 tick chart to trade off of but the higher timeframe chart we will look at is a 5 minute chart.

Example 1 shows a chart pattern that happens all the time, on all timeframes.  I have color coded each part of the example so you can easily follow the sequence.  The first four examples refer to trades that happened on the YM yesterday, and led to the tradeplan finishing strong, with a positive result and all new equity highs for the life of the tradeplan.

This is a 377 tick chart.  The bars have nothing to do with time but for the sake of this example, you can assume each bar takes about one or two minutes to form during this part of the session.

092916_purple1

 

This example shows the exact same price action but on a ‘higher timeframe’ chart.  It’s a basic 5 minute chart.  Keep in mind, we are trading off of the above chart but I wanted you to have a clear look at what is happening on the higher timeframe chart so you can see how we use the purple trade (third example below).

092916_purple2

 

This 3rd example is another look at the same chart in the first example, the 377 tick chart, but this time, you see the purple trade presenting a perfect short trade due to its unique ability to take advantage of ‘higher timeframe’ failed exhaustion levels.  This setup as well as the other CPT setups are described and taught in great detail with the Counter Punch Trader training.

092916_purple3

 

A 2nd purple trade, using the same principals appeared immediately following the first example for another perfect trade.

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Then, today, these trades happened to also finish another winning session and new equity highs (on both the YM and TF).

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Today’s TF Trade also took advantage of the Power of Purple

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The Counter Punch Trader takes advantage of smart chart patterns that produce profitable setups.  It puts the odds in our favor on every trade.  Moreover, it does so by simplifying what we actually base our decisions on.  We don’t have to look at the higher timeframe chart (we can if we want) because the ‘power of purple’ does it for us.  Hopefully I have been able to describe how this effective setup works and that you will be able to use this idea with your own trading.

You will can learn more about my trade ideas, as well as gain insights from other professional traders by downloading the new book I am in:

Expert Trading Systems: Successful Traders Share Their Secrets

You can download it free at Amazon here: amzn.to/2cqcYr8.  If you like it, please leave a positive review.  Thanks!!

 

 

 

 

 

 

 

Futures Trading

High Flying DAX Futures Trade Plan SOARS to Record Profits Today

September 22, 2016 — by Troy Noonan0

Our DAX Futures 233 Tick Chart is one of the most profitable charts to trade and has been consistent for the last 18 months

Anyone catch the strong rally in DAX Futures this morning? The Counter Punch Trader has a long running tradeplan using a 233 tick chart.  This has been one of the most consistently profitable charts I have ever seen.  Today it jumped to all new equity highs for the year and life of the tradeplan, which began in March, 2015.

Our trade plan requires two target 1 winners or, one target 2 winner.  The first trade this morning hit T1 and then stopped out with our dynamic profit protection stop.  The 2nd trade hit all three targets and trailed for a much larger gain.

Today’s DAX Futures hit Record Profit Levels for the year and for the life of the trade plan

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Here’s this year’s DAX Futures equity curve based on all the trade plan trades for the year.

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Uncategorized

Are Psychological Key Price Levels Important with Certain Daytrade Markets?

September 10, 2016 — by Troy Noonan0

Pay attention to major price levels and make minor adjustments around them.

We often talk about the importance of respecting certain ‘key levels’ when it comes to trading.  Especially in certain markets like the YM, CL, TF, some forex pairs, etc.  It’s a topic that often gets overlooked and when I talk about it with traders, their eyes will often just glaze over with boredom.

Certain psychological levels like throw roadblocks in the way of our trades sometimes and it happens more frequently than most people realize.  You can use this knowledge to your advantage if you know what to look for and how to make small ‘artsy’ adjustments.  In fact, we have reduced this subtle ‘artsy’ side of trading to a mechanical rule and actually enabled our Counter Punch trade calculator to make these adjustments for us.

Not convinced?  Check out today’s YM trade that used this concept perfectly, resulting in a ‘one and done’ tradeplan trade, quitting with a strong positive result for the day, week, and lifetime equity highs for the tradeplan.

Forex TradingFutures Trading

Counter Punch Trader Flash Sale is in TWO Days, Thursday September 8th

September 7, 2016 — by Troy Noonan0

Be sure to register for our upcoming 24 hour Flash Sale of the Counter Punch Trader.

Be sure to register for our upcoming 24 hour Flash Sale of the Counter Punch Trader.  This will be the lowest price that the CPT has ever been offered and will only be valid for 24 hours.  To register, be sure to click on this link:

http://www.netpicks.com/cptoneday12pm

Meanwhile, watch this video to see how the Counter Punch Trader did today, the first day back from the Labor Day Holiday Weekend.

Here’s a look at DAX Futures, Crude Oil Futures, GBPUSD, YM, Soybean Futures and the Russell eMini. Same Strategy on a diverse range of different markets and charts.

090616_CPwalkthruYouTube from NetPicks on Vimeo.

Register for the upcoming 24 Hour Flash Sale where you can get the Counter Punch Trader at the lowest price it has ever been offered, good only for 24 hours.

http://www.netpicks.com/cptoneday12pm

 

Stock & Options Trading

Snap Shot Trading Should be Used for Equity Swing Trades, too

September 4, 2016 — by Troy Noonan0

Look for Market Treasures in Overlooked Places

In the last couple posts we looked at how we can swing trade slower timeframe charts without having our trading take over our lives.  With this example, I wanted to show you how you can use the same principals to swing trade stocks, ETFs and options.

Check out this example of GOOG.  This is a great trading stock but at $775 per share (or there about), it is out of reach to many traders.  With the CPT, you can use the trade setups you see on the chart to trade options.  The entry tells you what strike price to buy; something slightly in the money with enough time remaining.  At each target, you could exit a part of your position.  When it’s a long trade you buy slightly in the money call options.  When it’s a short trade, you merely buy slightly in the money put options.  Sometimes a trade will take a loss so if it does happen to hit its stop, you sell your option and recapture some of your premium.  We never hold options to expiration.  There’s no reason to do that.  Like this, you can contain your risk and enhance your risk:reward ratios.

This example is  a unique 195 minute chart using ‘natural hours’ instead of session hours.  What makes this chart so different is that if you use session hours, you basically are dividing the session by two, giving you two bars per session.  You can certainly use a chart like that and get twice the frequency as a daily chart would give you.  Using Natural Hours, as with this chart example, you actually get 3 bars.  The first bar is only 15 minutes, so at 9:45 am, you look to take trades.  The 2nd bar is 195 minutes and the 3rd bar is 180 minutes (the remainder of the first 15 minute bar.  Different, right?  We like to be different.

Look to take trades on this GOOG chart 15 minutes after the market opens.  But slightly in the money calls and puts with enough time (1 month is about right, give or take) and then scale out at each target for double and triple digit percentage gains.

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There are many advantages of using this type of chart.  The most obvious is that you let the market settle in for 15 minutes before placing trades.  Also, you can get your trading done quickly, with a brief ‘snap shot’ window of time.  Also, we don’t want to do what everyone else is doing.  We want to go our own way and find our treasure under the stones that everyone else is overlooking.

The Counter Punch Trader will be on the market again soon.  Be on the lookout.  We will be announcing how you can register for the next upcoming webinars here on this blog very soon.

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Forex TradingUncategorized

GBPJPY Swing Trade Progressing Nicely

September 2, 2016 — by Troy Noonan0

Follow up to the Last Post and the Current GBPJPY Swing Trade

In the last post I spoke of the virtues (and pitfalls) of trading a slower 240 minute chart.  I talked about how it could take over your life if you don’t have the right plan.  Using a technique we call ‘snap shot trading’ helps rein in the time commitment element to trading this type of chart.  Here’s a follow up look at the GBPJPY trade that was just beginning to get underway in the last post.  With the right tools, it’s only necessary to check and manage this trade once or twice per day.  It literally takes minutes, not hours, and hours, and hours.  Let the trade do its thing.  You don’t have to ‘hover’ over it as if you could control the outcome.  You can’t nor should you want to.

This current GBPJPY swing trade, using a 240 minute (4 hour) chart is pushing up to it’s Target 3 level, + 673 pips).  It’s already quite profitable.  Now it’s just a question of how much.  Let the tradeplan do its thing.

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There are plenty of opportunities to trade with this technique.  And you’re not limited to Forex.  In the next post, I’ll show you how you can use a unique swing trade chart, using ‘snap shot trading’ to trade equities; stocks, ETFs and Options.

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Forex Trading

Four Hour Charts DON’T Have to Take Over Your Life to be Effective with Forex

August 29, 2016 — by Troy Noonan0

Everyone can see the amazing trades that appear with CPT on the 4 hour chart (240 minute). What traders typically don't think about and wind up learning rather quickly, is ...

Everyone can see the amazing trades that appear with CPT on the 4 hour chart (240 minute).  What traders typically don’t think about and wind up learning rather quickly, is how that time frame can take over a person’s life.  Imagine having to check your charts every four hours.  Not just today, but tomorrow, the next day, the next..  etc.  Many will even sleep with their computers, afraid of missing a trade in the middle of the night.  This is no way to live, no way to trade, and most importantly, not even necessary.

You can still take advantage of the great trades that take place on the four hour chart and NOT have it take over your life.  Best of all, you can do it consistently and successfully.  How?  By using the concept we call ‘snapshot’ trading.  It’s really quite simple.  You commit to reviewing your charts for trades the same time each day (or there about), maybe looking at your charts once or twice per day.  if a trade sets up, you take it.  If a trade happened to set up earlier, and it is still near the entry, we follow our ‘get in synch’ rules and in many cases, the trade can still be taken.  Like this we can take advantage of this type of timeframe without it taking over our lives.

Of course you need to have techniques to manage the trade while it is in progress but there are many tools to do that, including price ladders, doms, 3rd party trade management interfaces like MyFX.com, for example, etc.  The point is that it can be done and it can be done with minimal daily effort.  Of course it still is a business and the trader must be consistent with running his/her trading business but that’s true with all successful trading.

Here’s a look at the GBPJPY 4 hour chart using a custom CPT plan and snapshot trading.  This plan can pretty much be traded at any time, but this tradeplan gets the best results by only checking it once or twice per day.  What’s more, this particular plan takes advantage of the Asian Session and can be traded in the evenings for those living in the US.  You look to take trades at 4 pm and/or 8 pm est.  If a trade is there, you take it.

This 4 hour chart of the GBPJPY is a specific tradeplan that keeps hitting record profit levels.  You can see it hitting its first target objective where a percentage of the trade can be taken off for + 93 pips.  The stop is moving higher and trailing, allowing the trade to capture larger gains if the market continues to rally.

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Check out this 5 year equity curve of the GBPJPY 4 hour chart.  CPT is easy to learn and if you’re going to swing trade this timeframe, I strongly recommend you consider ‘snapshot’ trading so that you don’t have to sacrifice you’re every breathing moment to your trading.

082616_gbpjpy4hrCurve

The Counter Punch will be on the market again, soon.  Be on the lookout for the date for our Autumn release.

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Futures Trading

Tradeplans Hitting New Record Equity Highs Again — It’s All a Numbers Game

August 19, 2016 — by Troy Noonan0

Many of our favorite tradeplans continue to hit record equity highs for the life of the tradeplan, some of them hitting 2 year highs today.  I thought I would do a quick post to point just a few of them out.  It illustrates some of the major points that we always teach and use in the traderoom and with our trading.

  1. The importance of well researched and tested tradeplans for ongoing profitability as traders
  2. Remaining consistent and disciplined
  3. Proper money management which carries us through the ups and downs.  A rising equity curve is never a straight road up.
  4. Realistic Expectations; understanding the rhythm of 2 steps forward, 1 step back, 2 steps forward, 1 step back
  5. Surrender; we can’t control price action or the right edge of the chart.  No one can!  We can control other things though.  We can put the odds on our side with every trade, then allow the tradeplan the time it needs to let the odds work out in our favor.  It’s all a numbers game!
  6. Belief; It is critical to build the proper foundation before risking real money to put the vision in place so that a trader can believe in what that tradeplan does and will do if he/she would just stick with it.
  7. Always remember WHY we are trading in the first place.  TO MAKE MONEY!  Making money is NOT trading more.  Making money is holding onto your money when you make it and then letting the overall EDGE that your tradeplan gives you grow your account.  Then, use Einstein’s 8th wonder of the world, the power of compounding.  THAT is making money.
Crude Oil Futures hit all new record profit levels yesterday, and again today.

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Dow eMini Futures was One and Done Today, Hitting Lifetime Tradeplan Equity Highs in 12 Minutes

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DAX Futures is one of the most profitable markets to trade.  this big winner illustrates the potential as this trade broke the equity curve out to all new record profit levels this week.

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We’ll look at forex and stocks/options in upcoming posts.  This is an exciting time of year to be trading.  Up or down, I’m looking forward to some great volatility as we roll into the final part of this election year.  This is when it is so important to know what you are trading, why you are trading it, and how you will be trading it.  Traders that treat their trading like a business and follow the simple principals listed above will be in a FAR greater position for success then ALL those people out there who don’t.

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Forex TradingStock & Options Trading

Quit Positive on Most Sessions for Ongoing Consistent Profits

August 9, 2016 — by Troy Noonan0

If you could quit positive on most sessions, you can enjoy ongoing success as a trader.

In the last post, we looked at some examples of how we can achieve ongoing consistent profits with a one and done tradeplan. We talked about how you can still trade more, just trade a different tradeplan.  In fact, that’s a great way to go because you can gain additional benefit by adding the strength of diversification to your trading.  It still allows you to benefit with the less is more idea while being able to trade more too.  You can have your cake and eat it too.

A variation to yesterday’s theme of trading less for greater ongoing consistent profitability is to quit with the first winning trade and or a positive result within a certain window of time.  Quitting with a win and a positive result is what we call the Power of Quitting.  There are many ways to use this idea.

With a good forex daytrade plan for example, you can trade from 8:30 et until 11 or 12 noon.  You would quit as soon as you won and were profitable.  On the rare occasion that you were unable to get positive, you still quit with minimal trades, which controls drawdown and keeps it manageable.  Tomorrow will be another day.  As long as you can quit positive a majority of the time, you should be able to grow equity.  Using the backtesting techniques we teach, you can determine this before you ever risk real money.

A window of time like what is suggested above might allow for anywhere between one to three trades, possibly a fourth.  Forex daytrading plans can be very effective with this idea.  Moreover, we can take advantage of the flexibility that forex provides regarding position size and scale out 25% at three different targets while trailing the final part of the position for the occasional huge move.  We have to be mindful of spread so any target that is too small, we just ignore and exit that part of the trade at the next target.  Flexible thinking is important too.  I like to think of the market as an unruly dance partner.  So long as I can flow with its rhythm and let price action ‘speak to me,’ I can use my strategy to achieve my objective of ‘taking what the market wants to give me.’  It’s a different way of thinking but has proven to be a great way to enjoy steady, ongoing profits.

In the below example, the EURUSD 5 minute chart (a great chart to daytrade with the CPT) had a couple targets that were just too small to bother with.  The trade ended up profitable in context to the personality of that particular session.  Instead of exiting at T1 and T2, those parts came off at T3, + 11 pips.  The final 25% of the trade was able to pick up + 20 pips with the trailer.

EURUSD gave us a good example of quitting positive after a winning trade. It happened to be the first trade of the day for the US session start time, 8:30 et, and is a good example of taking what the market wants to give while being able to quit with positive results most of the time.

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On the Friday Session, the first trade of the day didn’t come until 11:10, triggering in at 11:30.  It would have been worth the wait as it went up to hit all three targets (larger than the prior example) for another great One and Done session.

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You can trade stock charts much the same way as forex, scaling out 25% at each target and trailing the remainder.  You can use the stock chart setups to trade options.  In this example, you could daytrade weekly options.  Look for slightly in the money options using the stock entry price to guide you.  Exit at each target, going flat when the trailing stop is hit.

Another great example of a One and Done plan that is easily testable.  This is an AAPL 377 tick chart but it could be a number of other charts and symbols.  You can trade options using the stock setups for greater leverage and risk control too.

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Notice the less is more theme working across the board on every example we look at.  Do we need to trade more?  Not if we want to consistently grow equity, position size and steadily increase wealth.  Why else trade if not for that?  It’s all about the tradeplan.  In training you can learn how to quickly assess a chart and whether you can be successful with the less is more approach.  By using techniques like the ‘Fast Test’ and powerful tools like the UTA, you can custom make the best tradeplans that fit your personal needs and style.

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