ATP (Advanced Trading Philosophy) - Positioning For Success

Quoting autaret

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Thank you Damon for repeating the NLCT rules, it seems I'm understanding them in a correct way.

1) About all the discussion related to the percentage profit and the way how to bank it: I'm mainly concentrated on the e/u chart and I try to "mix" the APT with a foundamental point of view and the "common sense" = discretionality (that's my real account!). That way I banked nearly 20% in 2 weeks closing the profittable trade manually (when the system seems not perform that way in this ranging market, it depends on the next move, if it hit the S/L for the short positions or not ... ).
I know that the APT don't involve discretionality ... but at the end we are here to make money ... . About a possible EA: I have not positive result in the paste - so I'm a bit skeptical - but IMO could be better a single EA for each pair instead of a single EA for all the system.

2) About the "just techical side" of APT I'm encountering difficultyes to follow all the 14 pairs, this is just becouse at the moment of take the decisions it is beetwen 1 to 2 in the night for me (impossible timing, after 2 or 3 week you get totally destroyed ... ).

Putting all together 1) and 2) I decided to reduce the pairs to just one (e/u), trading it demo (IBFX) with the full rules and real (CFX) with APT + discretion. The main time I "paper trade" following Tony's positions to learn the whole system. I will try - week per week- to add pairs to my IBFX basket to at least the 5 majors pairs suggested by Damon.

This is for Tony: no problem I follow you on the thread hoping we can skype again very soon

Ciao ciao, Luigi

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Quoting tman378

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Damon,

Thank you for the reiteration of the NLCT rules. Just for confirmation, would you please look at the chart below verify my understanding of the signals on the three bars marked by vertical lines:

1. Red vertical line marks where we got the first NLRT long signal -- green ST dot 4 bars back + yellow NL

2. Yellow vertical line marks where we got an NLCT short signal? I'm not sure if this is correct any more, since there was that green ST dot (mentioned in #1) that came before it. My best guess right now is this would not signify an NLCT short for this very reason. So the only trade we could place with this yellow NL signal is a NLPT long. After that we just wait for the NLPT short that we placed on the signal bar from #1 to trigger before placing any more short trades. In this case, as you can see on the chart, this did not trigger until 4 bars later (3/31 bar)

3. Purple vertical line was the bar that marks the valid NLCT long signal. No red dot between this bar and the most recent green ST dot. So we would cancel all pending short trades here except for the TAMB shorts (which would only be adjusted when we get the next short signal, right?) We would then proceed to place an NLCT long trade, which must be triggered before any other long trades can be placed.

This is my best understanding of the NLCT rules at the moment. Please tell me where I might be wrong. I have a feeling I'm not 100% correct yet.

Thank you.

Tony

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Quoting damonl

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NLPT = Non-Lag Position Trade
NLRT - Non-lag Reversal Trade

You can do a thread search and you will find the rules for each trade

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Quoting walesoje1

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Damonl, I have actually been following this thread silently for sometime now and deemed it fit to contribute to the success of this thread.

I carefully studied and back tested the exit rules and thought I should let you also see what I felt would be ok for the exits. A ST confirmation and a corresponding Stochastic (5,3,3) cross would be perfect. Exit for long should be when there is a red ST and the fast stochastic line is crossing the slow line i.e. %K Period and %D Period. Backtest in realtime and let me know what you think about this exit strategy.

You are not actually clear about your S/L... I have checked all through the 46 pages in this thread and don't seem to get clear pictures about your stop losses. Kindly let me know your exact stop losses rules.

There is no money management rule(s) anywhere when there are no stop losses.

I have actually tested the same system on lower TF and it is working perfectly. I believe it will be best for scalpers on 5M TF except for lower spread brokers then it can be used on 1M TF.

Trading this system on 04.04.2008 I made 201 pip and lost 54 pips on just EURUSD.

I will be waiting for your email and I would suggest you all add 50EMA and 100SMA to your charts and study backward to know the price actions around the MA's.

I am still studying a particular indicator which I believe might make a huge difference in entry and exits and I will keep you posted but meanwhile this is thebest system around.

Congratulations on your success Damonl.

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Quoting mikka

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Hi damon,

Thank you very much for all your effort in creating this thread. I have been following along quietly, not wanting to disrupt the momentum by asking basic or naive questions. However, although i have manged to grasp most of the thread recent changes have me a little confused and in need of some clarification, please, if you have time. I have added the chart to help.

I have highlighted potential orders as i see them. Also, alongside the white shaded arrow long NLRT and DPTT orders as well as our TAMB orders would also be executed. Would i be correct in that assumption?


Alongside the red shaded arrow as price moves down, before the NLCT, as i understand the system the only thing that should be happening is any potential stops being triggered resulting in exiting of long positions, based on "2BBE". So essentially as price moves down alongside the red shaded arrow we are position neutral until the NLPT or NLCT are executed. Yes

In reference to point 3, made by Tony highlighted in red above, when the long NLCT signal occurs there wouldn't be any 'pending short TAMB' orders needing to be canceled, Would there? The only short trade would possibly be the NLPT. Right

Finally, does the triggering of a 'short NLPT' mean that we are essentially ready to take short positions again and the same for a NLCT and vice versa. Yes

Thanks once again for all your hard work, and Tony too.

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Quoting walesoje1

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Damonl, I have actually been following this thread silently for sometime now and deemed it fit to contribute to the success of this thread.

I carefully studied and back tested the exit rules and thought I should let you also see what I felt would be ok for the exits. A ST confirmation and a corresponding Stochastic (5,3,3) cross would be perfect. Exit for long should be when there is a red ST and the fast stochastic line is crossing the slow line i.e. %K Period and %D Period. Backtest in realtime and let me know what you think about this exit strategy.

You are not actually clear about your S/L... I have checked all through the 46 pages in this thread and don't seem to get clear pictures about your stop losses. Kindly let me know your exact stop losses rules.

There is no money management rule(s) anywhere when there are no stop losses.

I have actually tested the same system on lower TF and it is working perfectly. I believe it will be best for scalpers on 5M TF except for lower spread brokers then it can be used on 1M TF.

Trading this system on 04.04.2008 I made 201 pip and lost 54 pips on just EURUSD.

I will be waiting for your email and I would suggest you all add 50EMA and 100SMA to your charts and study backward to know the price actions around the MA's.

I am still studying a particular indicator which I believe might make a huge difference in entry and exits and I will keep you posted but meanwhile this is thebest system around.

Congratulations on your success Damonl.

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Quoting mikka

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Hi walesoje1,

The stop loss strategy was recently revised by Damon. He has introduced a "2BBE" method for setting stops, which is essentially placing a stop two bars back from the opening of a new bar. Subsequently, adjusting stops as new bars open except in a situation whereby the closing bar has closed with a lower low than the previous bar if in a 'long' trade and vice versa. In which case the stop is kept at its previous location.

Although i'm not an expert on this system i would suggest that introducing stochastics in combination with an ST dot reversal signal would constitute a completely different concept to the one presented by ATP.

The question of exiting positions is currently being discussed. Due to the nature of this strategy an appropriate method could be once the overall equity has increased by a certain percentage then a trailing stop could be introduced on an individual pairs basis. This will allow equity to grow and at the same time enable weakening pairs to be stopped out.

Can you explain further how you use this on an intraday level. Sounds interesting.

Thanks

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Quoting mikka

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Hi Damon,

Thank you very much for your reply. Can you please briefly explain the concept of dividing equity by 400 then 100 to give lot size.

Thank you.

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Quoting damonl

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Hello Again....


I also want to create a solid base of trades early on into our trading pattern. What this means is that I am currently looking at keeping my first 2 or 3 trades as my base trades, which means that no matter what type of trades they are, they are going to remain open until they stop out, we liquidate at a certain amount of equity or they hit one of our Exit Solutions.


Hi Damon,

Wouldn't this be the default situation anyway?

Also, when entering into a trade is it OK to enter on any signal or should we start at the beginning of a pattern i.e a NLRT.

Thanks.

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Quoting damonl

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Hello Mikka...the concept is quite simple. Keep your lot sizes small and then compound them as the market moves in your favor. That way you are only taking small losses on your way to the big profits.

Also it gets people feeling comfortable with the market. Anyone can handle a few $50 losses on a 10K account without breaking a sweat. Also, risk is a personal thing it could very well be that as you contine to use this system you will determine your own MM strategy that is better for you and as you begin to compound your growth, you will find that your lot sizes can start to increase quite rapidly, and so over time you are really risking very little while going after the big prize.

Is this what you were looking for in an explanation?

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Quoting mikka

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Hello Damon,

Thanks for the explanation. I am beginning to clear-up a few things in my head regarding ATP so hopefully i can provide more positive input in the future.

Just a couple of more questions, if i may? Firstly, going back onto the lot size how did you derive at the numbers to divide the account by i.e 400 and 100?

Secondly, do NLPT orders remain in place in all situations except when an NLRT is formed in which case all short pending orders are canceled in the case of a long NLRT and vice versa.

Thanks for your help, I'm getting their slowly

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Quoting tman378

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Hi Damon and friends,

Hope everyone had a nice weekend and hope you were able to get some quality time with the family under the sun, Damon

Here's my daily analysis to start off the week. Last week got a little rough towards the weekend, but overall loss only totaled about $300. On a $15,000 account that's not too bad at all. I'm going to continue placing trades the way we have been taught by Damon, and hold off on experimenting with the new exit and MM strategies being discussed until further conclusive testing has been done.

(Just to be clear, I base my beginning-of-the-week trades on signals that occur on Friday's bars.)

AUD/USD
.35

Add: 8
Observations

1. UT continues
2. AO Divergence (AODT)

Actions
1. Place DPTT long trade Should be a NLCT
2. Place AODT long trade
3. Move SL for all open long trades to low of 4/03 bar

I left off the AODT trade because it coinsided with the NLCT trade. One this early is enough.


EUR/AUD
.35

Add:11

Observations
1. DT continues

Actions

1. Move SL for all open short trades to the high of 4/03 bar Leave at the 4/2 bar because the 4/4 bar had a higher high then the 4/3 bar
2. Place DPTT short trade
3. You also have a 1DCT

EUR/CAD
.35

Add: 11
Observations
1. DT continues

Actions

1. Move SL for all open short trades to the high of 4/03 bar
2. Place DPTT short trade.
3. You also have a 1DCT

EUR/CHF
.35

Add: 7
Observations

1. UT continues

Actions

1. Move SL for all open long trades, if any, to the low of 4/03 bar Order would have stopped out on Friday
2. Place DPTT long trade

EUR/GBP
.25

Add: 6
Observations
1. DT continues

Actions

1. Move SL for all open short trades to the high of 4/03 bar
2. Place DPTT short trade
3. You also have a 1DCT

EUR/JPY
.25

Add: 7
Observations

1. UT continues

Actions

1. Move SL for all open long trades to the low of 4/03 bar
2. Place DPTT long trade

EUR/USD
.35

Add: 5
Observations

1. Yellow NL turned up, but does not agree with the most recent ST dot (red) = not NLCT

Actions

1. Do not cancel any pending short trades since this is not a valid NLCT or NLRT. Cancel all short trades
2. Place NLPT short trade yes
3. Wait until previous NLPT long trade, placed on 3/31 bar to trigger before placing any more long trades

GBP/CHF
.15

Add: 12
Observations

1. UT continues

Actions

1. Move SL for all open long trades to the low of 4/03 bar (there’s only been one lower low) Trades would have stopped out on Friday
2. Place DPTT long trade
3. You also have a 1UCT

GBP/JPY
.15

Add: 12
Observations

1. UT continues

Actions

1. SL for long trades cannot be moved since price is now lower than the low of 4/03 bar Correct, S/L should be under 4/2 bar
2. Place DPTT long trade

GBP/USD
.35

Add: 7
Observations

1. UT continues – NLCT long trade triggered

Actions

1. Move SL for all open long trades to the low of 4/03 bar
2. Place DPTT long trade
3. You also have a long TRT

NZD/USD
.35

Add: 8
Observations

1. Yellow NL turned up + green ST = NLRT

Actions

1. Cancel all pending short trades except for TAMB shorts Cancel TAMB shorts also because they are being replaced with the TAMB long trades
2. Move SL for all open short trades to high of 4/04 bar
3. Place NLRT (EES1) long trade
4. Place TAMB long trades on 3/28, 3/30, 3/31, 4/02, 4/03 bars 3/30 is a Sunday bar so no TAMB trade on this bar
5. Place NLPT short trade

USD/CAD
.35

8
Observations

1. DT continues

Actions

1. Move SL for all open short trades to the high of 4/03 bar.
2. Place DPTT short trade

USD/CHF
.35

7
Observations

1. UT continues

Actions

1. Move SL for any open long positions to the low of 4/03 bar
2. Place DPTT long trade

Sunday's bar closed with a yellow NL short so you would need to adjust your orders based on this new info.

USD/JPY
.35

5
Observations

1. UT continues

Actions

1. Move SL for all open long trades to the low of 4/03 bar
2. Place DPTT long trade

Sunday's bar closed with a NL short so you would need to adjust these orders based on this new information.

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