ATP (Advanced Trading Philosophy) - Phasing into Income Potential

Hello...I have decided to move everything to another thread as the last thread got to be quite confusing as we were trying to work out the details of a repainting indicator. Now that I have those details worked out, I wanted to share with you what I will be doing.

This is a very simplistic set of rules to trade the trends while compounding your profits on a daily basis. I will post my trades daily for you all to view as well as give you the details of each trade and a spreadsheet to help you manage your positions.

This has been quite the journey, and I feel that it is all coming to an end here. So enjoy the thread and my trading signals, but remember...trading is at your own risk and I don't guarantee any results, but I will post mine.

One last thing, because I am in the business of catching the trend, as we get into this, many trades will already be well into the trend and so don't expect miracles from the start. Those will happen at the beginning of all future trends that we will catch.



AUD/USD D1 Chart: Long Term ATP Strategy Trade. Post#238 Page 16
AUD/USD H4 Chart: Quick In and Out Trade. Post #240 Page 16

Testing SWI Reversal Trade with settings options=2 and smooth=.1 on D1 and H4 Post#254 Page 17 (SWI Indicator is posted in post#2)

Here are the two indicators I will be using:

1. Non-Lag (NL)

With the NL, we will use the default settings.

Here is the indicator:

2. Solar Winds Repainting Indicator (SWI)

Here are the settings you should change for the SWI.

Color#1=Lime
Input/Option=2

Here is the indicator:

Very simple....I will be trading from the D1 (Daily Chart), but I will be getting trend information for W1 (Weekly Chart)

I will be trading the following pairs

AU
EU
GU
UCAD
UCHF
UJ
GJ
GCHF
EG
NU
EJ
ECHF
EA
ECAD

My platform is from InterbankFX and I prefer to use charting software that has a Sunday Bar

This should take you no more than 1 hour each evening to trade all 14 pairs

Here is where I will show you how to Identify and Trade the Strong Trend.



Identifying the Strong Trend

The Strong Trend is identified by switching to the W1 chart and identifying two key factors.

1. The color of the SWI
2. The Direction of the last Yellow Bar Segment of the NL

If the color of the SWI is Red and the last Yellow Bar Segment signalled Short, I have a Strong Down Trend

If the color of the SWI is Green and the last Yellow Bar Segment signalled Long, I have a Strong Up Trend

The Strong Trend is only confirmed when both these two factors are in agreement on the W1 Chart.



Trading the Strong Trend

After I have identified the Strong Trend and noted Strong Trend Direction (Long or Short) I then switch back to the D1 Chart.

Once back at the D1 chart I verify that the SWI concurs (by color) that it is moving in the same direction as the Strong Trend.

If the SWI is not moving in the same direction as the Strong Trend, no trades are taken until the SWI on the D1 chart is moving in the direction of the Strong Trend.

If the SWI is moving in the same direction as the Strong Trend, then we start placing a new trade everyday either 1 pip + spread above the high of the bar that just closed or 1 pip below the low of the bar that just closed.

We continue to place a New Trade everyday regarless of whether yesterday's triggered or not until the SWI on the D1 chart gives us a Signal Reversal in which case we exit all open positions and close all pending orders.

Here is where I will show you how to Identify and Trade the Weak Trend.


Identifying the Weak Trend

The Weak Trend is identified by switching to the W1 chart and identifying two key factors.

1. The color of the SWI
2. The Direction of the last Yellow Bar Segment of the NL

If the color of the SWI is Red and the last Yellow Bar Segment signalled Long, I have a Weak Down Trend

If the color of the SWI is Green and the last Yellow Bar Segment signalled Short, I have a Weak Up Trend

The Weak Trend is only confirmed when the NL disagrees with the SWI and not the other way around on the W1 Chart.


Trading the Weak Trend

After I have identified the Weak Trend and noted Weak Trend Direction (Long or Short) I then switch back to the D1 Chart.

Once back at the D1 chart I verify that the SWI concurs (by color) that it is moving in the same direction as the Weak Trend.

If the SWI on D1 is not moving in the same direction as the Weak Trend, no trades are taken until the SWI on the D1 chart is moving in the same direction of the Weak Trend.

If the SWI is moving in the same direction as the Weak Trend, then we start placing a new trade everyday either 1 pip + spread above the high of the bar that just closed or 1 pip below the low of the bar that just closed.

We continue to place a New Trade everyday regarless of whether yesterday's triggered or not until the SWI on the D1 chart gives us a Signal Reversal in which case we exit all open positions and close all pending orders.

Please also be aware that in most cases a Weak Trend will develope into a Strong Trend. This does not become important until you get into the Money Management aspect of ATP

Managing your money is an important aspect to ATP.

Since it goes without saying that a Strong Trend would incurr less risk to losses than a Weak Trend, it should also be true and go without saying that during a Stong Trend we should be able to risk more than during a Weak Trend.


Money Mangement is a personal issue, but I will be calculating my MM as follows:

Based on a 10K Account Balance (or Equity) I will risk 1 mini lot for every trade that I enter with the Strong Trend.

Based on a 10K account Balance (or Equity) I will risk a .5 mini lot for every trade that I enter with a Weak Trend.

I have no data as to why I have chosen these lot sizes based on 'x' Account Balance or Equity, but it seems like a good place to start.

Please keep in mind that I will be setting no S/L orders and will only exit the market when the SWI gives me a reversal color on the D1 chart. Please keep this in mind when deciding what lot size is right for you.

This is always the hardest aspect to trading the markets...at least for me it is. When to exit. I will be actually using a fairly risky exit, but since I will be trading with a much larger trend, my runs should be mush longer and profits should be greater and thus justifying this risky exit.

I will be exiting the market only when the D1 has changed color and is not pointing in a different direction then either the Strong Trend or the Weak Trend.

For the time being, I will not close my trades at Market Prices when the SWI color changes, but rather use the 1 pip + spread above the bar or 1 pip below the bar to close out those orders.

This will give the SWI a chance to repaint back in either the direction of the Strong Trend or the Wek Trend.

Once again, no S/L settings will be placed at anytime throuhgout my trades.

At the moment I cannot think of anything else that you will need to trade ATP. I have some final touches to put on the spreadsheet, and will upload that with a set of instructions as soon as I am able.

The main reason for me to find a Highly Profitable Daily Trading Strategy was so that I could quit my job, and earn an income without needing to sit at my computer all day long to do it.

For that reason, I will do my best to answer any questions that you have, but it is about time I started implementing the second part to my plan.

Please though...if you have questions, ask them as I will answer them when I am around and I will also be giving you my daily entries each evening right around 0:00 GMT.

See you all soon.....

Hi Damonl,

Some chart examples with set ups and potential trades would be helpful as a visual for the rest of us.

Please remember that many of these trades are already mid trend, so be careful of the results at this stage of entry mya be disappointing as the key to ATP is start in on the trend as early as possible.

Here are the trades I will be placing today:

AU - Strong Trend (ST) - Buy @ .9477
EU - ST - Buy @ 1.6021
UCHF - Weak Trend (WT) - Sell @ .9995
UJ - ST - Buy @ 103.57
GJ - ST - Buy @ 206.18
EG - WT - Buy @ .8053
EJ - ST - Buy @ 164.97
ECHF - ST - Buy @ 1.6095
ECAD - ST - Buy @ 1.6166
GCHF - WT - Sell @ 1.9918

Okay...that is my trade placement for tonight. Have a great evening everybody

Damon - Thanks again for sharing your thoughts. I will definetly contribute to make this as a great system. Appreciate your time.

Attached below you will find the spreadsheet:

Instructions:

1. At the top of the page you will see a bright Yellow Box the says 'Enter Value'. Simply put into this space your current Account Balance or Equity, whichever you are using to determine trades. You will then find that all appropriate values will fill in automatically.
2. Under the box that says 'Weekly NL' for each pair, simply color the box either Green or Red depending on current Weekly NL direction.
3. Under the box that says 'Weekly SWI' for each pair, simply color the box either Green or Red depending on current Weekly SWI direction.
4. Under the box that says 'Daily SWI' for each pair, simply color the box either Green or Red depending on current SWI direction.
5. Under the box that says 'Trade' for each pair, simply color the box either Lime for 'yes trade' or Red for 'No Trade' depending on what your indicators are telling you.
6. Under the box that says 'Direction' for each pair, simply type in 'Long' for a Long Trade or 'Short' for a Short Trade.
7. Under the box that says 'Set Date' for each pair, simply put in today's date. ie.... 4/23/08
8. Under the box that says 'Order Status' for each pair, simply type 'Pending' when you place your order and change it to 'Open' after it has triggered.
9. Under the box that says 'Entry Price' for each pair, simply enter the price at which you are placing your Buy Stop or Sell Stop order.

Spreadsheet:

There you have it....now you have and know how to manage the spreadsheet.....Enjoy

Please do

Okay...but not now. I am done for tonight

@ Damon;

Looks like PIUIP is a long-term strategy with great potential. Simple and straight forward.

Note: We could see big DD on an initial reversal/retracement, but once the long-term trend re-establishes itself we will see mucho pips.

TimeFreedom

You are correct about the DD, but remember that this DD would be on your equity and for the most part would not affect your account balance. then once it resumes, you will compound with percentages I can't even count.

The key is to hold out while the retracements are happening. That will be the real challange.

Also...witht the increased lots, larger profit targets could most definetly be in order.

I'm out for tonight and we'll see you again tomorrow.

Hi Damon,

Again, I want to began to said Thank you for your support.

Can I ask a very stupid question, please?? On Weekly Chart, when you talk about "last Yellow Bar" that mind that we have the following options:

For Long Positions:

1. SWI Green - NL Yellow (from Red) = Strong Bull Tend // if SWI in D1 is also in green it's our First Buy Entry Order // Full lot.-.-
2. SWI Green - NL Blue = Strong Bull Tend // if SWI in D1 is also in green continue placing Buy Entry Order // Full lot.-
3. SWI Green - NL Yellow (from Blue) = Weak Bull Tend // if SWI in D1 is also in green continue placing Buy Entry Order // First time for Half lot.-.-
4. SWI Green - NL Red = Weak Bull Tend // if SWI in D1 is also in green continue placing Buy Entry Order // Half lot.-

For Short Positions:

1. SWI Red - NL Yellow (from Blue) = Strong Bear Tend // if SWI in D1 is also in Red it's our First Sell Entry Order // Full lot.-.-
2. SWI Red - NL Red = Strong Bear Tend // if SWI in D1 is also in Red continue placing Sell Entry Order // Full lot.-
3. SWI Red - NL Yellow (from Red) = Weak Bear Tend // if SWI in D1 is also in Red continue placing Sell Entry Order // First time for Half lot.-.-
4. SWI Red - NL Blue = Weak Bear Tend // if SWI in D1 is also in Red continue placing Sell Entry Order // Half lot.-

It's that correct??

Thanks again

Bull,

Perfect. Your observations are correct based on my understanding of the entry rules.

TimeFreedom

Bull and TF,

You were both right about the rules.

Damonl, I hope I did not cause any confusion on the last thread?

We will be waiting patiently and looking forward to much greener pips.

Hey wales....Of course not bro.....I caused the confusion, but it was necessary for trying to learn to crack SWI. I just love how it appears to keep us in all these trends until the end.

It's all good