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Most of the entry orders will go unfilled as the market price usually never reaches your entry price. All entry orders are day orders and expire at the end of the trading session.
Short Entries:
Each trading day just before the pit session begins place a day order in the electronic market to sell on a stop at the price shown in the recommendations table for day trades. If the entry fills, place a stop loss order for the day at the price shown in the recommendations table. For short positions this would be a buy stop order.
If the price opens at the start of pit trading below the entry price the protective buy stop price needs to be reduced by the difference between the entry price and the opening price. After a fill occurs, place a limit buy order to exit the position at the objective price. The objectives are just in case of large moves. The estimated risk is the entry price less the initial stop loss price converted to a dollar value.
Long Entries:
Each trading day just before the pit session begins place a day order in the electronic market to buy on a stop at the price shown in the recommendations table for day trades. If the entry fills, place a stop loss order for the day at the price shown in the recommendations table. For long positions this would be a sell stop order.
For stop entry orders, if the price opens at the start of pit trading above the stop entry price the protective sell stop needs to be increased by the difference between the opening price and the stop entry price. After a fill occurs, place a limit sell order to exit the position at the objective price. The objectives are just in case of large moves.
All Entries:
Exit all open positions at market on close or earlier at the market if the price moves the daily limit. For practical purposes unfilled entry orders for day trades are canceled at 15 minutes before the close.
After an entry occurs, allow the stop loss orders to work all day and either get filled or expire at the end of the session. Not often, but on occasion the order to exit at market on close and the stop loss will both fill in the last few minutes of day trading leaving you with a reversed position at the end of the day. If this rare event occurs, exit the unintended position as soon as trading resumes preferably in the night session if available.
All recommendations are traded electronically with one possible exception, the meats. The volume in the Live Cattle and Lean Hogs is still mainly in the pits. Entry orders for the meats should be placed in the pits. The stop loss orders for the meats should be in the pits during the day and placed in the Globex at night. The objectives should be placed in the electronic Globex for both day and night.
The entry orders are placed during the pit trading hours for all the markets except for the currencies and the softs. For the currency sector most of the price movement will begin during the European trading day. Use 2:00 AM ET (New York Time) as the start of the trading day for the currencies. There is no pit trading for the softs. Use 8:00 AM ET to enter the orders for the softs and 3:15 PM ET for the close time.
Do not day-trade the currencies unless you have a means of entering the currency orders at 2:00 AM ET. Waiting until 8:20 AM ET shows poor performance results.
The e-mini contracts are traded during the hours for the open outcry session in the larger equivalent contract.
Please limit your trading to never risk less than 1% and not more than 2% of account equity on any one recommendation. This should help prevent overtrading, the leading cause of account ruin. The estimated risk is the stop entry price less the stop loss price expressed in dollars. The estimated risk is shown in the table of day trade recommendations.
The above instructions are for the basic day-trading system. Below is an optional early exit for the day-trades. This option greatly reduces the risk for the day trades. Hence greater leverage and smaller account sizes are required. The performance numbers on the website do not include this option.
If you have the ability to watch the markets every fifteen minutes throughout the trading day then you can use the following advice. These additional instructions supplement the ones above for the basic system. You will be using a fifteen-minute bar chart that includes the night session prices. With this trading strategy you will likely have one to three trades per day per position.
For Longs:
After you are long, watch the MACD (12,26,9). If it is lower on the current bar than the previous price bar then place a sell stop to exit at the value of the 9 bar moving average. If the price is already below the 9 bar moving average, then exit with a market order. (Note: you wait until the MACD turns lower before placing the sell stop or exiting at the market.)
You can just use the early exit or as another option if you are really aggressive and you have exited the long position and you want to re-enter the trade on the long side, watch the MACD (12,26,9) at the end of each 15-minute bar. If it is higher on the current bar than the previous price bar then place a buy stop to enter at the value of the 9 bar moving average. If the price is already above the 9 bar average enter long with a market order. (Note: you are entering long only if the current MACD value is higher than the previous.) You need to wait until the end of the bar because the value of the MACD will continue to change until the end of the 15-minute period.) It should be obvious that you do not enter short if trading the long side.
For Longs:
After you are short, watch the MACD (12,26,9). If it is higher on the current bar than the previous price bar then place a buy stop to exit at the value of the 9 bar moving average. If the price is already above the 9 bar moving average, then exit with a market order. (Note: you wait until the MACD turns higher before placing the buy stop or exiting at the market.)
You can just use the early exit or as another option if you have exited the short position and you want to re-enter the trade on the short side, watch the MACD (12,26,9) at the end of each 15-minute bar. If it is lower on the current bar than the previous price bar then place a sell stop to enter at the value of the 9 bar moving average. If the price is already below the 9 bar average enter short with a market order. (Note: you are entering short only if the current MACD value is lower than the previous.) You need to wait until the end of the bar because the value of the MACD will continue to change until the end of the 15-minute period.) It should be obvious that you do not enter long if trading the short side.
All Entries:
Before the market opens you place the orders as buy and sell stop orders. You enter long if the price reaches your buy stop price for a long entry or you enter short if the price drops to your sell entry price for a short entry. Most of the entry orders will go unfilled as the market price usually never reaches your entry price. All entry orders are day orders and expire at the end of the trading session.
For those that do fill you will be notified by your trading platform or our broker or maybe you will happen to be watching the quotes. For the open positions you place stop loss orders at the price shown in the recommendations table. If you are long, it would be a sell stop order and if you are short, it will be a buy stop order. Next you place a limit order to exit at the objective price in the recommendations table. If you are long this is a limit order to sell. If you are short this is a limit order to buy. These orders are to remain open until the next morning open of the trading session. Both the stop loss and the limit orders are good until canceled orders.
For open positions that are still working from overnight when the trading session opens in the morning, there will be a new table of recommended stop loss and objective prices for that day. Change the prices for the stop loss order and the limit orders to the new prices in the table of recommendations for the open positions. Continue to repeat this process each morning for open positions until the position is exited. If the exit occurs from the execution of the stop loss order then be sure to cancel the open limit order. If the exit is from execution of the limit order then be sure to cancel the open stop loss order.
The e-mini contracts are traded during the hours for the open outcry session in the larger equivalent contract.
All recommendations are traded electronically with one possible exception, the meats. The volume in the Live Cattle and Lean Hogs is still mainly in the pits. Entry orders for the meats should be placed in the pits. The stop loss orders for the meats should be in the pits during the day and placed in the Globex at night. The objectives should be placed in the electronic Globex for both day and night.
The entry orders are placed during the pit trading hours for all the markets except for the currencies and the softs. For the currency sector most of the price movement will begin during the European trading day. Use 2:00 AM ET (New York Time) as the start of the trading day for the currencies. There is no pit trading for the softs. Use 8:00 AM ET to enter the orders for the softs and 3:15 PM ET for the close time.
If you cannot enter the currency orders at 2:00 AM ET, you should still swing trade the currencies. Waiting until 8:20 AM ET to enter the orders shows excellent performance results for the swing trades.
Please have enough discipline to limit your exposure. Trade enough contracts so that you risk between 1% and 2% of your account equity on each recommendation. This should help prevent overtrading, the leading cause of account failure. The estimated risk is the stop entry price less the stop loss price expressed in dollars. The estimated risk is shown in the table of swing trade recommendations.
Short Entries:
If the price opens at the start of pit trading below the entry price the protective buy stop price needs to be reduced by the difference between the entry price and the opening price.
Long Entries:
If the price opens at the start of pit trading above the stop entry price the protective sell stop needs to be increased by the difference between the opening price and the entry price.
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