High Frequency Trading – Speed and Consequences

As explained in the above video, high frequency trading is the quick execution of buy and sell orders by a computer algorithm sent to a financial market. Keep your trading stable among the fast HFT world by watching more trading videos. Many of these high frequency orders are placed in bursts, hoping another algorithm will pick up and buy or sell based on the aggressiveness of another “robot.” This type of trading now accounts for around 70% of all orders processed in the major exchanges, such as the NYSE and CME. Computers with the most direct access have a distinct advantage over competing robots, as they know what price will be ahead of competitors. This created a race to build the fastest fiber optic line from Chicago to NYSE. The reason for this is the Chicago commodities markets influence the indices trading in the NYSE. The price of crude oil is related to the Exxon stock and vice-versa. One can easily understand why companies have spent millions trying to get the most direct route; whether blasting through a mountain or broadcasting through soon-to-be-built towers. In fact, professional trading firms have rented servers inside the exchanges themselves for the shortest physical distance possible. The NYSE has gone through the trouble to provide equal cable length to all servers inside its 20,000 square foot server room. This raises concern as trading has become a game of who can program the most profitable robot, disregarding the underlying economics. The flash crash of 2010 demonstrated a pitfall of high frequency trading – we still cannot account for the hundreds of billions lost (that have since rebounded) during the three minutes or so of the crash. Purportedly, one man’s algorithm (and sizable account) created a domino effect among the other algorithms, creating a vacuum that was only stopped by an emergency “breaker” flipped in the exchange. This mini-documentary has audio produced by Radiolab.

Predict 2013 E-Mini Trading Using January Effect

Ever heard of the January Effect? At Day Trade to Win, John Paul describes it as an accurate way to determine if price will be up or down by the end of the year compared to its price at the end of January of the same year. Sounds complicated? Watch the video. If you take a look at January, 2013, you will notice that price closed higher at the end of the month. January was an up month. This will also hold true for the entire year. At the end of December 2013, John Paul claims price will be higher than the closing January 2013 price. Now, there will be pullbacks along the way. When price drops to estimated bottom levels throughout the year, professional traders will buy the market expecting the overall trend to be profitable. This January Effect is known among the professional trading community. In 2012, price followed the January Effect. Although you may find a few years where the January Effect does not hold up, overall you will see a distinct trend – one that hedge funds, high frequency algorithms, and financial institutions will keep in mind. For the average retail trader, you likely won’t be holding positions long enough for the January Effect to matter. At Day Trade to Win, they focus on smaller time frames. The longest they’ll hold a trade for is typically 20 minutes or four bars on a five minute chart. In most cases, the profit target will be hit first, or if the trade goes against you, the prove-it stop. Trading dynamically using price action is important – it’s adaptive.

Going Short on Live E-Mini Trade

John Paul from Day Trade to Win starts this video with a Short Trade using the Atlas Line software. How much profit and stop do you use for each trade? The first trade was good for one point, based on the ATR which was also near a point. The current trade’s profit target is 1.25 points. The stop is around 2.5 points. There are three stop strategies in mind that we went over in the last video. With the ATR hovering above one point, we know the market is worth trading. When you can look at nothing but price and decide to get in and out, you are trading using price action. It’s the most effective and easiest type of trading to learn. Everything you need is provided right in front of you on the chart. There is no guessing – it’s objective. The best time to trade is in the morning starting at 9:30 a.m. US/Eastern until about noon. However, you’ve probably seen many videos with the Atlas Line trading far beyond the open outcry session. Why 9:30 a.m.? When the CME opens, there are millions of orders placed by high frequency trading algorithms, hedge funds, professional and retail traders. In addition, financial news events, press releases and the U.S. daytime infrastructure really comes online during this period. As long as the ATR (with a period of four) remains between two and four points, you can bet the trading conditions are favorable. All you need at this point is an effective day trading strategy. There are many day trading courses at Day Trade to Win that focus on price action.

Stop Loss Strategies for Trading

Why has the E-Mini S&P been so slow in the last couple of months? Political turmoil, tax regulation and fiscal cliff talk has scared investors. Many people are hesitant to spend money with a great risk to lose and then pay taxes on top of it.

Speaking of losses, an important part of effective day trading is knowing where to place your stop loss. Traders always want to have the smallest stop possible. Taking this into consideration, our stop can’t be so small that the random movement of the market cannot stop us out. What can be used to guide your stop for the current market conditions? Three stops are recommended, and whichever one happens first will get us out of the trade. At 8:40 in this video, John Paul begins to explain the three stops. A Catastrophic Stop will prevent a major world news event from wiping out your account. Having something that will prevent major loss like this is very important. It’s not something we want to get hit. By using an ATR value of four (mentioned in NinjaTrader), we double the current ATR value to determine the Catastrophic Stop. To learn the remaining stops, watch the video above. There any many more trading videos at Day Trade to Win.

Josh Reviews Day Trade to Win

Here’s a web testimonial for the beginner traders – Josh had zero experience in trading. One of his trading friends said that most losses occur from trading emotionally and without a plan. He set out to find a teacher who knows what he is doing and will meet you at your skill level. He recommended John Paul at Day Trade to Win. He said the staff was very response in answering questions. Without knowing anything, they were able to answer all questions clearly and had desire to succeed. This led Josh to purchase a course and begin a successful day trading career. Day Trade to Win has a large collection of video reviews and written testimonials from its students. Many of the testimonials emphasize how Day Trade to Win was able to provide them with a profitable strategy for trading every day. Testimonials come from people who have participated in the Mentorship Program as well as those who use the Atlas Line, Power Price Action, and The Trade Scalper

NinjaTrader Webinar with Price Action Trading

This Day Trade to Win webinar was sponsored by NinjaTrader and focuses on the following:

Watch three educational trading videos to learn exact methods
• Discover the #1 tool every trader should use
• Difference between trading currencies and futures
• How to identify trends early
• Trading news events
• Why trading rooms aren’t a good idea
• Tick amounts between markets – British Pound, Euro, E-Mini, Canadian Dollar
• Volatility and when you should be trading
• Best approach from simulation to live trading

We have found NinjaTrader to be the best platform because of its advanced charting features, market analysis, and ability, and ability to switch between brokers. Some time in 2013, we expect NinjaTrader 8 to be downloadable, bringing in more features while keeping the platform streamlined. Where other platforms get bloated, you can count on NinjaTrader listening to its users and giving them exactly what they want – a fast, stable and accurate trading platform.

Trading Oil Futures, the Russell and E-mini with DayTradeToWin

John Paul discusses the offerings at Day Trade to Win and how they are all based off of price action. For the most part, the methods can be traded on anything because they’re price-action based. There is no bias for trading long or short. Candles prove the direction to trade (long or short) moving forward.

After this explanation, you’ll learn:
• Yo-Yo Bars – what they are and how to trade them
• The rules of first-come, first-served in electronic markets, HFT at the CME
• “Front-running” trades – set your sights on one tick in front of your goal
• How the Atlas Line can be used on the Euro, E-mini, Crude and Russell
• Trading news events
• Catastrophic stops, pivotal stops, time-based stops, and prove-it stops
• The January Effect

Day Trader Named Nick Reviews Day Trade to Win

Before finding Day Trade to Win, Nick was refunding his day trading account every month. Now, he says that he’s withdrawing from his account, making around $100 to $200 a day. He says that his losses usually result in break-even days. Day Trade to Win focuses on getting you in and out at the right time, but most of the time, it’s the profit target. This speaks to the consistency of the Day Trade to Win. Unlike other day trading programs, the DayTradeToWin courses do not have subscription fees. All the fees are set, one-time and then you’re all set. Nick compliments the service of JP and his team. He says that can log in to your computer, provide you with assistance and answer all your questions. He uses the Power Price Action method, Atlas Line, and The Trade Scalper. You can see all of the Day Trade to Win courses here.

Learn to Trade Price Action with Day Trade To Win

DTI Trading Pub sponsored this live webinar in which John Paul from Day Trade To Win teaches price action trading fundamentals. John Paul first covers the importance of trading news events and being aware of them using the free news indicator. Using the indicator you can see upcoming news events plotted on your NinjaTrader chart. This is a must-have. On the DayTradeToWin videos page, you can also see a video on how to trade news events. After discussing news, John Paul explains the Atlas Line entries and types of stops to use: catastrophic, time-based and prove-it. The ATR (Average True Range) is an excellent tool for telling whether a market is good for trading. This webinar is only a half-hour long and provides a coupon code for 10% off.

Private Trading Coach Takes E-Mini Trade While Teaching

Going a step beyond most day trading educators, John Paul from Day Trade to Win often trades live in his videos. Above is no exception, although even more unique because the trade was taken while training a student. For those unfamiliar with what is being shown, John is using NinjaTrader and trading the E-Mini (ES) with a 5-Minute time frame. His commercially available Atlas Line software provides a direction of whether you should long or short (buy or sell) the market. The Atlas Line is recognizable by its dashed line and brightly colored entry signals. There is more to the method than simply entries. John teaches stops and profit targets along with other unique entries exclusive to the software. Yes, the Atlas Line is a complete system of trading – ideal as a standalone method or to be coupled with another system for confirmation. The software is available for TradeStation and eSignal as well. John will teaches everything you need to know during the included live training session.

If you’re interested in the eight week Mentorship Program, the Atlas Line is included along with 10 other unique strategies to trade price. The goal of this comprehensive course is to take advantage of every high-probability trade setup while keeping an eye on risk. Becoming a professional day trader involves a great deal of experience and self-control. Get a head start on becoming a professional day trader.