Automated Trade Management Strategies

Trade management is one of the most important factors for any trader, and we use a very handy tool called ‘automated trade management’ to set our trade management ahead of time so we are prepared to take our trades with confidence.

Sounds perfect…right? Set it and forget it…..well…not so fast…

What happens if something goes wrong?

What happens if the market moves too quickly? What happens if something in your trade changes?

Automated trade management is essential for almost every trader to remove the emotions, but you need to use it correctly, which means planning for the worst, but expecting the best.

Serious traders need to manage their trades correctly, and using your ATM strategies can easily HURT you rather than helping you…

– ATM Strategies for different traders

o Automated trade management strategies

o Scalper

 +4 /+8 / +Runner (4-range)

• +5 /+10 / +Runner (4-range)
• +6/ +12 /+Runner (8-range)

 Always the same, and im always looking to make the most of the runner.

o Day Trader

 +6 /+12/ +Runner (8-range)

 Most day traders will use different stops and targets for each trade they take, determined by the chart im using.

 13-Range Chart

• Set my stops and targets a little wider than desired, and then move them to the correct location

 Example:

• +10 / +20 / +0 (final target will be gone)

o Stop @ -25

• Move my first target to +8, move my 2nd target to +23, and then tighten my stop to -18

o Swing Trader

 Similar to a day trader, will always have different stops and targets, determined by the chart your using.
 21-range chart
 Example

• +20 / +40 / +0 (0 removes the final target) and stop at -30

– How much do you need to get started?

o $1,000 in your account (demo traders are ok!)
o Your advanced Course 3699, and a price increasing Sept 1.
o Computer with Win XP, at least 1 GB RAM, and a decent video card.

o Email me the guts of your computer, right click on the MY COMPUTER icon and select PROPERTIES and send that info to JJ@schooloftrade.com

– Is there manipulation in the markets we trade?

– Trading times for Fall and Summer

o August = 830-1130am EST
o Every other time of the year = 800 – 1230pm EST (or when the market slows down)

– Days of data on my charts

o Slower timeframes = 90 days of data
o Faster timeframe = 7 – 20 days of data
o Trade Management Chart = 1 day of data
o Pace of Tape Indicator, 10-sec chart, 1 day of data
o Chart, right click, Format Data Series, and then select the correct # o f days.

– Review our Patterns

o Breaker: with the trend, and trades breakouts
o Wave: trades a trending market, breakouts that are on good speed and strong moves.
o 2-Step: trend reversal, and trades failed breakouts
o Many more…but we like to keep the trade room simple. KISS. 

– Do you keep your computer running 24/7

o No, I turn it off when I sleep
o I don’t want to burn the video cards (summer heat)
o Take time off each day
o Save energy
o Have a laptop that is running all the time, and then it ‘sleeps’ when I close it.

– When is the market too tough to trade? For example on crude oil today with trend lines
– How do you determine if the trade is a day trade, scalp, or a swing trade?
– What chart do we use to find a sideways trading range?
– Why don’t I trade 20 lots?

o My average client trades 5-10, so it doesn’t make much sense to compare apples and oranges

 My brother trades my real account, so I still earn on our family fund.
 I trade a small 4 lot in the room

o Trading 20 lots would not allow me to be as open to questions, and be as responsive as I can be.