Gradual addition of deals along the trend
For example, there is a solid trend lasting for 250 ticks with 2 weeks duration. In a normal situation such as trading intraday, in most cases a trader will take profit of 40 – 75 ticks from each trade and overall +265 tick during this period of time. However, if a trader in our example conducted position/swing trade, the profit taken from the same trend would be multiplied by factor 2–3 and greater totaling 500 – 700 ticks.
On the chart above we see downtrend with 2 weeks duration, this trend’s turn started from level 1.1600. By trading on “Strategist” system we define strategic target level of this trend’s ending – 1.1335. And from the beginning of this downtrend we start to add deals for sell. Step by step adding deals by fact of ending local (internal) trend’s waves for closing all deals’ data on target (strategic) level 1.1335. As we can see the first deal brought profit +250 ticks, the second +180, the third +150 etc. Overall on this trend we can earn +720 ticks.
Look on trading example of usual trader:
Usual trader can’t define strategic target, that’s why he trades only on local trends of main trend. In general there were 5 deals with profit +265 ticks. It’s also good result, but “Strategist” system outnumbers it in 2,7 times: 720 / 265 = 2,7.
Full market picture
Common question traders asks to each other: “What time frame do you trade?” and this is wrong question, as if you trade only one time frame, without understanding what is going on market generally, you will open trades in wrong places and will be trade against main trend direction again and again. Main advantage in “Strategist” system, that we start market analysis from Monthly time frame and then slowly going by lower frames to Weekly, Daily, H4, H1, M15, where m2 and tick charts are using for 1 tick accuracy deal open.
“Strategist” system involves analysis of all graphical time frames and related factors that affect the market. Layout of waves is figured out, which clearly points out the main trend as well as local ones, which comprise its internal wave structure. This way, a trader visualizes a complex picture of the market, which clearly displays levels of trends’ starting and ending points. At the same time, seeing internal structures of trends such as trendlines and trend-continuation figures will allow adding deals when said structures get broken.
And so we will always be informed about exact level of trend wave ending and will keep our deals open as long as the target level is not reached, upon which we will fix the entire branch of profit. Alternatively, if the market loses its momentum and we are not getting to the target, we will keep deals open until the trend channel will be broken. And if we plotted the channel correctly, we will fix the maximum profit on the right time.
Forecasting trend’s turn level with 1 tick precision
To find trend turn and deal open with 1 tick accuracy “Strategist” also use volume analysis based on volume profile.
On chart above you can see how market (Dow Jones) rebounded down from price 26765, where we have accumulation of SR levels, where SR level with blue color was tick-to-tick main daily resistance. After market rebounded up from volume buyers absorption level 26710, where same time we had VPOC from previous trend.
Using of custom profile also helps to confirm deal open. As result, combination of SR levels + volume profile give opportunity to enter/exit market, to place take profit and stop loss order with 1 tick accuracy. With this instruments you will know exactly where to place your orders and will not need to shift your stop loss against yourself again and again.
Trade plan with alternative scenario
Knowing about an alternative evolvement of the market’s situation is very important. This way you won’t miss out trading opportunities in case the market doesn’t follow the primary scenario. Otherwise, just like many inexperienced traders do, you stick to a single variant (trading upside or downside) and keep your deals open even if the loss reaches unacceptable amounts, only hoping that the market will get back and move to the side of your choice.
You should probably be familiar with the situation, when you have performed your own analysis of the market, read other fundamental “analytics” and made a conclusion that the market will go up, for example. Then you prepare a trading plan for this event and wait until the market goes your way. You constantly watch over trading terminal, only to find out that the market went down in a solid trend, opposite to what you expected that is. You were going to buy, not sell, and so you missed a profitable deal opportunity. And here we see the importance of alternative plans.
You see how the market moves against your primary expectations, but you still haven’t made a habit of preparing to an alternative scenario and missed the profit. In the worst case a trader’s greed will take over, and he will open a sell deal on spot, but due to the lack of solid alternative trading strategy he is very likely to make yet another loss deal since new levels are not determined properly. And then a trader can open a few more deals, only to score more losses. In retrospect, if he had prepared to an alternative situation evolvement, he would start taking profit from the very beginning of the alternative trend formation. That’s why you should never hurry and make decisions on spot when entering the market, before you clearly.
The best opportunity every day to have what to trade and to get maximum profit: to diversify markets that you trade.
In this example during the same time interval (one day) we have opened 4 deals on different trading instruments (markets), where 2 of them was with average loss -45 ticks (20+25) and average profit +170 ticks (50+120), where total result = 170 – 45 = 125 ticks of profit. You can see that 3 first deals was with average result just +5 ticks and only deal 4 gave as good profit +120 ticks.
If for the same time interval (one day) you were trading only EUR/USD, you was able to have just 1 deal -20 ticks. If were trading EUR/USD+GOLD, you was able to have -45 ticks, as this markets are strongly correlated. With Gas = 5 ticks of profit. But what if every day you trading just EUR/USD, how long time you will need to get constant and satisfying profit, weeks, months?
As more non-correlated markets you trading, as faster and constant profit you will have and if you trading 4-5 markets, you will need already not 5 trading days to get good profit, but just 1 day. So you can increase your profit in 5 times and same time to decrease risks in the same 5 times. “Strategist” trading system allow you to do that and during training you will learn how to trade next trading instruments: EUR/USD, Gold, S&P500, Dow Jones, WTI Crude oil, Natural gas, Soybean. Constant profit can give you only diversification.
Without diversification same time trader have and more dipper problem, psychological: when he do not see what to trade, he start to have “trading just for trading” and open deals in the most potential unprofitable conditions, just to feel that he have work for today and satisfaction from trading. This is not professional approach to trading and most part of traders loose their money on this. With “Strategist” system you can avoid this problem.