WELCOME TO THE ELITE STOCK TRADING COLLEGE WEEK #2 STOCK STRATEGY #1 Also. such as lack of liquidity. the results may have under. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight.DISCLAIMER Hypothetical or simulated performance results have certain inherent limitations unlike actual performance record: simulated results do no not represent actual trading. . if any. since the trades have not actually been executed. No presentation is being made that any account will or is likely to achieve profits or losses similar to those predicted or shown.or overcompensated of the impact. of certain market factors. STOCK COLLEGE CURRICULUM •Week #1 – The Foundation and Building Blocks of Stock Trading •Week #2 – Stock Strategy #1 •Week #3 – Stock Strategy #4 •Week #4 – Stock Strategy #8 •Week #5 – PET-D •Week #6 – Advanced Trade Management /Putting It All Together . WEEK #1 REVIEW . STOCK COLLEGE WEEK #1 •System vs.Confirmation Method •The #1 Chart Pattern •Homework Assignment . Strategy •Concepts 1 & 2 •Edge #1 .Buy/Sell Line •Edge #2 . SIMPLICITY EQUALS CONSISTENCY . MY GOAL IS TO TEACH YOU HOW TO TRADE WITH THE SPECIALIST’S EDGE . STOCK STRATEGY #1 . Consistency .Strategy #1 Highlights • • • • • • • Strategy Is Based On Concepts #1 and #2 Designed to Trade Pullback Moves Intensity Level (1-3): 2 Main Indicator – Donchian Channels Any Time Frame / Any Direction / Any Market Learn the FULL Strategy – Paper Trade First! The Specialist’s Edge . STRATEGY #1 INDICATORS • 50-period Simple Moving Average (sma) • 21-period Donchian Channels . STANDARD VERSION •All Members (Beginners – Advanced) •Pullback Strategy •Traders Who Are Looking To Catch Swing Moves . 5. (SET-UP) 3. CONCEPT #2 – PULLBACK: 2. Price must be above the 50-period sma .Strategy #1 Rules . Sell (exit) when price touches the highest Donchian Channel.Buys CONCEPT #1 – TREND: 1. Look to buy when the rising price bar first begins to decline and eventually touches the mid-line of the rising channel.AND All 3 Donchian Channels must be headed in an upward direction. Place your protective stop below the lowest low of the pullback. . 4. Enter long position on the first confirmation of price trading above the previous bar’s high. STEP BY STEP . .AND All 3 Donchian Channels must be headed in an upward direction.Step 1 Price must be above the 50-period sma . . . Step 2 Look to buy when the rising price bar first begins to decline and eventually touches the mid-line of the rising channel. (SET-UP) . . . .Step 3 Enter long position on the first “confirmation” of price trading above the previous bar’s high. ENTER . Step 4 Place your protective stop below the “lowest low” of the pullback. . ENTER STOP . Step 5 Sell (exit) when price touches the highest Donchian Channel. EXIT ENTER STOP STRATEGY #1 SELL RULES AND All 3 Donchian Channels must be headed in a downward direction. Exit (buy to cover) when price touches the lowest Donchian Channel. Price must be below the 50-period sma . Place your protective stop above the highest high of the pullback. CONCEPT #2 – PULLBACK: 2.Strategy #1 Rules . . Enter short position on the first confirmation of price trading below the previous bar’s low. 4. Look to sell when the declining price bar first begins to rise and eventually touches the mid-line of the declining channel.Sells CONCEPT #1 – TREND: 1. (SET-UP) 3. 5. . . ENTER . STOP ENTER . STOP ENTER EXIT . MORE STRATEGY #1 TRADE EXAMPLES . STOP ENTER 473.86 .38 pts.24 EXIT 435.+37. 90 STOP .89 pts. +12.+0.50 % EXIT 7.75 ENTER 6. 87 EXIT 85.16 STOP STOP STOP ENTER 80.78 ENTER 84. EXIT 84.77 pts. EXIT 82. +2.69 pts.+1.35 pts.52 .85 +2.01 ENTER 82. 57 196.58 STOP STOP ENTER 195. EXIT +1.06 pts.92 .+0.66 pts. EXIT 196.51 ENTER 195. AGGRESSIVE vs. CONSERVATIVE . STRATEGY #1 AGGRESSIVE VERSION (Shallow Pullback) . 46 .02 pts. EXIT 49.+2.48 STOP ENTER 47. 99 .94 pts.05 ENTER 84.+1. STOP EXIT 83. STRATEGY #1 CONSERVATIVE VERSION (Deep Pullback) . STOPPED OUT STOPPED OUT . STOPPED OUT . STOPPED OUT . STOPPED OUT . STOPPED OUT STOPPED OUT . STOPPED OUT STOPPED OUT . STOPPED OUT STOPPED OUT . STOPPED OUT STOPPED OUT . STOPPED OUT STOPPED OUT . STOPPED OUT STOPPED OUT . STOPPED OUT STOPPED OUT . STOPPED OUT STOPPED OUT . STOPPED OUT STOPPED OUT STOP . 96 pts.90 STOPPED OUT STOPPED OUT ENTER 525.94 STOP . EXIT 546.+20. STRATEGY #1 MOVING STOP TO BREAKEVEN . Break Even Suggestion You have the option to move your stop to unchanged once price travels either: 1) Half the distance to the exit point. or 2) The 200% extension of the set-up bar . EXIT? ENTER STOP . EXIT? 50% ENTER STOP . EXIT? ENTER STOP . EXIT? ENTER 100% STOP . EXIT? 200% ENTER 100% STOP . EXIT? 200% ENTER 100% STOP . STRATEGY #1 VARIATIONS . Donchian Channel Settings (Increments of 7) •Low Volatility = Decreased Setting •High Volatility = Increased Setting •Standard Setting = 21-period . . . . . . CONTINUATION TRADING WITH DONCHIAN CHANNELS . . . BUY BUY BUY BUY BUY BUY BUY BUY BUY . SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL . SIGNALS WHERE THE SET-UP BAR IS AN INSIDE DAY . . . . . Consistency .STRATEGY #1 REVIEW • • • • • • • Strategy Is Based On Concepts #1 and #2 Designed to Trade Pullback Moves Intensity Level (1-3): 2 Main Indicator – Donchian Chanels Any Time Frame / Any Direction / Any Market Learn the FULL Strategy – Paper Trade First! The Specialist’s Edge . HOMEWORK ASSIGNMENT . and Exit Price. Profit or Loss? . 3. Identify Price of Entry.IDENTIFY RECENT STRATEGY #1 TRADE Time Frame – DAILY BAR 1. Stop Placement. Buy or Sell? 2. MY GOAL IS TO TEACH YOU HOW TO TRADE WITH THE SPECIALIST’S EDGE . ELITE STOCK TRADING COLLEGE WEEK #3 STRATEGY #4 . QUESTIONS [email protected][email protected] 1-310-844-7220 . the results may have under.or overcompensated of the impact. if any.DISCLAIMER Hypothetical or simulated performance results have certain inherent limitations unlike actual performance record: simulated results do no not represent actual trading. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. of certain market factors. Also. since the trades have not actually been executed. . such as lack of liquidity. No presentation is being made that any account will or is likely to achieve profits or losses similar to those predicted or shown.