8 Points from Multiple Atlas Line Trades and Live Signals in Webinar

On the night of Election Day, Nov. 8, 2016, the E-mini S&P dropped over 120 points. This crash occurred when Donald Trump began dominating the Electoral College. Trading on or around Election Day is almost always volatile, but in this case, the unexpected truly happened. For months prior, nearly every poll consistently predicted Hillary would win by a landslide. The opposite happened, and when it became clear the likely president would be Donald, the market reacted. Markets "like" stability. When a controversial figure becomes leader of economic policy and the Republican party retains control over the Senate and the House, the market is likely to remain unstable. Despite the crash, the market recovered the next day, Nov. 9 and has been within fairly normal ranges. The abnormality comes from how regularly high the ATR has been. This is what John Paul focuses on in this webinar video:

His favorite tool for assessing volatility is the ATR (Average True Range). It's not a tool for direction. It averages the highs and lows of the last X number of bars (we prefer four) and provides a value and a line on the bottom of the chart. When the value is between one and four points, the market is good for trading. Above or below this range indicates too little or too much volatility. The ATR is a measure of "how far the market can move in a given moment," according to John Paul. As such, he uses it to determine the profit target and stop loss for each trade. Another way to manage risk is to use trailing stops. At around 45:00 in this presentation, John Paul shows how trailing stops trail the profit target to lock in a smaller loss, breakeven, or even a smaller profit. It's tempting to trade during volatile conditions because you may expect the market to reach over three points on one trade. That can be a lot of money. A trailing stop, if executed correctly, can a sort of parachute. NinjaTrader has a built-in feature for trailing stops. You can also manually manage your stop by enabling ChartTrader and using an ATM strategy. This shows the red stop loss line on the chart and allows for custom placement.

Check out the video above if you just want to see the Atlas Line trades from the webinar. There were three really nice trades here. Remember that John Paul often uses 1 * current ATR value (with ATR set to 4). First, a trade worth 2.5 points. The entry was at 2164.24. The market was volatile enough to go four points in the profit taking direction. Next, a trade worth 3.5 points with a signal at 2162.50. Again, the market pushed on through the target. It's better to be conservative and stick to the rules. The third trade, a long, occurred in the afternoon. That trade was worth two points with an entry of 2158.75. Remember the Mentorship Program provides the Atlas Line with a lifetime license. All of the other courses and software are also included. Training is twice a week with John Paul. His goal is to make you into a professional trader.

Is the E-mini Playing Tricks on You?

You're watching a live E-mini chart ready to take the next signal. The market has slowed down because it's the afternoon. Yet, the last few signals have been good and you're up for the day overall. Do you ignore the rules and take this trade? Do you risk what you've made so far? John Paul says the only way to trade is to follow his rules of risk management. In this Trade Scalper trade, despite the good signals, the ATR is only around a tick. That's too low. For this strategy, the ATR needs to be at least two to three ticks. Okay, you stay out, but you can't help yourself - you watch the chart to see what would have happened if you took the trade. If the trade fails, you will feel relief as though you dodged a bullet. If it's successful, will you feel regret?

Even with clear, concise rules, a trader can struggle with the discipline required to successful in the long term. Trading is a financial activity that comes with great risk. As such, trading requires great responsibility and self-restraint. Even if you have the best trading system in the world, a trader can subject himself or herself to unnecessary risk. Multiple good trades can falsely increase confidence. Similarly, multiple losing trades can cause a trader to question how he or she will ever find success in the markets. Only through a long period of objective, critical analysis and following the rules will a trader be able to definitely gauge a system. John Paul helps traders learn to manage risk. The live training that is included with purchase will show you how he keeps his head out of the market.

Finding Morning Trades in the E-mini S&P

DayTradeToWin.com's John Paul makes his case as to why the morning session is the best to trade. E-mini S&P futures is what you'll see in the video below. By the "morning session," this refers to the first 2.5 hours of the day, starting from 9:30 a.m. During this period, automated trading algorithms and big trading firms come out to play. They influence the market's volatility, and market movement can lead to great opportunities.

One of the ways to gauge volatility is to use an indicator called the ATR (Average True Range). John Paul uses the ATR with a Period of 4. This means the average price of the last four bars is displayed. This value determines his profit target and stop loss. He only trades based on where he expects the market can reasonably reach. One of the stops he uses is the catastrophic stop. It's double the current ATR value rounded down to the nearest whole tick. By trading this way, he attempts to avoid increased risk where the market can suddenly take off or drop significantly. He believes it's best to trade when the market is between 1 and 5 points on the ATR.

The Atlas Line, a popular trading tool offered by DayTradeToWin, has a number of features. In many cases, it can provide a long or a short entry signal prior to a big move. If price is continuing to trend below the line, there as still trades you can take. Pullback and Strength trades are examples of this. When an intersection occurs and there are two closing bars on the opposite side of the line, a Dbl Bar Long or Dbl Bar Short signal will appear.

The ATO software appears in this video. This was the first course John Paul offered and is now exclusively available in the eight week Mentorship coaching program. This strategy is all about finding trades with the initial market movement. The next Mentorship class begins Nov. 3, 2016 and will be on Thursdays and Fridays from 4 p.m. to 5 p.m. EDT (UTC-4).