5NITRO+ Instructions – Trading 2

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    Think Like Walmart by Strategically Varying Your Profit Margins + Diversifying Your Product Line

    If you feel the spread your broker is charging for low volume pairs such as CADJPY, GBPCHF, or USDMXN is too great, you may want to do calculations using Realized Volatility OR switch Brokers OR increase your Take Profit amounts – to reduce that perceived or unperceived increase in overhead.

    While the increased spread costs associated with lower volume pairs does prove that diversification is not entirely a free lunch, why should we care if a spread is 5.3+ pips on a portion of our pairs traded? Trading from a possible selection of 30-80 pairs/products allows us to reduce overall risk and thus think like a large Bank Trader. This allows us to trade relaxed and make all decisions based on Logic+Probabilities. It allows us to capture extended gains across all products traded. Extended gains that are just not possible via leveraging up in only a few pairs because of susceptibility to anomalous price action.

    So what then if the spread in GBPZAR was 7.3 pips and our net revenue was squeezed a bit in that one particular product?

    Including GBPZAR in the mix, along with 50 other Exotics+CFDs, allows us to capture extended gains across the entire product line as a whole… because anomaly risk was reduced. Inclusion of GBPZAR and other exotics provides us with Diversity. Then, the act of creating entries and exits in these additional products manually – inherently provides us with Variance.

    In other words, insurance is not free.

    But, the protection from disaster allows us to relax and enjoy life without the constant fear of “the other shoe dropping”. The elimination of fear in our daily trading allows us to make logical decisions based solely on probability at all times.

    As a company providing Insurance, sure certain demographics such as 16-24 year old males may not afford the company with as much Net Margin per these insured. But their inclusion into the group… reduces overall risk for the entire group. This is why we see commercials for GEICO, StateFarm, AllState, eSurance, The General, Farmer’s, SafeAuto 3000 times per day while watching CNBC. It is a fight for quantity of insured across the widest geographic area as possible. It is a fight for as many additional insured as possible. Each additional insured reduces the risk cost of the existing insured. In turn, this then increases Net Margins ACROSS THE ENTIRE GROUP OF INSURED. Although new acquisition costs may be extremely high due to running thousands of commercials per day, this cost is minimal compared to the benefits of overall risk reduction.

    So thus while adding lower volume pairs with true increased transaction costs due to higher spreads (not as the result of increased daily volatility) may appear to only simply reduce our Net Margins per, this is not the full picture. In reality, these added 3-4pip spread costs are dwarfed by the additional Net Margins gained ACROSS ALL EXISTING PAIRS TRADED/OPEN POSITIONS due to the now added ability to hold onto all other existing positions much longer + capture many more pips than without the added higher-cost pairs/symbols.

    WalMart Logo Reminding Trader to Think Like WalMart When You are Deciding Whether or not to Trade Additional Lower Volume Forex Pairs to Provide DiversificationWalMart not only embraces profit margin variability, they also capitalize on it. Net Revenue as a whole is non-variable and consistently stable at fiscal end because all categories are producing profit, albeit with varying degrees of profit margin percentage.

    WalMart and Amazon triumph over the local store who may only sell HDTVs because they have a greater diversification of products allowing them to reduce the risk that a certain category or product may falter momentarily in regards to abiding by the historical laws of statistics + probability within that category. Thus hurting their cash flow and ability to rapidly expand because of the additional risk.

    Current, ongoing HDTV and other electronics price wars exemplify this. WalMart and Amazon can easily sell HDTVs at reduced 0.5% margin for extended periods while still surviving through higher margin of their 100,000 other products. Maintaining volume in this category through accepting these lower 0.5% margins also adds to the margins of all other products in all other categories because of per unit fixed overhead reduction. While at the same time, this same price war is destroying what non-diversified HDTV competitors are left. BestBuy falls into this non-diversified category.

    Another added benefit of maintaining rolling open positions from a wide variety of RiskOn / RiskOff products? Minimizing ongoing Flash Crash fears.
    (read more about this possible notion at The N+ Beta Test Results page)

    Exploit Your No Commission Per Trade Cost Structure

    Unless physical time to complete the trade operation is constrained or other unique circumstances that may expressly demand it ——- why would we only buy an ultimate total of 2 standard lots, as an example, with only 2 take profit levels when we can buy 20 MINI lots with 20 variable entry levels and 20 variable take profit levels for the exact same cost?

    Really. Why? I am asking this.
    If anyone knows, please email us using the Contact Form. I am perplexed constantly by Non-U.S. Retail FX Traders using Standard, No FIFO*, No Commission Per Trade Retail FX Brokers whose method of trading is to have one single unit of 200,000 and its one single Take Profit at 40 pips away.

    *the FIFO subject is addressed below directly above the Open Posistions screenshots .

    While Position Trading GBPJPY 4H or D1, as a random example:
    Unless we are fortune tellers and can predict how long the current favorable trend will last, an argument could be made after applying statistics and probability analysis to build a Wall of Take Profit Levels exponentially increasing ranging from 2 pips to 400 pips – instead of just a few TPs maybe at 40 pips and then 120 pips.
    [as shown directly below in the 'Money Lots' illustration and in many of the Sept 23, 2011 outstanding positions screen shots farther below with the dashed blue lines representing entry levels and the dashed green lines representing take profit levels.]..

    Of course this then means it would require utilizing many smaller units as opposed to the more popular method of only a few, large units. The latter is by far the more popular and chosen method by new FX Traders.

    As illustrated in those screen shots below, while overall TPs are strategically placed at exponentially-increasing levels, the ‘exponential’ part often will not begin until after the first major support or resistance level.

    Within this area, from after the last entry unit until the first major support or resistance level, these TPs are mostly equidistant from each other. This of course is mainly because the bulk of TPs are usually placed in this area. On average probably around 55% to 85% of TPs are placed here. Having to set equidistant is mostly a physical space restraint and inability to maneuver and arrange multiple TPs in an exponential grid without having to switch periodicities or zoom the chart. I do not necessarily feel there is a substantial statistical advantage lost by not placing this subset of TPs in an exponential manner. Again, the certain situations that are not allowing exponential placement are in fact providing ‘Exit Variance’ as an unrealized benefit.

    Why Are 55% to 85% of Take Profits Placed in this Area?
    Because it is perceived there is around a 55% to 85% chance of that first major support or resistance level being tested. Obviously much depends on each individual situation including:
    - How much distance there actually is before this first major support or resistance
    - How many units were opened
    - Current Momentun / Slope / Parabola
    - Where in the current trend were entry units established … very beginning upon 1st or 2nd HAS color changed candle?

    Some may choose instead to use Trailing Stops. Some may choose to use a hybrid of both at the same time. A ‘Wall of Trailing Stops’, or rather creating multiple distances of Trailing Stops is also possible and advised to help diversify the exit.

    We want to put the odds that our take profits will be cleared before our stop losses in our favor. All the while still allowing ourselves huge upside potential for our 5%-15% Money Lots to run if we just so happen to be in a Parabolic move that we are yet to be aware of or realize.

    There is no worse scenario than having all your Take Profits cleared out too early … only to re-enter again at these same levels because the retracement never came. The retracement usually now comes after you finally decided to re-enter. But now your former good average entry level is gone. You therefore no longer have the same loss threshold as before. You are now forced to cut your losses when the formerly anticipated within reason retracement now goes against you and you are out-of-the-money.

    Money Lots Help Prevent ‘Chasin Pips’

    To prevent this nightmare situation described immediately above that can cost an account balance greatly if done frequently, it helps to have extra Money Lot Take Profit Levels that may never get taken out unless you finally decide the trend has switched and you close out manually. These lots are a 5%-15% portion of your Take Profits that are set far away and do not usually get hit often.

    These Money Lot TPs should coincide with your BEST entry level lots. I never worry too much about where the majority of my TPs that are associated with various entry levels are accordingly placed. However I do worry about the Money Lots, and make sure my best 5% to 15% entry levels coincide in order with my furthest away TPs. Yes, this can be an issue for US Traders using ‘First In, First Out’ Brokers. (move your trading account offshore now)
    Use Money Lots to Trade Forex

    These Money Lots allow you to at least feel that you are participating in a Parabolic move even if those remaining lots are only 5% of what your total position once was. It is amazing what positive side effects this then can have on overall trading, and an overall mind-set.

    These extra lots can also act as Defenders of your hugely in-the-money Average Position and a Mental Defender of the overall trend that you decided to be in in the first place. Having these assets will allow you more confidence and the patience to wait for that inevitable hard retracement to now re-enter and add-to that existing in-the-money position.

    Diversity + Variance

    Diversity + Variance is Essential Across All Aspects of The Trade From Inception to Completion.

    Including, but not limited to:

    • entry
    • ultimate exit
    • take profit levels (or trailing stops… or hybrid of both)
    • stop loss levels (accomplished, for instance, via trading correlated pairs with different ultimate exits)
    • hold time
    • pairs and types of instruments traded (Forex, Commodities, Equity CFDs)
    • brokers used (those with large capital not trading with NFA regulated firms)

    Succeeding with NITRO+ is not about exactness or perfection. Succeeding in trading these markets is not about exactness or perfection. The byproduct of un-exactness is variance. We need controlled variance in every trade operation we perform, to be able to survive and succeed … Long Term.

    Just like Long Term evolution and survival of us as Humans.

    In fact, it is a lesson straight from Mother Nature’s Handbook. As billions of years worth of evolution in this Galaxy has shown, Mutations that ultimately help create variance are also an integral part of long term survival and adaptation. Sometimes, it is the mistakes we make while manually trading that will end up providing positive results. Imperfection can sometimes help to reduce the negative impact from unexpected price action anomalies.


    Live Trading Screen Shots of Original NITRO+ Version Below – Sept 23, 2011:

    New, 5NITRO+ Screen Shots are Being Created

    - - - -Blue Dashed Lines- - - - Indicate Entry Levels.
    - - - -Green Dashed Lines- - - - Indicate Take Profit Levels.

    There is no indication for Take Profits that have been already cleared. Large area of space between Entry Levels and Take Profit Levels generally indicates a large chunk of TPs were already hit and cleared… such as shown in the first screen shot of EURHUF.

    Diversify Entry and Take Profit Levels     (remaining open LONG positions on 09/23/2011):
    EURHUF - Long - Daily Chart Sept 23, 2011 - Open Currency Trades
    EURHUF – Long – Daily
    EURZAR - Long - Daily Chart Sept 23, 2011 - Open Currency Trades
    EURZAR – Long – Daily
    EURSEK - Long - Daily Chart Sept 23, 2011 - Open Currency Trades
    EURSEK – Long – Daily
    GBPSEK - Long - Daily Chart Sept 23, 2011 - Open Currency Trades
    GBPSEK – Long – Daily
    GBPZAR - Long - Daily Chart Sept 23, 2011 - Open Currency Trades
    GBPZAR – Long – Daily
    HOME DEPOT - Long - Daily Chart Sept 23, 2011 - Open Currency Trades
    HOME DEPOT – Long – Daily
    USDCCK - Long - Daily Chart Sept 23, 2011 - Open Currency Trades
    USDCCK – Long – Daily
    USDDKK - Long - Daily Chart Sept 23, 201 - Open Currency Trades1
    USDDKK – Long – Daily
    USDHRK - Long - Daily Chart Sept 23, 2011 - Open Currency Trades
    USDHRK – Long – Daily
    USDHUF - Long - Daily Chart Sept 23, 2011 - Open Currency Trades
    USDHUF – Long – Daily
    USDLTL - Long - Daily Chart Sept 23, 2011 - Open Currency Trades
    USDLTL – Long – Daily
    USDMXN - Long - Daily Chart Sept 23, 2011 - Open Currency Trades
    USDMXN – Long – Daily
    USDNOK - Long - Daily Chart Sept 23, 2011 - Open Currency Trades
    USDNOK – Long – Daily
    USDSEK - Long - Daily Chart Sept 23, 2011 - Open Currency Trades
    USDSEK – Long – Daily
    USDSGD - Long - Daily Chart Sept 23, 2011 - Open Currency Trades
    USDSGD – Long – Daily
    USDZAR - Long - Daily Chart Sept 23, 2011 - Open Currency Trades
    USDZAR – Long – Daily
    top Diversify Entry and Take Profit Levels (remaining open SHORT positions on 09/23/2011):
    AUDJPY - Short - Daily Chart Sept 23, 2011 - Open Currency Trades
    AUDJPY – Short – Daily
    AUDUSD - Short - Daily Chart Sept 23, 2011 - Open Currency Trades
    AUDUSD – Short – Daily
    AUDCHF - Short - Daily Chart Sept 23, 2011 - Open Currency Trades
    AUDCHF – Short – Daily
    AUDSGD - Short - Daily Chart Sept 23, 2011 - Open Currency Trades
    AUDSGD – Short – Daily
    AT&T - Short - Daily Chart Sept 23, 2011 - Open CFD Trades
    AT&T – Short – Daily
    CAT - Short - Daily Chart Sept 23, 2011 - Open CFD Trades
    CAT – Short – Daily
    EXXON - Short - Daily Chart Sept 23, 2011 - Open CFD Trades
    EXXON – Short – Daily
    PFIZER - Short - Daily Chart Sept 23, 2011 - Open CFD Trades
    PFIZER – Short – Daily
    DUPONT - Short - Daily Chart Sept 23, 2011 - Open CFD Trades
    DUPONT – Short – Daily
    UNITED TECH - Short - Daily Chart Sept 23, 2011 - Open CFD Trades
    UNITED TECH – Short – Daily
    DOW 30 - Short - Daily Chart Sept 23, 2011 - Open Equity Futures
    DOW 30 – Short – Daily
    S&P 500 - Short - Daily Chart Sept 23, 2011 - Open Equity Futures
    S&P 500 – Short – Daily
    OIL - Short - Daily Chart Sept 23, 2011 - Open Commodity Trades
    OIL – Short – Daily
    WHEAT - Short - Daily Chart Sept 23, 2011 - Open Commodity Trades
    WHEAT – Short – Daily
    EURDKK - Short - Daily Chart Sept 23, 2011 - Open Currency Trades
    EURDKK – Short – Daily
    EURHKD - Short - Daily Chart Sept 23, 2011 - Open Currency Trades
    EURHKD – Short – Daily
    EURUSD - Short - Daily Chart Sept 23, 2011 - Open Currency Trades
    EURUSD – Short – Daily
    GBPUSD - Short - Daily Chart Sept 23, 2011 - Open Currency Trades
    GBPUSD – Short – Daily
    CHFJPY - Short - Daily Chart Sept 23, 2011 - Open Currency Trades
    CHFJPY – Short – Daily
    SGDJPY - Short - Daily Chart Sept 23, 2011 - Open Currency Trades
    SGDJPY – Short – Daily
    NZDJPY - Short - Daily Chart Sept 23, 2011 - Open Currency Trades
    NZDJPY – Short – Daily
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      (( VIDEO )) Fourteen Hours of Live Trading and 71 Completed Trades – Compressed into 9.3 minutes: INTRADAY TRADING

      Trade Forex, Futures, Commodities Video Tutorial Using MT4 Currency Strength Indicators

      (( watch in larger Vimeo pop-up ))



      Forex Trading with a Metatrader 4 Indicator - New for 2012

      (( watch in larger You Tube pop-up ))


      These Videos Above + Below Are NOT OF 5NITRO+

      The intended purpose of this video in providing ‘an example’ of how these tools might be used to help … still applies.

      Video created in April 2011 of previous NITRO+ Indicator.

      I will create a video of 5NITRO+ when I get time.

      Perceived success in this Video by far the result of my own brain and ability to manage entries and take profits.

      Perceived success in this Video by far NOT the result of any Indicators or EAs attached to chart.

      Video created because potential customers / web surfers could not visualize “How can I use it to help my trading?? I don’t get it??”

      So therefore, Video is ‘an example’ of how these tools might be of help. Video is NOT ‘the example’.

      There are infinite ways these tools can help. You are unique. Your trading styles, trading capital situation, expectations, and risk threshold is unique.

      If you require exact instructions, look elsewhere. ClickBank and eBay have No-Loss Magic Indicators

      Video not intended to be ‘exact’ instructions or to serve as a blueprint.

      There are no instructions. Use this tool and the information it provides as you see fit.

      Video not intended to be reverse-engineered into a system. We Do Not Sell Systems.

      iDrag EA in video simply allows dragging of TPs directly on chart. iDrag is NOT included.

      iDrag EA was used in this video because I do not know how to successfully manage multiple open units without doing so directly on the chart.

      iDrag is no longer needed. You now have access to this ability in your MT4 platform as of Spring 2013.

      Video is compiled into 10 minutes and was sped up by 200%.

      70+ trades entered on GBPUSD 30M.

      68 Take Profits were hit and cleared in the money.

      2 positions closed out manually at the end for profit.

      1 position closed for loss.

      Take Profits cleared, indicated by-_-red dashes_–, ranged from 2 pips to 67 pips.

      Additional, correlated pairs EURUSD, GBPCHF + SILVER, GBPJPY used in Super Compact Mode at bottom left for added market insight.

      Take Profit Levels _____blue lines_____ are actively managed and adjusted many times through the life of the position.
      *NITRO+ is not a Forex Robot. It is not like FAP Turbo in any way. It is not an EA. NITRO+ is a Manual Trading Indicator Tool. The trades in the video are being entered manually and are being exited through Take Profit (TP) levels that were entered at the time of entry. The blue Take Profit lines/levels are actively managed directly on the chart with our own iDrag. iDrag is not included with your download. Large arrows on the chart clarifying the direction of the trend and when a market buy order is completed are for illustrative purposes only.

      What Happened Next to GBPUSD After the Video Ended?

      Nitro+ Forex Probability Meter Trading Video - GBPUSD 30M Follow Through

      GBPUSD 30M resumed its climb upward by a large margin.

      As is stated below in preface of the next EURUSD 15M video, trends strong enough to breach 90% will often eventually continue in that same direction even more. This statistic held even more true on this 30M chart time frame.

      The price level that triggered the Nitro+ 50% Alert, turned around and acted as support along with the 200SMMA.

      The Take Profits of 2 pips – 67 pips that were hit and cleared in the video, shown in the picture above as -_-red dashes_– (along with the additional from trades placed after the video was produced), in hindsight appear to have been prematurely closed:)

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      (( VIDEO )) Showing Trade Ideas and Possible Use of Nitro+ and ClearChart Together on a 15M Chart During The New York Session. INTRADAY TRADING

      2011-03-18 T15:37:47 (GMT) –

      Animated Illustrations below of are the original NITRO+. Animations will be created of 5NITRO+ when I get time. The general ideas still apply.

      50 Pip opportunity for gain in just over 70 minutes on the 15M EURUSD once the 50% Alert Level is triggered after the daily 16:00GMT Euro Style Options Expire and before the 18:00GMT CME Futures Fix | 18:30 London + EuroZone Close. An additional +23 pip gain is also available on re-entry or adding to position upon completion of midday lunch period and lower equity and FX volume retracement using the same 50% level as support and HAS signal for confirmation of reentry or ‘adding to’ position.

      The stronger trends such as shown that trigger 90% on 5M, 15M, 30M, or 1H Charts during the NY a.m. session will sometimes virtually revisit or surpass those levels of both Global Probability Percentage and or Price after midday retracements into the NY equity close and sometimes will continue into the CME Forex Futures close.

      Keep in mind with the video below, the 50% Alert being triggered does not necessarily mean it was the first time within that 24 hour time span.

      EURUSD had obviously been strong previously. The 50% Alert was triggered within the previous London session. It was also triggered within the Asian session prior to that.

      This video was captured to show what is sometimes a repeating pattern, on a daily basis throughout the New York session.

      On 30M charts and less, and somewhat also on 1H charts depending on what type of Trader you are – it is advised to ‘Reset’ Nitro+ internally in your mind for each new session.

      In fact, it is advised to treat each individual session as its own entity and therefore ‘Reset’ your trading (if you are an Intraday Trader using such charts as 30M and less). This does not mean you need to automatically close out all positions upon London Close, for example. It simply means you need to be prepared for an entirely different sentiment upon New York Open. You need to be ready to pull the trigger and take profit on your remaining open positions if an Economic Report is negative for your bias.

      I will never act upon any 5NITRO+ Percentage on these lower time frame charts, for example within the NY session, until Major Events have occurred and a Trend Direction has been established for the NY session.

      Trend Directions for the NY session are not ALWAYS established early within the New York session. They do not ALWAYS follow a similar pattern as shown in this EURUSD 15M Video.

      However, Currencies + Equities virtually TEND TO FOLLOW THIS PATTERN virtually quite often. Trend Direction established within the NY Morning will a good amount of the time regain that same price level or resume that same direction into the NY Afternoon after taking a Volume break during the Mid-Day Doldrums.


      These Major Events within the New York Morning include at least (1) of the following and sometimes more than (1) of these events depending how major of an impact, for example, the Economic Report release is predicted to have:

    1. CME Open
    2. Equity Market Open
    3. Economic Report Release and the projected impact indicated by…
         The Forex Factory Calendar
    4. 15:15GMT – Daily ECB Forex FIX (Major Impact Economic Reports trump this)
    5. 16:00GMT – Euro-Style Options FIX (Major Impact Economic Reports usually trump)
    6. 18:00GMT – CME Forex Futures FIX, London GOLD FIX
    7. 18:30GMT – London and EuroZone Close
    8. Global Risk is Leading Forex Indicator

      Currencies take cues from Equities. Global Risk Appetite is in control.***

      Equities + Commodities are a Leading Indicator for Currencies… not the other way around as is a common mistaken belief of new Forex Traders.

      (click picture to view full video. please be patient while animation loads, the file size is large.)
      wyfxco Forex Nitro In Action

      Click Pic Below to View a Quicker Version and Smaller File Size of the Video Above. Mark-ups and Explanations have been Eliminated while also Increasing Speed.

      WYFX Nitro 15M EURUSD

      What Happened Next to EURUSD After the Animation Ended?

      Nitro+ Forex Probability Meter - EURUSD 15M Trading Follow Through

      EURUSD 15M resumed its climb upward when the market reopened on Sunday and into Monday morning (PST).

      As is stated farther above, trends strong enough to breach 90% will often eventually continue in that same direction even more.

      It takes a sizable amount of money flow to surpass the 90% Nitro+ level. This statistic holds more true in linear fashion as the time frame increases. This statistic, and the trading confidence it provides, should be ignored on 1M and 5M charts. The price level that triggers the Nitro+ 50% Alert, and the 50% Alert Level itself – will often times then turn around and act as support.

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