Live Trade Example By A Student on 06-26-2020
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A current student by the name of Jorge sent me this trade example. It was a nice set up, taking a lower high on a failed break out of congestion and at the mid line of a large down channel while the market was still strongly down at the time. This was a great read by Jorge and a good trade overall. I am posting his email that came along with the video below.
Hi Mack,
I’m sending this screencast of this Lower High I just took 🙂 Got 4
points. Almost reached runner by 2 ticks but 4 points was great
regardless.
Thought you might get a sense on how your students actually trade by
showing you a clip instead of a picture. The progress I’ve been making
it’s all thanks to you. I never traded before; never followed anyone
else’ strategy so I had the advantage of not having to “unlearn” crap.
Nevertheless, I’m in kindergarten and still learning!
Thanks!
Jorge
I often find that traders with no prior trading experience learn this and succeed at it faster than those that have previous trading experience. Most that have previous experience are too busy trying to fit the best pieces of our strategy into an already proven losing strategy. It would be better if most of you threw out the old stuff completely and simply trust the system I am offering you. It works if you will only embrace it and trust it, and use it fully as designed rather than trying to change it up.
The only thing I might have done differently with this trade would be to put my safety stop one tick above the signal bar. I also might have taken my profits a bit earlier so as not to give too much of it back. This is still a great trade, and I do suggest that everyone manage their runners as they feel most comfortable, as that is a bit more personal based on our own personalities. What works best for one of us might be different than the other, so that is why I do not talk a whole lot about exiting runners. Figure out what is most comfortable for you and go with it, as that will help insure more success.
Thanks for sharing the trade Jorge and nice work!
Comments
matthewmcdonald86 June 27, 2020 at
Thanks Mack & Jorge.
Appreciate this video. Great to see how other new traders are learning and progressing. It’s a lonely road sometimes!
Eric June 27, 2020 at
Jorge,
Nice quick work!
learnandtrade June 27, 2020 at
thank you both for sharing, very nice work
Rob L June 27, 2020 at
Nice trade.
John Schrey June 27, 2020 at
Awesome trade Jorge! Seeing this fuels my desire to keep learning.
I think the more I see of the NT7 the more I like it. The NT site would not let download the simulator unless I had NT8. NT7, to me seems more analog and that translates to simple. I don’t want bells & whistles or strangely clumsy menus to navigate.
WildWex June 27, 2020 at
This is great – thanks for sharing Mack & Jorge.
Question for Mack – if a stop loss were placed 1 tick above that bearish signal bar, wouldn’t that place it beyond the 2 point stop loss limit?
Mack June 28, 2020 at
Yes, but putting the stop in the correct place for protection is more important than the 8 tick rule. With the recent volatility, the 8 tick rules is basically impossible to adhere to and still trade.
William Pleis June 27, 2020 at
Great trade Jorge !!!
inboil June 27, 2020 at
That was smooth. Was the logic behind the trade the fact that it initially broke higher and then turned down?
KCLawler June 27, 2020 at
Great work Jorge !! …..Nice patience, good alignment with lines. The stop trail was sweet not to close but close enough
mercrastius June 27, 2020 at
Mack thanks for sharing, nice work Jorge!
For anyone considering NT – I looked pretty hard at it but ended up with SierraChart. Admittedly the learning curve is pretty steep, but the functionality is fantastic. Especially for what Mack teaches us – we need maybe 0.01 percent of the capability it has. JS I’m like you – I wanted simple & easy.
For me it came down to order entry. I was never happy with the technique used in Jorge’s video – open the order away from the market then move it into position at the right time. I couldn’t get used to it, and didn’t like the other options so I landed on SierraChart. With the chart DOM feature you can literally send your stop-entry order at the price you want with one click – no menus to mess around with at the moment of truth. It can even automatically convert the order to a limit order if the market moves too quick & it trades thru your entry price before you can send it. I like this so I’m not chasing it too much above the intended entry price.
And it’s dirt cheap too – it’s about 30 bucks/month. AMP Futures even supplies it for free.
That’s my $0.02 on SierraChart. Sorry to hijack the discussion.
Mack, Jorge, & everyone else keep up the good work!
Jorge June 27, 2020 at
Hi everyone. Thanks for the comments. Much appreciated! This was from yesterday (Friday) and just like KCLawler mentioned, I had good alignment on my lines so it was easy drawing-wise; not just due to the big obvious downtrend channel but the congestions within were bouncing consistently at their respective highs & lows. It got messy after the break of that huge down channel and a new low was made around the 3000 century mark. I always put that “fuchsia” line in the century marks just to be aware because, like Mack says, these are important & emotional levels. You’ll see the constant retest from above & underneath. And we had a lot of that in recent weeks (at the 3000 & 3100 levels).
As Mack mentioned I didn’t move my safety stop where it belongs right after entering the trade. Shame on me 🙂 That signal bar was 3 points if I remember and if it’s just a point or so like that I indeed will move it. I didn’t in the video because I got carried away entering the trade description but thankfully everything worked out fine and quick. But please, no matter what you do (risk/reward wise) please put the stop one tick above/below the signal bar always or simply skip the trade 🙂
Regarding the runner, The first obvious target was the low of the small congestion/range there but I had hunch that we were going to bypass it (like it did) due to the strong downtrend; that’s why I moved my runner to the trend channel line and moved my stop to the lows of the range so I could at least grab that portion. The runner , well, it was close but not cigar 🙁 Next time I’ll move runner prior to reaching the trend channel line, just like we should do when we have a target based off a measured move (you try to exit a couple of ticks before the obvious level).
In the end, I think this was a good clip as you can see the big picture at the beginning and then I zoom in to the congestion section. Then you can infer my thought process while trying to go short; first discarding a failed break higher due to the fact that the first candidate bar was a doji, then the next one was a nice low-risk bar but it was an inside bar. At that point I decided a lower high was a safer entry. But then I started drawing what appeared to be a micro uptrend (are we trending up to the trend channel line or are we still inside the congestion area?). Once it was obvious the micro uptrend wasn’t in play I quickly deleted the lines to avoid cluttering the screen and continue pursuit of a possible lower high.
Again, thanks for the kind words. I’m like many of you, struggling but getting better while at the same time trying to control the guy in front of the mirror.
All the best,
Jorge
Vittorio5927 June 28, 2020 at
Thanks for sharing Jorge. Would like to request Mack show more of these in the future. I picked up a good tip from you about placing the order in advance below the entry point to save clicks on a quick entry. I would also like to get the indicator for the tick count next to the bar if you can share your source. Still trying to figure out out to bypass the second pop-up with the check mark after selecting the buy/sell from the chart trader. Still new to NT so watching as many vids as I can to become better versed on the platform.
Thanks again…Victor
Jorge June 28, 2020 at
Hi Victor,
I agree. It would be cool to see other trader’s videos once in a while.
Regarding the tip…I’m glad you catched that. It helps a lot. As soon as I get the sense I might get an entry I’ll just right-click , far far away (don’t care where it is), and I’ll have the stop ready.
The indicator you mentioned is called the “Custom Tick Counter”. If you go to the bottom of this page and click on “Site Map”; there you can search for “custom tick counter” and you’ll find the blog post about it (where you can download it).
HTH,
jorge
JMLtrades July 1, 2020 at
Beautiful trade, Jorge! Congrats and thank you for sharing! I’m much like you, I didn’t have a lot of bad habits or weird ideas in my head before I found price action and Mack. I do really think that helps us!
I wish you much success!
Jen
william mccormick June 27, 2020 at
Question: why didn’t you take the fist lower high after the doji? Thanks
Jorge June 27, 2020 at
Hi William. I took the first lower high after the doji (first bar that broke higher after previous swing high). If you mean the next smalllbar after the doji… well we could look the pros & cons.
## Pros ##
– low risk bar
– bearish bar
– far away from EMA (enough distance for scalper’s profit)
## Cons: ##
– inside bar (although we got two-bar matching highs there so not that bad at all)
– two stacked bars there (one is a doji); why take the risk when a lower high would be safer
– At that point I already had my micro uptrend channel drawn so maybe this new uptrend channel was valid and we were headed to the big downtrend-channel trendline? This was the MAIN reason I didn’t take it. You can see that as soon as we get the break of the micro uptrend channel I decided to discard that channel and went full range/congestion mode again.
HTH,
Jorge
inboil June 28, 2020 at
Thank you for the thought process. All this information is so vital.
inboil June 28, 2020 at
Also, that bar you chose, counting off that swing high, is a first entry failed break higher, correct?
Jorge June 28, 2020 at
Well, if you were thinking long, counting from the swing high, yes it would be a first entry long but as we’re thinking short it’s tecnically a lower high. It’s not a failed break higher since we’re already inside the range. The failed break higher was either the doji or the next bar to it (they both have matching highs).
inboil June 28, 2020 at
Thank you. One last question–I promise. That bar you used to trigger the trade–you say it is not a failed break higher because it is inside the range. Please explain. Thanks again. Sorry for the redundant inquiries, but I really want to learn every nuance.
Jorge June 28, 2020 at
You can read more about trading congestion here:
https://priceactiontradingsystem.com/more-on-price-action-trading-strategies-and-breakouts/
Leroy June 28, 2020 at
Nice job! May I ask how you got your ticker counter to be placed next to the last candlestick bar?
Jorge June 28, 2020 at
Hi Leroy. Thanks. That’s the “Custom Tick Counter” Indicator. You can get it here:
https://priceactiontradingsystem.com/custom-tick-counter-indicator/
Leroy June 28, 2020 at
Ah, thanks! I’m not a premium member but will likely join. Does this work on NT8? And is the grey shaded pre/post market hours another indicator from this site?
Jorge June 28, 2020 at
I’m not sure about NT8 but probably does as it’s very simple. The pre/post market hours one is called “Trading Time Indicator” and it’s in the member section as well but I’m pretty sure you could find it somewhere else.
Mack June 30, 2020 at
We offer the trading time free for download in the members area. That is what shades the trading times from gray to white.
Knortzsch June 28, 2020 at
@Jorge, weird question but what playlist you use? The sing in the video whats the name of it 🙂 I found this music very helpful to focus more. And good trade!!
Jorge June 28, 2020 at
Hi Knortzsch. Sure! I love to listen to “space ambient” when I’m trading for the same reasons you mentioned. That’s a given!
The song in the background is called “Light-Matrix Portal” by Max Corbacho. It’s the first song in one of my favorite Spotify playlists called “Space Music for Sleep”.
All the best,
Jore
Knortzsch June 29, 2020 at
thanks for sharing Jorge! 🙂
Robert Reese June 28, 2020 at
well done and a great trade
mitch007 June 30, 2020 at
Nice work Jorge! Can someone tell me how to put the tick counter on the actual counter line instead of just on the bottom right? Also, if I do scalp and runner, how do I set up to move my stop to break even automatically after the scalping out the point? I have NJ8, thanks so much!
Jorge June 30, 2020 at
Hi Mitch. Thanks . The tick counter indicator is called “Custom Tick Counter” (you can see the link on previous replies here on this page). Finally, if you search YouTube for “How To Set Up Our Automated Strategy In Ninja Trader ” you’ll find a video Mack did a couple of years on how to configure Ninjatrade’s ATM. I have mine set to “breakeven plus one” as the default. I might change it manually to just “breakeven” if I’m confident in the remaining runner.
Mack June 30, 2020 at
Its a special indicator. It’s available in the members section for free if you are a member. If not, you might find one someplace else out on the Internet, just look around.
jonk344 June 30, 2020 at
Great job, Jorge!
Michael Tomlinson July 4, 2020 at
Nice trade but isn’t it also a second entry short at the mid-channel? That would have gotten into the trade a bit earlier to get a few more ticks.
Thanks for any feedback.
Jorge July 4, 2020 at
Hi Michael. Yes, that’s two legs back to the midline so you could say it’s a second entry short (in the big picture). An entry there would have worked out just for a scalp as the runner portion would have been stopped out by the bar I used as my signal bar (the lower high). That’s of course assuming you’re doing the scalp+runner thing.
I didn’t take it as previously mentioned: had my uptrend micro channel drawn (I was thinking long for that short moment) but ignoring that, assuming we were going to get short there…the signal bar was horrible (a doji) and then the next bar is of the same size (two stacked bars there) and I’ve just noticed now that the lows were equal too so it’s never a good idea to go short into two-bar matching lows.
HTH,
Jorge
oumike68 July 16, 2020 at
Awesome video. Great chart set up. Love hearing the cash register ring up. lol.
Anuj Nahar July 29, 2020 at
Great trade, Jorge! How did you know the micro uptrend failed?
Jorge July 31, 2020 at
@Anuj Hi. Thanks! Well, it’s not that I knew but once we got the break and how prices moved afterwards it was pretty obvious the range/congestion was taking precedence over that micro uptrend forming there. You usually see these trends forming within range/congestion that won’t go outside the boundaries of the range.
In the end, nothing is 100% when it comes to trading so after the break of that micro uptrend we could have had two legs up to a new high trapping me (in case the micro uptrend took precedence) but, based on the overall conditions this was very unlikely.
HTH,
Jorge