Morning Routine:

Survey the direction of the market.

Identify the "Trends" of the markets that you are trading.

Look at the trend in your charts, 90 day, 60 day, 30 day, 15 day, 5 day, 3 day, previous day. Do this by looking at a daily chart such as the one below.

Below: You can see that the NQ market: Nasdaq 100 Emini Market is in an uptrend since March. There have been some short term pullbacks in the price but overall since March the Price trajectory has been in an upward motion.

You should have a daily chart open, A 1000 tick chart, a 4 range bar chart or 4 renko chart, a 3 minute, 10 minute, and 60 minute chart open if you have the screen space and a 120 minute. If not you can toggle between the different time series. I personally often have either a great set up with multiple screens or a one chart setup on my laptop or I use my phone. Its not about the equipment. As cool as the equipment can be and I for one love a great trading set up I also like using a laptop and using my phone. I made $265,000 in a year on a $100,000 account that I traded that I exclusively traded on my phone so the equipment is not always an excuse. Success is very attainable if your systems and strategies and execution and discipline are good. If I can produce such good results on a phone trading app then you can as well. I have taught you the same systems, rules and strategies in this course so that you can achieve similar results.

Surveying the recent trends will give you a gauge of the current direction of the market and an idea of which trades to transact first. Arrange them in sequence so when you look at your charts from left to right you see faster shorter term charts first and slower charts to the right.

As an exercise: Look at each time series chart of the above and make predictions before the trade happens. Take pictures and send to me daily and grade your predictions mid and end of day.  I am probably going to set up a slack account or microsoft team viewer for one place of communication. If you don’t know it, learn it.

Then go to bloomberg.com and take a look at the financial news in the markets that you are trading and see if there might be an event on the horizon. Personally, I don't read the news for trading, I read for interest and fun and to learn. YOU DO NOT NEED TO READ THE NEWS OR WATCH TV TO TRADE OR BE SUCCESSFUL. I haven't watched financial TV for literally over 15 years I don't think. It's just not necessary. People would sometimes walk into my office when I am trading and see that I am watching ESPN or a video on something that I am interested in. If the machines are auto trading I watch the trades going off and watch the PNL. The financial stations... They broadcast stories and just stuff. I couldn't care less about it and we make outsized real returns. Believe me the news will be in the price very very quick.

In the morning I like to get an overall idea of sentiment even if I am trading in a fully automated mode. Look for events that are happening. If there is an event driven long term trade happening or about to happen it will be reported in bloomberg maybe or market watch. The quality of writing in bloomberg seems to be a bit more professional than most sites. If you want more global news then go to reuters.com and check out the global financial news. You don't have to read everything by any means. Scan the headlines and if something is of interest and looks like it might be impactful have a read. Thats about all I do for my opening ritual. I grab a coffee so I'm not getting up and missing a trade if I am trading mechanically and fast. So maybe get a good coffee machine? Probably a good idea.

I then look at each time frame and see which trades I am expecting to take or transact first. I am looking at my PNL or profit and loss for each position that I currently have open and if I need to I toggle my auto trading algorithms to make them go live and check my bracket trading robots (bots) and make sure they have been toggled to the on position and then we are ready to go and start taking part in the markets.

I remind myself of the following rules on a daily basis:

• go in the direction of the trend.
• take the longest term trade first. (meaning if there is a trade I can take off of a daily or weekly bar I want that trade first because it has the chance of a being a long term hold big move money maker. Think of it this way. If you double a $50,000 account on a yearly basis this is the result.
• $50,000, $100,000, $200,000, $400,000, 800,000. 4 Trades to just under a Million $. This is why I like looking for tsunamis, big waves, big opportunities. But I also like trading on an automated basis to consistently take money out of the markets.
• cut losses pretty fast. Mind my gross capital.
• let winners run and have a decent trailing stop so I can let positions run and develop and make money so I remind myself to take a 2 lot to start a position and add to it and or take a profit on the first lot and let the second lot run.
• let trades develop. Read my lecture on how to let your winners run again if you need to as the concept is very important.

Buy sell rules:

Buy above the simple moving average

Sell short below the simple moving average

If using envelopes or multiple standard deviation lines then Buy above the deviation lines or the moving average envelopes.

If using envelopes or multiple standard deviation lines then Sell below the deviation lines or the moving average envelopes.

Buy or sell bar on close.

Look at the following chart. The buys and sells are in the right places and they were automated. This isn't by chance. The machine has been programmed from the above rules to do the actions that the program is taught to do. It is taught to make the right decisions over and over and over again without emotion.

Here is the Directory or Glossary.

You have a Long entry trade:

LE=Long Entry followed by

LX1P= (LX1P=Long exit profit target 1, 2, 3, and 4.

Then you have a short entry

SE=Short Exit and

SX1P, 2p,3p.... (SX1P=Short exit profit target) 1, 2, 3, 4 exiting the positions at predetermined automated points.

Up market defined:

Run through these as if you are a pilot doing a checklist with your co pilot or a walk around on a solo flight. If you aren't as thorough as a pilot you are putting yourself in danger so just act like a pilot. Simple, just do it. Do a check list walk around when trading. Be professional. Be systematic. Be consistent.

Check # one: indexes above the 200 period moving average.YES NO

Check # two: 150 period moving above the 200 and slope is up. YES NO

Check # three: 50 period moving average is above and sloping up above the 200 sma YES NO

If trading mechanically,...

In an up market where the price is above the 200 sma use the following:

Regression channels for buy and sell signals.

Make note of the following for regression channels:

Are the channels pointing up or down?

If pointing down favor the short trades when the price hits the upper channels like you see in the chart directly below. Sell short when the price hits the upper line. Take profit when the price hits the median line. Buy when the price hits the lower line.

If pointing up favor the long trades when the price hits the lower channel line.

If you are using the RSI for buy and sell point use 60 level for sell and 30 level for buys

If in up market, buy all pullbacks of x%  (do a statistical study to see best entries for that particular instrument) Look for correlations for more entry points on different instruments. For example: if trading the nasdaq NQ emini futures then watch the FANG Stocks for correlation and directional trades. We make this automated in our trading so the computers follow it but you should get good at watching it.

If in down market. Sell short all run ups of x%. you can identify the entry points by doing a statistical study and using regression channels per the above diagrams.

Do not hold short positions too long in an uptrend. Make rules that limit the losses when you are not in on the dominant trend. If the trend goes against you, get out. There is always another trade. This is the precise reason why I developed the reversal rules of our proprietary algorithm. if the price goes against us in a breakout or breakdown situation and we have gone in the opposite direction of the trend to try and catch a reversal and WE ARE WRONG then the REVERSAL algorithm rules kick in and go with the direction of the trend.

Use a 1/3 1/2 two-thirds rule on exit points and profit targets. That means that if you have a $1 dollar profit target. Take profits at 35 cents and at 60 cents. Its' a simple rule that works and is put into our parameter set of our algorithms.

Respect higher highs, lower lows, increasing volume.

This is all just an electronic auction and you need to look at it as such. People are buying and selling on an electronic platform all over the world. Just react to the trends, both short, medium and long term trends and go with the flow until the trend reverses. The goal is to buy close to the bottom and buymore and build positions on the way up and sell close to the top and short on the way down and add to your position in a down market and buy it back and cover your position when the price reverses and repeat this over and over again.