Of course, if you have any additional questions, you can always give us a call and we will be happy to answer your questions.
Frequently Asked Questions:
- I am an intraday trader. Will your methodology work on intraday charts?
- Yes, the indicators do work on intraday charts. In fact, the Directional Volume is designed exclusively for intraday charts. However, we also use longer term charts to identify where the markets will go using support and resistance. The indicators and methodology work for scalpers, intraday, medium-term, and longer-term charts.
- Which types of traders does your indicators and training work best for?
- Our indicators and training really work best with two types of traders: either brand new traders or experienced traders. The brand new trader must be willing to dedicate a long period of time for study and practice before going live. The experienced trader generally has already been through the “it must be the indicators and not me” phase so they are willing to listen and put the information in to use. The traders I do not recommend buying the indicators are the ones that are “indicator collectors”. These individuals are simply hoping to find the holy grail indicator, which quite simply does not exist. Trading takes a huge psychological toil on a person. Some traders are willing to face their own issues and others are not. The ones that are not willing to go through the psychological issues and face their own inner demons, well to be quite frank, should not purchase the tools.
- What size account do I need for trading?
- I am not a CTA but, in my opinion, if a trader only has $5,000, he should be trading the micro currency futures at about $1 a tick. As a new trader with limited capital, you need to learn many new things and you will have more failures than a professional trader. By limiting your losses to the micros, you still have a chance of making it. A loss of $10 is much easier to take than a loss of $200 or $500. For trading the e-mini futures, I recommend a minimum of $25,000 and that would be for more experienced traders. The size of your account is also dictated by how large of a stop you use.
For example, you can use a larger stop for a higher accuracy rate, but one loss will knock out several of your winning trade. Of course, a trader could always go through a drawdown before the winners begin hitting so large accounts are needed (these are typically professional traders that have access to large capital or, in essence, unlimited capital).
Or you can use a lower risk, have more losing trades that are minimal, but actually make more money in the long run. Most retail traders need to use the low risk because they don’t have unlimited capital.
- What is your winning percentage?
- I think any answer to this question is misleading because it leads the trader to the mentality of “I can make xyz” using these indicators. This is misleading because there are more factors than the indicators — like your trading discipline, trade management, and psychology. However, since I have developed the ADX strategy and ATR strategy I can show you what the hypothetical answer is. My favorite market is the Dow and my favorite chart is the 45 minute. The ADX strategy performance report (which is based on hypothetical trades (see disclaimer below), trading one contract from February 13, 2011 to February 12, 2016, the results are:
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
- If I buy your indicators will I make money?
- No set of indicators are going to make you successful — that’s the bottom line. It is a combination of indicators, trade management, discipline, and overcoming the psychological issues that prevent your success that will make you money. Even though the performance report above shows the ADX trade produces profits, can a trader withstand the drawdown, the losses, does he second guess the entry or exit to soon because he sees profits? Will he be able to pull the trigger? It simply isn’t just about the indicators but the all encompassing approach that we offer. While that may not be what you want to hear, it is the truth.
- How long will it take me to make money?
- I don’t know. It took me four long and painful years to figure trading out and I was obsessive about it. I lived and breathed the markets but I had a lot of pain to go through. More than likely I was just like you — jumping from one thing to another — not knowing it was me. The only reason I succeeded was because failure wasn’t an option. My motto in life has always been “I will not accept defeat” so with each failure, I saw it as one step closer to success. There were days I cried from the losses, I struggled to pull the trigger, had a few wins and decided I was the “bomb” — only to lose my substantial profits and then some. But with each mistake, I examined what I was doing and a way to overcome the issues I faced.
I have students, typically professional traders already, that can come to one seminar and implement the indicators within a week or two. I have others that are new to online trading that have struggled but are still in the game and still learning the little nuances. I have others that went on to the newest and greatest indicators — only to come back and tell me they wished they had listened the first time. I have others that have dedicated themselves to learning a trade and sticking with that trade only and produce results. I have had very few that of the “indicator collectors”. These simply purchase the indicators but never really learn it. It is dependent on you and how much time you devote to it. I am ready and willing to help you learn and implement the skills but I can’t read your mind or answer questions you never ask — so it really is dependent on you.
- Which markets do the indicators work on? Which timeframe is best?
- The market doesn’t really matter as the indicators are based on volume and price, which every market has. I prefer currency futures over spot forex because the volume is true volume and the commissions are lower — plus you don’t have dealing desks on currency futures. I also prefer the indices futures over stocks as stocks are easily manipulated. I do recommend minute charts over tick charts because using tick charts limit your volume data. I don’t use renko or other specialized charts and cannot guarantee that the indicators work on these specialized charts. I prefer minute based charts because I know exactly when the bar will end — which eliminates the unknown factor of renko or point & figure.