|
Trigger/Filter TTW System -
(Trades That Work) Alex's bread and butter method consists of a
combination of Filters and final entry Trigger. The goal of this method
is to take away money from the weakest traders. On
the
surface that appears to be a naive and arrogant method. The newbie
always
loses, so do the opposite of the newbie.This method is ideal for short
term scalpers who want to try and grab their profits right away and do
not wish
to be in a position for a lengthy amount of time. Time is risk!
The filters determine what side of the market we want to be on during
the day or the markets BIAS and the triggers get us a solid
entry. Ex: If we have strong bullish filters that are
rising, we do not wish to load the boat on short trades. In order to
have a bias, we need at least a 65% majority of Filters leaning to one
side of the market. Trial members may read more about the TTW trading
system in our discussion group at http://www.puretick.com/BB2
MaxSpan 2.0 - A trading setup that is a slightly
longer term and takes advantage of those nice trending moves that
happen when you least expect. MaxSpan has a very high win rate and is
rarely stopped out. It was
created based on the combined efforts of various professional traders.
Gap Retract - Our variation of this very
highly successful trading setup that's used by many million dollar
traders and newbies alike. A gap is a break or 'gap'
between prices on a chart that occurs when the price of a stock makes a
sharp move up or down. This price movement must occur when the cash
markets are closed between 16:00PM EST and 9:30AM EST. For example of
AAPL closes at 56.00 at 16:00 EST and then opens at 57.50 the next
morning at 9:30 AM the next day. We call this a $1.50 gap UP.
Panic Line Break - The Panic Line Break is our
improved variation of a trend line break trade. Use it to enter a trade
when the market is not cooperating with any of your other setups. The
'base' effective method has been around for years. It's normally used
in swing trading. We used it on our standard 3 minute chart intra-day
for great scalps. Alex and Geoff often play this setup in a trend
that appears to be pretty relentless. It will grab you a few points on
retracements and often foreshadow a complete turn around.
Retracement - A simple method
for aligning yourself with the
larger trend. You may notice retrace trades on our track record. These
are trend following entries that do not correspond to a trigger
signal. They are very simple, yet powerful.
Education - One of our goals at
Pure Tick is to get you trading like a pro on your own! In
addition to providing trading alert signals, much of your time in the
service will be spent soaking up knowledge on the markets. We teach
standard concepts such as support and resistance, candle formations,
bounce points, market internal indications and various other hightly
successful
setups used by Alex. We uses live charting and audio feeds to provide
commentary as the market unfolds throughout the day.
In reality that is the only hope for
the newbie to graduate
to the ranks of the professional. I am sure most new traders have read
a number
of trading books where the author proposes or in many cases rehashes a
“holy
grail” trading setup. Many times they simply plagiarize and rename the
method.
When the new
trader finishes the book  and starts
trading the next morning, the results are worse than
expected. Sadly for the new
trader,
many of these methods---Trend Following or Counter Trend--are not that
bad.
Many do have a positive expected outcome over time. We have found that
most
methods average about a 55% success rate if every signal is taken. What
many
new traders don’t realize is that a method with a 55% success rate can
easily
have 5 losing trades in a row. Very few new traders multiply the
average stop
loss of that particular “holy grail” method times 5 to even get an idea
of what
that method might lose right out of the gate.
The prime trading methodology we use
at TTW, and what we
aggressively suggest for the new trader is to trade with the main trend
of the
day, and yet to avoid chasing the move once the trend has been
determined. By
definition this means we buy when a new momentum high has been
established but
we wait for a pullback. The opposite applies to short trades.
Right away a reader might say, “Yes,
lots of trading gurus
do that. What makes you guys different?”
Primarily we are much more patient in
our definition of a
pullback. We call our method a combination of Filter and Trigger
method. The
filters determine what side of the market we want to be on during the
day. The
first filter we use, which can be determined even before the 9:30 AM
trading
begins is to see where price is trading as compared to its daily pivot
level.
If price is trading above we look for long Triggers, if price is below
we look
for short Triggers.
After the first 15 minutes of trading
after the open we
usually have our other Filters in Place. In order to have a bias, we
need at
least a 65% majority of Filters leaning to one side of the market. If
Filters
are even then we do not look to trade. That is the toughest thing for
new
traders---staying out of marginal trades.
Assuming we have a confluence of
favorable Filters when the
market begins its inevitable pullback, we begin the process of
measuring that
pullback. In its simplest form, we are looking then for an oversold
market in
the shortest of time frames. Once the pullback has qualified per our
mathematical models, we then turn to our Triggers. In other words we
need a
setup to go long. Not much different then looking for a chart setup or
an
indicator based entry.
When that occurs our final check off
is determined by our
proprietary expected return model. This is a calculus based model which
looks
at the stop loss point, which we tell subscribers even before the trade
is
called, the preliminary price objective, which we also have a good idea
about,
and the recent volatility.
In a nutshell we are saying, “The
market is making a good up
move. New traders are jumping aboard. We want to wait for them to be
shaken out
of the move. After the shakeout, the professional buyers pick up the
selling
cheap. Then the move resumes.”
Of course the reverse process takes
place in a selling
environment.
I hope this gives a relatively clear
idea of our methods.
Please feel free to contact us with any questions you may have.
Alex L.
Wasilewski
TTW Sr.
Trader
|
