trading atts with clarifications...clarify, simplify & multiply this has been the motto of...

Trading ATTSWith Clarifications

WWW.ACTIVETRENDTRADING.COM

DENNIS W. WILBORN, SR.

DWW@ACTIVETRENDTRADING.COM

“It doesn’t happen every time, but it does happen all the time.”~~ Yogi-ism: from Mike Trager

Clarify, Simplify & Multiply

This has been the Motto of Active Trend Trading from the beginning!

We continuously work to Clarify & Simplify through refinements to the system to make it objective and easy to both learn and use.

The purpose of all presentations is to provide our fellow Active Trend Trader Members a jump start to accelerate progress up the Learning Curve.

We welcome suggestions on how to improve the learning process!

Trade Wisely & Profitably,

Dennis W. Wilborn

Founder & Lead Technical Analyst

DisclaimerU.S. GOVERNMENT REQUIRED DISCLAIMER – COMMODITY FUTURES TRADING COMMISSION

FUTURES AND OPTIONS TRADING HAS LARGE POTENTIAL REWARDS, BUT ALS O LARGE

POTENTIAL RISK. YOU MUST BE AWARE OF THE RISKS AND BE WILLING TO ACCEPT THEM IN

ORDER TO INVEST IN THE FUTURES AND OPTIONS MARKETS.

DON’T TRADE WITH MONEY YOU CAN’T AFFORD TO LOSE. THIS IS NEITHER A SOLICITATION

NOR AN OFFER TO BUY/SELL FUTURES OR OPTIONS. NO REPRESENTATION I S BEING MADE

THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE

DISCUSSED IN THIS TRAINING. THE PAST PERFORMANCE OF ANY TRADING SYSTEM OR

METHODOLOGY IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN

LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESU LTS DO NOT

REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN E XECUTED, THE

RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN

MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PRO GRAMS IN

GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF

HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY

TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

ALL MATERIALS PRESENTED ARE FOR TRAINING PURPOSES ONLY . TRADERS SHOULD PAPER

TRADE ANY NEW METHOD PRIOR TO RISK OF PERSONAL CAPITAL.

Objectives-

- Show Specifically how to Trade the ATTS system

- Not every trade is a winner

- Whipsaw is still a reality with any Trend Following System

“It doesn’t happen every time, but it does happen all the time.”

Copyright 2012-2015 Active Trend Trading

Target Shoot—But How?

The Trigger: Close Above/Below the 8 Period Moving Average

Entry: Pullback to around the 8

Apply Back to the “8”

“Vision is the art of Seeing Things Invisible!”

~~ Jonathan Swift

“People Only See What They are Prepared to See”

~~ Ralph Waldo Emerson

“Observe things how they are;

See things how they can be!”

~~ DWW

Copyright 2012-2015 Active Trend Trading

Back to the 8 Period Moving Average

- First close above the 8 day EMA after a downtrend has started will fail

- Often the second move up after a long downtrend has a higher probability of success

- Know the date of Earnings

“It doesn’t happen every time, but it does happen all the time.”

Copyright 2012-2015 Active Trend Trading

Example of 1st & 2nd Time Failures

1 2

3 Third Time Leads to a Runner

The Set Ups

Prerequisites: Close above the 8 Period Moving Average

1. Target Pullbacks to around the 8 period moving average

2. Establish Stop Losses

3. Establish Profit Targets

4. Establish when to move Stops

RulesThe initial 8 Period EMA Trigger has fired

1. Define value of 8 period EMA

2. Place Conditional Order at a defined level

3. Stop Loss 2% on Intraday Triggers; 4% on Daily Triggerso Once up by 2% Intraday or 4% Daily—move stop to close below/above 8 period EMA or

B.E. but choose one!

4. Profit Targets: T1 = Intraday 2-5%; Daily 5-20%o Options take profits at 30% & 50%; use close below/above 8 day as trailing stop on

remaining contracts

5. If price movement triggers a longer term chart consider using the longer

term chart to exit on a close below the 8 Period Moving Average—Will be

covered next week.

USE SIMPLE SPREADSHEET TO CALCULATE PARAMETERS

EXAMPLES—DAILY

Touch 41.08Stop 4%: 39.43

T1 10% = 45.18

T1 5% = 43.13

Touch 39.86Stop 4%: 41.45

T1 5% = 39.86 (Didn’t Make It)

Touch 41.25 Stop 4%: 39.6

T1 5% = 43.31T1 10% = 45.37

Close Above 8 dEMA

1

2

EXAMPLES—DAILY

Touch 124.92Stop: 127.41

T1 10% = 112.42

T1 5% = 118.67Touch 114.09Stop: 116.37

T1 5% = 108.38

Live Examples

1. All the touches we see on daily charts are not actually touches during

trading hours!

2. Estimate proximity to the 8 day EMA. The more you do it the better you

get.

3. The estimating factor: It depends on the size of the Stock, but typically

around 10¢ and $1.00

Copyright 2012-2015 Active Trend Trading

Live Examples

1. All the touches we see on daily charts are not actually touches during trading

hours!

Copyright 2012-2015 Active Trend Trading

Copyright 2012-2015 Active Trend Trading

YY

1. Want to enter YY for a Pre-Earnings

Run—Earnings (11/11 AMC)

2. Close Above the 8 day EMA (57.47)

3. Define Entry Criteria: Pullback to

57.75

4. Conditional Order Stop-Limit: 57.75

x 57.85

5. Stop Loss if filled 4% of fill amount

6. T1 = 7.5% of fill amount

T2 = 15%

7. Number of shares = Capital / Price

$17500/57.75 = 303.03 shares round

to 300 shares

8. Place Order with One Triggers Option is

available to trigger the stop loss, T1 and T2

orders

The Order: Think or Swim

Copyright 2012-2015 Active Trend Trading

Conclusions

1. Clarify the Trigger – Close above the 8 day EMA

2. Clarify the Entry – Pull back towards the 8 day EMA

3. Also applies to other time frames

Copyright 2012-2015 Active Trend Trading

Copyright 2012-2015 Active Trend Trading

Copyright 2012-2015 Active Trend Trading