overview - active trend trading.com™ · 2018-12-18 · 3 focal strategies for atts active trend...

3 Focal Strategies for ATTSActive Trend Trading: Dennis W. Wilborn

It doesn't happen every time, but it does happens all the time!Yogi Berra-ism

Overview

Disclaimer

Copyright ATTS 2007-2015

• U.S. Government Required Disclaimer – Commodity Futures Trading Commission Futures

and Options trading has large potential rewards, but also 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 stocks, futures or options. No representation is 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 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. SIMULATED TRADING PROGRAMS 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.

2

3 Focal Strategies

This Presentation addresses Pillar 4

5 Pillars of Active Trend Trading1. What to Trade2. When to Get In3. When to Get Out

4. What Strategy to Use5. What to Expect

Every game plan or trading campaign must have a system based foundation and well defined strategies. Well defined strategies provide the tools to battle in any market environment.


3 Focal StrategiesEvery game plan or trading campaign must have a system based foundation and well defined strategies. Well defined strategies provide the tools to battle in any market environment.


Active Trend Trading System

IBD Stocks & Index ETFs

Simple Options Wealth & Income Index ETFs

3 Focal Strategies

Each of these strategies will be used within the Active Trend Trading System to achieve the objectives of the system.

Member Traders decide which of the strategies they want to use, all or just one.

Traders can choose to develop their own strategies based on ATTS

That is a benefit of trading a sound system, many strategies can adopted to reach trading goals


3 Focal Strategies

Strategy 1: IBD Stocks and Index ETFs (80% of trading capital)

- Buying and selling either IBD Stocks and/or Index ETFs

- Holding Period: Days, weeks, months, years

- Rules: Basic ATTS Rules for Entry & Exit

- Use margin as appropriate depending on market condition


3 Focal StrategiesStrategy 2: Simple Option—Fire & Forget (10% of Trading Capital)

- Buying and selling weekly and monthly options on IBD Growth Stocks or Index ETFs

- Holding Period: Days to weeks

- Rules: Basic ATTS Rules for Entry- -30% stop loss from entry price- T1 = +30% gain from entry price- T2 = +50% gain from entry price- T3: If price moves favorably the letting the last part of the

position run is desirable. Profit can be taken at 100% or greater or with technical reversal signals

- Max $2000 per position- Alerts will be quicker than simple stock trades with mid-day

alerts occasionally being used


3 Focal Strategies

Strategy 3: Wealth & Income Generation using Index ETFs (Approximately 10% of Trading Capital)

- Buy long term Index ETF Options (Calls & Puts) and collect premium every week

- Holding Period: 6-24 months on the long position & days on the short position

- Rules: Buy an “ATM” Index LEAP out at least 6 months or longer- Sell weekly options forming a spread based on earning 2X the

weekly premium/cash flow necessary to pay for the long call/put

- Use intraday charts to refine entries - Sell weekly options on either Thursday or Friday that will

expire Friday of the following week


3 Focal Strategies

Additional Training:1. Updated Training Videos coming soon

2. Go to existing training under Training Video TabVideo 1: Getting Started with Active Trend TradingVideo 2: Basic OptionsVideo 3: Growing an Account


3 Focal Strategies

Trading Alerts and Tracking

Each Potential Entry will have alerts:1. Text Message Alerts

2. Email Alerts

Each Exit will have alerts:1. Market Updates2. Email Alerts when adjusting exit targets3. Email Alerts when Targets are hit

Optimal Timing: Night prior or between 5:00 & 6:15 a.m. Pacific

Signal Trigger: Through the trading day


3 Focal Strategies

Email Alert Format: Strategy 1

Subj: ATTS Alert Buying 200 shares of CELG

ENTRY: Buying 200 shares of CELG at a limit of 111.05

EXIT: Sell 100 shares at T1 = 117

Hard Stop = 108.50

ADDITIONAL INFO/Condition:- Putting in higher low bouncing off 200 day moving average


3 Focal Strategies

Email Alert Format: Strategy 2

Subj: ATTS Alert Buying 3 Contracts of IWM Jul 15: 127PSymbol: .IWM150717P127

ENTRY: Buying 3 contracts of .IWM150717P127 at a limit of 2.85

EXIT: T1 = 2.85 x 1.3 = 3.70 : Sell 1 contractT2 = 2.85 x 1.5 = 4.25 : Sell 1 contractT3 = 100%, reversal signal or B.E.

Hard Stop = 2.85 x 0.70 = 1.99

ADDITIONAL INFO/Condition:- Watch for adjustments to T3 if T1 & T2 are hit


3 Focal Strategies

Email Alert Format: Strategy 3—After initial long positions are opened

Subj: ATTS Alert sell 3 Contracts of SPY Jun4 15: 210CSymbol: .SPY150626C210

ENTRY: Sell 3 contracts of .SPY150626C210 at a limit of 1.50

EXIT: GTC order to buy 2 contracts at 0.75GTC order to buy 1 contract at 0.30

Hard Stop = Friday prior to market close—possible roll to next week

ADDITIONAL INFO/Condition:- Watch for support bounces for potential buy back


3 Focal Strategies

Trading Alerts and Tracking

Sign up for Special Trade Alerts at link provided with the video post email

Tracking1. Track each strategy separately

2. Track the cumulative

3. Monthly Update on the Website


-on

Designing Trades

Designing Trades Requires Discipline and a Notebook! Sometimes its more about being diligent than being right!

Follow-on Thoughts:1. Occasionally more than one entry technique must be planned out

2. If Price does not follow the expect script it means price is going against the plan—exit early

3. Relationship to the 50 day EMA


overview - active trend trading.com™ · 2018-12-18 · 3 focal strategies for atts active trend...

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