December 9, 2022
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"All general trading statements are false. " Master Trader Joe Ross
Let's Learn the Art of Trading Joe Ross' Way!
Chart Scan with Commentary: Sufficient Volatility
Hey Joe! I am using the Bollinger band and the Stochastic. I am using the Bollinger band and the Stochastic. I'm still making mistakes and the account is going backwards slowly. Joe you said, “..as long as there is enough volatility for you to take a profit. Don’t restrict yourself to 10-minute only.”
Would you mind explaining about enough volatility?
Sure! No problem. There are a couple of things to consider. Obviously, you are day trading. Likely, you are entering and exiting on stop market orders, so you can be certain of being filled. That means you are looking at a tick or more of slippage going in and out. You didn’t say, but let’s assume you are trading euro futures, and you would like to scalp for 8 ticks, i.e. $100. Considering slippage and faults with timing, you lose a tick ($12.50) in, and a tick out ($12.50). Then you need at least $125 of volatility to make your $100. That’s actually a simplistic view. Personally, if I want to scalp for $100 on at least one of my contract sets, I need to see $150-$250 of volatility in the market. You must adjust this for your style of trading. Sure! No problem. There are a couple of things to consider. Obviously, you are day trading. Likely, you are entering and exiting on stop market orders, so you can be certain of being filled. That means you are looking at a tick or more of slippage going in and out. You didn’t say, but let’s assume you are trading euro futures, and you would like to scalp for 8 ticks, i.e. $100. Considering slippage and faults with timing, you lose a tick ($12.50) in, and a tick out ($12.50). Then you need at least $125 of volatility to make your $100. That’s actually a simplistic view. Personally, if I want to scalp for $100 on at least one of my contract sets, I need to see $150-$250 of volatility in the market. You must adjust this for your style of trading.
By that I mean, “How long are you willing to wait to gain your objective?” If you want to achieve your scalp within 10 minutes from entry, you might need to use a time frame greater than 10 minutes in order to have larger size price bars.
Let’s assume that average volatility for the euro is $40 dollars based on the Average True Range (ATR) indicator. You can then consider that you will be in the trade on average for 30 minutes (3x$40). If 30 minutes is not a problem for you, then you are okay.
Average Volatility is nothing more than a measure for the movement of prices over a-period-of-time. Because of gaps, you need 21 bars of price action to get a realistic 20 bars average volatility. You have to measure 2 bars from top to bottom to get one value for volatility.
You may have to increase the time frame to get what you need. I find that the daily chart is excellent for trading with BB and Stochastics. You have to look at more markets to find the situation, but it’s worth it.
Putting up a 20-bar ATR may help you to see if there is enough volatility to enter the trade you want.
You didn’t mention which market(s) you are trading, but yesterday I put up a 10-minute ES chart along with a 20-bar ATR. There was not enough volatility ($54.06 i.e. 4.325x$12.50) to consider any trade on the ES, based on average volatility. I had to go up to 240 minutes to get the kind of volatility I would need to get me $100 on a single price bar. There was no problem at all with the daily chart.
© by Joe Ross. Re-transmission or production of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, and Day Trading, and Editor for 20+ years with Traders Notebook, daily advisory newsletter.
Trading Article: What's my Real Reason for Trading?
"The Rorschach test (also known as the Rorschach inkblot test, the Rorschach technique, or simply the inkblot test) is a test in which a subject's perceptions of inkblots are recorded and then analyzed using psychological interpretation, complex scientifically derived algorithms, or both. Some psychologists use this test to examine a person's personality characteristics and emotional functioning." (Copied from Wikipedia)
Trading is a kind of a Rorschach test, mirroring the personality of the trader's needs and desires. We need to ask ourselves "What is...read more.
by Andy Jordan. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
Marco Mayer will Offer a Christmas Special Soon - Be on the Lookout!
Ambush Traders Again in a Gold-Rush: Catching Reversals in the Gold Market
One of the top markets over the last couple of months for Ambush Traders has been the gold market. Whether it's the Gold Future, Micro-Future, or XAU/USD forex pair, Ambush Traders are in a crazy gold rush!
Here are the results of these trades, trading only one Gold Future (GC) contract:
Yup, that's almost $20k profits with almost no drawdowns in between within just a couple of months! Looking at the statistics you can see that we got a profit factor of over 3 and the maximum drawdown was just about 20% of the profit!
Now the Gold Future is a large contract and not suitable for small accounts. But you can do these trades also in the E-Micro Gold which is just 1/10 the size or the XAU/USD forex pair.
That's what makes Ambush Signals so great, it works with any account size offering three subscription models depending on your goals.
Notice that all of these are actually day trades, even though they're based on end-of-day trading decisions. Ambush is exactly that, an easy way to day trade not for a few tiny ticks with a lot of stress but placing your trades once a day, walk away, and go for the big intraday moves!
Don't miss the next Gold trade and join Ambush Signals today!
The Ambush Trading System was created in 2007 by Marco Mayer. Since then it proved itself in the markets for over a decade and did so with exceptional results. It's the only trading system we're aware of that is still going strong after so many years. While Ambush is a day trading system, meaning you will always enter and exit on the same trading day - you don't have to sit in front of your trading screen. You simply place your entry orders when the trading session starts and come back at the close!
by Marco Mayer. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
Even though Master Trader Joe Ross passed away September 7, 2021, his trading knowledge of over 60 years will carry a trading legacy and will live on. As you learn about Joe Ross and understand what he was trying to teach his students, you will find that within his writings, he had a very special gift. Most importantly, it was his students that kept him striving to provide comprehendable trading material to actually teach traders and become independent, to rely on anyone, but themselves.
Joe Ross has been trading and investing since his first trade at the age of 14, and is a well known Master Trader and Investor. He was able to survive all the up and downs of the markets because of his adaptable trading style, using a low-risk approach that produces consistent profits.
Joe Ross is the creator of the Ross hook™, and has set new standards for low-risk trading with his concepts of "The Law of Charts™" and the "Traders Trick Entry™." Joe was a private trader and investor for much of his life, but a serious health situation in the late 80's caused him to shift his focus, and that is when he decided to share his knowledge. After his recovery, he founded Trading Educators in 1988, to teach aspiring traders how to make profits using his trading approach.
Joe Ross has written twelve major books and countless articles and essays about trading. All his books have become classics, and have been translated into many different languages. His students from around the world number in the thousands. His file of letters containing thanks and appreciation from students on every continent is huge: As one student, a successful trader, wrote: "Your mastery of teaching is even greater than my mastery of trading".
Joe Ross holds a Bachelor of Science degree in Business Administration from the University of California at Los Angeles. He did his Masters work in Computer Sciences at the George Washington University extension in Norfolk, Virginia. He is listed in "Who's Who in America." After 5 decades of trading and investing, Joe Ross still tutors, teaches, writes, and trades regularly. Joe is an active and integral part of Trading Educators. He is the founder and contributor of the company's newsletter Chart Scan™.
Joe's philosophy for helping traders is:
"Teach our students the truth in trading - teach them how to trade."
"Give them a way to earn while they learn - realizing that it takes time to develop a successful trader."
Joe sets forth the mission of Trading Educators as follows:
To show aspiring futures traders the truth in trading by teaching them how to read a chart so that they can successfully trade what they see, and by revealing to them all of the insider knowledge they need in order to understand the markets.
To enable them to trade profitably by training them to properly manage their trades as well as their mindset and self-control.
To accomplish our mission for our students we educate them so that they know and understand:
Benefits for our Clients:
- Where prices are likely to move next.
- Independence from complicated trading methods, magic indicators, and black-box systems.
- Independence from opinion, anyone's opinion, including their own.
- Independence achieved through knowing how to read a chart.
- Independence through having knowledge of insider actions.
- Independence achieved by taking holistic and eclectic approaches.
- Independence coming from knowing how to manage both the trades and themselves.
- Independence because they understand and trade what they see.
- Independence because they have learned how and why prices move as they do, through studying the truth in trading and the truth about markets.
Students learn only proven methods and techniques, which helps them to preserve capital and create more consistent profits; they are offered simple methods that will assist them to earn while they learn.
- They learn to work smarter and more effectively.
- They learn to treat trading as a business; we offer no Holy Grail or magic systems.
- They learn to adapt to changing market conditions.
- They learn a systematic approach to trading rather than a mechanical system for trading.
- Why prices will move there.
- Who and what cause prices to move.
- How far prices are likely to move when they do move.
- Their own role in the movement of prices..
- How to take advantage of the knowledge they receive.
- How to properly manage and exit a trade which they have entered.
- How to manage themselves and acquire the discipline needed to become successful traders.
Read some personal testimonials which Joe has received.
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A WEALTH OF INFORMATION & EDUCATION:
Joe Ross-Trading Educators' popular free Chart Scan Newsletter has been published since 2004.
Note: Unless otherwise noted, all charts used in Chart Scan commentary were created by using Genesis Financial Technologies' Trade Navigator (with permission).
Legal Notice and Copyright 2022 Disclaimer - Published by Trading Educators, Inc.
Chart Scan is a complimentary educational newsletter.
Master Trader Joe Ross passed away September 2021, and prior years he was continously sending me folders filled with Chart Scan and Trading Articles. The emails would be titled "More to follow" and I would reply, "Keep'em coming". I am calling these lessons "hidden vault" material because if Joe were still alive, this is exactly what would be shown in your inbox every Friday morning. This is not regurgitated material; this is new stuff written by Joe or as he would refer to it with such passion, "This is good stuff".
As we continue to receive newsletter sign ups, new students from every continent will start to learn trading Joe's way especially in this challenging market. This is where he would reinforce to his students, yes, that includes you, that learning to trade is possible even in this environment, "A chart, is a chart, is a chart". His writings will stand the test of time to provide teaching lessons and guidance.
The proceeds of Trading Educators will continue to support Joe's wife, Loretta, of 62 years of marriage, which she is our number one priority. We thank everyone with continued support and prayers for her well-being in late stages of dementia.
As expressed in the past editions, the trading world has lost a unique and passionate trader and his material will continue to be relevant. Let's start learning to trade Joe Ross' way with our future Chart Scan publications. I am here to help, so feel free to email me with any comments, questions or concerns.
This newsletter and future publications are created to keep Master Trader Joe Ross' lessons readily available to traders that want to learn and improve their skills. My father passed away on September 7, 2021 and will be greatly missed, but his writings will stand the test of time for generations to come. Take it to heart and learn from the best through Master Trader Joe Ross' trading examples and articles which have impacted thousands of traders on every continent for over 60 years.
© by Trading Educators, Inc. Re-transmission or reproduction of any part of this material is strictly prohibited without prior written consent