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Ultimate Trader - Page 2

Ultimate Trader - More Details and Another Video"

Here is more information to help you better understand the Ultimate Trader.

To make a really long story about my trading history very short, I have put together three "trading edges". Each of these three "trading edges" are built on valid fundamental trading principles and are combined into one integrated powerful trading advantage.

The first critical "trading edge" is to understand and use the following three key fundamentals in priority of importance:
  (1) Price Action
  (2) Volume (best is Time Based Volume)
  (3) Price Action and Volume producing support and resistance
  (very important corollary: All indicators that do not provide valuable insights into at least one of these three key trading fundamentals is to be considered a non-essential trading indicator).

The second critical "trading edge" is to understand and use the above three key fundamentals to identify and properly trade each of the four market modes, which are:
  (1) uptrend
  (2) downtrend
  (3) consolidation
  (4) trading range / choppy.

Why does the market mode deserve a spot as a critical "trading edge"? The reason is that any single strategy logic only handles the one single market mode that it was designed to handle. When the strategy and trading chart market mode are in harmony the strategy makes good profits. When the strategy and trading chart market mode are NOT in harmony you'll experience those unwanted equity draw downs. These equity draw down periods are why I created the Ultimate Trader with 6 expert market mode strategies all integrated into one. Now the trader can select the strategy logic needed to stay in harmony with the trading chart market mode. By keeping the strategy logic and trading chart market mode in sync you improve your trading profits.

The third critical "trading edge", which is the greatest one of all, is Multiple Time Frames (MTFs). To best illustrate why using MTFs is the greatest "trading edge", let's look at a typical single time frame consolidation breakout trade on a 5 min trading chart. These have often resulted in a fair trade that produced a little profit, but the reward to risk ratio is generally around a 1.5 to 1. Compare that to trading a MTF consolidation that spans across the 5 min, 15 min, 20 min, 30 min, 60 min, 120 min, and 240 min time frames. These have historically produced powerful breakouts that moved in a single direction for days. These MTF consolidation breakouts created High Probability trading entries where the stop loss risk was low and the reward was often as high as 20 to 1 reward to risk ratio. That is why MTFs became my third "trading edge" and the greatest "trading edge" of all.

In the "Trading Systems" section of our web site you'll find all three of the trading systems I developed to trade each of the MTF market modes. These three products are the MTF Consolidation, MTF Trend, and the MTF CounterTrend. Both my clients and myself have been using these computer assisted trading systems for a couple of years. These trading systems are great for Day Traders that want to really learn and trade the markets effectively. They are not very suited for traders that work a normal job but want to be an active trader.

Our next most automated computer assisted trading system is the Trend Rider. Using the Trend Rider the trader activates the strategy by placing a trade in the direction of the daily trend. The Trend Rider strategy, working on a 5 min chart, then goes into full auto trading mode and handles all the day trading buys and sells until the human trader makes the decision that the daily trend direction has ended and closes out the initial trade they made. The Trend Rider is now dormant and waits until the human trader places another trade to activate it again. This is a great product for swing traders since they can have Trend Rider doing the automated trading in the swing trade direction for them. The shortcoming is a Trader working a regular job must enter the trade and exit the trade which might be at times that are not the best enter and exit point because of there job.

The final and most automated computer assisted trading system we created is the Ultimate Trader. This is the pinnacle product from many years of development working to integrate all three critical "trading edges" listed above. While the Trend Rider required the human trader to activate it by making a trade in the direction of the trend and deactivate it by closing out the trade, the Ultimate Trader does not require the trader to make any entries or exits. With the Ultimate Trader, the sole job of the trader is to change the Ultimate Trader control line to a color representing the market mode they want the strategy to trade. The Ultimate Trader, using the MTF Price Action Indicator, absolutely knows on any single bar if the symbol is in an Uptrend, Downtrend, MTF Consolidation or Trading Range. This logic and more is used in the Ultimate Trader’s decision logic.

Traders have asked why not make the Ultimate Trader a 100% fully automated strategy where the human trader doesn’t even need to set the line color. The answer is that the Ultimate Trader knows the market mode on a single bar, but it can NOT see the "big picture" over the whole chart. The human trader must look at the MTF Price Action and Trend Structure Indicators to read the "big picture" and then select the market mode that best fits the "big picture". After the control line color is set, the expert logic in the Ultimate Trader goes to work using the MTF Price Action Indicator, Trend Structure Indicator, and many more indicators to become an intelligent automated trading system designed to carry out fully automated trading within the directions given by the human trader. This is the most effective use of expertise. The human trader reads the "big picture" for the Ultimate Trader and then the Ultimate Trader can do what it does best and follow expert rule based trading logic to make all the trading entries and exits for the trader. This product is suitable for most any type of trader.

Here is a second video about practical aspect of trading with the Ultimate Trader.