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| Date post: | 16-Dec-2015 |
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WELCOME TO THE
ELITE STOCK
TRADING COLLEGE
WEEK #2
STOCK
STRATEGY #1
Hypothetical or simulated performance results have
certain inherent limitations unlike actual performance
record: simulated results do no not represent actual
trading. Also, since the trades have not actually been
executed, the results may have under- or
overcompensated of 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
presentation is being made that any account will or is
likely to achieve profits or losses similar to those
predicted or shown.
DISCLAIMER
STOCK COLLEGE
CURRICULUM
Week #1 The Foundation and Building Blocks of Stock Trading
Week #2 Stock Strategy #1
Week #3 Stock Strategy #4
Week #4 Stock Strategy #8
Week #5 PET-D
Week #6 Advanced Trade Management /Putting It All Together
WEEK #1
REVIEW
STOCK COLLEGE WEEK #1
System vs. Strategy
Concepts 1 & 2
Edge #1 - Buy/Sell Line
Edge #2 - Confirmation Method
The #1 Chart Pattern
Homework Assignment
SIMPLICITY
EQUALS
CONSISTENCY
MY GOAL IS TO TEACH
YOU HOW TO TRADE
WITH THE
SPECIALISTS EDGE
STOCK
STRATEGY #1
Strategy #1 Highlights Strategy Is Based On Concepts #1 and #2
Designed to Trade Pullback Moves
Intensity Level (1-3): 2
Main Indicator Donchian Channels
Any Time Frame / Any Direction / Any Market
Learn the FULL Strategy Paper Trade First!
The Specialists Edge - Consistency
STRATEGY #1
INDICATORS
50-period Simple Moving Average (sma)
21-period Donchian Channels
STANDARD
VERSION
All Members (Beginners Advanced)
Pullback Strategy
Traders Who Are Looking To Catch Swing Moves
CONCEPT #1 TREND:
1. Price must be above the 50-period sma - AND -
All 3 Donchian Channels must be headed in an upward direction.
CONCEPT #2 PULLBACK:
2. Look to buy when the rising price bar first begins to decline and
eventually touches the mid-line of the rising channel. (SET-UP)
3. Enter long position on the first confirmation of price trading above
the previous bars high.
4. Place your protective stop below the lowest low of the pullback.
5. Sell (exit) when price touches the highest Donchian Channel.
Strategy #1 Rules - Buys
STEP BY STEP
Step 1
Price must be above the 50-period sma
- AND -
All 3 Donchian Channels must be headed in
an upward direction.
Step 2
Look to buy when the rising price bar first
begins to decline and eventually touches
the mid-line of the rising channel.
(SET-UP)
Step 3
Enter long position on the first
confirmation of price trading above the
previous bars high.
ENTER
Step 4
Place your protective stop below the
lowest low of the pullback.
ENTER
STOP
Step 5
Sell (exit) when price touches the
highest Donchian Channel.
ENTER
STOP
EXIT
STRATEGY #1
SELL RULES
Strategy #1 Rules - Sells
CONCEPT #1 TREND:
1. Price must be below the 50-period sma - AND -
All 3 Donchian Channels must be headed in a downward direction.
CONCEPT #2 PULLBACK:
2. Look to sell when the declining price bar first begins to rise and
eventually touches the mid-line of the declining channel. (SET-UP)
3. Enter short position on the first confirmation of price trading
below the previous bars low.
4. Place your protective stop above the highest high of the pullback.
5. Exit (buy to cover) when price touches the lowest Donchian
Channel.
ENTER
ENTER
STOP
ENTER
STOP
EXIT
MORE
STRATEGY #1
TRADE EXAMPLES
STOP ENTER
473.24
EXIT
435.86
+37.38 pts.
STOP
ENTER 6.90
EXIT 7.75 +0.89 pts.
+12.50 %
ENTER
80.01
ENTER
82.52
ENTER
84.16
EXIT
82.78
EXIT
84.87
EXIT
85.85
+2.77 pts.
+2.35 pts.
+1.69 pts.
STOP
STOP
STOP
ENTER
195.51
ENTER
195.92
EXIT
196.57
EXIT
196.58 +1.06 pts.
+0.66 pts.
STOP
STOP
AGGRESSIVE
vs.
CONSERVATIVE
AGGRESSIVE
VERSION (Shallow Pullback)
STRATEGY #1
STOP
ENTER
47.46
EXIT
49.48 +2.02 pts.
STOP ENTER
84.99
EXIT
83.05
+1.94 pts.
CONSERVATIVE
VERSION (Deep Pullback)
STRATEGY #1
STOPPED
OUT
STOPPED
OUT
STOPPED
OUT
STOPPED
OUT
STOPPED
OUT
STOPPED
OUT STOPPED
OUT
STOPPED
OUT STOPPED
OUT
STOPPED
OUT STOPPED
OUT
STOPPED
OUT STOPPED
OUT
STOPPED
OUT STOPPED
OUT
STOPPED
OUT STOPPED
OUT
STOPPED
OUT STOPPED
OUT
STOPPED
OUT STOPPED
OUT
STOP
STOPPED
OUT STOPPED
OUT
EXIT
546.90
ENTER
525.94
+20.96 pts.
STOP
STOPPED
OUT STOPPED
OUT
STRATEGY #1
MOVING STOP TO
BREAKEVEN
Break Even Suggestion
You have the option to move your stop to
unchanged once price travels either:
1) Half the distance to the exit point, or
2) The 200% extension of the set-up bar
ENTER
STOP
EXIT?
ENTER
STOP
50%
EXIT?
ENTER
STOP
EXIT?
ENTER
STOP
EXIT?
100%
ENTER
STOP
EXIT?
200%
100%
ENTER
STOP
EXIT?
200%
100%
STRATEGY #1
VARIATIONS
Donchian Channel
Settings (Increments of 7)
Low Volatility = Decreased Setting
High Volatility = Increased Setting
Standard Setting = 21-period
CONTINUATION
TRADING WITH
DONCHIAN
CHANNELS
BUY
BUY
BUY BUY
BUY BUY
BUY
BUY
BUY
SELL
SELL SELL
SELL
SELL
SELL
SELL
SELL
SELL
SELL SELL
SIGNALS WHERE THE
SET-UP BAR IS AN
INSIDE DAY
STRATEGY #1 REVIEW
Strategy Is Based On Concepts #1 and #2
Designed to Trade Pullback Moves
Intensity Level (1-3): 2
Main Indicator Donchian Chanels
Any Time Frame / Any Direction / Any Market
Learn the FULL Strategy Paper Trade First!
The Specialists Edge - Consistency
HOMEWORK
ASSIGNMENT
IDENTIFY RECENT
STRATEGY #1 TRADE
Time Frame DAILY BAR
1. Buy or Sell?
2. Identify Price of Entry, Stop Placement, and Exit Price.
3. Profit or Loss?
MY GOAL IS TO TEACH
YOU HOW TO TRADE
WITH THE
SPECIALISTS EDGE
ELITE STOCK
TRADING COLLEGE
WEEK #3
STRATEGY #4
QUESTIONS [email protected]
1-310-844-7220
DISCLAIMER
Hypothetical or simulated performance results have
certain inherent limitations unlike actual performance
record: simulated results do no not represent actual
trading. Also, since the trades have not actually been
executed, the results may have under- or
overcompensated of 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
presentation is being made that any account will or is
likely to achieve profits or losses similar to those
predicted or shown.
