This is the last day I am going to promote this newsletter bonus for buying my new book Technical Trading Mastery.

For the past few days I have been doing a special promotion where if you buy my new book you’ll get a free lifetime subscription to my new INNER-Investor Monthly newsletter. Most financial newsletters sell for hundreds of dollars a year so this is the best deal I’ve ever offered and I can’t see how I can offer anything for this low of a price ever again.

This newsletter is going to be sold so if you don’t get it today you may end up buying it next month and have to pay for it, because you are not going to want to miss out when the stock market trend is changing.

So the smart thing to do is take advantage of this offer. It’s a no brainer.

Not to mention the fact that this is a good book and can really help you. That’s besides the point today.

How to Get Your Free Lifetime Subscription

My new book “Technical Trading Mastery – 7 Steps To Win With Logic” is now available for you on my website Order Digital Version Here. In two months the paperback will be on Amazon.com Pre-Order on Amazon.

I am going to tell you about something really special. But first let me tell you about the book itself.

I have been planning to writing an investment/trading book for you for years and believe you will be really happy with it once you get it. Unlike most trading books that are like big encyclopedias full of the same concepts explained in a different way, my book is going to show you a new way to analyze the markets to find low risk trading and investing opportunities. My new style of analysis I call INNER-Market Analysis along with what has actually worked for me over the years are covered in detail.

You will find my process of knowing what to trade, my specific indicators and strategies in the book to be simple, unique, and exciting. Its everything I have used to manage my money and navigate big swings in the market with great success.

This is really logical way of trading not only makes sense but you can implement some of it to your trading literally overnight.

I wrote the book for you to be able to read it in two or three sittings and I share with you my story of becoming a trader which I’ve never shared before. I think that you will enjoy reading it as much as I did writing it for you.

Today is the last day. This is it!

So go ahead and order the book by clicking here.

7 Steps To Win With Logic

Chris Vermeulen

Algorithmic trading is not something I ever thought I would be doing and it did not really exist 15+ years ago with I started investing. Fast forwarding to today all we seem to hear about is “HFT” high frequency trading, automated, black box trading, and algorithmic trading and how they are making people a boat load of money or almost bankrupting companies overnight like Knight Capital…

Since 2001 I have been sharing my technical analysis, knowledge, and trades with fellow traders online. And over the years through one-on-one coaching, or through financial newsletter it became very clear that emotions and human tendencies will never change when it comes to emotions (fear & greed) along with ones commitment to stick with a plan/strategy without deviating off course no matter how boring or slow it may be.

“The financial industry wants you to think investing is complex,
but the truth is: investing is and must be kept simple
and the best way is through algorithmic trading!”

After five years of personal coaching and newsletter writing for swing and day traders trying to help with their habits, techniques of what I knew worked very well for me, was not something most clients could not succeed at even when they had every step/rule identical to what I was doing to make money. This problem led to me thinking outside the box to figure out why and how I could get others to mimic what I do best so they too could enjoy the freedom and peace of mind knowing they are in control of their life.

Algorithmic Trading Idea Diagram

After several few months communicating with clients, professional traders and educators across the globe and covering many different topics on education I found what I was looking for. The problem lies with us being human. You see, people are very emotional and during heightened times of excitement or fear they tend to react from instinct rather than to follow a set of rules.

People have the tendency to stop doing a task over time that is repetitive in nature, even if it’s making money for them. And it was this conclusion that triggered my thinking to build a system that will trade my strategies using my rules and execute trades automatically without myself or clients having to do anything. This is when my focus on algorithmic trading became my new passion and the driving force of my automatic investing system for individuals.

What is My Simple Automated Algorithmic Trading System?

In short, an algorithmic Trading System is a set of rules and formulas programmed into a trading platform. The algorithmic system places trades automatically according to the sets of rules we create. These rules are built to allow investors to have increased income potential that a properly traded strategy can provide without the need to watch the computer screen all day and manually enter and exit positions when you think the time is correct.

With the use of technology we can now benefit from our strategies by converting them into computer formulas and optimize them for specific investments and make complete automated algorithms. My S&P 500 algorithms were designed and built so I could have more free time while still making the same amount of money if not more and to trade without my emotions getting in the way. This strategy has worked extremely well over the year and I now want to make it available to a select group of individual investors to get the full benefits of what my system provides me with.

Investors BIGGEST Problem and How to Avoid It With Algorithmic Trading

In short, the problem we all have as traders is the fact that we are human. Riddled with bad investing habits, and responding to market fluctuations emotionally rather than logically is why we have trouble making money consistently over the long run.

Here is a recent screen shot of my trading systems intraday algorithmic trading strategy used during an uptrend. Trading the ES mini futures this algorithm pulled $3,425 in two weeks when most traders were getting shaken out of trades. No keep in mind this is one strategy out of the twelve that are traded with my complete algorithmic trading system. Other strategies are based on the various time frames, trends and volatility to be sure we have all types of market fluctuations covered.

Algorithmic Trading Live Example

 

The rich do what’s hard;
that’s why their life is easy.

The poor do what’s easy;
that’s why their life is hard.

Next I want to show you how to trade like an emotionless robot, how it works, why, what to trade, and how much capital is required to have this algorithmic trading automatically traded in your brokerage account to make a decent living trading the S&P 500 index which is the least volatile and most liquid investment available to traders and investors. A really exciting part about it is that you do not need to learn or installed anything. It is a truly 100% hands free investing system that provides annual results that will make your financial advisor envious!

Stay Tuned For Part II Of How & Why You Should Be Algo Trading…

Chris Vermeulen










 

Good Morning,

I just want to touch on two things… the market and my new charting with NinjaTrader

Today’s video covers the SP500 in a little more detail along with natural gas and precious metals.

It is a big day for the financial sector (banking stocks) and if they turn around and rally expect the SP500 to post some solid gains.

Precious metals may keep selling off. Trend is still firmly down.

Natural Gas is looking lofty… I am starting to drool over a short play or inverse ETF play for that. I am keeping my eye on it.

Financials are on fire this morning, they did gap lower but have posted some big gains this morning. Anyone who got long in the past three days with me should be at breakeven or in the money now. Let’s hop this is a key pivot low and prices rally/grind higher into the holiday season/year end.

Below is a daily chart of the SP500 index using the NinjaTrader platform. Over the last few months as you likely know, we have been completing our fully automated SP500 trading system so that it will be available to our followers. Over the next month we will be phasing all our charting analysis, tools, indicators and systems to run on the NinjaTrader platform. Reason? because NinjaTrader Rocks! and supports all our custom indicators and automated trading systems much better than what we are using now.

Anyways, back to the chart below… As you can see there is potential for the SP500 to pullback several percentage points. As long as it stays above our blue support line and short term high volume zone we will remain long the market adding on dips.

NinjaTrader Platform for Automated Trading Systems & Charting

Talk soon,

Chris Vermeulen
NinjaTrader Partner

 

How to turn your trading into a simple automated trading strategy: you know the difference among a winning and losing trade – we have all experienced both and know the excitement and the frustration associated with it.

The brutal honest truth is a tough pill to swallow. The fact that most of the time it’s not the strategy that has failed; it’s you (the trader) which is why you need a simple trading strategy drawn out on paper with detailed rules for you to follow.

In today’s report I am going to talk about how you can stop losing money and become a successful trader. We all know that before you even enter a position, you must know where you place your stop-loss order. If you don’t know where you stops are to be placed then you are trading with a major disadvantage.

Your position entry is not complete without having a stop price figured out. It blows my mind why so few investors use stop-losses. If you are guilty of not using stops, you need this information. It might be the difference between retiring on time with a big nest egg or retiring later and still just churning your account.

If you plan and place stops you are planning to win, but prepare to take losses because you will get stopped out and you will have to get back up, brush yourself off and trade another day. So with that said we need to look at the psychology around taking losses because it’s not easy to manage, and is the main reason individuals do not use stops. Being proved you were wrong flat out SUCKS!

Successful traders understand they must know where they are going to be stopped out before they enter a position. They have to know ahead of time what a wrong trade looks like so they can exit it quickly. This is a rudimentary fundamental that EVERY trader knows the answer for.

Do You Have A Trading Strategy That You Can Trade Like a Robot?

Can You Answer The Following Questions?

1. How do you know when to sit tight or cut your losses?

2. Do you have rules to tell you when to sell a losing position?

3. Do you have rules of when to move your stop to breakeven?

If you cannot answer these questions properly, you are not alone. And what it means is that you need to establish some rules for yourself. All the trading rules in the world are meaningless if you do not use them. That is why I am telling about what’s really going on with you when you refuse to manage your risk in a proactive and professional way.

 

Most traders refuse to take a loss for two basic reasons:

1. They cannot admit they are wrong.

For most traders, this is just too painful to admit. It’s interpreted as failure or feeds a persistent, negative self-image which none of us enjoy feeling.

Humans by nature prefer to remain in denial instead of acknowledging their losses are causing them pain. This type of trader often has to lose it all before he begins to change (or gives up trading). I know this very well. I lost it all twice when learning to trade. It was not until the second time that I hit rock bottom (financially and emotionally) that I embraced trading rules and hired a mentor to help keep me inline with my trades.

2. The loss is too big relative to their overall portfolio size so they can’t afford take the loss. 

Know this, there’s no such thing as just a paper loss. The investment (stocks, etf, options or futures contract) is worth what it’s quoted whether you realize it or not by closing the position.

Both of these examples are a form of self-delusion that millions of investors, both large and small, suffer from.

If what I am saying here is making you uncomfortable or bringing up feelings of anger or powerlessness, then that is a good sign. It means you have enough common sense and self-awareness to change what you are doing.

Example of How You Can Make Your Trading Strategy To Be More Automated:

TGAOG

A successful trader uses a different strategy from that of a losing trader (you) by looking at the pain from the loss in an impersonal way. They know the loss as a sign that something went wrong with their approach, or their execution, but NOT that something is wrong with them.

Winning traders separate who they are from what they do. They learn and know, that their trading losses lie in their approach to trading the market and not a reflection of whom they are as a person. The pain they feel is quickly transmuted into motivation, which fuels their desire and determination to become a better trader through refining their trading strategies to better navigate the financial market place.

Both are learned responses and within your control. The opportunity for growth from the pain of our losses are the same. It’s what we do with this emotional pain of a loss that matters, not the loss itself.

Stick with my proven Simple Automated Trading System
Make winning a habit.

 






Learn About AlgoTrades & Get Free Monthly Investor Reports

Pre Algorithmic Trading System Analysis: This week has been a little wild as stocks pulled back due to headline news. The two big drops which took place on heavy volume sent market participants into an emotional state liquidating their long positions on fear of a collapse. Even though the stock market shows no sign of the trend reversing down, traders are jumpy and quick to lock in gains with any negative new. Sounds like a “Wall Of Worry” to me.

Taking a look at the ES mini futures chart below which is a ten minute intraday chart. It is clear the recent pop in price is testing high volume resistance as seen on the chart with the blue horizontal bars.

Also the previous pivot highs and consolidations on the chart highlighted in red also confirms there is price resistance at this level. Thursday’s rally is likely ready for a little pullback or sideways consolidation at this point based on this information.

Algorithmic Trading Price Chart

 

If we take a look at the Barchart Market Momentum index which is something I follow closely because it tells me when stocks have moved to far too fast in either direction. In simple terms, the market is either overbought or oversold when this chart reaches either extreme.

When the market closes with this indicator in the overbought or oversold zone, you should expect a pause or 1-3 day reversal in the opposite direction.

But keep in mind, when the trend is up, the only high probability zone to focus on is the oversold. We want to buy dips within an uptrend, and take partial profits or tighten our stops when the stock market is over extended to the upside. This is exactly what members and myself did today, locked in some profits and tightened our stops, well my Algorithmic Trading System told us to do it…

Momentum of Algorithm Trading

Logical Market Analysis Combined with Automated Algorithmic Trading System

Reviewing the charts for high volume resistance levels, previous pivot highs and lows, and a close eye on the Barchart momentum index like we just did in this report is only the tip of the iceberg when it comes to complete market analysis.

There are many other things one should analyze for precision market timing of the broad market. The stock market has several different forces at play which move price and using a type of analysis which I call INNER-Market Analysis allows us to capture all the market moving forces within one indicator. This February when my book is published on INNER-Market Analysis and algorithmic trading systems all this information will be available if you would like to learn more.

Some other areas of the market which must be analyzed are trends, active cycles, volatility, volume flows, and market sentiment to name a few.

Over the years I have been converting the way I analyze the market into an algorithmic trading system that catches each overbought and oversold market condition on specific chart timeframes. I have also implemented position and money management rules for the algorithm to trade in my brokerage account completely hands free which I must admit is the coolest feeling thing to experience.

What is an algorithmic trading system?
Trading Algorithms Flow ChartA trading algorithm is nothing more than a bunch of rules which you create (your trading strategy) converted into a computer language so a financial charting platform can run your trading strategy automatically. Everything is done for you including the trading. The only thing the system creator needs to do is monitor the algorithmic trading system for technical issues and possible tweaks here and there.

Take a look at the 30 minute algorithmic trading results

Since Oct 30th the S&P500 index has been chopping around and shaking traders out of their long and short positions with intraday price whipsaws (nominal new highs and lows which runs the stops of the average market participant). The index is only risen by 1.2% in the last 23 days while my algorithmic trading system which trades the S&P 500 index futures (ES Mini) and/or (3x Leveraged ETFs UPRO & SPXU) has been pulling money out of the market at an incredible rate.

Algorithmic Trading System

Remember these trades in the example chart above are just two types for algorithms trading within my system. There are 12 algo trading strategies covering all market conditions automatically managed in one complete solution.

 

Conclusion About Using an Algorithmic Trading System:

Trading or investing for that matter is no easy task. And I know firsthand that even if one has a proven winning strategy it’s almost impossible follow the rules and catch every trade setup generated. I do not know how many times I see perfect setups about to unfold and then miss them because I was reviewing other charts, sending an email, going to the washroom or grabbing a bite to eat.

These missed opportunities along with a few other reasons I will explain in my next post, is what got me started programming my trading strategies to do exactly what I showed you here.

I will admit, it has been a major learning process, ridiculously expensive to create and I can safely say that I now know several of the main stream programmers available. I also know who can make miracles happen and who cannot.

This post is to share with you some new and exciting things unfolding based around my index trading strategy. Over the next week I will share my story of how algorithmic trading became my focus, passion and automated income stream and how you can do it also.

Chris Vermeulen