The CommandTRADE Blog

100+ Pips later

Hello Traders,

I get a lot of questions regarding the best ways to capture profits using the 720 Ninja Strike so I wanted to take a moment to detail what I look for in the charts.  I have a LONG version and a SHORT version and recently added to my FRIENDS list a version to capture PULLBACKS.  I will outline the proper use below.

The 720 Ninja Strike strategy can be used to capture 2 styles of trade:  As a CONTINUATION (of the current trend) or as a PULLBACK (from the current trend).

Let's talk about setting up the CONTINUATION style first.  Change your overview intervals to POSITION TRADING and take in the full view and look at the charts.  Seperate the charts by trend (Look for Mid Term and Long Term in agreement).

A CONTINUATION refers to the overall trend as indicated through the 3 FAST Wizemen.  The mindset here is similiar to the Swing Trade Setup as a means to enter a Swing Trade Long so the lights should be STRONG to the TREND on the Long Term and Mid Term, the setup will be the lights underneath (720, 360, 240, 180, 60) going the opposite direction you wish to trade for 1 or 2 intervals.  When the TREND continues, these lights will turn GREEN (LONG) and enter the trade WITH THE TREND.  The Continuation 720 Ninja Strikes are called 720 Ninja Strike ATR LONG and 720 Ninja Strike ATR SHORT.  The exit rules for each are 40% Stop Loss, 40% Target with a 5% Trailing Stop.

Continuation trades are safer because the trend carries the trade!

A PULLBACK trade means that we have been moving the same direction for several intervals and now the charts have become OVEREXTENDED!  (Overextended charts are best reflected on the SHORT Term interval.)  Look for 3 to 4 days into the trend before considering this style.  And the Long Term and Mid Term will be opposite the color you with to trade since this is counter trend.  Example:  Long Term, Mid Term and Short Term are all GREEN and the DAY Chart is overextended so we are looking to take this trade SHORT.

The thought process here is that we use the PULLBACK as a COUNTER TREND trade meaning we are attempting to trade against the overall trend.  As you can imagine, this is a RISKIER style but nonetheless very effective at capturing quick reversals of the overall trend.

On the CommandTRADE Wednesday Night Advanced Training from October 28th, I explain this process and actually built 2 customized strategies with adjusted exits.  This is available on demand so feel free to view this at your leisure.

 I scaled down the Stop Loss and Target Profit to better hit the target since this trade is counter trend.  The new strategies are on my FRIENDS list as stated above and are called 720 Ninja Strike ATR Pullback (There is one under LONG/BULL and one under BEAR/SHORT)

The entry rules are the same but the exits have been changed to make this a better risk to reward trade.  I have adjusted the PULLBACK exits to a 25% Stop Loss, a 31% Target and a 5% Trailing Stop.  This better captures the PULLBACK trade and gets out before a CONTINUATION of the trend takes the trade away.

Remember, this is a Swing Trade style strategy and if you can understand the simple rules for setting up the trade you may find this to be one of your favorite strategies!  As a matter of fact, if you think about it like this:  "The market is always just continuing the trend or pulling back from the trend" then you can see why I love this strategy as much as I do.  You may not use it everyday as a Swing Trader, but when you do it offers a low risk to reward opportunity.

I hope this information helps you understand what to look for, how to set up the trade and most of all which style to choose.

Tune in to WTV Channel 3 and CommandCENTRAL for all your CTFX needs or send us an email to info@commandtradefx.com.

Thanks for your time and HAPPY TRADING!

-kev

EUR/USD testing trend line

Below, a 500 day price chart (blue line is the trend line)...

I eye balled the trend line around 1.4720...

Notice the Short Term Chart looking as though she could flip to green around this area.  You will also see how previous resistance could become current support:

Lights are gathering steam:

Hello Traders!

Sunday marked the official kickoff for CTFX Grand Challenge 3, a trader's challenge that runs through the end of the year!

This traders challenge is designed to pit traders heads up over the next 2 1/2 months to see who can net the most single lot pips.  The Grand Prize Winner will be the trader that clears to the most single lot pips either LIVE trades or PAPER trades depending on your comfort level.

I urge you all to participate to gain experience trading, to make profits and to become more familiar with your trade plan, the currency pairs and the overall market.  Besides the fact it is fun and educational!

The Grand Challenge 2 Winner, Rhani the Morrocan Man netted over 2000 PIPS to become the overall Champion, now its your turn!

Remember, if you don't trade you can't win!

To enter GRAND CHALLENGE 3: 

1.    Send an email to grandchallenge@commandtradefx.com with your name and if possible, your trade plan.

2.    Trade your plan either Paper or LIVE or a combination of the 2 beginning on Oct 18th thru Dec 31st 2009.  It does not matter if you start late, only that you participate.

3.    Forward your results at the end of each week to grandchallenge@commandtradefx.com

4.    Watch CommandCENTRAL for updates and tune in to WTC Channel 3.

Good LUCK and Happy Trading!

-kev