The following page represents a comprehensive yet simple approach to learning how to use the T-3 Fibs ProTrader effectively and in the least amount of time. This document will provide you with the most efficient use of your time and effort as well as spell out conditions that must be met in order to achieve a high level of success with the software.
General principles for all users of T-3 Fibs ProTrader
Software
· RULE #1: DO NOT use real money during the learning process. Typically the process is lengthened by focusing on the money rather than the education.
· During the education process you will become familiar with the software and learn to recognize the winning edge as defined by a profitable win percentage and win-loss ratios.
· You do not and will not need to trade real money to learn how to read the T-3 Fibs Pro Trader
WHAT ARE THE minimum goals for educational SUCCESS?
· During your demo and throughout your learning process our educational Dept. will be teaching using the mini S&P 500 market. (ES).
· Your goal as a trader is not only to learn how to read the software but to be able to consistently have the potential to make money using the software.
· Nexgen's minimum measure of educational success will be met once you have achieved at least a weekly average of 10 ES points or greater on simulator for at least two consecutive weeks.
· This will equate to at least $500 dollars per contract per week during your simulation period.
· Once you have achieved $500 dollars per week on one contract you will then be able to use money management principles and profits generated by your trading to increase your contracts traded as you make the move to real money. A very modest 10 lot in the ES at 500 dollars per contract per week will yield you $20,000 per month, which is $240,000 annually. A 100 lot using the same 2 points per day will yield you $2.4 million annually. The PROCESS of learning to extract 2 points or more per day is the most important thing you will focus on. Become consistent and how much money you make will be up to you.
After your educational path is complete you will then be able to take the T-3 ProTrader and apply the principles that you learned to any other market and timeframe that you wish to trade.
WHAT ARE THE STEPS FOR Educational SUCCESS?
· Our goal is for you to complete your initial assessment of software’s capabilities and our educational process on demo inside of 10 days. During this demo period you will be able to make an educated decision on whether or not our software and training will meet your needs as a trader.
· Once you decide to purchase software, our next goal will be for you to achieve a level of proficiency using the software inside of two months that will give you the ability to pull points from the market consistently. Some clients will take less time and some may take longer. Six months is the maximum anyone should take to learn to use the T-3 Fibs ProTrader to achieve a consistent level of performance.
· The first step towards success is to learn which areas offer the highest advantage to trade from and which direction trades should be taken.
· Area and Direction will be your primary goal with your initial education and will dictate everything that you will do when looking for a trade setup later. This will be covered in online videos and the 101 class in our Hotcomm rooms.
· Once Area and direction are understood you will then add the individual indicators such as Macd BBs, trigger lines, trend bands, etc. to help you clearly recognize areas that have the highest expectation of holding or breaking.
· Once you have mastered which areas that should hold or break ,you will then learn how to apply this knowledge into simple trade setups that will be taught in video and 202 classes and reinforced in a live market environment in the Pro’s room hosted by Nexgen educators.
Marking and posting your charts
- When first learning the software, visual feedback is very important to make sure you are interpreting the indicators correctly. This will be important when posting charts in the room and working with the educational department. When you have completed your education this will be an invaluable tool for self-analysis after the trading day.
- How to properly mark your charts for maximum effectiveness.
- All reasons for trade setups and exits should be written in a yellow box with text inside. This will help you to determine, with the help of the educational department, if your reasons for a particular setup are correct. We will cover how to do this in our 101 and 202 classes.
- All entries should be marked with 3 arrows on the bar you entered or would have entered on. All exits should be marked with 1 arrow on the bar you exited or would have exited on.
- After the trade is complete or the day is complete you will then go back and mark “the best” entry and exit with a magenta circle. This is done after the heat of battle so you can study the potential for any changes you may want to make in your entries and exits and how to recognize more clearly the “most profitable” trading situations.
- During your initial stages of learning you will not only mark up today’s action but you will go back in time and pick one chart timeframe (preferably higher timeframe) and mark up at least 5 historical days worth of trade setups.
- Once you have mastered your marking of charts and have the ability to easily recognize the trade setups you will only be required to mark 3 days of “historical” charts. Once you have moved to live money, historical charts will no longer be needed.
- Save all charts as a GIF or PNG files in a dedicated folder on your hard drive. You may use any screen capturing program you wish. We recommend SnagIt.com as an easy to use program. Do not store them as BMP files as they have a large file size and are not easily uploaded and needlessly waste hard drive space. How to do this will be done in the 101 and 202 class daily.
- You will email you pictures each night during your demo to your educational personal trainer.
- During the trading day post your charts and questions in the NexGen Pro’s room for instant feedback from the educator running the room during the trading day. If you do not post your charts you will not get the full educational benefit you need during your learning process. You should by rule of thumb post at least 2-4 charts daily in the Pro’s room.
- Once the charts have been reviewed each day the educator will choose 5-8 charts to review and small group tutoring session will be provided every day covering mistakes made and how to correct them. If you want to shorten your learning curve you may attend the afternoon private group sessions 5 days per week.
- Making sure your trade setups and interpretation of the software are correct is vital for achieving the highest level of success. NexGen is committed to your success and we ask that you have the same level of commitment when marking and posting your charts.
When to start using a simulator
o
Once you have successfully mastered marking your charts
properly and have shown yourself you can achieve a consistently profitable
winning % and win loss ratio you will run a “live market simulation”
program. We recommend Ninja Trader for ease of use but any simulation
program will do. Typically by now you
will be an owner of the software and it is not recommended for non-owners
to run a simulator as it will distract you from the lessons on your demo.
o
Once you start simulation you must still mark up your charts
using the same boxes, arrows and circles in addition to placing
“simulated” trades on the market. This must be done so you will have
the tools you need to continue to improve during educational sessions.
o
Again you will continue to mark up your charts. You may find
it easier to trade first and write quick descriptions and clean up reasons
after the trade. You may also opt for writing reasons first then making
the trade depending on your typing ability.
o You will have completed successful simulation once you have a string of a minimum of 100 and up to 200 simulated trades with a 60% or higher win percentage and a greater than 1:1 win loss ratio
When to start using real money in your trading
- Most traders will start with one contract and will only raise the level of contracts with money that has been created with profits generated by the first contract. This is a good practice no matter how much money you have or wish to have. Trade your software properly and you will add contracts on quickly.
- You must establish a profit per contract level that you will use when analyzing how many contracts to trade each day.
- To determine your contract level take your account value and Divide by that number.
- For example – If you use $10,000 per contract as your base value.
$10,000- $19,999 = one contract.
$20,000-$29,999 = two contracts.
If you fall below a level
you must return to lower contract amounts.
- Real Time Trading Performance Guidelines
- Live Results must reflect 75% or better of Simulation results, otherwise you should return back to the simulator and work with educators to define where the discrepancies in analysis are between live and simulation.
- To gauge your performance when day trading, use a 7 period ATR (average true range) on a daily bar of your market calculated once per week usually on a Friday or Monday. This will provide you with a consistent way to measure your performance against the market’s current volatility. We will show you how to do this in the 101 and 202 class as well.
- For example = if the market ATR for the S&P is 20 points when you are on simulator and you are averaging 20 points per week, you are making 100% of the ATR.
- If in your live trading you only average 74% of the ATR or less then you know it is time to go back to simulator and continue your education and work out why your performance has dropped between simulator and live money.
- Using the ATR will allow you to adjust for volatility. For example if the ATR goes up to 30 points and your trading on simulator has been at 100% of the ATR then you would expect to make 30 points per week as the potential profit in your live trading.
- Every day you should make a GIF or PNG file of your trading platform results and keep them on your hard drive so you can evaluate your performance daily versus the charts that you have marked up. Also, print up a weekly performance report so you will be able to track your weekly performance versus your ATR.