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Visual Chart Trading - How to Trade directly from your Trading Charts
Visual Chart Trading will make Your Trading Easier!
Trading is a very visual chart based process. Why make your trade entries from a order bar using a keyboard to type in your order?
How to switch to a less stressful trading approach by making your trades directly from your charts.
Visual Chart Trading Explained
Imagine Visual Chart Based Trading Directly from Your Charts
Can you see the value of being able to:
3.Scale into a trade with multiple manual entries while an automated strategy does your exits
4.Scale out of any automated strategy entry using multiple manual exits
5.Manually drag a Profit Target Line into position
6.Manually drag a Stop Loss Line into any position to initially limit risk, and during the trade to lock in your profits
7.Have the strategy calculate and display the Reward-Risk Ratio on your chart, based on where you just positioned your Profit Target trendline and Stop Loss trendline.
You can do all of this without ever leaving your trading chart!
The Trend Line Trader Strategy completely allows a Trader to manually interact and manage ANY existing automated trading strategies while eliminating the common TradeManager "Out of Sync" error problems.
Using the Trend Line Trader Strategy you can do any of the the following directly from your charts:
Trader can make Manual Entries & Exits - Computer does the Trade Monitoring & Alerts
Trader can make Manual Entries - Computer does Automated Strategy Exits
Computer does the Strategy Entries - Trader moves Profit Exit Line & Stop Loss Exit Line to manage exits
Computer does Automated Strategy Entries & Exits - Trader interacts and manages automated strategy trades using Profit Exit Line & Stop Loss Exit Line.
After entry into each new trade, this strategy draws a trendline at the "Real" entry price on your trading chart. It also draws an adjustable Profit Limit exit trendline, and a adjustable Stop Loss exit trendline. The trader manages the trade by moving the adjustable Profit Trendline and adjustable Stop Loss Trendline at any time during the trade.
This strategy uses the entry price, profit trendline, and stop loss trendline to calculate the live Reward-Risk Ratio and display it on the trading chart. Move one of the adjustable trendlines and the Reward-Risk Ratio is re-calculated and displayed. See examples in picture #3 and #4.
This makes good Reward-Risk Ratio trade management very simple.
Why Reward-Risk Ratio trade management is so vital is best said by Perry J. Kaufman, "A trading system alone will not assure success without proper risk control, beginning with individual trades... Every trading style has losing streaks that will ruin an investor who begins trading at the wrong time without adequate capital; therefore the size of the position, the markets to trade, and when to increase or decrease leverage become important for financial survival."
This is a TradeStation Add-On Strategy and works on any intraday chart, time frame, and symbol, plus it works correctly alongside ANY existing automated strategy you already use. This strategy requires [IntraBarOrderGeneration=True] to work correctly, this means TradeStation will not allow multiple data streams to be placed on the same chart as this strategy.
This Visual Chart Based Trading System is made up of four different strategies to meet the needs of all types of trading styles:
(1) CT_TL_Trader_Manual = Allows manual drawn trendline to be used. Advantage Trendline stays where it was placed even if the chart is re-loaded
(2) CT_TL_Trader_Market = One white trendline allows scaling in and scaling out using color changes to place market orders
(3) CT_TL_Trader_Dual = Two different thin white entry lines - place lines for price and can do limit or stop order entries
(4) CT_TL_Trader = Like the Swiss army knife it does everything talked about on this page and more.
Click to watch a HD full screen trading video on Visual Chart Trading
Chart Trader a TradeStation Strategy makes Chart Trading Simple - Visual Chart Trading
How to trade directly from your trading charts. Chart Trader is a TradeStation Strategy that makes is simple to do Futures and/or Stock Trading directly from your trading charts.
TradeStation Advanced Position Sizing - Done Automatically
Visual Chart Trading with Advanced Position Sizing
Traders know that position sizing is important, but because it requires some math calculations and some extra effort many traders simply use a fixed trade quantity for all trades. Why would you trade the same 100 share trade quantity for both a $20 and a $150 stock? That is not smart position sizing. Why would you trade a fixed number of shares for both a 5 minute chart and a 60 minute chart? That is not intelligent risk management. This lazy man's approach to position sizing, which negatively impacts your risk management, doesn't make sense! In fact, it is sheer foolishness and a good way to waste money in your trading account. Read on to learn how to do position sizing and risk management correctly.
Why position sizing is so vital is summed up by Perry J. Kaufman in his book, New Trading Systems and Methods; "A trading system alone will not insure success without proper risk control beginning with individual trades... therefore the size of the position, the markets to trade, and when to increase or decrease leverage becomes important for financial survival." As Mr. Kaufman points out, risk management via proper position sizing done on a trade by trade basis is vital to your trading account survival. Since we know that a fixed trade quantity is the worst model possible, let's look at something that is viable.
The "fixed risk amount and volatility" position sizing model is good and fairly simple to implement. First, figure your fixed risk amount. In this article our example uses stocks but everything we cover applies to currencies and futures trading too. Let's use a trading account balance of $30,000 multiplied by 1% of the account balance which equals $300 for your "fixed risk amount" on each trade. The reason it is called a "fixed risk amount" is because you use $300 to your stop loss price on every trade you make. Second, to establish the volatility aspect, you will use either ATR (average true range) or Range (high minus low). Take some multiple of this range, like 2 or 3, and that becomes your stop loss price. The distance from your entry price to this range multiple stop loss price is your volatility buffer to keep you in the trade yet give the symbol enough wiggle room to not get stopped out of a good trade entry. Although it requires some effort this is a good position sizing method, but there's something even better. Read on.
For the most advanced position sizing model we recommend using a "fixed risk amount" divided by the "real trade risk amount." Basically we are replacing the generic "volatility" risk amount calculation used in the first model with the "real trade risk amount" to create the best money management position sizing method possible.
We already covered the "fixed risk amount" calculation in the first model, so we will use the same $300 "fixed risk amount" for this advanced model. But now instead of a generic volatility calculated risk amount we are going to calculate your "real trade risk amount." What do we mean by your "real trade risk amount?"
Let's look at an example using a long trade entry set-up to illustrate the "real trade risk amount." First we decide where both the entry price and the stop loss price should be. That distance from the entry price minus the stop loss price is the "real trade risk amount" per share.
The "fixed risk amount and volatility," which was our first model, calculated a volatility based stop loss risk amount; but for this advanced model, we recommend using real time fractal support and resistance to determine where to position the stop loss price. For this long trade example you'll look for the last down fractal, which is defined as where the price was going down for several bars then turned around and went back up for several bars. This down fractal represents the most recent price support (where price actually reversed directions), so let's use this price minus a few extra ticks as our trade stop loss price. In other words, if you are going to make this long proposed trade you want the price to remain above that last down fractal price which represents support. Otherwise if price drops below this support you don't want to be holding a long trade.
Now to calculate the "real trade risk amount," subtract the proposed entry price minus your last down fractal price minus a few extra ticks. To put this advanced model calculation all together take the $300 "fixed trade risk amount" and divide by your "real trade risk amount" per share to give the specific trade quantity for each specific trade. This advanced model calculates the maximum possible shares you can trade on each individual trade.
This advanced position sizing model is far superior to most other forms of position sizing. If you are daunted by the math or the extra time and effort this will take, you'll want to look for computerized tools that can automatically do this math for you and make your trade risk management very simple.
The best and most consistent traders have strong risk management skills. Be a wise trader and intelligent risk manager with your trading account. Make use of this advanced "fixed risk amount" divided by the "real trade risk amount" position sizing method to maximize your trading profits on each individual trade.
View the trading video TradeStation Advanced Position Sizing - Done Automatically to learn how to implement this advanced model into your trading.
Fully Automated Fractal Channel Exit Strategy
This exit strategy addresses three main problems Traders face in manually exiting trades.
(1) Traders can only manually manage 1, or maybe 2 trades at any one time, which greatly limits their profit potential.
(2) Traders commonly exit prematurely because the natural human tendency is to grab profits too quickly.
(3) Traders commonly hold on to losing trades too long, because the natural human tendency is to keep hoping their losing trade will recover.
Many Traders have overcome these three problems by using our fully automated fractal channel exit management strategy. Often Traders have found this strategy does a much better job of exiting properly and making more money on their trades then they can do themselves. This strategy will free a Traders to find and enter more trades while the computer manages the whole exiting process.
This Fractal Channel Exit Management Strategy is the perfect automated exit to use with all kinds of strategies. The picture shows the Fractal Channel Indicator and Fractal Channel Automated Exit Strategy in operation. The Fractal Channel Exit Strategy has one input to control the three setting, (1) exit at the fractal line, (2) exit at the yellow line or (3) exit at the brown line.