Presentation on theme: "Congratulations ! The strategies you are going to learn is"— Presentation transcript:
1 Congratulations ! The strategies you are going to learn is extremely robust and with practice and diligence you should be able to achieve75-80% accuracy on your trades.
2 and ready to take the Profit ! Peace Of MindWhen we get a signal to enter the market it generally goes in our direction right away, thereby helping to keep our mindsCalm and Clearand ready to take the Profit !
3 This strategy is extremely *ACCURATE* It never has a loserthat is greater than the average of the winners. If you are day trading and you stick to the set up and exit rules, you will find that almost every day is profitable. Losing days are rare.
4 AUCTION EQUILIBRIUM真意本難移 浮沉千百因水流石不轉 異價演平衡What you should know
5 INTRODUCTIONFew traders seem to know how to use Equilibrium in their trading, yet Equilibrium trading is possibly the safest way to trade of any other method we have encountered. A mature trader will take Equilibrium trading into consideration as at least one skill of Making A Living.
6 INTRODUTIONYou may think that Equilibrium trading is only for futures traders. But thinking that way is incorrect. You‘ll see as we go along, that there are opportunities for Equilibrium even for stock traders. And of course, these days, stocks can be traded either through the equity markets or through the futures market. Equilibrium has gone much further than its original intent.
7 WHAT IS EQUILIBRIUMBoth Stocks and Futures markets are Auction markets. Auction markets have a price-based bid-ask format. Price and value are only loosely related. Price traces the activity, but value reveals the meaning of the activity. Value is the dominant variable in markets. Demand drives value. Change in value reveals demand, demand reveals the state of Market Balance. The changing state of Market Balance is what we call Auction Equilibrium.
8 WHY EQUILIBRIUM EXISTTime is the arbiter of value. Track a market throughout the day and you will note that some prices occur infrequently while prices somewhere in the day's range are traded again and again. The high volume region are the winners of the day's popularity contest. Typically, the distribution of price over time, i.e. volume, maps out a track of perceived value through various time of a trading period. Heaviest trading is near the central price, smoothing out to low volume near the high and low. Prices around the center are the ones traders see as 'fair', where they perceive value; where the overwhelming majority of trading occurs. The distribution of price and volume describes an Equilibrium.
9 Distribution- The basic building block for trading strategy Distribution of price and time and volume serves as the basic building block from which all market activity develops, let’s have a look at that…
10 Distribution- The basic building block for trading strategy At times a market has just jump from a price to another. Along the track price jumps, parites of bid and offer sides shake hands for deals done. Continuous jumps of prices cause the deals done from high to low and low to high etc. The time to complete a series of deals until a Value Perception is apparent varies from market conditions.
11 Distribution- The basic building block for trading strategy Each trader in the event responds in his own way, in his own time frame. This response also appears to all as a change in market behavior, collectively maybe up, maybe down or maybe no change. Each of us individually cannot know what is going to happen because those who are effecting the change by trading are just making up their minds. Until they make up their minds, we cannot know which way it will go. That activities in the time zone for the market to make up its mind is Distribution, most typically in the order of 15 to 30 minutes, Daily toWeekly etc., depends on the timeframeused by the observer.
12 Distribution- The basic building block for trading strategy Trading is a 'me against the rest of you' situation. In a zero sum game (no fees and commissions) the losers buy the winners beer. Mis- direction is a valid strategy. The old saying "if you want to sell a thousand contracts, first buy one hundred" illustrates a strategy. By making others believe the market is taking an upturn, it becomes easier to sell a large holding. If we understand the Value Situation, that the buying of the hundred was done without any apparent change in value, it is easier to avoid such traps.
13 Distribution- the distribution is going to change... Trading and investing depend upon change for successful results. If there were no change there would be no opportunity. The greatest opportunities as well as greatest moments of risk are at the moment of change. As traders and investors, our job is to identify the likelihood of change. Change is a process that occurs over time; once change is recognized, the change process has been occurring for some time.
14 Distribution- the distribution is going to change... Successful traders seek to increase their ability to control and manage risk, not returns. Traders control risk through trade location. Trade location includes, based on the trader’s timeframe,Where the market offers the greatest opportunity based on the market’s directional bias, the conviction of that directional bias depends on the Distribution within the defined key zones.When to execute a Profitable trade is according to the market’s communication of potential or probable continuation or change.
15 Distribution- is going to let us know... What’s Above and What’s Below the Current Market Activity.What the market is currently doing and what it’s trying to do.What the market achieved and what it failed to achieve.And, the ‘why’s’ behind the displayed information.
16 What Equilibrium DoEquilibrium takes much of the risk out of trading the futures markets…Equilibrium, when used properly, takes away much of the uncertainty for both stocks and futures traders.Helps to stabilize emotions for traderLet trader see the market like a MAP.
17 THE RATIONALE FOR EQUILIBRIUM The resulting MAP permits the trader to understand the migration of value and the market's condition within which the value change is taking place. This knowledge answers the "what is the market saying" question."should I take what I have and run, or should I hold in hope of additional appreciation?". Our next thought usually is: "I wish I knew what the market is telling me".
18 EQUILIBRIUM – ANOTHER WAY TO TRADE The speculator is willing to accept the risk of price fluctuation in return for the greater leverage that comes with that risk in the hopes of earning a greater profit. The true speculator makes his trading decisions based on two things....When is a trend starting and when is it ending?Equilibrium terms the question as when does value begin to change and when is the value change over? Value is tracked with the Map integrated by Moving Prices .
19 EQUILIBRIUM – ANOTHER WAY TO TRADE In the seminar we will first develop the theory to get a clear picture of general market structure and let that knowledge guide our market analysis. Then we will apply the theory to develop trading strategy, including risk. The process is illustrated by walking through real world examples. Within the practical framework.Equilibrium alone are not adequate to develop trading strategies. Additional auction market techniques can buttress and augment those strategic decisions.
20 EQUILIBRIUM – ANOTHER WAY TO TRADE The gambler makes his trading decisions on gut feelings, hopes, dreams of getting rich quick, tips from the broker, “inside information” from friends, and from the improper understanding and use of indicators, oscillators, moving averages, and mechanical trading systems. In general, he is looking for a way to shortcut having to truly learn what is going on. Unfortunately, most people who attempt to trade fall into this category.
21 EQUILIBRIUM – ANOTHER WAY TO TRADE An Equilibrium Trader are alerted to the potential start of a trend at the breakout. Further, the range of the balance region, coupled with the auction of the price - volume distribution, estimates trading risk. Day traders get a directional cue from the balance. They should look to be a short seller of downturns near the top and a buyer on upturns near the bottom. On breakout, the day trader knows to switch, and to now trade in the direction of the trend (e.g. seeking local bottoms in up trends).
22 EQUILIBRIUM – ANOTHER WAY TO TRADE For Example, an EquilbriumTrader may take the minimal risk of the market balance, and catch a trend.
23 EQUILIBRIUM – ANOTHER WAY TO TRADE He can just as easily trade the Range Market between narrow ups and downs.
24 EQUILIBRIUM – ANOTHER WAY TO TRADE Obviously, the risk taken for the trade is far less than the risk taken by mechanical trading. This is because Equilibrium let us know which strategy we should try to take, that is, Directional or Non-directional.
25 Benefit of Equilibrium-Dramatic Trending Equilibrium tend to prognosticate the coming of dramatic trend than any other trading tools.Once it prognosticate a trend, a trader can simply take One Sided trades all the way along the trend. This makes trading easy and simple and safe.
26 Benefit of Equilibrium- Eliminate the problem of stop running. You are positioned on the side Market Movers are taking control. They are not likely to run your stops. In that respect, Eq trading is a more pure form of trading. The lack of stop running is not a guarantee that you will win, but it does provide the trader a more level playing field.
27 Benefit of Equilibrium- Eliminate the problem associated with lack of liquidity. The surest way to encounter serious stop running and bizarre price movements is to attempt to trade in “thin”(illiquid)markets. Equilibrium shows youthe region where market tend to be “thin”, so that you do not suffer from a lack of liquidity, thereby creating many more trading opportunities than does trading in any other systems.
28 Benefit of Equilibrium- Eliminate the problem associated with Direction When you enter an outright futures or equity trade, the position of being long or short are two in one. You are either right or wrong about the direction of prices. However, with a Equilibrium the picture changes considerably. Let’s take a look at that situation.
29 Benefit of Equilibrium- Eliminate the problem associated with Direction When trading an outright, you are either right or wrong about the direction of prices.When trading Equilibrium, you can still win even if you were wrong about the direction of prices as long as you were not too wrong.YOU HAVE MORE CHANCES TO WIN WITH Equilibrium!
30 With a Equilibrium you can win under any of the following conditions. If you thought prices would rise, you could win even if any of the following happened:
36 Day Trading Equilibrium- Price goes above it, you decide to go Short and hit on it ! And price goes down right away...
37 Day Trading Equilibrium- You know where price is heading(the lower line) and you prepare to take your profit ...
38 Day Trading Equilibrium- Right on target and you are out...
39 Day Trading Equilibrium- Price goes up again and you look for another profitable trade ....again and again,day after day,week after week and year.....
40 Trading Equilibrium-What have been shown is only a little part of our Seminar, when you complete the seminar you grasp a safe and profitable way ....Day Trading Futures, Stocks, Warrants, Options, Forex.....Swing Trade by holding overnight position with larger timeframes...The Way to trade is all the same, that is, using Auction Equilibrium.
41 BE THERE AS A WINNER!Read a market's Auction Equilibrium and you can make reasoned and reasonable trading decisions. Auction Equilibrium is your guide. It is based on observable facts. Facts lead to conclusions; to consistent, intelligent trading strategies.