1. Genesis Revealed April 22, 2004 Welcome to Presented by
Jerry Lipscomb, CTO
dbwest, inc.

2. Why Futures Futures are real, equities are emotion
First Horizon and why I don’t trade equities anymore.

3. Why Genesis Because it was the first trading system I ever designed
Genesis equity curve
June 2002-Oct 2003
Mkt Profit #Trds $/Trd Days
S&P $ 44, $
Dow $ 55, $

4. Books Mark Douglas’s Linda Rasche’s Tom Bierovic
“Trading in the Zone”
Linda Rasche’s
Street Smarts
Tom Bierovic
Playing for Keeps in Stocks and Futures: Three Top Trading Strategies that Consistently Beat the Markets
Tobin Smith & Bryan Perry
Changewave.com
TradersPress.com or Amazon.com

5. Issue vs. Opportunity Trading is an “Issue Amplifier”
It has nothing to do with the system you use
It is about “YOU” and how you deal with your issues
“THERE WILL ALWAYS BE ANOTHER TRADE”

6. Other Stuff Base Hits Live to play another day
Quit or better yet don’t start if your head is not in it.
Distraction and Anger are the trading account “Killer”

7. Trading Plan Write it down Not just the trading rules
Goal, objectives, expenses
Track it

8. Indicators KISCIS (Keep it Simple Cause I’m Stupid) Elliott 101
No “Delayed indicators”
Elliott 101 1 2 3 4 5

9. Significant Candle Stick Patterns
Doji, Stars (morning and evening)

10. More Patterns
Hammers and Engulfing

11. Other major Patterns Pennant, Ascending / Descending Triangle
Double & Triple Bottom
Head and Shoulders
Rising Falling Wedge

12. More
Flag Pole
Calculating the MPO
Minimum Price Objective or Target

13. My Intraday Trading Rules
Intraday vs. Swing
ES, NQ, YM
Time Frames
How much will you risk?

14. The Rules Establish lines for the overnight high and low
Decide which direction is the trend
Channel tool across previous day or until a trend for the day is established
Use of 100 MA on a larger time frame
No new trades during Lunch Hour 12:00 to 1:30 EST

15. More General Rules Always use a Trailing Stop
Stop is 1-2 ticks above breakout, HH/LL or previous bar
Can be reversal depending on situation and aggressiveness
Know where your stop is BEFORE you place the trade
Do you know your Risk Before you place a trade?
Establish a target or MPO (minimum price objective)
Use a small time frame to help determine direction
Don’t get sucked into moving to the shorter time frame

16. Trend Rules vs. Counter Trend Rules
Trends are subjective like Elliott Waves
Trailing stop is not as tight in a trend trade
Move as the Lower High/ Higher low progress
Very tight in a counter trend trade
Move bar by bar, often with a reverse as part of the exit

17. Gap Rules Gap trading 80% of the time gaps are covered the same day
90% of gaps that fail to cover will cover within 3 days
100% gaps will cover

18. Gap Rules (continued)
All Gap trades are treated as counter trend trades
If the market moves toward the gap on the first bar trade the gap as a counter trend trade
If gap to new high, trade the gap
4/13 ES M4
If the gap is against the previous day’s ending trend
4/21 ES M4

19. Gap Rules (continued) If the gap is in the direction of the trend
Tread carefully until a reversal is signaled
3 push through the 20HH/LL is warranted
4/12 ES M4

20. The secret of the 20 Bar HH/LL
A 20 Bar HH/LL is the base indicator
Enter on Breakouts and reversals
The market will usually give you a second chance
Three hits with and ready the reversal or exit
Look at the wave you are in to decide

21. 20 Bar HH/LL Rules Prepare for reversal on wave 2, 3, 4, 5
On 3-5 min and Daily Charts 3 pushes with a small retrace
10-30 min 3 pushes of the HH/LL
Wave 2 and 4 are counter trend trades
Often will only push HH/LL once
Watch for significant patterns between the HH/LL Bars
Use 20 HH/LL Breakout as an entry (Primary or 2nd)

22. Other Tricks Andrews Pitch Forks Erogotic TSI
4/21 from open w/ first HH then LL
Erogotic TSI
MA- simple 4/21/2004 YM M4
20 and 50 are Primary
200 and 500 next most important
100 and 1000 are next
Bond US #F

23. Other Markets
Other Futures on a Swing trade Basis
Equities