General Program Concepts

Mirror of our Equity, Commodity and Forex Programs
Risk Management
Professional Coaching

Grey a...
Todd Hanson PhD:
Recognized Industry Expert
Advantages of trading
                          e-Mini futures:

• So-called e mini, or “electronic” mini futures contract...
Advantages of the Livetradesignals
                     Futures Program

• Trade alongside veteran traders in our chat roo...
How is an S&P 500
        e-mini contract valued?
• E-Mini S&P 500 futures contracts are legally binding
  agreements to b...
How is a Nasdaq 100
        e-Mini contract valued?
• E-Mini Nasdaq 100 futures contracts are legally binding
  agreements...
How is a DOW
         e-Mini contract valued?
• E-Mini DOW futures contracts are legally binding
  agreements to buy or se...
Understanding the
               Symbols
• E-mini futures contracts have varying dates of expiration,
  and several are ac...
Understanding the
               Symbols
• Therefore, the symbol for the March, 2010 contract in the
  S&P 500 e-mini woul...
When to Trade
•Understanding when to trade is a
critical key for successful Futures trading

•Forcing a trade in a stale o...
The Sweet Spot
• Electronic trading on CME Globex is available virtually 24
  hours a day from Sunday evening through late...
Can you give me a trade
setup trade I can walk away
 with from this free event?
Levels and Location
 in Futures Trading
Fulcrums
What is a Fulcrum?
– The support about which a lever turns


To fine tune our trading plan—in volatile, liquid
in...
Fulcrum Examples
E-Mini S&P 500
   1,050.00
   1,040.00
   1,030.00
   1,020.00
   1,010.00
   1,000.00
The Hanson Trading Method
3 Key Time Frames
    15 Minute – Directional Bias
          14 & 48 SMA
          Simple Moving...
The Three Trading
  Time Frames
Three Trading Time Frames
1)   15-minute Chart – We use the 15-minute chart to determine the longer term
     trend direct...
The Two Trading
Moving Averages
Two Major Moving Averages

1) 14-period Moving Average (14ma) – This simple moving average
   is superior at capturing and...
Chart by Itself
48 - SMA
14 - SMA
Coming Together
The Difference Between
       Indicators and Oscillators
INDICATORS         OSCILLATORS

Not Range bound    Range bound
Ov...
How to use the Stochastic

• Long = %K <= 2
• Short = %K >= 7

• If Signal >= 5 Minutes, then Signal Decay
• If Signal Dec...
1 Min Stochastic Example
The Hanson Trading Method
3 Key Time Frames
    15 Minute – Directional Bias
          14 & 48 SMA
          Simple Moving...
How will the Program
                    Teach us to Trade?

The best way to learn to trade is by trading. Mirroring someo...
A Note on Fundamentals
• One of the greatest benefits of trading E-mini contracts is the
  ability we have to avoid fundam...
The Grey Box
• The Grey Box at Livetradesignals has a proven track record of
  profitability, all by itself, when running ...
The Virtual Trade Room
• The Virtual Trade Room at Livetradesignals is a place you can
  go to trade alongside other trade...
Contact Us

 1-877-803-6739
info@livetradesignals.com
Automated Trading Programs by Todd Hanson PhD
Automated Trading Programs by Todd Hanson PhD
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Automated Trading Programs by Todd Hanson PhD

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Automated trading programs and concepts by recognized industry expert,Todd Hanson PhD

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Automated Trading Programs by Todd Hanson PhD

  1. 1. General Program Concepts Mirror of our Equity, Commodity and Forex Programs Risk Management Professional Coaching Grey and Black Box Systems Ph.D. in Applied Mathematics Professional Traders Firm and Fund Owners
  2. 2. Todd Hanson PhD: Recognized Industry Expert
  3. 3. Advantages of trading e-Mini futures: • So-called e mini, or “electronic” mini futures contracts closely track the price of their big brothers; full-sized futures contracts traded on the floor by institutional investors. • Far fewer instruments to track than in equities. • Take advantage of broad market moves without trying to figure out how to do so in the right basket of stocks. • Far greater leverage is available than in trading equities. • Less reliance on fundamentals.
  4. 4. Advantages of the Livetradesignals Futures Program • Trade alongside veteran traders in our chat room • Continuing education seminars and materials at the trader’s own pace • Our proprietary Grey Box signals will help to limit bad trading habits • Practice new trades on the included demo platform • Ability to scale size gradually to ensure account integrity • Tight risk management
  5. 5. How is an S&P 500 e-mini contract valued? • E-Mini S&P 500 futures contracts are legally binding agreements to buy or sell the cash value of the S&P 500 Index at a specific future date. • The contracts are valued by multiplying $50 by the futures price. For example, if the E-Mini S&P 500 futures contract is trading at 920.00, the value of the contract is $46,000 ($50 x 920.00). • The minimum price movement of this futures contract is called a "tick." The tick value for the e-mini S&P is 0.25 index points, or $12.50 per contract. • Therefore an index point equals $50 per contract.
  6. 6. How is a Nasdaq 100 e-Mini contract valued? • E-Mini Nasdaq 100 futures contracts are legally binding agreements to buy or sell the cash value of the Nasdaq 100 Index at a specific future date. • The contracts are valued by multiplying $20 by the futures price. For example, if the E-Mini Nasdaq 100 futures contract is trading at 2100.00, the value of the contract is $42,000 ($20 x 2100.00). • The minimum price movement of this futures contract, or tick, is 0.50 index points or, $10 per contract. • Therefore an index point equals $20 per contract.
  7. 7. How is a DOW e-Mini contract valued? • E-Mini DOW futures contracts are legally binding agreements to buy or sell the cash value of the DOW Index at a specific future date. • These particular contracts are available in three sizes, and are valued by multiplying $5, $10, or $25, respectively, by the futures price. For example, if the E-Mini DOW futures contract is trading at 12,000, the value of the $5 contract is $60,000 ($5 x 12,000). • The minimum tick size of this futures contract is one point, or $5 per point on a $5 contract.
  8. 8. Understanding the Symbols • E-mini futures contracts have varying dates of expiration, and several are active at any one time, so understanding the symbol of what you are trading is important. • The typical e mini contract symbol has five characters SSMYY “SS” = symbol of the underlying e-mini index S&P 500: ES NASDAQ 100: NQ Dow Jones: YM “M” = month of expiration H= March M= June U= September Z= December “YY” = year of expiration
  9. 9. Understanding the Symbols • Therefore, the symbol for the March, 2010 contract in the S&P 500 e-mini would be: ESH10 • Once again: SSMYY “SS” = symbol of the underlying e-mini index S&P 500: ES NASDAQ 100: NQ Dow Jones: YM “M” = month of expiration H= March M= June U= September Z= December “YY” = year of expiration
  10. 10. When to Trade •Understanding when to trade is a critical key for successful Futures trading •Forcing a trade in a stale or dead market can turn out to be a costly and time consuming venture
  11. 11. The Sweet Spot • Electronic trading on CME Globex is available virtually 24 hours a day from Sunday evening through late Friday afternoon, with a break that roughly varies from 30 and 60 minutes between close and reopening each day, depending on the product. Trading occurs during five daily sessions. • However, Futures trading of any of the e-Mini contracts benefits from the added volume and volatility available during regular CME market hours, especially the opening hours. • Therefore, we recommend to concentrate on trading primarily from about 9:30 AM until 12:00 PM ET. Protective stops can be placed to protect the occasional overnight position.
  12. 12. Can you give me a trade setup trade I can walk away with from this free event?
  13. 13. Levels and Location in Futures Trading
  14. 14. Fulcrums What is a Fulcrum? – The support about which a lever turns To fine tune our trading plan—in volatile, liquid instruments we add the Fulcrum grid: – 00 the big figure fulcrum, – 10 – 20 – 30 – … What a Fulcrum is NOT: – It is not calculated
  15. 15. Fulcrum Examples E-Mini S&P 500 1,050.00 1,040.00 1,030.00 1,020.00 1,010.00 1,000.00
  16. 16. The Hanson Trading Method 3 Key Time Frames 15 Minute – Directional Bias 14 & 48 SMA Simple Moving Averages 5 Minute – Trade Setups Support or Resistance at or At or near Fulcrums: 00, 10, 20, 30… 1 Minute – Effective Entry Long (Stochastic) <= 2 or 20 Short (Stochastic) >= 7 or 70 Slow Stochastic Setting (3,3,3)
  17. 17. The Three Trading Time Frames
  18. 18. Three Trading Time Frames 1) 15-minute Chart – We use the 15-minute chart to determine the longer term trend direction and to help us to establish our directional bias. As we look to the 15-minute chart we are concerned with where the Futures Contract is trading in relation to the 14 and 48 period moving averages and the establishment of Higher Highs and Lower Lows. This gives us our overview of the battlefield. We do not generate Entry Signals off of the 15-minute chart. 2) 5-minute Chart – This is our primary timeframe and the one that we use for the establishment of our Support and Resistance Levels. This is our battlefield where we determine if we have a Entry Signal for a trade or not. Once again like the 15-minute chart we are concerned with where the Futures Contract is trading in relation to the 14 and 48 period moving averages and Higher Highs and Lower Lows. We are looking for a breakout of Support or Resistance at or near a Fulcrum on the 5-minute chart in order to have an Entry Signal. 3) 1-minute Chart – Consider this timeframe the trenches on the battlefield. Once an Entry Signal is established on the 5-minute chart we then drill down into the 1-minute chart in order to tailor our Entry more effectively. On the 1- minute chart we are looking at timing the reading on the Stochastic Oscillator to improve the Entry Price on the order. Note: The 14-period, the 48-period moving average are used on all three, the 15-, 5-and 1-minute charts.
  19. 19. The Two Trading Moving Averages
  20. 20. Two Major Moving Averages 1) 14-period Moving Average (14ma) – This simple moving average is superior at capturing and supporting the market’s most powerful moves. If a Futures Contract is moving with a fury (up or down), it is this moving average that the contract will often react off of. We also use this moving average as the basis for one of our most effective trailing stop methods, which we will discuss shortly. Traders have the 14ma on every chart they look at. 2) 48-period Moving Average (48ma) – This simple moving average is the number one staple for Hanson Method traders. No chart is ever looked at without the aid of the 48ma. In fact, we don’t regard a chart as being valid unless it is accompanied by the 48ma. It reveals a contract’s directional bias, acts like a magnet and tells the trader where significant areas of support and resistance are.
  21. 21. Chart by Itself
  22. 22. 48 - SMA
  23. 23. 14 - SMA
  24. 24. Coming Together
  25. 25. The Difference Between Indicators and Oscillators INDICATORS OSCILLATORS Not Range bound Range bound Overlays Price Separate Window Price/Direction Overbought/Oversold
  26. 26. How to use the Stochastic • Long = %K <= 2 • Short = %K >= 7 • If Signal >= 5 Minutes, then Signal Decay • If Signal Decay, then No Trade – Note: prices tend to fall with more momentum than they rise, thus the apparent imbalance in the values used.
  27. 27. 1 Min Stochastic Example
  28. 28. The Hanson Trading Method 3 Key Time Frames 15 Minute – Directional Bias 14 & 48 SMA Simple Moving Averages 5 Minute – Trade Setups Support or Resistance at or At or near Fulcrums: 00, 10, 20, 30… 1 Minute – Effective Entry Long (Stochastic) <= 2 or 20 Short (Stochastic) >= 7 or 70 Slow Stochastic Setting (3,3,3 close/close)
  29. 29. How will the Program Teach us to Trade? The best way to learn to trade is by trading. Mirroring someone successful is the easiest way to learn any new skill. We give you access to professional traders and grey box trading systems. On our trading platform, you can establish ongoing relationships with other traders that want to share ideas and experiences. With a flexible environment we learn by trading Futures and because we wanted to be able to trade profitably there are many rules to learn such as: 1. Exiting a loss immediately 2. Don't exit winners too quickly 3. Hold tight stops and many more
  30. 30. A Note on Fundamentals • One of the greatest benefits of trading E-mini contracts is the ability we have to avoid fundamental analysis, and simply let the news price itself into the market. • There are ways to “trade the news,” the simplest of them being “SOH.” That is to say, get flat (“Sit On our Hands”), let the news pass by, then resume trading. • However, complete ignorance of fundamental news events will be costly to the trader. That we do not attempt to analyze them does not mean that we can ignore when Scheduled News (i.e. Fed Rates) or geopolitical events occur. • Missing or ignoring just one Fundamental event while in a trade can cost hundreds or thousands of dollars. • In the “bad old days” of trading, a retail trader outside of a physical Prop room was literally on his or her own, and always likely to miss something sometime. • In our Virtual Trade Room, there are literally dozens of traders looking at multiple news feeds and economic calendars around the world, and sharing what they see in the room. We don’t miss much, and this alone can pay for our services simply in trading losses avoided.
  31. 31. The Grey Box • The Grey Box at Livetradesignals has a proven track record of profitability, all by itself, when running autonomously. • The Grey Box differs from a Black Box in that the Grey Box includes the human factor: trader intervention is required to take trades. • The Grey box is designed so that expert trader intervention can actually increase profitability. • Therefore, at Livetradesignals we do not simply drop the Grey Box in your lap and set you loose. • Livetradesignals provides extensive training resources for maximizing the profitability of our Grey Box signals. • Furthermore, our traders see our instructors evaluate Grey Box signals on a daily basis in the Virtual Trade Room, and therefore have the regular opportunity to see the techniques practiced in real time.
  32. 32. The Virtual Trade Room • The Virtual Trade Room at Livetradesignals is a place you can go to trade alongside other traders, and, most importantly, our professional trading staff. • Most other chat rooms of this kind are moderated by low-paid, non-trading staff members who provide little more than a “help desk” function. • Our trade room is visited regularly throughout the day by our own professional traders who provide setups, advice, and real guidance for your trades. This is not just a place to hang out, it is an opportunity to advance your own trading education on a daily basis. • Additionally, our Virtual Trade Room will include both regularly scheduled and off-the-cuff breakout lectures on a variety of trading topics, including trader psychology, money management, and specialty trade setups.
  33. 33. Contact Us 1-877-803-6739 info@livetradesignals.com
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