This document provides information about a presentation on disciplined trading given by Vancouver Disciplined Trading Hub (VDTH). The presentation introduces VDTH, discusses what disciplined trading means, and covers non-directional and directional trades. It also lists upcoming content for traders and holds a round table discussion. The document notes that VDTH is for educational purposes only and does not provide individualized recommendations or advice.

1. Who are We?
6:00 PM EVERY SUNDAY
Cedar Cottage Pub
1303 Kingsway, Vancouver, BC
www.meetup.com/vdthub

2. Who are We?
6:00 PM EVERY FRIDAY
SFU SURREY
www.meetup.com/vdthub

3. www.slideshare.net/vdth
Round Table
Educators
AUGUST 27, 2017

4. This is a presentation prepared for Education purposes only.
Neither Vancouver Disciplined Trading Hub (VDTH), Round Table Educators (RTE) or
Prosperis Passive Income Strategies (PPIS) nor any of its personnel are registered
broker-dealers or investment advisors.
We may mention that we consider certain securities or positions to be good candidates
for the types of strategies we are discussing or illustrating. This does not mean that we
are telling you to trade these exact strategies or securities.
Keep in mind that we are not providing you with any specific recommendations or
personalized advice about your own trading activities. The information we are providing
is not tailored to any particular individual. Any mention of a particular security is not a
recommendation to buy, sell, or hold that or any other security, or a suggestion that it is
suitable for any specific person. Trading ALWAYS involves a risk of loss, even if we are
discussing strategies that are intended to limit risk.
VDTH, RTE and PPIS are not subject to trading restrictions. We could have a position in a
security or initiate a position in a security we mention at any time.
Disclaimer

5. Agenda
• Who are we?
• What is Disciplined Trading?
• Our Inspiration
• Non-Directional Trades
• Directional Trades
• Content for the week
• Round Table
Practice Trades

6. Who are We?
Karim Adatia, CPA
Maki Yanagi, LLQP
<Financial Educator>
<Geek>
<Full-time Stock Options Trader>
<LLQP Financial Advisor>
<Professional Referrer>
<RT Educators>

7. What is Disciplined Trading?
Place a trade based on:
1) CONVICTION (based on what is PERCEIVED as happening in any given moment.)
2) A CATALYST (A fundamental or technical reason/opinion)
3) COMPLACENCY (Eg. Wait for a bull market to return, convert to an investing position)
But a Disciplined Trader will …
1) Predefine their risk before taking a trade
2) Cut their losses without hesitation (when catalyst fails)
3) Use a systematic money management plan to make
consistent profits.
What Most Traders Do…

8. Agenda
• Our Inspiration
• Content for the week

9. Our Inspiration
Mark
Douglas
Norman
Hallet

10. Content Disclaimer
Content Availability to VDTH Meetup Members
1) Reference To Source
2) By Donation
In the Content Portion of this Meetup we may play copyrighted material;
the use of which has not been specifically authorized by the copyright
owner. We are making such material available for the purposes of
criticism, comment and review which constitutes the "fair use" of any
such copyrighted material as provided for in Section 107 of the US
Copyright Law. Not withstanding the provisions of sections 106 and
106A, the fair use of a copyrighted work for purposes such as criticism,
comment or review is not infringement of copyright.

11. NON-
DIRECTIONAL
TRADES
Stocks and Equity Options
3-month Program
US$799
DIRECTIONAL
TRADES
FOR VIDEO ABOUT MMT PROGRAM: www.youtube.com/watch?v=hzhJBdGNwyo
$200 off for VDTH Meetup Members
FB PAGE: www.facebook.com/MasterMindTraders.official/
www.mastermindtraders.com/freevideos

12. Non-Directional Trade

13. Non-Directional Trade Characteristics
RANGE-BOUND [within 95% c.i.]
INDEX-LINKED [SPX]
25-DAY TIMEFRAME
GUARANTEED TIME DECAY
OPTION WRITING [selling]
AVERAGE RETURN ~ 8% / 3 weeks
What
does this
mean?

14. The Iron Condor Options Strategy
2340 2440 2540

15. SPX (S&P 500)
SHORT CALL:
= 2540
2440 25402340
95%: Under Normal Volatility Conditions
TRADING RANGE: 2340 – 2540
SHORT PUT:
= 2340
LONG PUT as
protection 5
points away
LONG CALL as
protection 5
points away
25452335
What
does this
mean?

16. Practice Trade
WEEK OF: JAN 2 - 6 2017
STEP 1: INFORMATION
-105.00 -100.00 (SPX VALUE) +100.00 +105.00
Long Put Short Put Short Call Long Call
STEP 2: TRADE Watch Video:
STEP 3: MANAGEMENT Watch Video:
CALL ALERT: SPX Value + 65=
PUT ALERT: SPX Value - 65=
YOUR PRACTICE TRADE

17. Determining Expectancy
Steps for calculation expectancy:
1. Calculate your win and loss ratio
2. Calculate your reward to risk ratio
3. Combine those two ratios into an expectancy ratio
SPX Trade Expectancy
1. Win and loss ratio:
34 trades. 34 wins. Win ratio = 100%, Loss ratio = 0%
2. Reward to risk ratio:
Winner size (Avg) = $350.00. Loser size (Avg) = N/A. Risk-Reward Ratio = ∞
3. Expectancy ratio:
(Reward to Risk ratio x Win ratio) – Loss ratio = (∞ x 100% ) - 0% = + ∞

18. Our Track Record
www.meetup.com/VDTHub/messages/boards/thread/50916513
www.meetup.com/VDTHub

19. How much does the SPX Change on a Daily Basis?
www.investing.com/indices/us-spx-500-historical-dataWorst day
this year!

20. How much does the SPX Change on a Daily Basis?
www.investing.com/indices/us-spx-500-historical-data

21. How much does the SPX Change on a Daily Basis?
www.investing.com/indices/us-spx-500-historical-data

22. How much does the SPX Change on a Daily Basis?
www.investing.com/indices/us-spx-500-historical-data

23. Apply with caution
Disciplined Traders …
1) Predefine their risk before taking a trade
2) Cut their losses without hesitation
3) Use a systematic money management plan
to make consistent profits.
This Strategy…
1) Predefines your risk
2) Has an adjustment plan
3) Can be systematic / automatic with trade alerts
Has positive expectancy (is therefore consistent)

24. Full Workshop
Wednesday Sep 20 – 6 PM
SFU Harbour Centre (Downtown)
Register at :
www.ppis.yapsody.com
Workshop (2.5 hours)
+ Workbook
+ 1-1 Coaching (1 hour)
Methodology
Adjustment Rules
Risk management
…

25. ON FACEBOOK
www.facebook.com/ppistrategies

26. This Week’s Content
Videos available by contact:
karim@ppis.ca

28. Backup Slides

29. The Guarantee with Options – Time will Decay
$$$
RETURN TO
CHARACTERISTICS OF
NON-DIRECTIONAL
TRADES
SELL
BUY
BACK

30. THE CBOE VOLATILITY INDEX – TICKER VIX
RETURN TO SPX
TRADING RANGE

31. WORST DAY FOR THE S&P 500 IN 2017
RETURN TO SPX MOVES
IN LAST 3 MONTHS

32. What are Equity Options?
An option is a contract that to buy or sell
a certain amount of stock.
allows you
For this program, we will trade options on a stock
index called the S&P 500 which has the symbol SPX.
RIGHT or OBLIGATION

33. Why do options exist?
Leverage.
An option contract represents 100 shares of the underlying
stock but costs a lot less!
Bullish Stock Trader
Apple Inc. (AAPL) costs $100.00/share
100 shares would cost = $10,000.
Apple Inc. share goes to $105.00/share
Stock Trader makes $500 or 5% profit.
Bullish Options Trader
Apple Inc. (AAPL) costs $100.00/share
1 contract costs $5.00, so trader pays $500.
Apple Inc. share goes to $105.00/share
The Option contract goes to $6.80.
Options Trader makes $180 or 36% profit.

34. SELLBUY
CALL PUT
THE RIGHT TO: THE RIGHT TO:
THE OBLIGATION TO: THE OBLIGATION TO:
Buy Stock Sell Stock
Sell Stock Buy Stock
CALL
BECAUSE WE ARE DOING ALL FOUR. WE ARE NON-DIRECTIONAL

35. What are Options?
An option is a contract that to buy or sell
a certain amount of stock.
allows you
For this program, we will trade options on a stock
index called the S&P 500 which has the symbol SPX.
RIGHT or OBLIGATION

36. Why do Options exist? Why should we trade them?
Leverage.
1 option contract controls 100 shares.
Bullish Stock Trader
Apple Inc. (AAPL) costs $100.00/share
100 shares would cost = $10,000.
Apple Inc. share goes to $105.00/share
Stock Trader makes $500 or 5% profit.
Bullish Options Trader
Apple Inc. (AAPL) costs $100.00/share
1 contract costs $5.00, so trader pays $500.
Apple Inc. share goes to $105.00/share
The Option contract goes to $6.80.
Options Trader makes $180 or 36% profit.