Trading with Precision - Trendline Trader 2.1

Okay, so looking at the markets, right, and just to give you a sort of bit of background on Primetime Pro, what I found is, in normal trending markets, this is a, you know, trying to get into the trend is the main thing we're trying to do. And instead of spending endless hours in front of the screens, we're always looking to, you know, take advantage of extra tools, and this is where Primetime Pro, I mean, Trendline Trader came into play. Now, just for your own purposes, in case you haven't seen it, the Analyzing the Markets and Trading the Technicals is where you'll find the details for Trendline Trader. Obviously, it's to do with trendlines, so if you scroll down here, and you came to Understanding, Identifying, Executing, you can get the general gist on what the original Trendline Trader does, or did. So, what we're looking to do, let me just get the chart up here, and actually, let's use DollarCat, it's got a great trendline, which is behaving on both parts, right? Which would serve as what we do on Trendline Trader. So, ideally, I mean, this trendline here, and don't underestimate how long a trendline can sort of stay in play for, right? And the longer it goes, the more our human subjective nature thinks, well, it's going to break, it's going to break, it's going to break, but if there's no change in the general reasons why it's going up, well, then it's not going to. So, let me blow this up a bit, okay. So, what we're obviously looking to do is get into the trendline, you know, if the market's going up, then Trendline Trader will be getting in on a line according to, you know, parallel with that trendline, you know, however many points away we set it, generally around 12 or 13 points. Okay, so, one of the issues, though, with Trendline Trader that we were having, most of the trades we do are executed, you know, when we're not in front of the screens. You know, you're relying on the market to sort of remain the same, and what was happening is, you know, in this situation here, you can see that bull bear pivot line sort of going up, going up, and going up, and then all of a sudden, it sort of starts to flatline, right? That tells you either the trend is going to break, or it's just going to drift sideways, and at that moment, with Trendline Trader, we might be getting into trades here, and then it starts to sort of drift sideways, and you end up getting sort of stopped out on a trade that actually has been really good for, say, a week or two, but, you know, there's no sort of extra gate there. The only thing is, what we're looking to do is get into the trade 12 or 13 points from the trendline, get long, and then hold on, hoping, whilst we're asleep or at work, that the trading conditions maintain the same focus, right? So, if there's no change in the trading conditions, then it wouldn't change, but you can see, even at that point, I mean, once again, it's a little, it's overdone. It's right at the level. You'd like to be able to cancel that if you knew a few extra things, and this is where Trendline Trader 2.1 comes into play. All right, now, that probably wasn't the most amazing sort of example there, but the, now, let me just give you a run-through of how Trendline Trader 2.1 works, right? This is, there's- Can I come in there, mate? Sorry? Kevin's trying to get in. Any chance you can send him a link to get in? Yes, I can. Okay, cheers, mate. That's all right. Good one, Stephen. Okay, he'll be with us in two secs. Have a bit of coffee. Okay, I've got this dollar CAD trendline here. Let me just draw that up, put it back to here, now we've got a new low. Okay, there he goes. G'day, Kevin, you with us? I'm with you, mate. All right, okay, so let's just have a look at this, right? So we've got, just starting off there, Kevin, just about to get into Trendline Trader 2.1. Now, what I'll do is when, if you are using prime-time mechanics, which I'm always using it, now, to draw trendlines and these sorts of things, first off, what I would like to do is get rid of the auto trendlines, so I know which ones I'm actually looking at, which ones I've drawn. There's drawn lines, moving average pivots on the chart. If I just hit false, right, it takes those off and will only keep the trendlines that you've drawn. Now, so just coming back to that, just as a quick brief thing, right? So say we're looking to get long dollar CAD here, and I know this is just the low today, but the trendline was set, and then all we're looking to do is get into the trend and close to the trendline, and then look for the ride to the top side. Now, this trendline here, as I was just explaining, was over here, next to that. The one thing with Trendline Trader, if we're looking to get into the trades here, you're getting in at the same sort of distance away. You've got your take profit, you're sort of getting long, taking profit, and looking to do that continuously. Now, the problem with Trendline Trader 2.1 is it's sort of static once you get it built. Now, that doesn't mean, the entry level moves up as the trend is going up, because you wanna get in close to the trendline as possible. But then, you know, if the moving averages and everything else sort of starts to sort of come into play then they can actually, you can end up getting taken out because the trading conditions have either become stale, no longer are in play, or the pressure on the trendline has finally sort of broken. So it's very one dimensional. And it was always a thing that bugged me. So the one thing that we did when we built Primetime Pro, and then looking at the sort of how we could actually put some more protection in for the trader. Now, there's three gates, right? For Trendline Trader 2.1. Now, let me just get this up. So, first gate, right? The, oh, I've lost my moving average there. I'll just put one up. I've actually got it, I wanted to show you the new moving average there as well. Doesn't wanna do it. Okay, anyway, I just wanna get through this part because there's three gates here, right? First is direction, okay? Making sure that the direction is still lined up. As I was showing you on that other chart, let me just insert here. Okay, let's get a 70 on that yellow. I'll show you in a brief moment the new sort of bull bear pivot line, which actually does tell you exactly if it's going up, going down, or sideways. So, direction comes from the bull bear pivot line, right? If it is going up, right, that's what we want. The trend is up, but if it turns, like in this instance here, right at that point where it starts to go sideways, that is no longer up, right? So, if we were looking to buy on the trendline as it gets close to that, not the actual bars themselves, as soon as that trendline goes horizontal, right, it would cancel the order. Now, this is gate one, right? Gate one is direction. Now, gate two, okay, if I just come back to, okay, now we've got trendline trader in play. I'm just gonna set it up. So, we're using the upper line. So, I was looking for a range trade, and I got my range arm settings, and where the breaks are. I'll explain those in a second. Okay, you gotta name the trendline as you do with the normal trendline trader. Okay, so now, so gate one, right, these three gates, you can turn off the directional gate if you like. Okay, let me just show you that. Sorry, I actually was just racing around there. Just lost my spot. Can't seem to see my own stuff here. I'm just looking for the gate. So, basically, we can turn the, there's one thing out of this you can turn off, which is the direction gate, right, which allows you to, gives you a bit more flexibility to get into the trade. I'll come back and find that in a minute. The, what I wanna, so, let me just do this again. I feel like I'm a little bit tipsy, but the, okay, direction gate, so if the bull bear pivot line goes sideways, all goes down, and we're looking to buy, okay, get into the trend to go higher, it will not execute, right, that's the first one. Now, the second gate, this is a range trade, right, so what we're looking for is, it's already broken down through the trendline, we're looking for it to come back like it has done here, this is actually a pretty good example, and then go back down, right? Once again, assuming we're not in front of the screens. So, in this situation, the second gate is the entry level. Now, that's the trendline to our parameters, our distance from the trendline where we want the currency to be. Now, this is, this whole area here, from the red trendline to the green one, is our entry zone, okay? Now, so we've got the direction gate. Now, with that, because it's a range trade to the top, we need the bull bear pivot line, which is going horizontal, to go down, otherwise it will not execute, right? This is an exact precision instrument that you're gonna be able to load up on, because the parameters to get it into the right spot have to be absolutely correct. Now, so you've got one, which is, yep. Okay, so you've got, one there is the direction gate. Number two is the entry gate zone, or the execution zone. Now, number three, where you line this up, and this is where you'll probably understand why we have the option to sort of remove the entry gate, give you a bit more flexibility, we want the instrument, whilst it's in this zone here, right, it has to be in that zone, to be end over, overbought, right, and going back down. So basically, we're looking for the absolute ideal setups here. Now, so you've got one, so in this example here, right, you've got, so let me just change that pen. Okay, so we're going up, we're a buy up. As soon as that turns sideways, it will not execute, will not buy, okay? Then, if we're looking to get into the trade on the second front, it has to also be in the zone. So, not only did it, let me just move this across, because I've got the, okay, so it's going up, everything's fine, you're looking to get into the trade, then it goes sideways, at the same time, you know, this green line would be at the top, this would be our execution zone to go long, it's not in the execution zone, it's not in, it's not actually going up anymore, so the order is just not executed, right? And then it's obviously not in a buy situation there as well, so none of the gates there line up for the first trade. And that's exactly what you want, right? If you've got a trend trade, let me just come back to this one here, if you've got a, you're looking to get into this trend, and then all of a sudden, all the different factors don't line up, you don't want to get long, right? So it's doing its job there. Now, when it gets to a situation where it's now coming back to test, if you have reset up trendline trade at 2.1, for a range trade, because it's coming back to the trendline, then we're looking to get in at the distance we choose to the trendline, right? We want it to be here, at the same time and we want it overbought at the same time, right? Then it fits the picture. We also want the direction to start going down. Then every aspect of that trade is working for us. Now, it may look like, well, that's pretty tough to actually get all those components lined up to actually work. The idea is, yeah, it is a little bit, but what you'll find is, right, we're in a situation where I'm looking at an instrument that was trending, probably the best out of all of them. Now, in normal trending markets, you're gonna have crosses, you're gonna have all the majors all trending in one direction or another, right? So you'll be quite surprised how frequent it will happen according to sort of the general parameters. So let me just come in here, come into properties. Now, you do have a range of settings. So the range here to get into that trade for the execution zone, right, this part here, we can adjust that, right? And this is where, you know, depending on how good the trend line is, I might actually sort of increase that to say 20, right? And then the other side of that, see that reload, is, okay, so say it's coming back up here and the direction is pointing down, we get that last little squeeze back to the top side, if it goes through the purple spot, the order's cancelled, right, we have a level where, you know what, that setup no longer works for us. So in this situation, if the currency had actually broken right up, and this is where I was talking about with the direction gate, right, you might be thinking, this is broken down, it's spiking back up higher, I don't mind if the direction gate is sideways, I'll still look to get into the trade, but you've still got a couple of mechanisms here to protect you. One is you wanna get into the trade here, into this zone, the other is you want it overbought, going down, and then, you know what, there's a time where you gotta give up on the trade, and that is, not only it's retraced, but it's not only retraced, it's going back into the trend, so if it goes back through here, right, and it's outside the execution zone, so it gets to above this level, right, at that point, you probably don't wanna be getting into the trade, because it's like, okay, it's actually going too far, and if it goes through that purple line, well, then it cancels again, all right? So the main idea is to find instruments, right, that have a really good technical setup, and then apply trendline trade at 2.1, because when you set it up, as I was explaining all the different sort of parameters there, you're gonna be exceptionally confident that this is, here it is up here, actually, there's a direction gate there, so if I turn that off, right, the bull bear pivot line, as far as direction go, will not come into play, it's just the execution zone, so you can actually, by setting this to false, right, then you can just actually work with, you know, your execution zone, you've got your cancellations line, and that's it, right, and that's what you can do, as I said, you can sort of finesse the range entry armies, 20 points. Now, if I go down to, where's my, cancel settings here, right, break, cancel, if number of points above the market, so for a range trade, if it goes 10 points above the trendline, I don't wanna be getting into the trade, but we can change that to 20 points, right, depending on the parameters that you've got. Now, ideally, and you can see there, right, so this gives you a lot more scope to get into the trade, right, so if we have direction off, the direction gate off, then what we will have is, you've got your execution zone, and you're looking for stochastics to line up, right, you can sort of already see, without, it doesn't take too much explanation, to understand that's an easier setup to get into. So. Can I just pop a question here, Brad? Sure. Your execution zone, you said, is it gotta do it on the one candle coming right up through, how does it, what's the gate that, you know, where it pushes through the red one, and goes up and pushes past the purple one? Yep. Is it gotta do it on one candle? Because obviously, it's already in the trade in that zone, if you're saying that, if it stops in there. Well. How does it actually, does it actually have to come up and come down through to execute? No, it just needs to be in the zone, right? So that's why we've got a level, so if it would be, so if this was still going up, right, then this would not be coming down. So that would be the situation. So it needs to be, so what it does is, Kevin, it's a good question, is the price just needs to be within these parameters here for it to execute. As in a candle's stopping, is that finish of the candle, you mean? Well, no, no, not the, well, you can have, there is actually two settings for that, right? And up here, I've got closed or formed or current, right? So that's one extra sort of level of protection. Usually, if it's current, wherever it is, it looks at where it is in relation to the execution zone. That's all it looks for, and then it will look for where stochastics. So it needs to be sitting in this zone and then breaking down to execute. Right. So two things together, that's what makes it go. Stochastics has got to be pointing down. Is it actually the line turned over and pointed down? Is that the one you're talking about? Well, it needs to be sitting in the execution zone, and then the last gate is, stochastics has to break down through 80 if it's going down, or breaking up through 20 if it's going up. So a real good example is yesterday, I didn't post them up, but I ended up taking them down because it did go the wrong way for me, but it was a good example where this could work on even on a, on stuff that was happening yesterday. I was using Fib and Archie to tell me what was going on, but the Fib could actually be an overlay to this as well. If it goes past the Fib. Well, that's right. US majors yesterday, they were a good example. They were starting to trend up. They didn't get past the major trend line, but there was a typical example where it did turn, just like this one here, did turn, broke through that secondary trend line, and then on the way down it went. Yeah, that's right. Well, that's what we call those sort of probability enhancers, right? And people have got various ones they use. Fibbos is quite frequent. Some have, you know, extra indicators and these sorts of things. And I'm not against, you know, probability enhancers. If they make it like it more convincing for yourself and it works, then that's fine. Now, where this is gonna work particularly really well is on the daily charts, right? And at the moment, like we know what's happening in the market, right? This whole situation with the geopolitical framework, the bonds, the whole US dollar is getting in the way of things, right? And that's created a very disruptive environment. I mean, these things here, at least these are going down. We should get a risk-off profile today. But so what I'm trying to say is in good trending markets where we have really good trend lines, like that sort of dollar CAD, when you have a situation where dollar CAD is like this, you would usually have all the majors lining up like that. Now, at the moment, they aren't as gorgeous as they could be, but, you know, to sort of kick things off with this, you would be, this is where you do your sort of work on your technical analysis, ready to put trendline trader into play. Even if you don't know what's going on here, it could be a break situation here on the Kiwi, right? So even like the trend is down, right? You can have primetime pro going on one chart, trendline trader lined up on the other. And because of the precision of it, right? There's three gates generally that you can use. So you're gonna be very confident because if it lines up direction, lines up their execution zone with momentum, that's the perfect three-course meal that you wanna have every day of the week. So you could actually be having- Are you saying on the daily only? Well, no, no, no, I'm just saying on the dailies, it particularly works well, but on the hours, I have, we always just use this on the hours because it's not every day that the dailies line up. But if you do have a trending market, right? On the dailies, then you can set it up and sort of let it go. It's like the holiday trade almost. Well, it's a double confirmation, isn't it? When you've got everything, the dailies in line. That's right. On the top coming down, I mean, how good can you get? Yeah, 100%, and that's exactly right. So 2.1 is that spot on there, Kev. So if you get all these things lined up, right? So all red means we're a seller, all blue, we're a buyer. We're not sort of getting that just at the moment. More so on the crosses at the moment than anything else, then you are looking to put prime, well, trendline trader, right? If you wanna diversify, get trendline trader up, maybe with the bigger trade size because it is going to enable you, or it's only gonna execute at the perfect time, right? So just to recap, you've got the gate, number one, right? Which is direction. It has to fit in with that. The second gate is the execution zone itself. And there's a couple of things you need to do. So if the trendline is above and I'm looking to get into a range trade, I go range. I've already labelled the chart. So gate number two is getting right into the range zone. And then three is making sure momentum is working with those two things, right? As I said, at the moment, I'm forcing the setup to work with what we've got because we haven't got sort of, it's already broken down, but that's how it sort of works, right? I'll be doing a few more examples of this once we start to get normal markets and I set these up myself. I'll do a short video of me setting it up, why I'm setting it up and just putting it into place so you get a better understanding of it in real time as it's happening before the trade actually happens. Would you allow me to do something on the screen just for a minute or what? Because I think we've got what you just explained this morning, if you allow me to do it, I can just share something for a minute and I'll ask you whether this thing would actually activate on this trade. It's not, it's a reversal of what you're talking about, but anyway. Okay, I just made you a co-host there, Kev. You can go ahead there. Where is your pop-up gone to? Completely gone, missing. Do not see that at all. If I just share, will it allow me to pick you up from there? Because it just won't, you're not, your voice is gone. Sorry, yeah, there we go. If you share the screen yet, you should be fine. All these represent what was going on yesterday but in a different way. So give me a moment and I'll see if I can bring it across. You seeing it now? You seeing the chart? Yeah, I can see it, Kev, yep. See here, this was the typical example yesterday of all the majors. Yeah. And I was only following the majors yesterday, giving up following all the other stuff because you just get more confused by the minute. So this is what you just finished telling us. So obviously you're wanting this one, the big one. But here we had a typical example where I was waiting for the U.S. news to turn around and come down, but it didn't, it just kept going up. That's what buggered it all up. Yep. Which is good because at least I know now what to look for that tells me that the Fibonacci is not gonna work, it's gonna cut through that Fibonacci because the U.S. dollar's going in the wrong direction. But here it was here, come up through, one touch, two touch. Was doing it on the four hourly with some of them, which is even better, but there you go. There's your execution zone here. Now, all I'm trying to say is that come on down through, cut through that trend line right there. And this is where you'd have second confirmation to actually, and there you are. That entry there was 80 odd pips. If you could figure out this thing, and I'll show you the other ones because they're all, I might've undone some of them. So bear with me. They all did the same thing. And I think you said it yesterday too, they almost follow each other along. There it is again, see? Cut through. Yeah, yeah, yeah. That's right. This is the. And here's where I've just been, just, you see my trading plan and it says if it bounces off that trend line, which it did, it bounced it off and come on down. No, I didn't take the trade because I'm still trying to perfect the bounce off the trend line business. I was waiting for it to come on through this trend line and keep going here. This is probably next week. Who knows? Yeah, it just goes, if you make this screen zoom out a little bit so I can see where that trend line starts. Okay. Yeah, coming up to that third level there. Okay, I can see what you've got there. So you see here, this is the big trend line. It's got bang, bang, bang. Then we have a steeper trend line, which is telling you further pressure down. And then it gets into what we call a whole lot of congestion is a word for it or whatever it is. You used it from time to time where it says there's pressure here, but this is where I was looking for it to break out and come up through and get a trade between here and here. But it didn't because what you've been teaching us, it tells us straight away that we didn't have the pressure to push it up this way. It did a turnaround and come back down. Now this thing, your automatic trader would have got us in into this thing here if we had the right parameters worked out because they were all the same. Some were better than others, of course, but if you take out 40 pips on a pretty decent sort of, you know, it's pretty safe, isn't it, to know that that's gonna come on back. US dollars going up, you know, all that good stuff. But anyway, that's all I have to say, really. I mean, this is a good example, wasn't it, where it just simply broke right on through that trend line and it didn't keep going because the US dollar kept going back up again. Yeah, that's right. Well, that's the kooky market conditions, right? So we could grab these small ones here and they're not risky because you know they're breaking down through, but you've got to sort of be on the boil about when they run out. And if you've got your auto trader that turns it off when it starts turning back, good, done. Yeah, that's right, that's right. We like the big long ones, but there was no big long ones apart from those ones this week where they did the turn backwards. But you know, it's not what we're looking for ultimately, of course. No, no, no, no. Well, if there's cash in it, we're looking for it. So that's good. But what I'll do is, as I said, guys, I'll do some video setups of this, right, as we keep going. And then really, it'll hit home. If anyone's got any questions, Paul. I really like these sessions because it's really what you're on about. Your key whole thing is the auto trader. But I mean, every time we do this, for me anyway, it's just another little, like, yeah, I'm starting to understand how this thing works. There's a lot in it. And you've just got to get your head around it so you feel confident to do it, you know? 100%. So if I just- Stephen, Paul, Bobby, any questions? Yes, matey. Just say, we just talked about the three gates, okay? So gate one is like direction. Gate two is the execution zone. What did you say the third gate was? This, the momentum. Momentum, right, okay, perfect. Yep, I just marked that down. Momentum, cheers. Excellent, all right, thank you. All right, guys. Well, thanks for joining me. As I said, I'll get, once the markets are a little bit more just naturally trending, I'll come back and do this again because that was a bit sketchy, the whole video. But any questions, by all means, just reach out. It turned out quite good, man. It's quite simple what you did. You got your handle around it. I got my handle on it anyway, which is something. Good man, good man. I just want to emphasize the point. There's no sort of embarrassing questions if it didn't kick in. All right, guys, have a good one. Let's just see how this rolls out. It's a pretty quiet week. I tell you what, this is where things can sort of start to build. Doesn't look like it just at the moment, looking at the charts, but let's just see how it rolls from here. I'm starting to look at the news for next week and see what it's going to do. And hopefully that's our next week that's in play already. And coming into Thursday in Asia, that's the best thing you can do, right? Because what that does is it manages your own expectations. You're like, you know what? Not a lot on here. Let's have a look next week and actually start to mentally prepare for that. Good one, Kev. All right, guys. That's one thing I've learned from you, boss, is just that whole thing of just be patient as hell. If it's not there, it's damn well not there. And this week was a real good example of where we can just relax into it and say it ain't there, you know? That's it. And with that, you manage those expectations. It diffuses all the pressure off yourself. So that's the key to it. Always looking forward. Always looking at the next day, the next week. That's it. All right, guys. Cheers, guys. Thank you.