The Academy of Financial Trading. Ultimate Traders Programme Part 7. Application

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1 The Academy of Financial Trading Ultimate Traders Programme Part 7. Application

2 Risk Warning Any Advice or information provided by the Academy of Financial Trading is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By viewing any material provided by the Academy of Financial Trading or using any information or tools you agree that this is general educational material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by The Academy of Financial Trading, it's employees, directors or fellow members. Futures, Contracts for Difference (CFDs), Options, and spot currency trading have large potential rewards, but also large potential risks. You must be aware of the risks and be willing to accept them in order to invest in CFDs and leveraged forex markets. Do not trade with money you can not afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material provided by the Academy of Financial Trading. The past performance of any trading system or methodology is not necessarily indicative of future results.

3 Entries, Exits and Application Core principle Exits with losses are 2ATR ALWAYS. Exits with profit we have far EWT = 21 days in and 10 days out SMS = 52 days in and 21 days out When you exit the SMS at 21 day retracement, this is also time to consider an EWT opposite entry. This is because our SMS exit is identical to our EWT entry assuming the profit filter has been satisfied A natural trailing stop based price action works much better

4 Diversification Spreading risk Attempting to secure greater return through Asset Allocation Other Tool to reduce risk was hedging which we have done via Longs and Shorts - in the only form we could teach sufficiently in such a short time period Examples: Bonds may rise in a weak economy Small Caps can rise earliest during the beginning of a recovery Large Caps come much later US firms thrive on a weak USD Foreign Firms favour a strong USD Key points for Equities are: Size Country Sector

5 Diversification Examples: US small caps US large caps Bonds mixture Commodities FX

6 Diversification - Equities Possibly two/three of below US Equities Large Cap JNJ app 1.5k [usa.jnj] Pfizer app 1k [usa.pfe] Microsoft app 1.5k [ndq.msft] One of the below US Tech Stocks Google app 3k [ndq.goog] Yahoo app 1k [ndq.yhoo] One of the Below US Banks JP Morgan app 3k [usa.jpm] Citigroup app 3k [usa.c] BOA app 1k [usa.bac] Non US Possibly Two Dependant on Size BMW app 4.5k [Fft.bmwg] Siemens app 3k [xtr.siegen] DB app 2k [xtr.dbkgn]

7 Diversification - Commodities One of the below Energies Crude app 3k [nymex.cl] One of the Below Softs Coffee app 8k Sugar app 6k Cotton app 4k Or a related Stock One of the Below Metals Silver app 12k [xagusd] Gold app 4k [xauusd] One of the below Agricultural Look for an Agricultural type stock

8 Diversification - Commodities One of the below Index S&P500 app 3k [cme.es] Or a related Stock or Market One of the Below Bonds/Govt Paper Eurobund app 2k 10 Year app 1k Or a related Stock or Market Two Plus Dependant on Funds of the Below FX Any once not correlated

9 Sample Portfolio 2/4 US Equities 2 European Equities 1 Energy 1 Soft 1 Metal 1 Agricultural 1 Index 1 Bond/Govt Paper 2 + FX If less funds more FX is possibility and less US and EU Equities Be careful with FX re correlation +/-! Let us now put them on from start to finish

Last Theoretical Closed Trade - LTCT We measure the Most Recent Touch of the 21/Blue Line to the Previous Opposite Touch of the 21 line/blue Line We then ensure the most recent touch would have been

10 Last Theoretical Closed Trade - LTCT We measure the Most Recent Touch of the 21/Blue Line to the Previous Opposite Touch of the 21 line/blue Line We then ensure the most recent touch would have been the exit! We then ask ourselves - had we entered at the former and exited at the latter would we have generated a profit or loss? If it had been a profit we skip the next entry on the EWT This is because we don t typically see V formations This has no bearing on the SMS as we take all trades on the SMS Last Opposite Most Recent

11 Last Theoretical Closed Trade - LTCT Most Recent Touch of the 21/Blue Line to the Previous Opposite Touch of the 21 line/blue Line We then ensure the most recent touch would have been the exit! Had we entered at the former and exited at the latter would we have generated a profit or loss? If profit we skip the next entry on the EWT [V Filter] Only for EWT NOT SMS Step 1 Most Recent Last Opposite Last Opposite Most Recent

12 Last Theoretical Closed Trade - LTCT Most Recent Touch of the 21/Blue Line to the Previous Opposite Touch of the 21 line/blue Line We then ensure the most recent touch would have been the Actual Exit!!!! Had we entered at the former and exited at the latter would we have generated a profit or loss? If profit we skip the next entry on the EWT [V Filter] Only for EWT NOT SMS Step 1 Most Recent Last Opposite Last Opposite Actual Exit Most Recent

13 Last Theoretical Closed Trade - LTCT Most Recent Touch of the 21/Blue Line to the Previous Opposite Touch of the 21 line/blue Line We then ensure the most recent touch would have been the Actual Exit!!!! Had we entered at the former and exited at the latter would we have generated a profit or loss? If profit we skip the next entry on the EWT [V Filter] Only for EWT NOT SMS Last Opposite Most Recent

Last Theoretical Closed Trade - LTCT Most Recent Touch of the 21/Blue Line to the Previous Opposite Touch of the 21 line/blue Line We then ensure the most recent touch would have been the Actual Exit!

14 Last Theoretical Closed Trade - LTCT Most Recent Touch of the 21/Blue Line to the Previous Opposite Touch of the 21 line/blue Line We then ensure the most recent touch would have been the Actual Exit!!!! Had we entered at the former and exited at the latter would we have generated a profit or loss? If profit we skip the next entry on the EWT [V Filter] Only for EWT NOT SMS Last Opposite Actual Exit Most Recent

15 Real Time Trade Set Ups and Application on MT4 with the UTI Indicator

Q & A www.academyft.com james@academyft.

16 Q & A james@academyft.com Contact us anytime on Ire: +353 (0) UK: +44 (0) USA:

Thank You! www.academyft.com james@academyft.

17 Thank You! Contact us anytime on Ire: +353 (0) UK: +44 (0) USA: Keep Learning!

ACADEMY OF FINANCIAL TRADING

ACADEMY OF FINANCIAL TRADING NOTES [Ultimate Traders Programme - Order of Daily Operation] Legal Any information or opinions provided by the Academy of Financial Trading is General Information Only - It