How To Limit Losses & Let Profits Run. Presented by: Darrell Martin Updated

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1 How To Limit Losses & Let Profits Run Updated Presented by: Darrell Martin Apex Apex Investing Institute LLC LLC All All Right Right Reserved 1

2 Disclosures More information about Apex Investing Institute and its terms and disclaimers may be found at Trading futures, options or any financial instrument involves risk and may not be suitable for every investors. Apex recommends you seek independent advice before making any decisions. Please consider these factors before making any investment decision. This presentation is for educational purposes only and does not take into account your objectives or financial situation. Examples used are not recommendation to buy or sell or a solicitation to buy or sell futures, options, bonds, binaries, Nadex spreads, or securities of any kind. Risk/reward calculations do not include trading cost such as exchange fees unless stated otherwise. The information and strategies contained herein are the property of Apex Investing Institute LLC, Insight Investors LLC and Darrell Martin. They may not be shared or distributed to another party without the express written permission of Darrell Martin or an authorized officer of Apex Investing Institute LLC or Insight Investors LLC. Any trademarks referenced besides Apex Investing Institute are the property of their respective holders and not Apex Investing Institute LLC Apex Apex Investing Institute LLC LLC All All Right Right Reserved 2

3 Disclosures Trading involve risk, which may not be suitable for every investor and may result in financial loss which may be greater than the amount invested depending on the instrument used. Any trading decisions that you make are your sole responsibility. The information presented in this webinar is for information purposes only. The contents of this webinar are not an offer, or a solicitation of an offer, to buy or sell any particular financial instrument offered by Nadex. Past performance is not indicative of future results Apex Apex Investing Institute LLC LLC All All Right Right Reserved 3

4 Quick Intro Trader Educational partner with the North American Derivative Exchange in Chicago Owner of ApexInvesting.com Host of the Daily Diagnostic Trading Hour radio show and co host of the Bull/Bear Binary Hour on Friday s Developed the A.P.E.X. Elite Trading Pattern, Nadex spread and binary scanner and many other trading tools I use each day.

5 Suggestion Check out Over 100 hours of trading tutorials (Free) Weekly live webinars (Free) Trading forum (Free) Trading tools (Free) Free trial access to Apex Trading Toolkit Free trial access to the Apex Elite Live Trading Room.

6 Nadex Application & Strategy Webinar Series APEX Elite Trading Method Discover How To Limit Losses & Let Profits Run Apex Apex Investing Institute LLC LLC All All Right Right Reserved Presented by: Darrell Martin

7 To accomplish the goal of limiting losses and letting profits run you need a price action driven method to define the steps in your trading. These steps must account for how the market moves and for the trader psychology aspect to ensure the rules are implemented consistently Apex Apex Investing Institute LLC LLC All All Right Right Reserved

8 Quick Overview What Bar Size To Use? One Pattern To Use On All Markets 3 Filters To Help Eliminate Bad Entries Exact Entry, Stop Loss, & Position Size 7 Triggers To Trail Stops To Let Profits Run How To Know How Far The Market Will Move Each Day

9 Remove Time From The Equation Time based bars are illogical Time based bars are choppy Time based bars mess up indicators

11 One Pattern You don t need 20 patterns or 200 patterns on charts, candles etc The market moves to fill orders. One pattern captures this fact time and time again.

13 3 Filters For Entries All Three Are Required 1. Powerline Filter (confirmed trend) 2. E Bar Breakout Filter (confirmed momentum) 3. Barely Missed X Filter (confirmed continuation)

14 Powerline Filter Simple Only Trade in the direction of the powerline If it is green only take buy trades Even if you see a red APE if the last powerline is green only take buy trades If it is red only take sell trades Even if you see a green APE if the last powerline is red only take sell trades

19 E Bar Breakout Filter Long: Entry Price is 3 Ticks Above the E Bar Within 2 bars of the E Bar Short: Entry Price is 3 Ticks Below the E Bar Within 2 Bars Of The E Bar (Note if using larger bars ie 30 ticks you may opt for ½ the size of the bar instead of 3 ticks a little analysis should help you easily identify the best breakout tick/pip/cent size to use)

22 The Barely Missed X BMX Filter Long: IF a bar comes within 3 ticks or ½ the bar size (whichever is greater) of the high of the A Bar and the next bar does not break the high of the A Bar to make an X THEN: Then no more entries until there is an X Or until the entry price is below the last green powerline

23 The Barely Missed X BMX Filter Short: IF a bar comes within 3 ticks or ½ the bar size (whichever is greater) of the low of the A Bar and the next bar does not break the low of the A Bar to make an X THEN: Then no more entries until there is an X Or until the entry price is above the last red powerline

24 BMX 1 Strike Optional If you get in after a BMX when the entry price is under the powerline (on a long) or the entry price is above the powerline (on a short). If the trade then looses you may NOT want to take another entry at all until an X has been formed.

26 Entry Price Should Be Precise (ie $102.00) Stop Loss Should Be Precise (ie. $100.00) Distance Between Entry & Stop Loss = Risk per smallest unit you can trade. (i.e. $2.00 = $ $100) % of day max risk / 6 represents max $ to risk per trade (ie $5,000 account 5% a day = $250 = $41 per trade) $ risk per trade/$ per unit = Size To Trade (i.e. 20 units $41 per trade / $2.00 per unit) Entry, Stop Loss, Size

27 Stop Loss Simple 5 Ticks/Cents/Pips Below The P if it hits that price get out! Don t hesitate or think twice about it. Get Out. There will be another trade. Make it easy to come back. Cut your losses short and focus you energy on letting your profits run. If you don t then you are cutting your profits short and letting someone run their profits up against you.

28 7 Trailing Stop Triggers Early Exit Barely Missed X (BMX) Exit Triggers For All Entries Every P Bar Trigger X Bar Trigger Triggers Only On Entries That Have Hit Their X High Velocity Bar Trigger 10 Minute Close Deviation Trigger Trade Runner Trigger Small Apex Exception (Current Entry Only) 6 Bars To Breakeven Trigger After Then Above Apply

29 Barely Missed X Exit Usually proceeds a reversal that will result in a loss. If Within 2 Bars of a BMX The X does not complete exit the trade Profit or Loss. This exit method is optional. It will avoid a lot of losses but may get you out of a good trade as well. More often than not it will avoid losses.

31 IMPORTANT The goal is to let profits run. The price must hit the X before any trailing stops are implemented. Do not let your profits dictate your exits let the chart tell you when to get out!!!!

32 Follow this method to trail your stops Long: When the trailing stop trigger event happens trail the stop to 5 ticks below the low of the bar on which the event happened bar or the 8 EMA whichever is lower. Short: When the trailing stop trigger event happens trail the stop to 5 ticks above the high of bar in which the event happened or the 8 EMA whichever is higher.

33 X Bar Trigger Long: When the price exceeds the A bars high it will make an X trail your stop. Short: When price goes below the A bars low it will make an X trail your stop.

35 When a new Confirmed P forms Confirmed by a subsequent E (Important first you must see an E once there is an E then tighten the stop) Move Your Stop P Bar Trigger

38 High Velocity Bar Trigger A high velocity bar means that the price moved extremely fast during a short period of time. High velocity bar means one of the top three fastest velocity bars as indicated trigger line. Zero second means the bar was formed in less than one second. The market is trying to find orders if it does it will continue if not it will reverse. In either case you will be glad you tightened your stop. Trail the stop on a high velocity or zero second velocity bar. (Indicated by color)

42 10 Minute Deviation Trigger If Long If Market Above X on A.P.E.X that you entered on then the following trailing stop trigger applies: If the underlying instrument on a 10 minute bar closes above a deviation level then trail the stop to 5 (underlying market) ticks below the low of the 10 minute bar Tighten Trailing Stop On Same Deviation If closes opposite side without being stopped out then re-closes above/below same deviation then move stop up again Repeat after every deviation level is hit.

44 10 Minute Deviation Trigger If Short If Market Below X on A.P.E.X that you entered on then the following trailing stop trigger applies: If the underlying instrument on a 10 minute bar closes below a deviation level then trail the stop to 5 (underlying market) ticks above the high of the 10 minute bar Tighten Trailing Stop On Same Deviation If closes opposite side without being stopped out then re-closes above/below same deviation then move stop down again (You can not move the stop higher only lower)

47 Trade Runner Trigger A Trade Runner Trigger takes place when the market moves ½ Deviation Since Last Stop Update. (This is not a.5 dev level but an actual move of ½ a deviation from the last trailing stop). This is rare it is basically to help you if the market just flies and no trailing stop has taken place to give you the ability to make a decision. This will help you from simply closing a position and missing out on a massive run but also help you with overcoming the fear of giving it all back.

48 Small Apex Exception A small A.P.E.X. is an A.P.E.X. pattern with less than 6 bars between the E and the X If this is the case this rule applies on current entries. Previous entries to the current APEX should follow the normal rules. If there are 6 or more bars between the E and the X then ignore this rule.

49 6 Bars To Breakeven (6BB) We do this because moving the stop sooner will cause us to get stopped out to soon.

50 Long 6 Bars To Breakeven (6BB) If there are less than 6 bars between the E and the X then upon 6 consecutive higher highs at any time after the E bar then move the stop loss up to breakeven. Then follow the other trailing stop triggers going forward.

51 Short 6 Bars To Breakeven (6BB) If there are less than 6 bars between the E and the X then upon 6 consecutive lower lows at any time after the E bar then move the stop loss down to breakeven. Then follow the other trailing stop triggers going forward.

53 Large APEX, Post 6BB rule If the APEX is not a small Apex or after the trailing stop has been moved to breakeven using the 6 bar to breakeven rule then implement the previously listed trailing stop triggers.

54 Summary Remove time from the equation Use One Simple Pattern Filter You Entries & Set Stop Losses Trail Your Stops To Let Profits Run Learn more for free at ApexInvesting.com

55 Visit us as to get access to the deviations for free and check out our trade room and Apex Elite Traders Toolkit For Free Apex Apex Investing Institute LLC LLC All All Right Right Reserved

56 This Video was proudly brought to you by: Apex Apex Investing Institute LLC LLC All All Right Right Reserved 56

57 Bonus Plays Bonus

58 A.P.E.X. RSI Divergence This scalper trigger is optional but is also ideal for a fast market. Often there will be RSI divergence when the APEX forms. The X bar trigger takes care of this trigger. However, You can continue to trail your stop higher and higher upon each bars RSI divergence. The good news is this will lock in profits faster. The bad news is it may kick you out to soon. Trial the stop when on each RSI divergence bar.

59 Touched Deviation You may trail your stop 5 ticks below the last bar/8 ema on half or all of your position when a deviation level is touched. Doing so will help you lock in more profits but may cost you to miss out on larger gains.

60 Exit Risk It Hedge It News

61 BMX Reversal Put on a reversal trade (low risk) trail it down

presented by Thomas Wood MicroQuant SM Divergence Trading Workshop Day One Black Gold

presented by Thomas Wood MicroQuant SM Divergence Trading Workshop Day One Black Gold Risk Disclaimer Trading or investing carries a high level of risk, and is not suitable for all persons. Before deciding