Some Questions IZone Sharpshooter Training on Spreads

#1

I’d like to confirm my understanding or clarify several concepts in the trading video

  1. Trade entry point. When everything lines up all (all green/all red) to confirming the flip that is the point to enter the trade. I also thought I heard that even if the indicators do line up, the trade should not be entered until the MVP arrow appears. Which is correct? Are are they both correct and there is a choice?
  2. Entering stops. Is the guideline that where stops are entered is dependent on the size of the trade, or is it the other way around. Whichever it is, what is the thinking behind the relationship between the size of the trade and where the stops are placed.
  3. Stop entry point. I thought I understood the training to say that stops need to be entered at specific points. Correct? Am I correct in assuming that the stop plug needs to be used to do this? Or is there information on the chart indicating the exact bid or ask at which the stop is to be entered.
  4. Proximity/Premium. I get the basic relationship between the two. But, let me clarify this point. High premiums represent a higher risk due to the time needed for the price to move to cover the premium. Another words time=risk.

Thanks

#2

  1. I do not say the MVP has to line up. I say the TC arrow has to be green on a long entry. That has to line up if its not lined up on trending entries then no entry unless trend flip, trend confirm/chop filter bar color, trend bands off green izone etc… happen at the same time. The point to enter is 3 ticks above the bar with the TC green arrow. Some people do enter later when MVP flips this is not a requirement and is more advanced and is not suggested until you got the system down as it does take on a riskier trader but may allow you to get entries you would miss otherwise. The primary purpose of MVP is for trailing with the predictors once it flips.

  2. Your stop is based on the chart. The size of your position is based upon how much your willing to risk total per trade/risk on single contract.

  3. By stop I assume you mean trailing stop. I put it 3 ticks below the swing low (then i may fip to trend flip, and then to the mvp predictor 3 ticks off of the plot (ie if long 3 ticks below it). YOU can do this manually or use the stop trigger and simply adjust it as each bar closes so you dontt have to watch the chart every single second. Dont worry about bid/ask just trade based on the price on the chart.

3.1. It may or may not be higher risk. The relationship you need to understand is higher premium and proximity means a slower moving contract. So the market may move 10 points but your spread moves a mere 6 because you had high premium and proximity. Time does not equal risk as IV can change regardless of time. And Time could also be in your favor. Start with low premium low proximity trades before attempted higher positive premium trades.

Hope that helps.

Darrell

#3

I have a question to response #3. How would you trail the stop manually if you don’t manually update the stop trigger at the closing of each bar?

#4

hold your finger over mouse with it hovering over the lightening bolt icon to close it and dont sneeze

#5

Ok thanks alot…I assumed that would be the case but I wasn’t sure. I tried that today while demo trading ES/NQ and missed out on a couple of ticks.

I also wanted to know the best way to place trades on the futures market? I have seen different platforms (chart trader,fx pro,DOM) just wondering your opinion?

#6

Ninjatrader you can trade using the chart or the dom whichever you prefer. I like the dom because i read the DOM. Some people like the chart trader on NT as its visual.

#7

As always thanks Darrell for your insights and expertise. Here’s my newbie question related to IZSS and entries. In the IZSS training videos we’re told " Enter as soon as market breaks three ticks above that bar." Is this a visual determination; watching the next bar move up and down and at the point it goes up 3 ticks then enter or do you wait for the next bar to complete 3 ticks above (ie. NQ goes from 4503.4 to 4503.7) I’m using the charts in the trading room that show for NQ .25 increments, so I’m not sure how to make this determination.

#8

You would base the entry from the chart itself and how the instrument ticks on the chart, not how the spread ticks on Nadex. So as mentioned NQ ticks in .25, so it would need to move .75 above / below the previous bar to enter

#9

Thanks for the clarity, Mark. As for the latter part of my question; do I need to wait for the next bar to CLOSE 3 ticks above or do I jump in as soon as I SEE the next bar move up three ticks. Appreciate your patience!

#10

You would enter once it has moved 3 ticks above the high or low of the previous bar ( set up bar). You do not need it to close , you need to just break that high or low by 3 ticks, then enter

#11

When using the instant submit, what are the chances of slippage…If i set the slippage at 5 or 10 ticks, what are the chances of it actually slipping more than a 2 or 3 ticks?..thank you

#12

It all depends on how fast the market / pricing is moving. At times there can be very little, and other times if the market is moving or getting very close to expiration it can move fast. I suggest you demo trade it for a bit to get a good handle on it before going live

#13

Inside of the Elite Room, do you have ZB charts running with the IZSS System…I know that NQ, YM, and ES are, but im not sure if ZB charts are

#14

Currently ZB is not posted in the Elite Room with IZSS but in the step by step training course we show you how to easily set any chart you would like on your own

#15

ok thanks…i also have been looking for videos on order placement with ninjatrader charttrader, are there any on this site?..because i only saw the ones for Super Dom

#16

http://apexinvesting.net/how-to-use-ninja-trader/

Here are several videos as far as how to use Ninja and chart trader