DayTradeToWin Atlas Line Reviews: Indicator for NinjaTrader
With over 300 videos published, DayTradeToWin has made a name for itself as one of the leading day trading educators. Here's yet another video showing the Atlas Line finding a two-point winner in the E-mini S&P market. Normally, the Atlas Line strategy produces a signal within the first half-hour of market open. The day pictured is no exception. The ATR (Average True Range) is used to dictate the profit target. Because the ATR (with a period setting of four) is about two points, the profit target is also two points. Look at the size of the stop. Most traders would have a problem with such a large stop, but John Paul likes to put one of two other stop loss strategies into play before that big "catastrophic stop" is hit. I'm referring to the prove-it and time-based stops, which can potentially get you out at a smaller profit, at no profit or loss, or at a loss smaller than the catastrophic stop. You can configure profit targets and stop losses in advance via NinjaTrader's ATM Strategy. It's recommended that you do so, because you can reduce potential losses that come from forgetting to put a stop in place. In the live training, John Paul goes over ideas for these values. Remember that trading is risky and it wills subject your finances to significant loss. Hypothetical peformance cannot be used to determine success. Always check with a licensed broker and financial advisor to see if trading is right for you.
John Paul adds a couple of proprietary trading tools to his chart: the Atlas Line and ATO 2. On NinjaTrader, these indicators fire off signals that tell you when to place a trade, either long or short. An example of one of these Atlas Line signals is the Atlas Line 2442.75 text that appears soon after market open. This is followed by an ATO 2 long signal at 2443. Right now, you should be looking at the September 2017 contract (09-17) because of the roll over in early June. Another thing to make sure you have set up – ATM Strategies. An ATM Strategy will place your profit target and stop loss automatically based on predefined values. It's still up to you to manage the trade according to the rules, but at least some of it's taken care of. The Atlas Line is offered as a standalone system or part of the eight-week Mentorship Program. The line itself can tell you if price is expected to trend up or down. Of course, there is substantial risk of loss involved and no trading system can accurately predict market behavior all of the time. Filtering your trades with multiple indicators is what John Paul recommends. Watch out for those news events as well, as they can produce sudden volatility.
Did you see the Atlas Line trading video for Feb. 6, 2017? John Paul placed a real-time trade based on the Atlas Line long (buy) signal when price was at 2289.75. Yes, the Atlas Line tells you exactly when to enter and the expected market direction. It's important to enter right at the close of the second candle above or below the line. This is where the Double Bar signal is, and the entry price that's displayed. If you wait too long, price may be closer to the profit target, resulting in potentially a smaller profit. If price continues to climb or fall below the Atlas Line throughout the day, don't worry. This is what the Strength and Pullback signals are for. Bounce trades can be taken as well – this is when price approaches the Atlas Line and "bounces off." The profit target for this trade was over 1.5 points because real-time price volatility allowed for it. If there was less volatility, the profit target and stop loss would have also been less. Remember that the largest stop loss that will come into play is twice the ATR (Average True Range) value. If the profit target is not hit, then the prove-it or time-based stop will come into play.
On January 5, 2017, the Atlas Line produced a Dbl Bar Short signal at 2264. To trigger this signal, the market closed twice below the dashed Atlas Line. The signal is the price and direction to enter the market. If there had been two consecutive candles above the line, a Long signal would have appeared. The goal is to get filled as close to the price on the entry signal as possible. This way, you are not shaving off extra profit potential from the trade. As for the stops, John Paul uses the Catastrophic Stop as a safety net. That's the last resort. Once you're in the trade, you're monitoring it to see if the conditions meet the rules for exiting the trade according to the Prove-It stop or Time-Based stop. Larger stops are used when the market is more volatile. Similarly, small stops are used when the market can't produce as much activity. Remember that each tick of the E-mini is worth $12.50. There are four ticks in a point. Therefore, one point is worth $50. Excluding any commissions or trading fees, you can scale this out to get an idea of profit and loss.
Periodically, John Paul posts new trading videos of the Atlas Line performing live in the markets. These updates are helpful, as they give us a sense of continued performance, which is important for evaluating a trading system. This video shows a long signal on the E-mini S&P followed by a short signal. The first trade was successful. The profit target was hit. Market orders can sometimes cause slippage, but in the short trade, there was only one tick's worth. The Catastrophic Stop is the first strategy that John Paul usually uses. It's about twice the current ATR value with the ATR using a period value of four. From that point, it's a matter of hoping price climbs towards the profit target, and if not, executing any of the other three stop strategies – whichever comes first. Price likes to touch targets and bounce off. Never get too confident!
Recently, the E-mini S&P reached a new, all-time high of 2273. Some websites reported the market reaching 2273.25. Consider that the market's lowest point in the last year was 1797. That's a 476 point difference. This is one of the reasons why John Paul is such an advocate of the Super Year and finding breakout trades whenever the market starts retracing after falling. With the end of December, he expects price to continue to trend upward. We may see price break 2300. As price rises, levels out, and rises again, this is called the Stair Step pattern. Some traders use it to confirm long trades. For example, the Atlas Line can give a long signal, and if there's a Stair Step setup, that's two price action indicators to buy the market. Other factors that may influence a surge in price include the new President's business-friendly selections for office, end-of-year financial reports, and a traditional December rally.
Catching price as it moves from a low point to a high point has been a focus of John Paul's recent videos. Take a look at this cart showing E-mini price activity for the last year. Look at hope many times price drastically rose, dropped sharply for a short period, then broke the most recent high. You'll see it time and time again. Intraday, the Atlas Line and other Day Trade to Win systems have been finding long opportunities consistently.
Recently, Day Trade to Win has been updating Atlas Line signals on its recent trades page. These are not actual statements of profit or performance. They're all hypothetical – what a trader possibly would have made, excluding some trading factors, if the trades were taken and completed under ideal conditions. There are a couple reasons why you wouldn't want to take an Atlas Line trade: an overbought or oversold market. This means price has likely moved too much recently and needs time to rest / regain strength. During news events, price action become very volatile. When a scheduled news event is about to occur, it's best to stay out of the market. Otherwise, the volatility can easily tag your catastrophic stop loss (or your profit target). Reaching profit territory is the goal, but a lesser stop is preferred.
Day Trade to Win's Atlas Line is added to your chart chart like a plugin, and it provides entry signals and a diagonal line to guide your trading. Currently, only NinjaTrader and TradeStation are supported. There are a couple different types of signals that can be produced: a long signal tells you to buy, and a short signal is for selling. These signals are designed to appear before big market moves, allowing you to enter a trade and ride it in the expected direction to make profit. The profit target and stop loss are managed by you, the trader.
The software is designed for 5-min charts and futures and currency markets. In theory, any market that is open overnight should be compatible, but a requirement is that the market must be reasonably fast moving.
It's not an auto-trade system.
You manually place the trades based on the signals and the rules.
When you're in a trade, you're hoping to see your profit target hit. You're out of the trade when one of these stop loss conditions are met: time-based, catastrophic, and prove-it. There may be one more, but I believe John Paul reserves this for the included live training.
To assess risk, John Paul uses the ATR (Average True Range) indicator set to four. This means the last four bars are used to calculate the ATR value. The ATR is shown on the bottom of most of his charts as a green line.
Two new closing bars above or below the Atlas Line will produce a long or short signal, respectively.
If you understand how the entry signals are generated using this two-bar rule, you can easily gauge when a new trade is about to occur. This is useful because you'll be prepared to pull the trigger. The ATR tells you what your profit target should be. I believe John Paul is rounding down to the nearest quarter point when he's on the E-mini.
The catastrophic stop is double the ATR value. This is the largest stop. According to John Paul, this stop is hit far less often than the others, and that's a good thing. Having a very large stop means a large risk. With trading, it's always best to minimize risk whenever possible.
The time-based stop means that you're out of the market after about 20 minutes. On a 5-min chart, that means four bars. As a result, you could be getting out at a small profit, breakeven, or at a loss less than the catastrophic stop.
The prove-it stop occurs when a bar closes on the opposite side of the Atlas Line. What's the opposide side? The side where you don't want price to go – losing territory. With a prove-it stop, as soon as a bar closes on the wrong side, you will get out at that price. Again, this stop loss is less than the catastrophic stop loss.
As you can tell, the Atlas Line is both trading software and a strategy for placing and managing trades. The included live training helps you understand everything. A video recording is also produced after you purchase, so you receive video training right away. The recent trades page on the Day Trade to Win site shows over three years of signals. Overall, the Atlas Line is a robust trading system designed to provide consistent signals on a daily basis.
The content at this site was created by DayTradeToWin or its affiliates. The author(s) may have been directly or indirectly compensated for the content. All content should be should be treated as an advertisement. Trading is inherently risky and substantial financial loss can occur. Hypothetical performance is not indicative of future results. Results may vary due to the unpredictable nature of the markets, slippage, user behavior, geographical distance to data centers, and other factors.