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Trading Price > Pro Trader 1 DAY 2 > Flashcards

Pro Trader 1 DAY 2 Flashcards

1
Q

what is an odd enhancer

A

a scoring system that objectively measures the quality of a trade setup based on S/D: structure and location scored on 0-2: 2 best 1 good 0 poor

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2
Q

Odds Enhancer #1

A

How FAST did price leave the level?Lesson: The stronger the move away from a level, the more out of balance S/D is at that level2 = 1 to 3 ERC candles1 = 1 ERC but have some smaller NRC mixed in0 = no ERC

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3
Q

Odds Enhancer #2

A

How much TIME did price spend at the Level?Lesson: The less time price spends at a level, the more out of balance S/D is at the level.1 pt = 1-4 candles0.5 pt = 4-9 candles0 pt = more than 9candles

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4
Q

When coming out of a level, do you want to see a solid or hammer/shooting star type candle?

A

(would rather see solid candle out of level rather than a shooting star/hammer)

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5
Q

Odds Enhancer #3

A

How FAR did prive move from the level before RETURNING?Lesson: The farther price moves away from a level before returning, the larger the profit margin potential and the probability of a successful trade.reward to risk(4:1 is best, 3:1 is good, 2:1 poor)

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6
Q

Odds Enhancer #4

A

Has Price returned to the level?”RETRACEMENTS”The fresher the level, the higher probability that price will turn at that levelif came close, but doesn’t touch zone, it is still a retracement-0.5 pts for every shallow retracement

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7
Q

1 - 4 odd enhancers

A

how fast did price leave level? how much time did price spend at the level? how far did price move away before returning to the level? Has price returned to the level?

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8
Q

how to use proper location and structure of S/D zone?

A

Proper location : intermediate timeframe Structure: small time frame Use Proper Location to ID S/D zones Use Structure to measure risk and draw Proximal/Distal lines Finding smaller zones within Larger zones

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9
Q

what is max number of candles to accept in zone

A

6 in a daily tf, but that is a 1 point

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10
Q

Filled

A

when a trade order’s entry price is met and the trade becomes live in the market

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11
Q

execution

A

the completion of a buy, sell, short or cover order

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12
Q

slippage

A

the difference between the quoted price at the time the order is sent, and the price at which the trade actually executes

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13
Q

Market Order used for, positive, negative

A

An aggressive order that is filled at the price that is available at the moment of process used for: entering and exiting a position immediately - #2 and #3 order positive: immediate execution negatives: slippage : not getting the inside bid/ask

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14
Q

Limit Order used for, positive, negative

A

a passive order that is limited to the price specified, or better (all orders require a quantity) used for: specifically planned entries and exits positives: no slippage. may get price improvement negatives: may only get a partial fill or not get filled at all

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15
Q

Where is STOP LOSS shown in Tradestation?

A

STOP LOSS is shown in the Trade Manager Window under the ORDERS TAB

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16
Q

Stop Market used for, positives, negatives

A

A stop market is triggered at a specific price. Once triggered, a market order is placed to exit the position. used for: stop loss to exit trade positives: risk management, you will get out negatives: possible slippage

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17
Q

Stop Limit used for, positive, negative

A

A stop limit order is triggered at a specific price. once triggered, a limit order is placed to enter or exit the position. not for the novice trader. used for: confirmation entries or breakouts positives: you MAY get filled at a better price negatives: DO NOT USE AS A PROTECTIVE STOP. THERE IS NO GUARANTEE YOU WILL GET FILLED

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18
Q

what entry can you use stop limit order

A

3 entry DO NOT USE to manage risk

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19
Q

What order to use for LONG? Exit for Profit (target)

A

Sell Limit Order

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20
Q

What order to use for LONG? Buy ABOVE current price

A

Buy stop limit order buy stop market order

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21
Q

What order to use for LONG? buy at current price

A

buy market order

22
Q

What order to use for LONG? Buy BELOW current price

A

Buy limit order

23
Q

What order to use for LONG? Exit for Loss (Stop Loss)

A

Sell STOP order

24
Q

What order to use for SHORT? Exit for Loss (Stop Loss)

A

Buy Stop Market Order

25
Q

What order to use for SHORT? Short ABOVE current price

A

Sell limit order

26
Q

What order to use for SHORT? short at current price

A

sell market order

27
Q

What order to use for SHORT? short BELOW current price

A

Sell Stop Limit Order Sell Stop Market Order

28
Q

What order to use for SHORT? Exit for Profit (target)

A

Buy Limit Order

29
Q

Bracket order used for, positive, negative

A

A bracket order is an order that has an entry, stop and exit that is set all at once used for: set and forget it positive: ease of use, fast execution, for all orders at one time, excellent for many styles of trading, one button push trading negatives: multiple bracket orders to learn can be confusing at first

30
Q

2 ways to place bracket orders

A
  1. place an OCO/OSO order (using the order bar in trade station) normally used for longer term trades 2. use the Matrix (DOME: depth of market execution) - not good for investment long term trades
31
Q

OCO

A

Order cancels order or Once cancels other

32
Q

OSO

A

Order sends Order or One Sends Other

33
Q

name red arrows

A
34
Q

Name red arrows

A
35
Q

SET Summary: BUY

A

profit target: sell limit, above current price entry: buy market or Limit, at current price or below stop: Sell stop Market, below current price

36
Q

SET Summary: SELL

A

Stop: Buy Stop market, above current price ENTRY: Short market or limit, at current price or above Profit target: buy limit, below current price

37
Q

bid

A

max price that a buyer is willing to pay for a security

38
Q

ask

A

min price that seller is willing to receive for a security

39
Q

spread

A

difference between bid/ask price. a key indicator of liquidity of asset. the smaller the spread, the better the liquidity

40
Q

6 odd enhancers from XLT

A
  1. strength of price movement (how FAST move awayfrom zone)2. time at zone 1 pt3. reward to risk ratio (profit potential - how FAR)4. retracement5. big picture6. arrival to zone 1 pt
41
Q

Odds Enhancer #5

A

Big Pictureonly odds enhancer that you can use HTF to score.2 = if you are buying impulse1 = if you are buying mid on sideways trend0 = if you are buying correction

42
Q

The Curve

A

1st fresh Demand to 1st Fresh Supply

43
Q

Odds enhancer #6

A

arrival to zone1 = firm/far/fast arrival to Zone0.5 = medium0 = drop base drop base - because creating supply/demand zones as it comes down to zonedoesn’t apply for people who are set and forget

44
Q

3 ways to enter a tradeaboveatbelowfor long and short

A
45
Q

bracket ordersprofit target, entry, stopfor long and short

A
46
Q

Advanced Odd enhancer 1

A

bigger picture supply/DemandThe trend is your friend until the bend at the end.The bend at the end will be able to be spotted by looking at the big picture tf and spotting the S/D zones that the price is approaching

47
Q

Advanced odds enhancer 2

A

levels on top of levelsthe stronger the proximal level the higher probability that price will turn at the distal level4 entries scenerio, 1 stop at distal of B1. enter at prox of level A2. enter at prox of level B3. enter 50 at% A, 50% at B4. use ballastic entry. wait till candle close inside zone A. then follow entry as candle closes lower into zone. C = distance between level A and BC

48
Q

Advanced odds enhancer 3

A

Stock and Bond Relationshipbond/stock have ALMOST inverse relationship (sometimes they move in tandem)people buy stock when economy is good, they have money to riskpeople buy bond when economy is bad, they don’t have money to riskTLT (bond etf) vs SPY- if supply of TLT and Demand of SPY hits at same time, is a odds enhancer

49
Q

Advanced Odds Enhancer 4

A

Market InternalsSectors

50
Q

Market Internals

A

Money flows from one sector to another depending on what stage of the market we are in

51
Q

Advanced Odds Enhancer 5

A

Time of Day

52
Q

Advanced Odds Enhancer 6

A

The Curveon HTF distance between first demand and first supply from current price2 = if you are buying low on curve/selling high on curve1 = if you are buying mid on curve/sell mid on curve0 = if you are buying high on curve/sell low on curve

Trading Price (14 decks)

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