Danielcode Webinar-Part 2 Danielcode Webinar-Part 2 88thth September 2009 September 2009

Swings, DC Retracement Tool, Swings, DC Retracement Tool, BB3s, Risk Management, the 2% BB3s, Risk Management, the 2%

rule, T.03 entriesrule, T.03 entries

www.thedanielcode.comwww.thedanielcode.com

Danielcode Tutorial & LibraryDanielcode Tutorial & Library

The last tutorial for 2009 is being held in The last tutorial for 2009 is being held in Taupo, NEW ZEALAND on 27/28 October. Taupo, NEW ZEALAND on 27/28 October. Details are on the DC website.Details are on the DC website.

Danielcode Library at Genesis will be Danielcode Library at Genesis will be released this week. The Library is free for released this week. The Library is free for Danielcode members. Eric Seltzer will have Danielcode members. Eric Seltzer will have a list of members and will co-ordinate your a list of members and will co-ordinate your access.access.

Swings-Genesis study with DC Swings-Genesis study with DC settingssettings

DC Retracement ToolDC Retracement Tool

BB3sBB3s BB3 is a momentum indicatorBB3 is a momentum indicator It looks at just the last 3 completed It looks at just the last 3 completed

barsbars A BB3 is the biggest bar in the past 3 A BB3 is the biggest bar in the past 3

bars measured in different waysbars measured in different ways Markets can accelerate or exhaust on Markets can accelerate or exhaust on

a BB3a BB3 They are a cautionary signal for early They are a cautionary signal for early

entries-DC Library will create thementries-DC Library will create them

Qualifying the Trade. We use the daily chart Qualifying the Trade. We use the daily chart with the fast stoch to “qualify” the tradewith the fast stoch to “qualify” the trade

T.03 Signals-Daily signals valid for T.03 Signals-Daily signals valid for 2 days2 days

Sometimes they look ugly!Sometimes they look ugly!

This T.03 is “elected” on the 2This T.03 is “elected” on the 2ndnd day day

Some will morph into a DC Blue Some will morph into a DC Blue line trade in 3-4 daysline trade in 3-4 days

Here’s anotherHere’s another

T.03 signals MUST be “Elected”T.03 signals MUST be “Elected”

CAUTION!CAUTION!You cannot trade Forex without You cannot trade Forex without Genesis Trade Navigator. It is the Genesis Trade Navigator. It is the ONLY program that operates on ONLY program that operates on correct Forex time. Other correct Forex time. Other charting platforms will give you charting platforms will give you incorrect prices. Forex is an incorrect prices. Forex is an international market that international market that

works on GMTworks on GMT

Earlier EntriesEarlier Entries

The T.03 signals MAY be anticipated The T.03 signals MAY be anticipated on shorter term chartson shorter term charts

Some of the Danielcode trade signals Some of the Danielcode trade signals can be anticipated and others can be anticipated and others cannot, so be clear which is whichcannot, so be clear which is which

Other entries that we will discuss in Other entries that we will discuss in later webinars in this series require later webinars in this series require entries from the daily chartentries from the daily chart

T.03s are a leading indicator-they can be T.03s are a leading indicator-they can be

early.early. Move your stops to protect profitsMove your stops to protect profits

Risk ManagementRisk Management Risk management is what keeps you in the Risk management is what keeps you in the

game. It is vital knowledgegame. It is vital knowledge We have no way of knowing which of our We have no way of knowing which of our

trades will be winners, and which losers. trades will be winners, and which losers. So we try to make the “risk” on each trade So we try to make the “risk” on each trade the samethe same

Measure from the initial stop on entry to Measure from the initial stop on entry to the entry point in $; then adjust the the entry point in $; then adjust the contract size of the trade so it is no more contract size of the trade so it is no more than 2%than 2%

Use the Genesis “Risk/Reward” tool to Use the Genesis “Risk/Reward” tool to make this calculationmake this calculation

Genesis Risk ToolGenesis Risk Tool

Outside Bars. Always S/R at the Outside Bars. Always S/R at the point where an outside bar occurspoint where an outside bar occurs

Stop loss managementStop loss management

Every trade order must have a stop Every trade order must have a stop lossloss

Use “if done” stopsUse “if done” stops Stop on entry goes above/below the Stop on entry goes above/below the

swingswing Move your stops to break even as Move your stops to break even as

soon as practicablesoon as practicable Move your stops to protect profitsMove your stops to protect profits

That’s all FolksThat’s all Folks

Thanks to Glen Thanks to Glen Larsen, Pete Larsen, Pete Kilman and all the Kilman and all the crew at Genesis for crew at Genesis for hosting these hosting these September “5” September “5” webinars.webinars.