You are on page 1of 95

WELCOME TO THE

ELITE STOCK
TRADING COLLEGE
WEEK #2

STOCK
STRATEGY #1

DISCLAIMER
Hypothetical or simulated performance results have
certain inherent limitations unlike actual performance
record: simulated results do no not represent actual
trading. Also, since the trades have not actually been
executed, the results may have under- or
overcompensated of the impact, if any, of certain market
factors, such as lack of liquidity. Simulated trading
programs in general are also subject to the fact that they
are designed with the benefit of hindsight. No
presentation is being made that any account will or is
likely to achieve profits or losses similar to those
predicted or shown.

STOCK COLLEGE
CURRICULUM
Week #1 The Foundation and Building Blocks of Stock Trading
Week #2 Stock Strategy #1

Week #3 Stock Strategy #4


Week #4 Stock Strategy #8
Week #5 PET-D
Week #6 Advanced Trade Management /Putting It All Together

WEEK #1

REVIEW

STOCK COLLEGE WEEK #1


System vs. Strategy
Concepts 1 & 2
Edge #1 - Buy/Sell Line
Edge #2 - Confirmation Method
The #1 Chart Pattern
Homework Assignment

SIMPLICITY
EQUALS
CONSISTENCY

MY GOAL IS TO TEACH
YOU HOW TO TRADE
WITH THE

SPECIALISTS EDGE

STOCK
STRATEGY #1

Strategy #1 Highlights

Strategy Is Based On Concepts #1 and #2


Designed to Trade Pullback Moves
Intensity Level (1-3): 2
Main Indicator Donchian Channels
Any Time Frame / Any Direction / Any Market
Learn the FULL Strategy Paper Trade First!
The Specialists Edge - Consistency

STRATEGY #1
INDICATORS
50-period Simple Moving Average (sma)
21-period Donchian Channels

STANDARD
VERSION
All Members (Beginners Advanced)
Pullback Strategy
Traders Who Are Looking To Catch Swing Moves

Strategy #1 Rules - Buys


CONCEPT #1 TREND:
1. Price must be above the 50-period sma - AND All 3 Donchian Channels must be headed in an upward direction.
CONCEPT #2 PULLBACK:
2. Look to buy when the rising price bar first begins to decline and
eventually touches the mid-line of the rising channel. (SET-UP)
3. Enter long position on the first confirmation of price trading above
the previous bars high.
4. Place your protective stop below the lowest low of the pullback.
5. Sell (exit) when price touches the highest Donchian Channel.

STEP BY STEP

Step 1
Price must be above the 50-period sma
- AND All 3 Donchian Channels must be headed in
an upward direction.

Step 2
Look to buy when the rising price bar first
begins to decline and eventually touches
the mid-line of the rising channel.
(SET-UP)

Step 3
Enter long position on the first
confirmation of price trading above the
previous bars high.

ENTER

Step 4
Place your protective stop below the
lowest low of the pullback.

ENTER
STOP

Step 5
Sell (exit) when price touches the
highest Donchian Channel.

EXIT

ENTER
STOP

STRATEGY #1
SELL RULES

Strategy #1 Rules - Sells


CONCEPT #1 TREND:
1. Price must be below the 50-period sma - AND All 3 Donchian Channels must be headed in a downward direction.
CONCEPT #2 PULLBACK:
2. Look to sell when the declining price bar first begins to rise and
eventually touches the mid-line of the declining channel. (SET-UP)
3. Enter short position on the first confirmation of price trading
below the previous bars low.
4. Place your protective stop above the highest high of the pullback.
5. Exit (buy to cover) when price touches the lowest Donchian
Channel.

ENTER

STOP
ENTER

STOP
ENTER

EXIT

MORE
STRATEGY #1
TRADE EXAMPLES

+37.38 pts.

STOP
ENTER
473.24

EXIT
435.86

+0.89 pts.
+12.50 %

EXIT 7.75

ENTER 6.90

STOP

+1.69 pts.

+2.35 pts.

EXIT
84.87

EXIT
85.85

+2.77 pts.
EXIT
82.78

ENTER
84.16
STOP

STOP

STOP

ENTER
80.01

ENTER
82.52

+0.66 pts. EXIT


+1.06 pts.

EXIT
196.57

196.58

STOP

STOP

ENTER
195.51

ENTER
195.92

AGGRESSIVE
vs.
CONSERVATIVE

STRATEGY #1
AGGRESSIVE
VERSION
(Shallow Pullback)

+2.02 pts.

EXIT
49.48

STOP

ENTER
47.46

+1.94 pts.

STOP

EXIT
83.05

ENTER
84.99

STRATEGY #1
CONSERVATIVE
VERSION
(Deep Pullback)

STOPPED
OUT

STOPPED
OUT

STOPPED
OUT

STOPPED
OUT

STOPPED
OUT

STOPPED
OUT
STOPPED
OUT

STOPPED
OUT
STOPPED
OUT

STOPPED
OUT
STOPPED
OUT

STOPPED
OUT
STOPPED
OUT

STOPPED
OUT
STOPPED
OUT

STOPPED
OUT
STOPPED
OUT

STOPPED
OUT
STOPPED
OUT

STOPPED
OUT
STOPPED
OUT

STOPPED
OUT
STOPPED
OUT
STOP

+20.96 pts.

EXIT
546.90

STOPPED
OUT
STOPPED
OUT

ENTER
525.94
STOP

STRATEGY #1
MOVING STOP TO
BREAKEVEN

Break Even Suggestion


You have the option to move your stop to
unchanged once price travels either:
1) Half the distance to the exit point, or

2) The 200% extension of the set-up bar

EXIT?

ENTER

STOP

EXIT?

50%

ENTER

STOP

EXIT?

ENTER

STOP

EXIT?

ENTER
100%
STOP

EXIT?

200%

ENTER
100%
STOP

EXIT?

200%

ENTER
100%
STOP

STRATEGY #1
VARIATIONS

Donchian Channel
Settings
(Increments of 7)

Low Volatility = Decreased Setting

High Volatility = Increased Setting


Standard Setting = 21-period

CONTINUATION
TRADING WITH
DONCHIAN
CHANNELS

BUY
BUY
BUY
BUY

BUY
BUY
BUY

BUY

BUY

SELL
SELL
SELL

SELL

SELL
SELL

SELL

SELL
SELL
SELL
SELL

SIGNALS WHERE THE


SET-UP BAR IS AN
INSIDE DAY

STRATEGY #1 REVIEW

Strategy Is Based On Concepts #1 and #2


Designed to Trade Pullback Moves
Intensity Level (1-3): 2
Main Indicator Donchian Chanels
Any Time Frame / Any Direction / Any Market
Learn the FULL Strategy Paper Trade First!
The Specialists Edge - Consistency

HOMEWORK
ASSIGNMENT

IDENTIFY RECENT
STRATEGY #1 TRADE
Time Frame DAILY BAR
1. Buy or Sell?
2. Identify Price of Entry, Stop Placement, and Exit Price.
3. Profit or Loss?

MY GOAL IS TO TEACH
YOU HOW TO TRADE
WITH THE

SPECIALISTS EDGE

ELITE STOCK
TRADING COLLEGE
WEEK #3
STRATEGY #4

QUESTIONS
stevenprimo@specialisttrading.com
brettm@specialisttrading.com

1-310-844-7220

DISCLAIMER
Hypothetical or simulated performance results have
certain inherent limitations unlike actual performance
record: simulated results do no not represent actual
trading. Also, since the trades have not actually been
executed, the results may have under- or
overcompensated of the impact, if any, of certain market
factors, such as lack of liquidity. Simulated trading
programs in general are also subject to the fact that they
are designed with the benefit of hindsight. No
presentation is being made that any account will or is
likely to achieve profits or losses similar to those
predicted or shown.

You might also like