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ICT Mentorship 2023 - September 05, 2023 Live ES & NQ Tape Reading
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ICT Mentorship 2023 - September 05, 2023 Live ES & NQ Tape Reading

The Joys and Perils of Live Streaming

Technical Setup and Challenges

  • The streamer discusses adjusting latency settings on YouTube's live stream studio, noting issues with glitching and skipping during previous attempts.
  • Acknowledges the challenge of satisfying all viewers due to inherent delays in live streaming, emphasizing the difficulty in managing audience expectations.

Purpose of the Stream

  • The streamer requests feedback from viewers regarding audio clarity while preparing to analyze market charts.
  • Plans to delete a previous failed stream attempt that lasted only three minutes due to technical glitches, indicating a preference for maintaining quality content.

Market Analysis Focus

  • Introduces the current time (9:13 AM NY local time) and outlines the focus on S&P and Nasdaq daily charts for September 2023.
  • Mentions that this session is also an educational opportunity for his youngest child, who is being homeschooled, highlighting the importance of observing price action.

Trading Strategy Insights

  • Emphasizes using intraday volatility without bias to read market conditions effectively, suggesting that algorithms leave clues about market behavior.
  • Sets a time limit for the session until 11 AM but remains flexible based on how much information he can share before then.

Decision-Making Process in Trading

  • Discusses uncertainty about which trading instrument (S&P or Nasdaq) to focus on during this session, reflecting common dilemmas faced by traders.
  • Shares personal experiences where unexpected life events disrupt pre-market analysis, stressing adaptability in trading strategies.

Cautionary Advice for New Traders

  • Advises new traders to observe what has been respected or disrespected in price movements when they miss pre-market analysis.

Understanding Trading Responsibility

Importance of Personal Analysis in Trading

  • The speaker emphasizes that viewers should not let their analysis be influenced by external opinions during trading, especially when attempting to secure a funded account.
  • It is crucial for traders to trust their own judgment and conduct trades based on personal analysis rather than outside noise, as this can lead to missed opportunities or losses.

Market Analysis Techniques

  • The speaker annotates a specific candle on the chart, indicating its low at 45.91 and high at 45.47, which forms a fair value gap (FVG).
  • A "SIBI" (Sell Side Imbalance by Side Efficiency) is introduced as a concept where down-close candles create fair value gaps; this helps in remembering market behavior.

Price Movement Insights

  • The discussion includes how the market revisits certain price areas, with specific attention given to candle highs and lows that indicate potential price movements.
  • The speaker notes the importance of understanding premium levels in trading and how they relate to market retracement patterns before opening hours.

Volume and Balance Considerations

  • A distinction is made between closing prices and opening prices of candles, highlighting the significance of volume imbalance in predicting future price actions.
  • The speaker mentions that markets may return to certain areas multiple times until there’s a body overlapping those levels, indicating potential support or resistance zones.

Intraday Trading Strategies

  • For short positions, it’s advised that prices remain below specified levels; if they rise above these lines without sustaining above them, it could signal further downward movement.
  • Reference points are established for intraday trading using red and blue lines on charts; these help traders navigate different trading vehicles effectively.

Fair Value Gaps Explained

  • An inefficiency identified as a fair value gap is discussed along with its implications for buy-side liquidity pools located above recent highs.
  • The speaker shares insights about daily chart analysis concerning sell-side imbalances and how they affect current trading strategies.

Conclusion on Market Behavior

Market Analysis and Trading Insights

Daily Chart Observations

  • The speaker discusses the current state of the daily chart, noting that incorrect settings are affecting what is displayed. They emphasize monitoring buy-side behavior.
  • The market appears to be targeting buy stops above certain levels, indicating potential upward movement as traders who have not exited their positions may be affected.
  • A specific red line on the chart is highlighted as a critical level; if prices trade above this line, it could signal a shift in market direction.
  • The speaker refers to a "line in the sand," suggesting that for bearish sentiment to hold, prices should remain below this key level without closing above it.
  • Emphasis is placed on understanding higher time frame contexts while analyzing lower time frames for potential inefficiencies and liquidity.

Liquidity and Price Movement

  • Buy stops are identified as crucial points where price might move up, but caution is advised regarding movements above the red line which could alter bearish expectations.
  • Potential sell-side liquidity exists beneath current price levels, indicating areas where traders might look for short opportunities later in the day.

Candle Patterns and Gaps

  • The speaker explains candle patterns, particularly focusing on gaps created by down-close candles (referred to as "SIBI") which can indicate future support or resistance levels.
  • If certain conditions were met (absence of tails), a gap would act as support; however, existing tails suggest caution against assuming bullish momentum based solely on these patterns.

Market Behavior Post-Holiday

  • Attention shifts back to S&P trading rather than ES futures; understanding how markets react after holidays is emphasized due to uncertainty among traders returning from breaks.
  • After opening bell observations reveal buy stops at various levels; initial market behavior post-holiday often involves indecision as participants reassess their strategies.

Fair Value Gaps and Inefficiencies

  • Discussion includes identifying fair value gaps created by previous price movements; these gaps can serve as indicators of potential reversals or continuations depending on market context.
  • Analyzing one-minute charts reveals limited activity immediately following holiday trading sessions, highlighting typical volatility patterns during such times.

Understanding Market Dynamics and Price Behavior

Real Money Trading Insights

  • The discussion emphasizes the importance of trading with real money rather than demo accounts or funded challenges, highlighting the authenticity of market behavior in a real brokerage environment.

Fibonacci Analysis and Price Reactions

  • A Fibonacci tool is applied to analyze price movements, indicating that prices often react at specific levels, akin to a "force field," where they struggle to move higher before retreating.

Market Signatures and Order Flow

  • The concept of "signatures" is introduced, referring to patterns in price action that suggest market predictability rather than randomness. These signatures indicate areas where sell orders accumulate below previous lows.

Volume Imbalance and Fair Value Gaps

  • The speaker discusses fair value gaps between candle highs and lows, explaining how these gaps represent imbalances in buying and selling pressure within the market.

Behavioral Patterns in Different Markets

  • A comparison is made between NASDAQ and S&P markets, suggesting that NASDAQ tends to move more quickly towards its targets compared to S&P. This analogy likens NASDAQ's speed to a hare versus S&P's tortoise-like behavior.

Avoiding Gambling Mentality in Trading

Market Analysis and Trading Strategies

Understanding Market Dynamics

  • The speaker emphasizes the importance of recognizing fair value gaps below current prices, suggesting that if a market does not show clear signs of moving downwards, traders should refrain from entering trades.
  • Impatience among traders can lead to poor decision-making, especially after holidays when trading activity may be lower. The speaker advocates for patience and caution in trading strategies.

Correlation Between Markets

  • The concept of correlation is introduced, explaining that markets moving together (e.g., A and B) can indicate potential trade setups. If one market moves higher while another does not follow, it may signal an opportunity.
  • Traders are advised to use standard risk levels rather than excessive leverage when engaging in correlated markets to avoid significant losses.

Analyzing Price Action

  • Observations on price action reveal cracks in correlation; the speaker notes how different indices behave relative to each other during trading sessions.
  • The absence of a clear trade setup is highlighted as crucial for making informed decisions. Anticipating market behavior post-holiday is essential for avoiding unreliable setups.

Daily Levels and Volume Analysis

  • Daily volume levels are discussed as critical indicators for support and resistance. The speaker points out where price action interacts with these levels on charts.
  • Relative equal highs are identified as important markers for potential buy-side opportunities, emphasizing the need for careful analysis without impulsive actions.

Navigating Static Price Action

  • Post-holiday trading often results in erratic price movements; traders should avoid forcing trades based on assumptions about market direction.
  • Continuous fluctuations within defined ranges highlight the necessity of patience and strategic observation rather than immediate execution of trades.

Practical Application of Insights

  • The speaker shares practical methods for tracking important levels on charts using written notes alongside visual aids to enhance understanding during discussions.

Market Analysis Insights and Trading Strategies

Current Market Conditions

  • The S&P 500 (S&P) is showing lower lows while the NASDAQ is indicating higher highs, suggesting a lack of agreement in market direction. This discrepancy signals caution for traders.
  • The current market environment lacks the conditions for low resistance liquidity runs, as evidenced by opposing trends between S&P and NASDAQ, which complicates trading strategies.

Correlation Observations

  • There is a "cracking correlation" where S&P's lower lows are not mirrored by NASDAQ's performance. This indicates potential bullish opportunities if certain levels are respected.
  • The market's uncertainty post-holiday leads to expected erratic movements, reinforcing the need for patience among traders rather than impulsive actions.

Trading Psychology and Strategy

  • New traders often feel compelled to trade frequently; however, on uncertain days like today, it’s crucial to remain patient and observe market behavior instead of forcing trades.
  • Collective sentiment can mislead traders; often what the majority expects does not align with actual market movements.

Technical Analysis Focus

  • Monitoring price action around key levels such as daily volume balance can provide insights into potential future movements. A down-close candle suggests possible downward pressure.
  • If S&P continues to show weakness compared to NASDAQ, it may lead to further declines that could affect overall market dynamics.

Risk Management Considerations

  • Traders should be cautious about placing stops too tightly in volatile conditions due to insufficient market structure support; observing price action without trading may be more beneficial.
  • Non-trading days can offer valuable learning experiences about personal trading psychology and price behavior without incurring losses.

Inefficiencies in Market Structure

  • Identifying inefficiencies within price structures can reveal areas where the market may seek equilibrium or clean up orders below significant lows.

Understanding Market Dynamics and Trading Strategies

Opening Range and Liquidity

  • The first 30 minutes of trading establish the opening range, which is crucial for understanding market liquidity going into 11 o'clock. Any inefficiencies observed during this period can influence trading decisions later on.

Observing Market Behavior

  • As prices drop, attention shifts to the S&P index to analyze its behavior at key levels, particularly the midpoint of previous candle tails. This analysis helps in determining potential price movements in lower time frames.

Strength Indicators Between Markets

  • The relationship between the S&P and NASDAQ is critical; if one shows weakness (e.g., S&P), it may indicate a downward trend while the other (NASDAQ) resists falling, suggesting strength. Continuous measurement of their relative performance is essential for informed trading decisions.

Lack of Symmetry in Market Movements

  • When markets do not move in tandem, it indicates a lack of symmetry that traders should monitor closely. A shift towards synchronized movement often occurs after holidays when market conditions stabilize again, allowing for more reliable predictions about future price actions.

Importance of Real-Time Observation

  • Traders are encouraged to observe real-time price movements rather than relying solely on historical data post-holiday sessions. Identifying when markets begin to move together can enhance trust in future symmetrical patterns during subsequent trading days or sessions.

Challenges During Choppy Sessions

  • Trading during choppy morning sessions can be frustrating and lead to impulsive decisions if traders feel pressured to act quickly without proper analysis. Recognizing these challenging periods is vital for maintaining discipline and avoiding unnecessary losses.

Learning from Past Experiences

Market Behavior and Trading Psychology Insights

Understanding Market Movements

  • The discussion revolves around analyzing market behavior, particularly focusing on a specific price level below a black candle. The speaker is interested in how the market will respond—whether it will break higher or lower.
  • A reference to "sphere bag FS support" indicates that this area represents half of a previously identified zone, suggesting its significance in current trading decisions.

Trading Risks and Emotional Responses

  • The speaker emphasizes the importance of recognizing when trading conditions are unfavorable. Ignoring these signs can lead to impulsive trades and subsequent losses.
  • Even small losses can trigger strong emotional reactions such as anger and regret, which may lead traders into a downward spiral of further losses due to reckless decision-making.
  • It’s crucial for traders to learn from their experiences to maintain a disciplined approach, avoiding emotional responses that could cloud judgment.

Market Manipulation vs. Genuine Activity

  • The speaker argues that current market conditions reflect manipulation rather than genuine buying or selling pressure. This suggests that traders should be cautious about interpreting price movements as indicative of true market sentiment.
  • There is an assertion that markets often remain stagnant until significant bullish or bearish sentiment emerges, leading to sudden price movements once this sentiment materializes.

Post-Holiday Trading Dynamics

  • After holidays, there tends to be increased volatility as traders return with pent-up demand. This can create erratic price movements driven by greed and impatience among traders eager to capitalize on limited trading days left in the week.
  • Traders may act impulsively during these periods, treating their actions more like gambling than strategic trading due to heightened emotions.

Capital Preservation Strategies

  • Emphasizing capital preservation is vital; understanding when the market is unfavorable helps prevent account depletion through poor trades.
  • Many traders fail because they do not recognize choppy or consolidating markets, leading them into ill-advised trades based on false expectations of movement.

Trading Insights and Market Analysis

Understanding Stop Losses and Market Movements

  • Discussion on the implications of stop losses in trading, emphasizing that they can force traders out of positions, potentially leading to losses or limited profits depending on market conditions.
  • The speaker advises avoiding trading after the morning session, highlighting a specific price level where the market failed to close above a volume balance, indicating potential for further declines.

Analyzing Price Levels and Volume Balance

  • The importance of not exceeding certain price levels is discussed; if the market does go above these levels without closing above them, it may indicate a continuation of downward movement.
  • The speaker expresses disinterest in further analysis unless specific price actions occur, suggesting a focus on key timeframes for better decision-making.

Candlestick Patterns and Market Expectations

  • A desire for the market to test lower price levels is expressed; observing candlestick formations can provide insights into future movements.
  • Noteworthy small movements are highlighted as significant indicators; understanding these fluctuations can lead to profitable trades.

Identifying Strong Setups and Patience in Trading

  • Emphasizes patience in trading strategies; staying out during uncertain times builds confidence and helps identify stronger setups.
  • Discusses how many traders might be losing money while others wait for clearer signals, reinforcing the value of strategic patience.

Divergence Analysis Between Indices

  • Observations about divergences between S&P and NASDAQ indices are made; identifying which index shows strength or weakness can inform trading decisions.
  • If certain price levels are reached, it could trigger upward movements in NASDAQ based on S&P's performance relative to volume balance.

Key Price Levels and Future Projections

  • The speaker outlines expectations for NASDAQ based on S&P's behavior at critical price points; maintaining awareness of these levels is crucial for forecasting market direction.

Market Analysis and Trading Strategies

Volume Balance and Market Movement

  • The speaker discusses the significance of volume balance, indicating that if it hits a certain level, it should propel prices higher into a specified area.
  • A daily problem imbalance is mentioned; if the market rallies above a specific area and treats it as support, this could lead to further upward movement.
  • The speaker emphasizes that they do not view current conditions as favorable for shorting unless there is a significant drop below the volume balance.

Mental Capital in Trading

  • The concept of "mental capital" is introduced, highlighting how stress from trading decisions can impact performance. Preserving mental capital is crucial for maintaining focus.
  • The speaker notes that trading under optimal conditions—where everything aligns—is easier and less stressful compared to chaotic market days.

Trading Discipline and Strategy

  • Emphasizing discipline, the speaker advises against overtrading or adopting a gambler's mentality, which can lead to unnecessary risks.
  • They caution against the temptation to chase profits impulsively after losses, advocating for a more measured approach to trading.

Forex Market Insights

  • Discussion shifts to Forex markets; the speaker mentions observing quarterly shifts in currency pairs like Euro and Pound.
  • For Pound, they suggest monitoring price action around key resistance levels before making trades.

Technical Analysis Considerations

  • Bitcoin's price behavior is analyzed; while not being an expert in crypto, the speaker shares insights on potential future movements based on current trends.
  • Post-holiday market dynamics are discussed; expectations are set for improved technical alignment as liquidity returns to normal levels.

Risk Management Techniques

  • The importance of identifying sell-side opportunities is highlighted; understanding false breakout points can aid swing trading strategies.
  • A Fibonacci retracement technique is suggested for analyzing potential price movements based on previous highs and lows.

Trading Strategies and Market Analysis

Post-Holiday Trading Considerations

  • The speaker discusses the impact of trading on a post-holiday session, indicating that they would have taken a short position if it weren't for the holiday. They emphasize the importance of stop-loss placement above key levels.
  • Anticipation of market movement is highlighted, with expectations that breaking below certain lows could lead to accelerated downward momentum towards negative standard deviations.
  • The speaker notes the indecisive nature of trading after Labor Day, advising caution in making strong convictions during this period.

Swing Trading Models

  • A focus on swing trading setups is presented, where the speaker looks for opportunities to go short based on market behavior and symmetry in price action.
  • The ideal scenario involves observing rapid price drops into specific ranges without hesitation, emphasizing a disciplined approach to holding positions.

Learning and Experience in Trading

  • The speaker stresses that understanding their trading model requires comprehensive learning beyond simple video lessons; practical experience is crucial for developing confidence in trades.
  • They explain how recognizing when to take partial profits can enhance overall trading strategy and reduce anxiety associated with market fluctuations.

Technical Analysis Techniques

  • A method for determining potential drawdown levels using Fibonacci retracement from high to low points is introduced as a tool for bearish scenarios.
  • Emphasis is placed on identifying critical support levels where traders should consider taking partial profits while managing risk effectively.

Risk Management and Market Conditions

  • The importance of adapting strategies based on current market conditions is reiterated. Traders are encouraged to trust their judgment rather than relying solely on external advice or signals.
  • The speaker reflects on the necessity of building personal expertise in trading rather than depending entirely on others' insights, promoting self-reliance as essential for long-term success.

Conclusion: Navigating Uncertainty in Trading

  • Acknowledgment of market unpredictability post-holiday serves as a reminder that not all days are suitable for active trading; patience and strategic planning are vital.

Market Analysis and Trading Insights

Understanding Price Action Dynamics

  • The speaker discusses the concept of a "gap" acting as a potential inversion point for traders, emphasizing the importance of price levels and their implications on market behavior.
  • A reference is made to the NASDAQ's current state, described as a "riddle," highlighting the need to analyze candle bodies and their positions relative to key price points.
  • The idea of rejection blocks is introduced, suggesting that if certain levels are touched again, they will be treated as inversions for trading strategies.

Volume Imbalance and Entry Strategies

  • The speaker emphasizes waiting for volume confirmation when trading above specific levels, indicating that previous price action can inform future entry points.
  • There’s an expectation that prices should react positively at certain candle highs, with suggestions to use these areas as potential support for upward movement.

Comparative Strength in Indices

  • A comparison between NASDAQ and S&P indicates that NASDAQ has shown stronger performance; breaking certain highs could trigger significant short squeezes.
  • Traders are encouraged to document their observations regarding NASDAQ's relative strength compared to S&P, noting it as a favorable option for long positions.

Key Levels and Price Delivery

  • Two critical levels are identified: the midpoint of a wick and volume imbalance. These serve as essential markers for determining potential price movements.
  • The discussion includes whether traders should expect upward movement from various price delivery points like volume balance or consequent encroachment.

Navigating Market Characteristics

  • The speaker stresses maintaining bullish sentiment unless prices fall below specific thresholds, which would indicate weakness in market momentum.
  • Observations about candle closures at volume balance suggest that successful trades depend on confirming upward trends through strategic support levels.

Challenges in Trading Dynamics

  • An acknowledgment of the difficulties faced when trading weaker markets is presented; such markets may exhibit slower responsiveness compared to stronger counterparts.

Understanding High Resistance Liquidity Runs

The Frustration of Delays in Travel

  • The speaker expresses frustration with delays during a bus journey, comparing it to the unpredictability of high resistance liquidity runs in trading. They emphasize that just like travel can be hindered by unexpected stops, market movements can also be delayed.

Analyzing Market Behavior

  • High resistance liquidity run signatures are discussed as delivering expected outcomes but on an uncomfortable timeline. Analysis focuses on identifying leaders and laggards within the market.
  • The concept of "unfinished business" is introduced, highlighting the importance of recognizing unfulfilled premium arrays that indicate potential price movements.

Trading Strategies and Setups

  • A specific trading setup is described where profits are taken at a high point, illustrating a straightforward strategy for capturing gains.
  • The speaker encourages viewers to engage positively with the content, suggesting that receptiveness to learning can enhance understanding of real-time price behavior.

Observations on Price Movement

  • As the discussion progresses into November trading strategies, there’s an emphasis on avoiding meandering price action and ensuring momentum through key levels.
  • The importance of monitoring order flow and trader behavior is highlighted, noting that institutional traders do not operate solely on short-term charts.

Key Insights from Price Action

  • Observations about market strength are made based on candle bodies and their implications for future price movement.
  • Discussion includes whether certain price levels will hold or break down, emphasizing the need for speed in leaving critical areas to avoid trapping traders.

Practical Applications in Trading

  • A mean threshold is identified as a sensitive price point; staying above this level indicates bullish sentiment.
  • Visual aids such as annotated charts are suggested for better understanding market dynamics and potential breakout points.

Recap of Trading Dynamics

  • A recap emphasizes how previous observations inform current trading decisions. It highlights using gaps effectively while maintaining awareness of overall market narratives.

Understanding Breakaway Gaps and Market Structure

The Concept of Breakaway Gaps

  • The speaker discusses the significance of a breakaway gap, emphasizing that once the market leaves a certain area, it should ideally remain open without returning to previous support levels.
  • A rally in the market indicates disinterest in revisiting prior levels, suggesting a potential upward movement if certain volume thresholds are met.

Trading Strategies and Entry Points

  • The speaker explains their trading strategy involving pyramiding positions when specific price levels are touched, indicating confidence in upward momentum.
  • Clarification is provided on why certain buying decisions may seem illogical; they stem from a deeper understanding of order flow rather than conventional models.

Insights into Order Flow and Market Behavior

  • Emphasis is placed on recognizing real-time order flow over traditional methods like optimal trade entry or order blocks, highlighting the importance of context in trading decisions.
  • The speaker critiques those who fail to grasp the nuances of market behavior, suggesting that not all missed opportunities indicate failure but rather an evolving understanding of market dynamics.

Analyzing Price Action and Volume Levels

  • Observations about price action reveal that significant movements often occur without retracing to expected levels, which can provide insights into future trends.
  • The discussion includes how candles' behaviors at volume balance levels inform traders about potential entries or exits based on observed patterns.

Recognizing Market Symmetry and Structure Shifts

  • The speaker notes that after large range days or holidays, markets may exhibit disjointed symmetry requiring patience until normal trading conditions resume.
  • A shift in market structure is identified as key indicators emerge during these periods, allowing traders to adjust strategies accordingly.

Practical Application and Real-Time Analysis

  • Traders are encouraged to observe real-time data for better decision-making rather than relying solely on historical analysis or theoretical models.

Understanding Price Action and Market Dynamics

The Importance of Context in Learning

  • The speaker emphasizes the necessity of watching the current video to fully appreciate a future chapter in their book, indicating that context is crucial for understanding complex concepts.
  • They highlight that mere reading of books will not suffice; practical experience with charts and market behavior is essential for true comprehension.

Observing Market Behavior

  • The speaker encourages viewers to document their expectations regarding price movements, reinforcing the idea that active engagement with charts enhances learning.
  • They differentiate between traditional support/resistance levels and institutional order flow, asserting that understanding these dynamics is key to successful trading.

Recognizing Patterns and Responses

  • A specific example illustrates how price action can respond predictably when certain conditions are met, emphasizing the importance of recognizing these patterns.
  • The discussion includes inversion fair value gaps and how they function as critical price points rather than broad zones, stressing precision in trading strategies.

Commitment to Learning Process

  • The speaker stresses the need for patience and dedication in mastering market analysis, suggesting that consistent observation leads to skill development over time.
  • They acknowledge that while mastery may take years, it ultimately becomes intuitive once achieved.

Application Across Markets

  • The speaker argues that principles discussed apply universally across different markets (Forex, commodities), urging viewers to focus on price delivery rather than specific instruments.
  • They assert that buying/selling pressure does not dictate market movement; instead, time and price interactions are fundamental.

Practical Trading Insights

  • A practical example demonstrates how traders should set stop-loss orders based on fair value parameters established by previous candles.
  • Confidence in predictive abilities is reinforced through examples from veteran students who successfully apply learned skills in real-time trading scenarios.
Video description

Government Required Risk Disclaimer and Disclosure Statement CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR 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 REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance trading results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. U.S. Government Required Disclaimer – Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. Trade at your own risk. The information provided here is of the nature of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person’s investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. You should seek appropriate advice from your broker, or licensed investment advisor, before taking any action. Past performance does not guarantee future results. Simulated performance results contain inherent limitations. Unlike actual performance records the results may under or over compensate for such factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profits or losses to those shown. The risk of loss in trading can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. If you purchase or sell Equities, Futures, Currencies or Options you may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice in order to maintain your position. If you do not provide the required funds within the prescribed time, your position may be liquidated at a loss, and you may be liable for any resulting deficit in your account. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market makes a “limit move.” The placement of contingent orders by you, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.