What You Need
GETTING STARTED WITH E=MC2
Getting started with E=MC2 is easy. You will need a live data feed combined with a simple, basic charting package. You will also need a brokerage account with a firm that handles futures trading. Today all charting and trade execution can be handled over the Internet.
All Trading examples in the E=MC2 manual are provided using the TRADESTATION PLATFORM (www.tradestation.com), and this is charting package we recommend for all E=MC2 users. At present, Tradestation is at the top of the industry when it comes to data, charting, and brokerage services, but there are many other excellent companies out there.
E=MC2 uses the follwing charts and techincal studies:
1. Intra-day Bar Charts
2. Volume Share Bar Charts
3. Tick Charts
4. Moving averages
5. Volume Ratio Indicator (Up and Down volume analysis)
ATTN: NINJA TRADERS: THE NINJA CODE FOR VOLUME RATIO AND PAINT BAR IS AVAILABLE IN TRADESTATION FORMAT. IF YOU ARE UNABLE TO LOCATE THROUGH FORUMS, ETC. THESE CAN BE SENT TO YOU IF YOU E-MAIL tradingcreations@tx.rr.com ALONG WITH A CONFIRMATION OF BOOK PURCHASE.
Most charting packages (Multicharts is an excellent charting package - see website links for more information) contain these options and indicators, or have a way for you to customize and/or import these studies in some manner. Check with your charting vendor for assistance on how to do this if necessary.
Here is a description and example of the Volume Ratio indicator as it appears in TradeStation. You can use this as a guide to check with your chart vendor so they can provide you with this study.
Volume Ratio
Input Information
|
Name |
Expression |
Default |
Description |
|
AvgLength |
Numeric |
14 |
Factor used in calculating the Volume Oscillator. |
|
UpVolAlertPct |
Numeric |
5 |
Value at which the alert for "Up" ticks is triggered. |
|
DnVolAlertPct |
Numeric |
-5 |
Value at which the alert for "Down" ticks is triggered. |
|
ColorNormLength |
Numeric |
14 |
Number of bars over which to normalize the indicator for gradient coloring. |
|
UpColor |
Numeric |
Yellow |
Color to use for indicator values that are relatively high over ColorNormLength bars. Set to -1 to disable gradient color plotting. |
|
DnColor |
Numeric |
Cyan |
Color to use for indicator values that are relatively low over ColorNormLength bars.
Set to -1 to disable gradient color plotting. |
Market Synopsis
The Volume Ratio indicator calculates an exponential moving average of the ratio between up and down volume. The exponential average is then plotted as an oscillator around a zero line.
Volume can provide insight into the strength or weakness of a price trend. This indicator plots positive values above the zero line, and negative below. A positive value suggests there is enough market support to continue to drive price activity in the direction of the current trend. A negative value suggests there is a lack of support and prices may begin to become stagnant or reverse.
Plot Information
|
Number |
Name |
Default Color |
Description |
|
Plot1 |
VolRatioAvg |
Yellow/Cyan |
Plots the Volume Ratio value. |
|
Plot2 |
ZeroLine |
Dark Green |
Plots a reference line at zero. |
When applied to a chart, this indicator contains two plots, displayed in a separate subgraph from the price data.
Set either UpColor and/or DnColor to -1 to disable gradient plot coloring. When disabled, Plot1 color is determined by settings in indicator properties dialog box. Plot2 (ZeroLine) color always comes from indicator properties dialog box.
Note This indicator only returns significant results when applied to bars with a time interval of tick or intraday
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Trading Creations has no affiliations with any organization that provides price data, charting or brokerage services. There are many reliable companies that provide these services at very competitive rates
The E-Mini is electronically traded and part of the Chicago Mercantile Exchange. The exchange itself offers price data and charting services for its products under a “MY CME” Package. This is an internet-based chart package that can be accessed from any computer. Go to www.cme.com for updated information.
Trading futures has never been easier, and there are many good, reliable firms who would love your business. A great source of these firms can be found at www.futures.tradingcharts.com/brokers.html. Once you find a solid company, the most important factors you will need to consider are trading platforms offered, commission costs, and phone back-up service in case computer connections go down. Today all firms will send you account activity through E-Mail.
YOU CAN GET LIVE E-MINI CHARTS OVER THE INTERNET. IT TAKES JUST SECONDS TO CHECK THE MARKET TO SEE IF E=MC2 TRADES ARE DEVELOPING!
Account/Trading Size - The E=MC2 track record is set up for a small trading account and is based on a minimum contract set. This allows for minimum 1-contract position trading. The initial stop loss per contract is always relatively small (2-3 ES points), or approximately $100-150 risk per contract.
For a minimum contract set, we recommend that your account size equal approximately $5000. This is a safe, conservative calculation. Some firms will allow you to start with a smaller account. A smaller account, while more aggressive, will still allow you to withstand any draw down periods that might develop with E=MC2.
TIME COMMITMENT
E=MC2 is designed for both the part-time and full-time trader.
By no means will you need to be glued to your computer screen at all times! For the most part, E=MC2 is a very relaxed way to trade, and you will have plenty of time to attend to other matters during the trading day. E=MC2 trades set up all day long, and many E=MC2 trades last only for minutes.
It takes just seconds to check the market to see if any E=MC2 trades are developing, so if you have a computer and internet connection, you can just click on the E-Mini chart and know exactly where you stand.
It is easy to anticipate the times you will need to be "active" trading E=MC2. So, while you can definitely attend to other matters during market hours, just know you will need to casually check the E-Mini market throughout the day, and then be available to execute E=MC2 trades when signals become imminent.
E=MC2 is perfect for both the full-time and part-time trader, or any person (or group of persons) that work, and have access to a computer with an Internet connection during the trading day.
E-MC2 TRADES BETWEEN 8:30 - 3:15 CST
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