Watch the video below and learn the three myths of money management that are responsible for traders busting their accounts.
“Trade Management is what separates winning traders from losing traders… What amazes traders the most after using the Trade Manager is how much money they were leaving on the table by not having the correct amount of shares or contracts for each trade.”
95% of trading performance is based on proper position sizing, which is the percentage risked in relation to the size of your trading account. Trade Manager tells you how many contracts you need to have to maximize your trading results.
Stop management and position sizing are the two most critical components that separate winning traders from losing traders.
Trade Manager’s automated trading features automatically calculate the correct amount of contracts or shares to trade based on your account size and then enables you to place the trade directly from your chart. By the time you exit the trade, you are making MAXIMUM MONEY on MINIMAL RISK. And isn’t that the goal?
Automated trading and position sizing alone can cure most of the problems that individual traders have. In trading, you’re not paid for analyzing charts and…you’re not paid for placing the order or having the fastest execution platform. What you are paid for is successfully managing the position while it’s in play!
Most traders obsess on finding the “best” entry point to get into their trade. But, where is the money being made on your trades? The position size and the exit!
Remember, the ONLY thing you can truly control is your risk (position size). You cannot control where the market is going to go. No one can. But, you can remove some of the stress by knowing your risk before you enter a trade and then letting an automated trading tool manage your position once it’s in play. In fact, with Trade Manager, you can put on a position and then forget about it.
Trade Manager’s automated trading functionality will trail your stop(s) for you. Thereby, freeing you up to take other trades. Think of it as having multiple fishing poles in the water at the same time. You exponentially increase your chances of scoring the Big Fish!
The easiest way to tell if a trader is going to be profitable is by looking at how they handle these two cardinal rules:
Trade Manager does both of these for you! Trade Manager is an essential trading tool that works with any system or collection of indicators on the NinjaTader platform. It ensures you take the maximum profit from each and every trade you make.
Finally, an automated trading tool that truly “lets your profits run” without further risk!
ATR: ATR is the default value and can be changed as per the setup instructions in the previous section. Average True Range is a stop strategy based on market volatility.
Percentage: Percent is part of the Percent Trailing strategy. The value refers to a percentage of the high/low of the indicator will use to determine the stop placement.
MA: The Moving Average stop strategy allows you to choose from eight different Moving Average styles. Select the style you like from the Type drop-down menu box.
SWING: Uses market turning points to trail the stop loss order. Swing Highs and Lows show where price has found support and resistance and is, therefore, a strong stop strategy. Choose which side of the market you want the stop-displayed by selecting HIGH/LOW from the Type drop-down menu box.
BAR: Bar High/Low is IndicatorWarehouse’s own proprietary Scalping stop strategy. It is an aggressive strategy designed to take you out of a trade at the first sign of market weakness.
PSAR: Developed by Welles Wilder, the Parabolic SAR is an easy, yet powerful stop loss method. Parabolic SAR stands for “stop and reverse” and will trail price as the trend extends over time.
Supertrend: A modified ATR strategy and ideal to use with trends to optimize your output. Super Trend moves above or below the price depending on how the trend in progress. It moves with the price as a stop loss but does not “crowd” price during congestion.
CHANDELIER: Developed by Chuck LeBeau, the Chandelier stop strategy is a trend-following system which dangles a multiple of Average True Range from the Highs during an uptrend and adds them to Lows during a downtrend.
FIXED: As the name suggests the Fixed Tick Strategy trails the stop loss order by a pre-set number of ticks.
Note: If the FIXED strategy is displaying the stop-loss on the wrong side of the market enter a negative (-) value in the Tick Offset. This feature will “flip” the trailing stop to the other side of the market.
In addition to over twelve types of custom trailing stops, Trade Manager also provides BREAK EVEN functionality.
The BREAK EVEN button automatically moves a live trade to breakeven +1, which is the default value. However, it can be changed to any positive number.
OCO (One-Cancels-Other) orders are most often used to “bracket” trades with a BUY order above and a SELL order beneath recent price action. As the name suggests, when one side of the trade is filled (or canceled) the remaining order(s) are automatically canceled. With OCO, you can have as many OCO trades on your chart as you like.
Trade Manager is a big help when setting stops. I set the program to manual and use it on different charts with different stop parameters. I do this because the ES can have different volatility even trading short term making different stop parameters work better a different time. When I see a chart I like with a stop parameter that looks reasonable, I switch that chart to auto. By switching to auto I can then let the trade run and avoid the impulse to cut the trade short or the need to sit and babysit the trade to its conclusion."
I liked knowing instantly if the trade was going to have at least a 1:1 risk reward ratio. It shows you instantly if a trade is worth getting in to. Your explanation of risk management has changed the way I think about trading and Profit Finder along with Trade Manager I’m certain make trading a whole lot easier..."
Trade Manager is user friendly, prevents losses, and takes advantage of big moves with the use of trailing stops. I can set up a trade and go do other things without having to be glued to the computer. It minimizes losses while maximizing profits and helps me manage psychological factors."
Many thanks for this update Adam. I've got Trade Manager ‘humming’ now – it truly is a wonderful indicator."
DTS is a relatively simple system to use and allows for a variety of trading styles because you have 3 signal generators (scalp, swing, trend). Money management is a component of the package and all the tools provided as a package complement each other. “If you can afford the risk take the trade” is drilled by Erich in the training room – probably the biggest help has been in the money management side of things and the process of how to more effectively grow an account. I purchased DTS as I had over time been impressed with the trading tools the company was developing and the tools I had already purchased had assisted in my trading. DTS complements what I was already doing and assisted in various weaknesses by allowing for more definitive solutions. My conversations with Adam and his team made me comfortable that they were very focussed to develop a successful product."
The Account Protection feature - being able to trade the correct number of shares by setting your entry and stop price based on the % of your account that you are willing to risk on any one trade is fantastic. Along the same lines, being able to automatically have the number of shares rounded to the nearest hundred is a bonus! No more uneven number of shares, which always increased commissions. Also, being able to set pre-defined targets that are automatically placed upon setting your entry price and stop is quick, easy, and beneficial. Finally, the ability to see the proper placement of stops (based on many options) lessens the emotion of stop placement. I used to set my stops too tight. Now I place them using the bar high / low - 5 bars back and stick to them. Trade Manager is a complete system for proper account management and stop placement. It's the only complete system to properly manage a trade before, during, and after. If you are a serious trader you need this."
Adam, this system is going to be a true game changer for me! Thanks for making my trading so much more easier!"
New Trade Manager’s flexibility to change stops and global settings for different time frames removes my frustration from changing my stops to secure more profits in mega trend situation. TM has covered almost every aspect I can think of at the moment. New Trader Manager is just the greatest tool for risk management in the market."
I liked this much improved version of the Trade Manager. I could place an order and simply trade a price I wanted and then Submit the order. I liked the speed of its execution in and out of a trade, the simplicity and its speed of setting up a Strategy, the Options of Soft and Hard setups, the speed of the Hard entry and the way it places your Price Targets all with a click of a button T1 10 and T2 20 complete with the number of Contracts all in, all out perfect. I liked the BUY BID then going to Break Even, still increasing the bank balance, the idea of OCO (One Cancels Other) that’s a nice touch. Also liked REVERS / CLOSE button and the nice neutral colors of the Trade Manager and using the ATR as my trailing stop because eventually it catches-up with price. This new version is something else, and the problem it solves for me was getting closer to price and making things easier for me to protect my account."
Position management is the bomb (everyone talks about the % risk sizing model, but even though I can trade more that 1 or 2 lots I rarely seem to trade like that in real time) and so to have it done automatically is great! I can just dial in the % risk and go. Easily reduce leverage and knowing the actual cost of my profit targets and expected profit of prior to submitting the trade. I also love the fact that the I can change the stop indicator mechanism on the fly and get a preview of different stop before I commit to changing."
I just recently purchased your DTS Falcon trader system along with the New Trade Manager, and I just want to say what an amazing system this is. I'm new at trading, and I have tried several other software indicators, and nothing compares to DTS. It's extremely simple to understand for the newbie, and the customer service is excellent. If your looking for a software indicator package to help with your trades look no further.... this is it! Thank you, Adam Halpern."
I’m using all three DTS and currently breaking into trade manager. There is no doubt that they are spitting out good signals, and you will still take losses if you are trading every signal. It’s predicting the right ones by time of day and volume I find. I am finding it difficult to accept trade manager right now but I am getting used to it, it has managed to save my ass. So I think it may be useful. Just in case anyone’s wondering. I think the best DTS to start off is the Swing. I use it constantly even though I’m a scalper myself. Look, it’s not perfect if it was we’d be all billionaires right? But in my experience there is nothing as easy to follow and install and as accurate with signals as the DTS. What I’m most looking forward to is Erich's live room so I can see which signals he decides to pick and why.. I think this is where my learning curve will peak. Good article Adam and thanks for creating the DTS!"
Adam, I just wanted to take a moment to thank you for the incredibly kind service and super fast response that you personally gave to me. What's more you and Erich should be applauded for the level of integrity and attention that you showed to me as a new customer. First, Erich could not have been more helpful in my determination to purchase all three DTS birds from Indicator Warehouse. He has a wealth of useful knowledge. Then when it came time to pull the trigger on my purchase, you had my back when a bothersome glitch occurred with PayPal. After installation, Ben in your tech support department was "by my side" until all three Birds and the Trade Manager were installed and running smoothly. Indicator Warehouse is a first class, centered organization. Thank you, Adam, and please thank Erich and thank Ben for everything!
I want to thank you for your professionalism and products over the past 3 years since first becoming a loyal customer of Indicator Warehouse. I have purchased several trading systems and many indicators from Indicator Warehouse and have always received prompt response to my questions and concerns. I have also used their consulting services and have always received value for money spent. I can strongly recommend Indicator Warehouse and want to also thank Ben for such incredible technical support with all my questions. I wish you all the best with your future offerings. All I can say is, if your system isn't consistent, buy and use Profit Finder, and analyze your assumptions and reconfigure based on facts, not assumptions."
I was laid off in October 2012 and decided to try trading stocks to replace the paycheck since I was 60 years old and the chances of finding a new engineering manager job was pretty slim in this economy. At first I tried trading stocks by viewing the stock charts. That didn't work well so I then studied stock indicators and tried to trade stocks using various stock indicators in addition to the stock charts. I had as many losing trades as winning trades so that did not work well either. After about three months of no success, I then looked at various software packages for trading stocks and came across the DTS software by Indicator Warehouse. I decided to try it as the software gave suggested entry points to purchase or sell the trades and I liked the risk management approach used by the Trade Manager program. The training by Indicator Warehouse has been great and the support by Ben has been outstanding. I have been trading with the DTS Falcon Swing program (with Trade Manager) and with the Ninja Trader stock indicators for a month now and just purchased the DTS Eagle Trend program. My trading success has been great as I have been consistently making more money than I made in my previous job. I look forward to now using the DTS Eagle program in addition to the DTS Falcon program and having even more success."
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.
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.
Use of any of this information is entirely at your own risk, for which Indicator Warehouse will not be liable. Neither we nor any third parties provide any warranty or guarantee as to the accuracy, timeliness, performance, completeness or suitability of the information and content found or offered in the material for any particular purpose. You acknowledge that such information and materials may contain inaccuracies or errors and we expressly exclude liability for any such inaccuracies or errors to the fullest extent permitted by law. All information exists for nothing other than entertainment and general educational purposes. We are not registered trading advisors.