Feb 7, 2012

STS THE SINGLE INDICATOR METHOD OF TRADING

DISCLAIMER: Online trading involves substantial risk of loss and is not suitable for everyone. The valuation of the contracts does fluctuate, and, as a result, you may lose more than your original investment. The impact of seasonal and geopolitical events is already factored into market prices. The highly leveraged nature of online trading means that small market movements will have a great impact on your trading account and this can work against you, leading to large losses or can work for you, leading to large gains. If the market moves against you, you may sustain a total loss greater than the amount you deposited into your account. You are responsible for all the risks and financial resources you use and for the trading systems you are using. You should not engage in live trading unless you fully understand the nature of the transactions you are entering into and the extent of your exposure to loss. If you do not fully understand these risks you must seek independent advice from your financial advisor. All trading strategies are used at your own risk. This mentoring should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide which trades to make. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations. Past results are no indication of future performance. In no event should the content of this correspondence and coaching be construed as an express or implied promise, guarantee or implication from Children of the Journey that you will profit or that losses can or will be limited in any manner whatsoever. Children of the Journey is not responsible for any losses incurred as a result of using any of our trading strategies and mentoring. The Trading software should never be left unattended due to the possibility of events out of your control, such as computer or data failure, power outages, position mismatches, and/or network problems. Loss-limiting strategies such as stop loss orders may not be effective because market conditions or technological issues may make it impossible to execute such orders. Likewise, strategies using combinations of trading positions such as spread or straddle trades may be just as risky as simple long and short positions. Information provided in this correspondence and coaching is intended solely for informational purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. 1 of 17 STS The Single Indicator Method of Trading
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STS THE SINGLE INDICATOR METHOD OF TRADING

Revision Log:
20120207.1400 A.Penaloza created initial document.

Related Documents:
STS The Knowledge Base.doc The Sangha Trading System.ppt STS The Perfect Picture Book.doc STS The Basis of the Sangha Trading System.doc

Contact Info:
Email: childrenofthejourney@gmail.com Twitter: @tradingsangha Web: tradingsangha.blogspot.com

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STS THE SINGLE INDICATOR METHOD OF TRADING

Contents
Purpose .................................................................................................................................................................... 5 Mission Statement ........................................................................................................................................................ 5 Mastery...................................................................................................................... 5 PLAIN LANGUAGE DISCLAIMER: .......................................................................................... 6 The Sangha Principles..................................................................................................... 6 The Single-Line Trading Indicator!!!................................................................................................................................... 7 Basis for this Discovery ................................................................................................................................................ 8 Why??? ....................................................................................................................... 8 Why Two Timeframes? .................................................................................................... 8 Why Jerk_6? ................................................................................................................ 8 Suggested Training Method for Sangha Unity ........................................................................................................................ 9 Training Step 1 Do Longs: ............................................................................................. 10 Training Step 2 Do Shorts: ............................................................................................. 12 Please use Sangha Easy Layout, instead of Sangha Unity........................................................................................................ 14 Why another layout? ..................................................................................................... 14 Suggested Training Method for Sangha Easy......................................................................................................................... 15 TRAINING STEP 1 DO LONGS: ..................................................................................... 15 3 of 17 STS The Single Indicator Method of Trading
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STS THE SINGLE INDICATOR METHOD OF TRADING TRAINING STEP 2 DO SHORTS: ................................................................................... 16

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STS THE SINGLE INDICATOR METHOD OF TRADING

Purpose
This is the collective Wisdom our Spiritual Community of Traders had been gratefully made privy to by the Universal Intelligence of Love. This manual is a compendium of knowledge we as individuals and as a community continue to learn with appreciation and gratitude.

Mission Statement
We believe in the Divine and the Universe. We are eternally Grateful and ever Thankful for the Gift given. We are continually given the most amazing insights about this Gift; which allowed us to create a business that takes little of our time to run during the day. This Gift enables us to spend quality time helping others as the Divine wishes. This is the reason we teach this Gift to others. We depend on the Divine and the Love of the Universe to lead others to us. Mastery It is what "is", you are seeing what you see. It is ALL in the technique and your efficiencies. You cant predict the future trends of the market, you are but a mere follower, so act like it! You must only develop the ability to see what is before your eyes. The Universe is asking for little more in this endeavor. Practice being efficient!
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STS THE SINGLE INDICATOR METHOD OF TRADING

Points per trade, get it up. Like Dirk Nowitzki in the NBA at 2.5 points per hoop. (The best average near him is 1.3). Not like Monica Lewinsky, who swallowed many a shot, but didnt get credit for one. Using the least time and effort, a skilled performance = EFFICIENT! We will become Madly skilled in this area. Kurt Duerod PLAIN LANGUAGE DISCLAIMER: 1. The Sangha will never ask you for money. 2. The info IS PROVIDED FREELY with "no strings attached". 3. The Sangha will provided answers and guidance pertinent only to The Sangha Trading System. 4. The Sangha WILL NOT provide proof of effectiveness nor ANY guarantee of FITNESS of use. Prove it to yourself! 5. You are FREE to profit from The Sangha Trading System in any way you choose, with only ONE RESTRICTION Give credit to The Children of the Journey Sangha as the original creator. The Sangha Principles 1. Those that have the passion and perseverance, on their own volition, will prove the merits of "The Gift" to themselves and acquire the necessary skills by their own effort. 2. As "The Gift" was freely given to the Sangha, we FREELY give the gift from our heart to those who ask us. The Sangha will freely answer questions and provide the foundational knowledge to those who seek. 3. The Gift of "The Sangha Trading System" is Open Source and will adhere to the "7 Guiding Principles" of Open Source.
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STS THE SINGLE INDICATOR METHOD OF TRADING

The Single-Line Trading Indicator!!!

The Universe gives us answers when we continue to earnestly ASK (Matt. 7:7)!

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STS THE SINGLE INDICATOR METHOD OF TRADING

Basis for this Discovery

Please see the web site for video and the Sangha Unity Layout for SierraCharts - http://tradingsangha.blogspot.com/p/advanced-layouts.html

During the STS Team on-going journey of discovery, we have continually asked for a Single-line to trade the market with.

Why???
We wanted simplicity, peace and serenity when playing/dancing with the market. The STS Team believes the Universe have given us our Answer! That Answer is to use Jerk_6 in two Timeframes for the financial instrument you are trading in. It is that simple!

Why Two Timeframes?

You need a Shorter Timeframe (Short-Term Jerk_6 STJ) to time your entries and exits right-on-the-pivots! You need a Longer Timeframe (Long-Term Jerk_6 LTJ) to know when to stay in your trade!

Why Jerk_6?
Jerk_6 is the Second derivative of Macd_6, whose constants are; Fast: 1065, Slow: 2307, Length: 887). The First derivative (MacdRate_6) is smoothed through an Exponential Moving Average with a length of 25. From this Smoothed MacdRate_6, Jerk_6 is then derived (Jerk_6 = MacdRateSmoothCurrent_6 MacdRateSmoothPrevious_6). Jerk_6 has a very interesting property When Jerk_6 is above Zero, the price action is in an uptrend. When it is below Zero, the price action is in a downtrend. The use of a higher Timeframe for Jerk_6 allows the STS practitioner to easily see the long-term trend of the price action. It is that simple!

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STS THE SINGLE INDICATOR METHOD OF TRADING

Suggested Training Method for Sangha Unity

Sangha Unity is the name we are attaching to this variation of the layout of the STS Toolset. The beauty of STS is you may arrange the tools in any form that works best for you as a trader. Each subset of the STS Toolset has a purpose. The Rates as Crossings gives Long-down-the-road view. The Jerks gives timely entries and exits. The Rates gives the REASONS the market is doing what it is doing. Now, the Universe has showed us how to use Jerk_6 for timing, as well as, for the Long-View! What simplicity!

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STS THE SINGLE INDICATOR METHOD OF TRADING

Training Step 1 Do Longs:

Enter Long: Do Market Replays; trading from the 2nd Bull Flag created by Jerk_6 while below the Zero, using the LTJ (Long-Term Jerk_6). Time your entry for the LONG with the Short-Term Jerk_6, valley take-off, from a higher valley, when below Zero.

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STS THE SINGLE INDICATOR METHOD OF TRADING

Exit Long: Is the Long-Term Jerk_6 (LTJ) creating its 2nd Bear Flag while above Zero, then time your exit with STJ (Short-Term Jerk_6) as it creates another Bear Flag, from a lower peak.

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STS THE SINGLE INDICATOR METHOD OF TRADING

Training Step 2 Do Shorts:

Enter Short: Do Market Replays; trading from the 2nd Bear Flag created by Jerk_6 while above the Zero, using the LTJ (Long-Term Jerk_6). Time your entry for the SHORT with the STJ (Short-Term Jerk_6), from the Bear Flag, from a lower peak, when above Zero.

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STS THE SINGLE INDICATOR METHOD OF TRADING

Exit Short: Is the Long-Term Jerk_6 (LTJ) creating its 2nd Bull Flag while below the Zero, then time your exit with STJ (Short-Term Jerk_6) as it creates another Bull Flag, at a valley take-off, from a higher valley.

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STS THE SINGLE INDICATOR METHOD OF TRADING

Please use Sangha Easy Layout, instead of Sangha Unity

Why another layout?
Because I just could not bear to have a 2nd window with the same instrument. We had to find a replacement for the Long-Term Jerk_6, which gives us the "Long-View".

Solution is...
Use MacdRate_6 (EMA smoothed to length 25) for the "Long-down-the-road-view", since it follows the price-action (set it to independent scaling). We also threw in Jerk_1 to give us a slight edge on predicting entries at the pivot. Sangha Easy is what we are using to build up our own trading skills. Please prove the usefulness of the Sangha Easy Layout to yourself...

Please go to this http://tradingsangha.blogspot.com/p/advanced-layouts.html for video and to download the SierraChart Indicator for Sangha Easy. 14 of 17 STS The Single Indicator Method of Trading
All Rights Reserved; The Children of the Journey Sangha of the East Coast. Copyright, 2011-2012

Feb 7, 2012

STS THE SINGLE INDICATOR METHOD OF TRADING

Suggested Training Method for Sangha Easy

Sangha Easy is the name we are attaching to this advance variation of the layout of the STS Toolset. The beauty of STS is you may arrange the tools in any form that works best for you as a trader. Each subset of the STS Toolset has a purpose. The Rates as Crossings gives Long-down-the-road view. The Jerks gives timely entries and exits. The Rates gives the REASONS the market is doing what it is doing.

Now, the Universe has showed us how to use Jerk_6, for timing, with MacdRate_6 for the Long-View!

The Sangha Easy Layout allows you to be Predictive or Reactive, according to your trading personality. What ease of use!

TRAINING STEP 1 DO LONGS:

Enter Long: Do Market Replays; trading from the 2 Bull Flag created by Jerk_6 while below the Zero. For predictive entry, wait for the up crossing of Jerk_1 and Jerk_6, while below Zero. For reactive entry, wait for up color change on MacdRate_6 or as Jerk_6 crosses the Zero from Below.
nd

Exit Long: nd Look for Jerk_6 creating its 2 Bear Flag while above Zero. For predictive exit, time your exit as both Jerk1 and Jerk_6 cross to the downside, as Jerk_6 creates another Bear Flag, from a lower peak. For reactive exit, wait for down color change on MacdRate_6 or as Jerk_6 crosses the Zero from Above.

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STS THE SINGLE INDICATOR METHOD OF TRADING

TRAINING STEP 2 DO SHORTS:

Enter Short: Do Market Replays; trading from the 2 Bear Flag created by Jerk_6 while above the Zero.
nd

For predictive entry, wait for the down crossing of Jerk_1 and Jerk_6, while above Zero. For reactive entry, wait for down color change on MacdRate_6 or as Jerk_6 crosses the Zero from Above.

Exit Short:

Look for Jerk_6 creating its 2

nd

Bull Flag while above Zero.

For predictive exit, time your exit as both Jerk1 and Jerk_6 cross to the upside, as Jerk_6 creates another Bull Flag, from a higher valley. For reactive exit, wait for up color change on MacdRate_6 or as Jerk_6 crosses the Zero from Below.

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STS THE SINGLE INDICATOR METHOD OF TRADING

The Universe always provides!

Once again, as STS Practitioners, please prove to yourself the veracity of this new discovery.

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