Track `n Trade Pro - Gecko Software, Inc.
Contents
1. kil 2 P T GELLI STP up as GTC dia hj iat Accounting amp Simulator Plug in From the My Account window user s can place orders and make deposits and withdrawals This window also has overall totals for the trading account and for the current contract that you have open in the Chart Window ET Order Trade Log Accounting Date Open Order PAL Clozed Order P L Order Commission Orders Subtotal Total Open P L Total Closed P L Total Commissions Account SubT otal Account Balance Margin Requirement Available Funds Current Position Date Comm Details Deposit WD Wel EC200 00 2237 50 0 00 50 00 2187 50 2237 50 0 00 50 00 2187 50 50 00 Long 1 Amount 10000 00 Buy 1 2 335 75 STP Filled Sell 1 353 25 STF Open Sell 1 22 1330 00 STP Open 1 amp 1483 00 STP Filled c 1506 00 1271272003 3917 50 0 00 100 00 3817 50 3917 50 0 00 100 00 3617 50 13817 50 1850 00 11967 50 Lang Short Placed On 104202003 c 335 75 11 25 2003 c 1409 00 Accounting Date Date that the current chart is played to Open Order P L Profit Loss on trades that are open Closed Order P L Profit Loss on completed trades Order Commissions Total commissions paid Account Balance All closed Profit Loss Commissions Withdrawals and Deposits Margins Requirements in placing amp maintaining an order Cu2. In Ner 19 ke LL Lance 108 Ie Mor Mere 04 2062 15 AXE E Si Pi 10 37 DU Yellow Play to End New Charts This option will leave the data in saved charts at the date that they were last displayed before saved and play any new charts to end of the data available for that contract This setting is the factory default setting Green Play to End All Charts This option will display all avail To generate the trade log click on the Trade Log button on the Accounting Ml able data on both saved and new charts that are selected tab Next select the date range for the trade log from the drop down menus This will give you the changes in the orders placed within that date range You also can filter the trade log by All Charts or by one of the contracts being um Buttons traded You can print and or save this trade log by clicking on the corre Icon Action sponding button in the upper left corner Go to First Day in Chart Back One Month Back One Day as Bere A 2027 Fe Mese 15 ME Cima eT OO TF LE Mar 83 MEI 715 le TALE SL 458 DE DU S IP 4 Play Backward one day at a time 258 Track n Trade Pro 4 0 User Manual Track n Trade Pro 4 0 User Manual 259 Accounting amp Simulator Plug in Play Forward one day at a time Fast Forward 260 Forward Day Forward One Month Go to the Last Day in the Contract Chart
3. Dod nlt Betina 4 Gala Pisa hiie Elah tados reta eal Haro Vaha iphone Sine Value Under uad ard 4 Copley Stabe Poco babes p onr Sike siue n Appl b feos chat 1 Strike Price Indicator The lines that make up the OSV indicator the Black and Scholes Theoretical and the Reported Market Value 2 Style and Color To change the line style click on the drop down menu and choose from Solid Dashed or Dotted lines To change the color of the line click on the corresponding color box and choose a new color from the Color Palette 3 Options Strike Value This indicator is a histogram style chart measur ing Under and Over Valued Options 4 To display the Strike Price Indicator or the Options Strike Value select the check box in front of the indicator 5 Ruler Bar See page 247 for full instructions 6 Preview Window This window allows you to make changes and pre view them before saving them T To apply the changes you made to all open charts listed in your Active Charts list click on the Apply to active charts button To restore the software defaults to the Options Indicators click on the Restore Factory Defaults button Track n Trade Pro 4 0 User Manual Options Plug in 8 Help Information from the manual has been integrated into the soft ware When clicking on the Help button you will get specific docu ment
4. Options Plug in Option rateg tak glatar Cds pio feas io bord hes CBOT bel Dee 2007 Fada 12 cil Decemb 201 Mua pl clea ar xou gt LT Jrs pana 5 0 Oat Le Pital of pios Aras mi apascn a Bu Oui ae a exo Cal 1 So ipia ud iria del fia Me Pace Cote To modify orders click on to select the order and then click on the Modify Selected button To delete orders from the calculator click on the order and then click on the Delete button To place the orders from the calculator on the underlying futures chart click on the Place Orders button or click Cancel to exit the Options Strategy Calculator Track n Trade Pro 4 0 User Manual 213 Options Plug in The Profitability of Option Strategy at Expiration The OS Calculator enables you to enter an Option Strategy to see the po tential profit loss of that strategy order See diagram below with the details of the OS Calculator Option Merategy Cakcalatar Laus opbces teen dol cei LAO ee Des 0032 Fede 12 of December 200 Maio ckued ar 3905 Adro Option orden tor your arming big pa Doro Deters rs porta 5 Citan Cs he qe Putitas oi Oper kate a 1 Sirio Somer Place Cedex OSV amp STRK Options Indicators 274 Determining if your Option is Over or Under Valued The Opt
5. Select date for withdrawal transaction Withdraw Amount EN December 2003 0 4 5 Bb 11 12 13 14 15 1 19 13 20 E 23 5 26 27 28 29 30 2 3 4 3 b fo 8 383 A Cancel Track n Trade Pro 4 0 User Manual 257 Accounting amp Simulator Plug in Accounting amp Simulator Plug in Deleting Deposits Withdrawals Simulation Right click on the deposit or withdrawal and select Delete from the menu to The ability to play charts forward and backward using the Play Controls remove gives you the ability to go back in time and simulate the trading experience using historical data Editing a Deposit Withdrawal Right click on the deposit or withdrawal and select Settings From here you Play Controls can change the date amount or order type INI Trade Log The Accounting and Simulator Plug In also includes a trade log that tracks lon Lock Charts to Date This option will lock all the charts to the date displayed on the current chart the changes that you make to orders in a Chartbook This trade log will list new orders placed orders cancelled as well as any order that you have moved Red Play to End Never This option will open saved charts at the last date viewed before they were saved and new charts with no data displayed hol Prom reos wf History repart generated ces Fir gcn Lite Leni gt Zt Cel ad ba Oc
6. To restore factory defaults To restore the margins to software defaults click on the Restore factory defaults button Track n Trade Pro 4 0 User Manual 293 Spreads Plug in 294 Track n Trade Pro 4 0 User Manual TRACK N TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time Commitment of Traders Plug in Commitment of Traders Plug in Commitment of Traders Plug in Commitment of Traders Plug in Know What the Industries are Trading Introduction In this graph you will notice the red bars which indicate that the commer cials are all selling or going short while the trend of the market is going up that is what this COT graph is representing The Commercials are using the futures market to hedge either the cash market or their current inventory that s why they are going short or selling during an uptrend You ll also notice that the blue lines which are representative of the large speculators do follow the trend of the market more closely and that s be cause they are speculators not hedgers That s why when the market goes up the large speculators go long or buy the market in an attempt to capture profits from buying low and selling high But the commercials or hedgers go short Again in an attempt to price protect their cash crop or inventory You ll notice that the small green bars represent the small speculators What you generally find is that the large speculators and the professional trad
7. Neutral Market Track n Trade Pro 4 0 User Manual 307 Bulls n Bears Trading System With the Bulls n Bears Red Light Green Light Blue Light trading method system you have simple to understand entry and exit signals displayed visu ally on the chart Red Light Bearish Trend Indicates the beginning of a bearish trend and that the contract has started to move downward therefore identifying a pos sible short entry point Green Light Bullish Trend Indicates the trend of a market has begun to move upward identifying a possible long entry point Yellow Lights Neutral or Sideways Trend Indicates the trend of the market has entered a sideways or neutral time frame Bullish Market Blue Lights Stop Loss Placement The Parabolic stop is used within the Bulls n Bears system as the key point for managing your stop loss risk while trading helping you to identify exit and stop loss placement points after entering a trade To edit the way your Bulls n Bears Trading System looks and to change it s formula and sensitivity to the market go to your program options under the folder My Default Settings 308 Track n Trade Pro 4 0 User Manual Bulls n Bears Trading System Program Options Track n Trade Program Options E C Magen Bulls Bears Red Green Blue Light In Ps Hu TT me i 1 Fina Cbr pum RS e Traci guis e 3 nach Heus ji Vl re
8. of your Chartbook when you save and close it 292 Track n Trade Pro 4 0 User Manual Spreads Plug in Spread Margins In the Program Options panel under Global Settings you are able to modify spread margin requirements Track n Trade Program Option Spread Margins Canna By Comme i L ng Terr 1 dial Dol Im TEL HI Tota 2 hui sri role CO Bs Dead Sura Dil Pagi buda D odo MU Dish Poured 1350 0 Conrado nn Tem 1533 00 Aub shar Dolo 1221500 Doda T Seen Franc fo 1215 00 Iiiih Poured HD Hih Piri Dinidir Didi TORO ICI E lop rem 1611 CI Beth L Senet Friar THD CHE led BE 00 Canadian U obs Lanadisn Dolls AU Caneda depre oa Ter 140000 Wu gm Fine fe 11500 3000 Lise fe Lisa 2 2000 2000 Lolles E fal 1 L Bal mua sano MM 1 1 1 1 1 1 11 niemewe ihe velechedibem ckek Delete n mira did dnd 3 41 pl Add E k Comeu To modify a margin Click on the margin in the list make changes to the margins and then select the Add Modify button To add a new margin Select the commodities for the spread and then type in the values for the Initial and Maintenance amounts and then click the Add Modify button
9. Due in part to the military environ ment of the Japanese feudal system during this era candlestick formations developed names such as counter attack lines and the advancing three soldiers Just as skill strategy and psychology are important in battle so too are they important elements when in the midst of a trading battle Bar Compared to Candlestick Charts Below is an example of the same price data conveyed in a standard bar What do Candlesticks Look Like chart and a candlestick chart Notice how the candlestick chart appears 3 Candlestick charts are much more visually appealing than a standard two dimensional as price data almost jumps out at you dimensional bar chart As in a standard bar chart there are four elements necessary to construct a candlestick chart the OPEN HIGH LOW and CLOSING price for a given time period Examples of candlesticks and a definition for each candlestick component are located below 3a 3b The long dark filled in real bodies represent a weak bearish close 3a while a long open light colored real body represents a strong bullish close 3b It is important to note that Japanese candlestick analysts traditionally view the open and closing prices as the most critical of the day At a glance notice how much easier it is with candlesticks to determine if the closing price was higher or lower than the opening price Shadowy 314 Track n Trade Pro 4 0 User Manual Track
10. all previous years and are not affected by the current year s trend Track n Trade Pro 4 0 User Manual Track n Trade Pro 4 0 User Manual 283 Seasonals Plug in Displaying the Seasonal Trend Indicator Once you have your settings the way you would like them in the Program Options window you can display the Market Probability indicator anytime you wish Just click on the SEAS button located in your indicators menu bar shown below E a i E E 1 Historical Averages 284 The Historical Average indicator is very similar to a Moving Average indica tor except that it is based on the average price of the specific contract lined up by date The charts are made for specific contract months so that the trader can see the behavior of the specific contract they are looking at This detail is important in a market with new and old crop contracts such as the agricultural commodities Unlike the seasonal average prices the Historic Average lines depicted in this feature are based on price not a relative basis In essence what this feature does is give you the average price on a specific day This chart will have the same basic feel and theme as the seasonal chart except instead of prices being scaled on a relative basis 0 to 10096 they are the average historical price for that day This feature may also help traders divine value in a commodity in that with a quick look not only can the trader see how current prices
11. drag the order tool along the futures chart you will notice that the cursor skips from strike price to strike price When you have reached the desired strike price release the mouse button and the Options Order window will open Track n Trade Pro 4 0 User Manual 265 Options Plug in 266 Options Orders 1 2 Commodity 20032 Date Friday December 12 2003 3 4 Quantity Strike amp Brokerage fee this trade each 0 00 Buy 380 00 Put T a Premiurn 6 0000 Contingency Order 10 9 Value 1300 00 Futures price breaks Total 1300 00 On Screen Test 44 Example Buy 1 Put Cancel The Options Orders window allows you to specify 1 Commodity This is the commodity symbol for the chart Value pre filled when placing on chart 2 Date This is the date of the futures chart that the option is placed on Value pre filled when placing on chart 3 Buy or Sell Click on the dropdown menu to change 4 Quantity the Default is set at 1 Highlight to increase the number of options to purchase 5 Strike Price Value of the Strike Price Value pre filled when placing on chart 6 Brokerage Fee This value is based on per side fee highlight and change value The Default is set at 0 00 7 Call or Put Choose the order type from the dropdown menu Value pre filled with type of option order tool chosen 8 Premium Point value for the strike price 9 Value The dollar amount o
12. like to fill the area from the Trend line selected to the bottom of the Indicator Window check this option and then choose the trend line to apply it to 5 Scale Seasonal To This setting will base the scaling on the highest point in the entire contract or the last 12 months and the lowest point on the option selected Track n Trade Pro 4 0 User Manual 287 Seasonals Plug in 288 6 10 Historical Averages This section changes the properties for calculat ing the average lines for the Historical Averages indicator on the Chart Window Market Probability This section changes how the Market Probability indicator is displayed in the Indicator window properties Displaying the Indicators Click on the check box in front of the indica tor that you would like to display Click on Apply to active charts if you would like to see your selecting settings on all the charts you open Click on Restore Factory Defaults if you would like to restore original software settings Help When you click on this button a pdf file will open showing the printed manual If you do not have Adobe Acrobat Reader on your com puter visit http www adobe com and download it for free Track n Trade Pro 4 0 User Manual TRACK N TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time Spreads Plug in Spreads Plug in Spreads Plug in Spreads Plug in Expand your Trading Options Introduction The futures market provides a va
13. line versus average prices historically but they can also see seasonal trends By simply checking the Historical Average check box within the Seasonals tab it dis plays the average line in the main chart window You may also change the number of years the color and line style in which the indicator is displayed The weighted box can be selected to provide more significance to the latter years than the earlier years The un weighted is a simple average giving equal significance to each year included in the study Track n Trade Pro 4 0 User Manual Seasonals Plug in Example of Historical Averages Cocoa c Mas 2004H h 1887 ii P ur veda 1 p a Al n E NM PRE 1 BL il 1 EF la L a I ui ACESS 1 HIH iil Jh f pr i ro A LA IRA u t Historical Average Lines amp i i sh E don DUCES E Fam a Displaying the Historical Average Indicator Play To 1 12 2004 To display the Historical Average on your chart simply right click on the Chart Window and e OHLC select Historical Averages from the menu HAL Close To deselect use the same process right click Candle and select Historical Averages from the menu Proportional width w Autascale Charts Moving Averages w Historical Averages Bollinger Bands Pivot Points 10 x 8 MAC Parabolic Track n Trade Pro 4 0 User Ma
14. on the order listed in the My Account tab and toggle the Hide option to show the order on the chart again Track n Trade Pro 4 0 User Manual 267 Options Plug in Options Accounting When you purchase the Options Plug in you add on an Options section to the My Account tab as well Plus the options orders that are placed are listed in the My Account window Below are the sections added to the Accounting Tab when you irn the Options Plug in PEJA Order Trade Log rir Date 3 30 2003 Open Onder PAL 6025 00 Closed Onder PAL 0 00 Order Commissions 20 00 Orders Subtotal 6005 00 Open Option P L 4518 75 Closed Option PAL 1068 75 Option Commissions 100 00 Options Subtotal 3350 00 Total Closed 1068 75 Total Open P L 10543 75 Total Commissions 120 00 Account SubTotal 3355 00 Account Balance Margin Requrement Available Funds Current Position Call Options Put Options FB 8 20 2003 F uy 1 630 00 Call 19 38 for 968 75 9 5 2003F S2004H Buy 1 690 00 Call 11 00 for 550 00 3 11 2003 F B 12 2003F S2004H Buy 1 53925 STP Filed 554 00 a 2 3 2003 it nm a Track n Trade Pro 4 0 User Manual Options Plug in Options Tab The Options tab is located in the Control Panel after the Data tab It looks like a green up arrow and purple down arrow Once you click on this tab it will expand and display Options See the screenshot below for further clarification EN Book1 t
15. the manual has been integrated into the soft ware When clicking on the Help button you will get specific documen tation based on the location of the button You may also press F1 on your keyboard to access this information Customizing JBCOT Indicator Demasa ej To customize your JBCOT indicator pull up your Program Options screen by clicking on this button on your main Toolbar Click on the My Default Set tings to make changes to the default options on the JBCOT indicator Click on the Current Chart Settings to make changes to the currently opened chart only In each of these sections you can click on the JBCOT section Track nm Trade Program Opilons Salt Jake Bernstein COT indicator JACOT 2 My Des Tether doeet 2 e Loki mi ee d Delirios pe 2 2 14 Sok B hil borra Hier Aves l ze pe ut Prod Fari uil PELEA nin rr E Pee Bani EL 1 3 E hoyo Eg Deis aten Irehe aper a Vile m 4 Ccp JECT Irei eri 5 16 T Appii Uh ies chat Lato Pau ol ii e dis e pr Track n Trade Pro 4 0 User Manual 301 Commitment of Traders Plug in 1 302 Period To specify the number of weeks used in calculating the JBCOT Buy Sell indicator simply highlight the current number and type in a new value Style amp Color Trend lines ca
16. Buttons m Center Chart within Chart Window n Daily Chart Weekly Long Term Chart Long Term Chart m Monthly Long Term Chart Track n Trade Pro 4 0 User Manual Accounting amp Simulator Plug in Smooth Scroll The Smooth Scroll option changes the way that the chart plays when coming to the right edge of the chart window This option is located on the Appearance tab in the Program Options Track n Trade Program Options DS alie Magen Chant Appearance ES Giba a Cited My Unis EH Chat Dack eund v Duk iil Lines deis Bleue Hand Da Lee Fini al mek a Upon Lame ation E E EE m blirergj hi Pive 4 Pers Tendas Clas T Fia Dar 3 Prose Ban ato Pie Hari Ho Change a Lessa m dai Hague Haggis ds m Pun change compara pee cine l Current chose Lado be gro perire pp ume ve curent coe Peprina with ncs Ds PA Canes F Smooth col Bop Ts c Ires chidi 0 Smooth Scroll Selected As the data nears the right edge of the Chart Win dow the chart will shift to the left one price bar displaying the new price bar This continues in a smooth motion from the right to left Smooth Scroll Not Selected As the data nears the right edge of the Chart Window the chart will
17. Check this box to Display Bulls n Bears Track n Trade Pro 4 0 User Manual 309 Bulls n Bears Trading System 9 Click on Apply to Active Charts if you would like to see your selected set tings on all the charts you have open Click on Restore Factory Defaults if you would like to restore original software settings 10 Help Information from the manual has been integrated into the software When clicking on the Help button you will get specific documentation based on the location of the button You may also press F1 on your key board to access this information 310 Track n Trade Pro 4 0 User Manual TRACK N TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time Candlestick Charting Candlestick Charting Candlestick Charting Candlestick Charting An Introduction to Japanese Candlestick Charting Introduction A New Way to Look at Prices Would you like to learn about a commodity price chart that is possibly more effective than the type you are probably currently using If so keep reading If you are brand new to the art science of chart reading don t worry this stuff is really quite simple to learn Technical Analysis A Brief Background Technical analysis is simply the study of prices as reflected on price charts Technical analysis assumes that current prices should represent all known information about the markets Prices not only reflect essential facts they also represent human emotion and the pe
18. Pro 4 0 User Manual Candlestick Charting Shooting Star A small real body near the lower end of the trading range with a long upper shadow The color of the body is not critical Not usually considered a major reversal sign only a warning shooting Star Inverted Hammer Not really a star but does look like a shooting star When occurring within a downtrend may be a turning signal Body color is not criti cal Final Thoughts and Credits It is important to realize that this introduction is just that an introduction to candlestick analysis After having read this you will have merely scratched the surface of the many patterns and variables that can go into candlestick analysis No attempt was made to provide a thorough analysis of each and every pattern In fact many formations were left out as they cross the border into a more complicated analysis For a more complete overview of candlestick analysis it is highly recommended that you read the book that is referred to below A large portion of the material in this introduction is taken from an excellent book called Japanese Candlestick Charting Techniques A Contemporary Guide to the Ancient Investment Techniques of the Far East You can find this book in The PitMaster s Bookstore www thepitmaster com In some cases sentences were taken almost verbatim as there was no better way to say what Mr Steve Nison the author already said In his book Mr Nison completely ex
19. TRACK N TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time Accounting amp Simulator Plug in Accounting amp Simulator Plug in Accounting amp Simulator Plug in Accounting amp Simulator Plug in Track your Account Profits and Losses with Ease Introduction The Accounting amp Simulator Plug In enables you to place orders deposits and withdrawals using historical and or current data Traders will find this Plug In very helpful in getting to know the markets and testing different trading strategies This Plug in also allows you to play charts forward and backward using VCR style buttons This is called simulation Requirements In order to place futures orders or simulate trading using Track n Trade Pro you will need to purchase the Accounting and Simulator Plug In Call us at 1 800 862 7193 to reach the sales department and order the plug in today Placing a Futures Order Once you have opened a chart using the Commodity tab you are ready to place an order There are two ways in which an order can be placed in Track n Trade Pro the Order Placement tool and the Order button in the My Account window This section will step you through placing orders both Ways Order Placement Tool 250 Track n Trade Pro 4 0 User Manual Track n Trade Pro 4 0 User Manual 251 Accounting amp Simulator Plug in Placing an Order using the Accounting Toolbar 1 Click on the Order Placement tool on the Toolbar 2 Clic
20. aeu 4T Pryor Ponts B s E Pull Histo Shaw n Pus bara F Crb i Fer Ir it E 8 i Dole Pulls n g Appi lo charts Pera Factory daim 10 Cored 1 Formula Select the type of formula that fits your trading style Traditional Progressive or Aggressive 2 Style amp Color The Pivot Point Indicator lines can be displayed as Solid Dashed or Dotted Click on the drop down menu to specify the type of line style To change the line color click on the color box next to the line and select new color from the Color Palette 3 Bullish Neutral Bearish Select the color of each trend by clicking on the colored box by it 4 Blue Light Select to display the Blue Light on a Bullish or Bearish trend You can also select to display the Blue Light on both or none 5 Sensitivity Click and hold the arrow on the sensitivity bar and drag it to the appropriate location you are comfortable with 6 Show History To view the bullish bearish tendencies on all the price bars on your chart check the box To only show the bullish bearish tendencies a specific number of price bars at the end of the chart uncheck the box and enter the number of price bars you would like to view 7 Show Bullish Bearish Arrows Choose to display or not to display the Bullish Bearish arrows and select the color of the arrows 8
21. ation based on the location of the button The Option Strike Price Indicator OSV This indicator displays the theoretical option values vs the actual option price value for a specific put call strike price By looking at these two lines you are able to determine if the option price is under or over priced Take a look at the example below Example of the Options Strike Price in Track n Trade Pro n Jin L MN A Over Valued os 420 00 C alll E TW i i bd Valued The Strike Price Indicator STRK This Indicator also displays the theoretical option prices vs actual option prices However this indicator displays them as a histogram The positive values represent over valued and the negative values represent under val ued options See the example below 7 Bo Value STRE 1 aon E r B Strike aa Perto T Actual Price Track n Trade Pro 4 0 User Manual 277 Options Plug in Black and Scholes Calculations 278 Modern option pricing techniques are often considered among the most mathematically complex of all applied areas of finance Financial analysis has reached the point to where we are now able to calculate with alarming accuracy the fair market value of a financial option Gecko Software employs the calculations developed in 1973 by Fischer Black and Myron Scholes This model is known as the Black and Scholes Options Pricing Model The Black and Scholes pricing m
22. bearish A top reversal formation where the first day of the pattern consists of a strong white real body The second day s price opens above the top of the upper shadow of the prior candlestick but the close is at or near the low of the day and well into the prior white real body Dark Cloud Cover Formation Track n Trade Pro 4 0 User Manual 319 Candlestick Charting Piercing Pattern bullish This is opposite of the dark cloud cover and occurs within a downtrend The first candlestick having a black real body and the second has a long white real body The white day opens sharply lower under the low of the prior black day Then prices close above the 50 point of the prior day s black real body Piercing Pattern Track n Trade Pro 4 0 User Manual Candlestick Charting These candlestick formations consist of a small real body that gaps away from the real body preceding it The real body of the star should not overlap the prior real body The color of the star is not too important and they can occur at either tops or bottoms Stars are the equivalent of gaps on standard bar charts Stars make up part of four separate reversal patterns Morning Star Evening Star Doji Star Shooting Star Inverted Hammer Morning Star This is a bullish bottom reversal pattern The formation is comprised of 3 candlesticks The first candlestick is a tall black real body followed b
23. cement Detail 2 9 2004 Jy Symbol Order Type Pice GTC pter 4D2004 Stop On Screen T ext iv Buy Sell f Quantity DrderType Price GTC Day Example Selli STP This order has not been placed pet Help gt gt gt Cancel 3 Fill out the information in the Order Placement window a In this window you can specify the brokerage fee per side date order placed buy or sell quantity of contracts symbol of contact order type and you can change the price on the order b When you place an order using the Accounting tab the screen above will not be pre filled and you can change the date and symbol 4 Click OK to place the order and Cancel to dismiss the order screen Editing an Unfilled Order 1 To edit an order on a chart right click on the order and select Settings to view the order placement window 2 To edit an order in My Accounts window right click on the order and Track n Trade Pro 4 0 User Manual 253 Accounting amp Simulator Plug in select Settings to view the order placement window A Filled Order When your order is filled the triangle will fill in red on the chart see chart be low In the My Account window the icon will fill green and an F will appear after the icon See My Account Window for more details Example of orders displayed on the Chart Emil dc Jun 2004 Filled Orders and Unfilled Filled Order ER GIC
24. e default options on the Sea sonal Indicators Click on the Current Chart Settings to make changes to the current opened chart only In each of these sections you can click on the Seasonal section Track Trade Program Options Gul dect Coogan Seasonal and Historical Studies Gba Setting Calor i y Taf 1 1G 2 Qd E M Apps hir dern d 3 MEL LL ud B hil MAT as Ed Background Trend C Trend pal bel creer fia huh Eri Fra ni PSAR pul 5 paire Pine Emi M RS Avenace d Es bre S pou de Entre cw CP Las 17 morie J AD co w Avensge 2 Haka Hobo an DL 201 Dupi Tiered la S Chat Setting H seas fosse ret tepals afe el Pool 9 Es abr Chiba A dikaki 10 me or cms Seasonals Program Options 1 Seasonal Trends The Trend 1 and Trend 2 boxes determine if either or both of the Seasonal Trend lines are active 2 Years To change the number of years the trend is based on select the number from the drop down menu 3 Style 8 Color Trend lines can be displayed as a Solid Dashed or Dot ted line Click on the drop down menu to specify the type of line style desired Next to the drop down menu is the color box click on this box to open a panel and change the line color 4 Fill Background If you would
25. e to drift sideways Candlestick reversal patterns must be viewed within the context of prior activity to be effective In fact identical candlesticks may have different meanings depending on where they occur within the context of prior trends and formations Hammer A candlestick with a long lower shadow and small real body The shadow should be at least twice the length of the real body and there should be no or very little upper shadow The body may be either black or white but the key is that this candlestick must occur within the context of a downtrend to be considered a hammer The market may be hammering out a bottom Hammer Hanging Man Identical in appearance to the Hammer but appears within the context of an uptrend Hanging han Engulfing Patterns Bullish This occurs when a white real body totally covers or engulfs the prior day s real body The market should be in a definable trend not chopping around sideways The shadows of the prior candlestick do not need to be engulfed Track n Trade Pro 4 0 User Manual Candlestick Charting Bullish Engulting Line Engulfing Pattern Bearish This occurs when a black real body totally covers or engulfs the prior day s real body The market should be in a definable trend not chopping around sideways The shadows of the prior candlestick do not need to be engulfed Bearish Enguiting Line Dark Cloud Cover
26. ers will use the small speculators as a contrarian indicator if the small specula tors are all buying the market lines extend above the zero line then they begin to sell if they say sell then they consider being a buyer This is not al ways true the small speculator is not always contrary to the general market direction but unfortunately for the small speculator it is more true than not The best thing about COT is that it is not based on the market s price what soever The JBCOT Jake Bernstein proprietary buy sell indicator does not even take the markets price into account This is strictly an indicator that looks at what the largest industry players are doing and then simply points out their actions The COT reports provide a breakdown of each Tuesday s open interest for markets in which 20 or more traders hold positions equal to or above the re porting levels established by the CFTC The weekly reports for Futures Only Commitments of Traders and for Futures and Options Combined Commit ments of Traders are released every Friday at 3 30 p m Eastern time 296 Track n Trade Pro 4 0 User Manual Track n Trade Pro 4 0 User Manual 297 Commitment of Traders Plug in Commitment of Traders Key The outer most numbers are the range of the largest of the three commit ment of traders Commercial Large and Small The inner numbers are the range of the Open interest of all of the commitment of traders shown below Displa
27. f the Premium 10 Contingency Order If this box is checked then the option order is executed based on a specific Futures price Track n Trade Pro 4 0 User Manual Options Plug in 11 On Screen Text This section controls the text that is displayed on the chart window next to the order Click on OK to place the order or Can cel to exit The second way of entering options orders is through the OS Calculator Click on Place Orders when you complete your options strategy in the OS Calculator See the OS Calculator section for more information Changing Properties of an Options Order Right click on the diamond shape representing an options order on the chart window Font Show Text Settings Send To Back Exercise Hide Help Font Changes the Font Size Style and Color of the 1 5 and ABC points Show Text Select to view or hide the 1 5 and ABC points Settings Select to view the Options Order window Send to Back Changes the layer of the drawing This option is used when more than one drawing is in the same area of the chart Click on Send to Back when you need to access a drawing under the Elliott Wave drawing Exercise Select a Put or Call Buy order to exercise the option This will place a futures order for the underlying contract Hide Select Unselect this option to hide or view the order on the chart win dow Once you have hidden the order you can right click
28. formula to recreate on the fly historical options data as needed by the user This way a trader using our software can recall acutely accurate simulated options data from 30 years ago without actually having hundreds of megabytes of options data history stored on their computer The trader can then simulate trading the financial options market with unparalleled accuracy This unparalleled capability allows new traders the ability to learn and practice basic trading strategies that can then be taken to the actual markets It also allows experi enced traders the ability to create and back test advanced simulated trading models and systems Another way in which Gecko Software computer scientists have implement ed the Black amp Scholes formulas to help our traders is with two very unique indicators which sit below a chart of the underlying financial asset As the Black and Scholes formula dictates what the actual theoretical value of an option should be on any given day Track n Trade Pro will plot the actual value of the option along side the Black amp Scholes model This creates an overvalued or undervalued indicator which lets our users know from a Track n Trade Pro 4 0 User Manual Options Plug in simple graphical representation if the current price of an option is inline with market sentiment and trading at a premium or a discount One stumbling block that Gecko Software engineers had to overcome when crea
29. he drop down menu dis plays the COT indicator as a Bullish Bearish line COT Graph Shows Percentage Bearish Bullish as Lines W Display Commitment of Traders c As shown below the third option in the drop down menu displays the COT indicator as a Total Position Histogram To change the color of short positions use the slider bar labeled Long Short color difference shading Graph Shows Total Long amp Short Positions as Histogram W Long Short color difference shading F 50 Display Commitment of Traders d As shown below the forth option in the drop down menu displays the COT indicator as a Total Position line To change the color of short position use the slider bar labeled Long Short color differ ence shading COT Graph Shows Total Lang amp Short Positions as Lines i Long Short color difference shading iw Display Commitment of Traders Track n Trade Pro 4 0 User Manual Commitment of Traders Plug in 7 To display the indicator in the chart window click the check box 8 Ruler Bar See the Ruler Bar section at the end of this chapter 9 Preview Window This window allows you to make changes and pre view them before saving them 10 Click on Apply to active charts if you would like to see your selecting settings on all the charts you open Click on Restore Factory Defaults if you would like to restore original software settings 11 Help Information from
30. ing a more accurate representation of the ac tual options value This allows our users the ability to have a more complete and highly accurate representation of what actual market data would have been on any given day To differentiate the fictitious theoretical data within the data stream we tag it with a trailing asterisk so our users will Know when they are looking at actual market data reported by the exchange or a theoretical value inserted into a gap by the Black amp Scholes model In keeping with the classic movie Jurassic Park the process that creates and inserts the theoretical data into the actual data stream is code named Frog Data Track n Trade Pro 4 0 User Manual 279 Options Plug in 280 Track n Trade Pro 4 0 User Manual TRACK N TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time Seasonals Plug in Seasonals Plug in 282 Seasonals Plug in Seasonals Plug in Using Seasonal Trends to Improve Your Trading Introduction The seasonal markets consist of the commodities that began the futures industry Wheat was the first commodity traded as a futures contact on the futures market Commodities like Crude Corn Gold Cattle etc have been around longer than financial commodities Because they have been around longer the seasonal commodities have more historical data Being able to analyze that historical data gives you an advantage when you are trading a seasonal commodity The Seasona
31. ions Plug in contains two indicators used to determine if an option is over or under val ued The indicators available are Options Strike Value and Strike Price Selecting the OSV or STRK Indicator To view the Options Indicators you may choose to display them from three separate locations 1 The Indicator Button Bar To select the OSV or STRK indicators click on the corresponding button on the Indicator bar You may also change the put call strike that the indicator is based on from the Indicator bar See screenshot below ONE ALL Rb CCl DM AYOL MACD MOM RSI FSTO SSTO Track n Trade Pro 4 0 User Manual Options Plug in The Right Click Indicator Window Menu Simply right click inside the Indicator Window to view the menu Highlight and then left click to select the indicator You will notice that the selected indicator is shown with a check mark below Williams Accum Dist Commodity Channel Index volume Dir Mov Index Fast Stochastics Historic Volatility Mow Ave Conv Div Momentum Slow Stochastics Relative Strength Williams Percent Seasonal Trend Market Probability Option Strike value Strike Price Track n Trade Pro 4 0 User Manual 275 Options Plug in 276 3 OSV STRK Section Under the My Defaults or My Chart Settings in Program Options Track n Trade Program Op lons E a Select Option Strike Value Strike Price Indicators Gbha a
32. k and drag your order on the chart until you find your order point then release the mouse button The following window will appear Place an order E3 Select the details of your order in the form below Brokerage Fee This Trade each sg Placement Detail Oty Symbol Order Type Pice GTC e E Sur Stop 737 Screen Text iv Buy Sell f Quantity DrdeType Price GTC Day Example Selli STP This order has not been placed vet Help gt gt gt Cancel 3 Fill out the information in the order placement window a In this window you can specify the brokerage fee per side date order placed buy or sell quantity of contracts symbol of contact order type and you can change the price on the order Also Help options are available to give instructions on the different types of orders b When you place an order using the Accounting Toolbar the screen above will be pre filled with default settings You will not be able to change the date or the symbol 4 Click OK to place the order and Cancel to dismiss the order screen 252 Track n Trade Pro 4 0 User Manual Accounting amp Simulator Plug in Placing an order using the Accounting Tab 1 Click on the Order button in the My Account window 2 Release the mouse button and the order placement dialogue box will open Place an order Select the details of your order in the form below Brokerage Fee This Trade each 50 Pla
33. l Plug In consists of three separate indicators Seasonal Trends Historical Averages Market Probability Seasonal Trends The seasonal trend indicator represents the normal historical behavior of the market The indicator is calculated on the specific contract month show ing you behavior of that specific chart This is very important in agricultural markets with new and old crop contracts such as Wheat or Corn The charts depict behavior on a relative basis meaning the actual prices are not forecasted just the relative position of the market versus its contract high and low On the seasonal charts the high is depicted as 1 0 or 10096 while the low is depicted as 0 0 or 0 All similar trading days are lined up for X number of years the default in Track n Trade Pro are 10 years for Trend 1 and 15 years for Trend 2 and are analyzed in terms of where each day falls as a percentage of the highest and lowest price of either the last 12 months or the life of the contract for each specific contract These prices are then av eraged and the average is depicted in the indicator window When the trend line is at 10096 or 1 0 it indicates where the contract has on average been at its highest value for a specified time range and scale period Interpretation When the trend line is at 0 or 0 0 it indicates where the contract has on average been at its lowest value for the specified time range and scale period The averages use data from
34. lete an order from a chart in the Chart Window this simply hides the order Orders need to be deleted in the My Account window Also if you delete a chart in the Commodities window any orders placed on that chart will not be deleted from your book To Hide Show an order on a Chart Right click the order listed in My Account and select Hide Show from the menu Note If you would like to hide show all orders use the Hide All Show All from the menu Track n Trade Pro 4 0 User Manual Accounting amp Simulator Plug in Deposits and Withdrawals Track n Trade Pro s Accounting systems allows entering deposits and mak ing withdrawals in your trading account as well as placing orders Placing a Deposit 1 Click on the Deposit button in the My Account window This will bring up the Deposit window See below 2 Next select the day of the deposit and the amount 3 Click OK to enter deposit 4 Click Cancel to dismiss the Deposit window Deposit Select date for deposit transaction Deposit Amount January 004 0 Ea 3L i 1 5 b B 12 13 1 4 15 19 20 21 2 bb 27 28 3 2 j Cancel Making a Withdrawal 1 Click on the Withdrawal button in the My Account Window This will bring up the Withdrawal window see below 2 Next select the day of the withdrawal and the amount 3 Click OK to enter the withdrawal 4 Click Cancel to dismiss the Withdrawal window Withdrawal
35. n Trade Pro 4 0 User Manual 315 Candlestick Charting Common Candlestick Terminology 316 The following is a list of some individual candlestick terms It is important to realize that many formations occur within the context of prior candlesticks What follows is merely a definition of terms not formations The Black Candlestick When the close is lower than the open The White Candlestick When the close is higher than the open The Shaven Head A candlestick with no upper shadow Track n Trade Pro 4 0 User Manual Candlestick Charting The Shaven Bottom A candlestick with no lower shadow Spinning Tops Candlesticks with small real bodies and when appearing within a sideways choppy market they represent equilibrium between the bulls and the bears They can be either white or black Doji Lines Have no real body but instead have a horizontal line This rep resents when the Open and Close are the same or very close The length of the shadow can va Track n Trade Pro 4 0 User Manual 317 Candlestick Charting Candlestick Reversal Patterns 318 Just as many traders look to bar charts for double tops and bottoms head and shoulders and technical indicators for reversal signals so too can candlestick formations be looked upon for the same purpose A reversal does not always mean that the current uptrend downtrend will reverse direc tion but merely that the current direction may end The market may then decid
36. n be displayed as a Solid Dotted or None line Click on the drop down menu to specify the type of line style desired Next to the drop down menu is the color box click on this box to open a panel and change the line color The drop down menu for Show Buy Sell Arrows allows you to select either Always Show Arrows or Only When Indicator is Visible to view the buy sell signals or Never Show Arrows to never see the JBCOT arrows To display the indicator in the Chart Window click the check box Ruler Bar See the Ruler Bar section below Preview Window This window allows you to make changes and pre view them before saving them Click on Apply to active charts if you would like to see your select ing settings on all the charts you have open Click on Restore Factory Defaults if you would like to restore original software settings Help Information from the manual has been integrated into the soft ware When clicking on the Help button you will get specific documen tation based on the location of the button You may also press F1 on your keyboard to access this information Track n Trade Pro 4 0 User Manual Commitment of Traders Plug in Ruler Bar The Ruler Bar inside the Program Options window for the indicators that are displayed in the Indicator Window allows user s to create highlighted regions or horizontal lines within the Indicator Window To create a highlighted region Click at either end of the Ruler Bar a
37. nd drag either up or down to the end point of the region To place a line Click inside the ruler bar and drag the line to the desired point To change the color of the highlighted region You must right click on either the bottom edge if it is on the top of the indicator window or the top edge if it is on the bottom of the indicator window Next choose the Select Color option from the right click menu The Color Palette will open choose a color and click on OK Clear All Clear Select Color You may also Clear the item that you right clicked on or Clear All items in the Indicator window by selecting these items from the right click menu Track n Trade Pro 4 0 User Manual 303 Commitment of Traders Plug in 304 Track n Trade Pro 4 0 User Manual TRACK N TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time Bulls n Bears Trading System Bulls n Bears Trading System 306 Track n Trade Pro 4 0 User Manual Bulls n Bears Trading System Bulls n Bears Trading System Green Light Red Light Blue Light Introduction Bulls n Bears is the first trading system designed for Track n Trade users This trading system includes easily usable tools to see if the market is bullish or bearish Bulls n Bears allows you to change the sensitivity of the system according to your trading style whether you are an aggressive trader or a more traditional trader Bearish Market Bullish Market
38. need another type of chart Ei Shadi T d The answer to this question may not seem obvious but after going through White the following candlestick chart explanations and examples you will surely Real see value in the different perspective candlesticks bring to the table In my Open Body opinion they are much more visually appealing and convey the price infor mation in a quicker easier manner Lower Shadow What is the History of Candlestick Charts Candlestick charts are on record as being the oldest type of charts used for price prediction They date back to the 1700 s when they were used for predicting rice prices In fact during this era in Japan Munehisa Homma become a legendary rice trader and gained a huge fortune using candlestick analysis He is said to have executed over 100 consecutive winning trades e The body of the candlestick is called the real body and represents the range between the open and closing prices e A black or filled in body represents that the close during that time period was lower than the open normally considered bearish and when the body is open or white that means the close was higher than the open normally considered bullish The thin vertical line above and or below the real body is called the upper lower shadow representing the high low price extremes for the period The candlesticks themselves and the formations they shape were given colorful names by the Japanese traders
39. nt modified Irack n T File View Help ER Commodities Available Charts Viewing Options Data When you first click on the Options Data tab it defaults to the Date View which contains the options data available wISIEITIS Calc IET i Strike Hate Iptions Strikes in Australian Dollar Open Outcry Sep a Tuesday UT of August 2006 Exp 38 days Instructions 1 Open the corresponding futures chart in the Commodity tab for the op tions pricing that you are interested in viewing 2 After opening the futures chart you will notice that the Options tab is now populated with values Included in this tab a Strike The price at which the futures contract underlying an op tion is to be bought or sold upon exercise Type Type of options order Put or Call Premium Value in points to purchase the option Value Dollar amount for the premium value Change The difference between yesterday s and today s strike Diff Dollar amount for the Change IVOL Implied Volatility of the underlying futures contract Q 02o20020 Track n Trade Pro 4 0 User Manual 269 Options Plug in h Delta Measures how much the options price changes when the underlying futures contract changes by one point Gamma Measures how much the delta changes when the under lying futures contract changes by one point Theta Measures time decay of an option Vega Measures how a change in vola
40. nual 285 Seasonals Plug in Market Probability The historic Market Probability indicator shows the cumulative number of times the market in question has settled higher lower or the same on a spe cific date compared to the previous trading day s settlement price For example if you are looking at a five year market probability indicator with a reading of 1 then the market in question may have historically settled higher three times and lower two times on this trading day than the previous trading day or settled higher twice lower once and the same twice The 1 reading is derived by subtracting the number of negative settlements from positive settlements resulting in a net number of positive or settles In other words the 1 reading in these examples would be indicative of a market which has settled higher one more time than it has settled lower If the market settled at the same price as the previous day the total is not changed Displaying the Market Probability Indicator Click on the PROB button located in your indicators menu bar shown below Um mm m Tem ENTE H poe e ITI S E a 1 i E Am PEN Laa Track n Trade Pro 4 0 User Manual Seasonals Plug in Customizing Seasonal Indicators To customize your seasonal indicators pull up your Program Options Screen by clicking on this button on your main Toolbar Click on the My Default Settings to make changes to th
41. o n MAL hone soon bee mad ipu n bliere emis Open Interest Prorat ui in LH 1 4 ih car 5 Pros Bari 5 COT Graph Dass Futuna Dela Orr B COT Graph iren Percentage aser ult Hiis 7 Y Pira C crimini al Tideri 10 Apply t irem chai Tah nec ER ee ux n Options Period To specify the number of weeks used in calculating the JBCOT Buy Sell indicator simply highlight the current number and type in a new value 2 Style amp Color Trend lines can be displayed as Solid Dotted or none Click on the drop down menu to specify the type of line style desired Next to the drop down menu is the color box click on this box to open a panel and change the line color 3 The Three Commitment of Traders Commercial Non Commercial Large and Non Reportable Small 4 Open Interest The total number of futures or futures and options contracts of a given commodity for all three Commitment of traders 5 COT Graph Dataset You can have the data be either the Futures Only data or the Futures and Options combined data Track n Trade Pro 4 0 User Manual 299 Commitment of Traders Plug in 300 COT Graph Shows This setting will graph the COT either as a Histo gram or a Line a As shown in the screen shot on the previous page the first option in the drop down menu is the COT indicator displayed as a Bullish Bearish histogram b As shown below the second option in t
42. odel uses a sophisticated mathematical for mula to calculate the theoretical value of an option using variables such as Market Open High Low and Close values Interest Rates Volatility calcula tions and other such information to give us these all important values Track n Trade Pro puts to use these unique abilities in several different ways First and foremost Track n Trade Pro is a trading simulation software application where you are able to go back in time nearly 30 years and prac tice trading forward one day at a time In essence we are giving a trader 30 years of simulated trading experience in a matter of hours days or possibly weeks We allow the trader to use actual historical futures market OHLC Open High Low Close data to simulate trading the commodities market In that regard it would be nearly impossible for us to assemble a complete set of 30 years of historical options data which would allow users this same historical data training privilege Also due to the massive amount of data this would require and given today s limits of computer speeds hard drives and storage capacity trying to provide this type of data history to a typical user would simply put this capability out of reach for the common trader This is where the Black and Scholes pricing model comes into play Our skilled computer scientists at Gecko Software have created a way for us to use the data generated by the Black amp Scholes data
43. olute price level of the underlying commod ity contracts is not important only the relative performance of one contract versus the other In other words a spread trade is a speculation that one contract will out perform another contract Available online Introduction Video to the Spreads Plug in Visit us at http www trackntrade com tour htm and select the Spreads video To view this video you will need a copy of Microsoft s Media Player 290 Track n Trade Pro 4 0 User Manual Track n Trade Pro 4 0 User Manual 291 Spreads Plug in Example of a Spreads Chart in Track n Trade Pro Caria Blas OON Live ci 2041 O gana AT TI a A A p enm Spreads Plug in Chart and trade this price Mimas bebusen tao diferent The Spreads Plug In includes Spreads Tab in the Control Panel Margins Section in the Program Options Opening a Spreads Chart Step One Select the Spreads tab in the Control Bue fi Pane sel fi Step Two Select the two fu Symbol tures contracts from the drop down menu that you would like to use in generating a spread chart Step Three When you have made your selections click the Open Chart button and the Spread chart will be displayed The Spread will be listed in the Spread Chart list and the individual contracts will be listed in the Commodity tab These Spreads that you open will be part
44. onth Treasury Bill secondary market rates Interest rates are used by the Black amp Scholes More information is available in the Black amp Scholes section at the end of this chapter options formulas to determine the theoretical options price Note Because most futures contracts expire in under a year we have not noticed the interest rate to make a large difference on the dollar value of an options price Adding an Interest Rate Interest rates are updated by Gecko Software Inc on a regular basis How ever if you would like to add a new interest rate follow these instructions 1 Click on the Add Interest Rate button and the Add Interest Rate win dow will open 2 Choose the date for the effective date dropdown menu then type the new interest rate in the input box 3 Click on OK to save or Cancel to exit from this window Add Interest Rate To add an interest rate to the list enter the effective date of the interest rate and the rate in percentage format 7 9 for 9 interest rate Effective Date Interest Rate 2 10 2004 e Cancel Track n Trade Pro 4 0 User Manual 271 Options Plug in Deleting an Existing Interest Rate 1 Click on and select the interest rate that you would like to delete 2 Click on the Delete Interest Rate button 3 Awindow will open asking you to verify that you would like to delete this interest rate Click on YES to continue and NO
45. plains candlesticks and their formations but more importantly explains how to combine candlestick analysis with traditional technical analy sis It is highly recommended that you consider purchasing this book As traders we need as many trading tools in our arsenal and a basic knowledge of candlesticks provides a trader much needed ammunition Also remember that no matter what the trading tool no matter how advanced or ancient it is only effective when put into practice properly This is of course your job as the trader Track n Trade Pro 4 0 User Manual 323 Candlestick Charting 324 Track n Trade Pro 4 0 User Manual
46. riety of trading opportunities In addition to profiting from rising prices by purchasing futures options or from falling prices by selling futures contracts there is an opportunity to profit from the relationship between different contracts or SPREAD A Spread refers to the simultaneous purchase and sale of two or more different futures contracts When establishing or putting on a spread a trader looks at the price dif ferential of the spread rather than the absolute contract price levels The contract that is viewed as cheap is purchased or a long position is estab lished The contract that is viewed as expensive or dear is sold or a short position is established If market prices move as expected meaning the long position gains in value relative to the short position the trader profits from the change in the relationship between the prices Remember the concern for a spread trader is the change in the relationship between contract he or she is long and the one that he she is short not the absolute price level of the commodity in question Of course just because you are trading a spread does not guarantee or eliminate losses If the long contract decreases in value RELATIVE to the short position then the spread trader will incur losses The key to spread trading is in the relative performance of one futures contract to another Though some spreads have a basic market bias known as bull and bear spreads the abs
47. rrent Position Market position not in market long or short Color Codes 254 Track n Trade Pro 4 0 User Manual Er Green Filled cade Yellow Placed Fed The order has been cancelled m Faded Order exists but was deleted from the chart White Placed but the future Gray The chart that this order was placed on was deleted from the NT Chartbook Letter Codes W Withdrawal D Deposit Buy S Sell Track n Trade Pro 4 0 User Manual 255 Accounting amp Simulator Plug in 256 Orders are also noted on the commodity tab The following symbols repre sent the different orders placed Hy Commodities E Available Charts Sort bu Commodity Ascending us Dollar a 2004H Mar Symbol DX2004H Drange Juice FC o Mar 2004 JI 2004H S amp P 500 0 Mar 2004 S P2004H Soybeans o Mar 2004 52004H ES U S Dollar Mar 2004 Lis 2 004H Gray Ticket Open order on chart e pns Ticket Filled order s on chart L Overall postition on this chart is long Blue Ticket Filled order s on chart 5 Overall postition on this chart is short Each order is listed on the My Account tab by Date Commodity Details and Placed On To Modify an Order Right click the entry and select Settings from the menu To Cancel or Delete an Order Right click on the order listed in My Account and click on Delete from the menu Note If you de
48. rvasive mass psychology and mood of the moment Prices are in the end a function of supply and de mand However on a moment to moment basis human emotions such as fear greed panic hysteria elation etc also dramatically affect prices Mar kets may move not based on facts but upon people s expectations A market technician attempts to disregard the emotional component of trading by making his decisions based upon chart formations He assumes that prices reflect both facts and emotion Standard bar charts are commonly used to convey price activity into an easily readable chart Usually four elements make up a bar chart the Open High Low and Close for the trading session time period A price bar can represent any time frame the user wishes from 1 minute to 1 month The total vertical length height of the bar represents the entire trading range for the period The top of the bar represents the highest price of the period and the bottom of the bar represents the lowest price of the period The Open is represented by a small dash to the left of the bar and the Close for the ses sion is a small dash to the right of the bar Figure ft Candlesticks Standard Bar Chart Example 312 Track n Trade Pro 4 0 User Manual Track n Trade Pro 4 0 User Manual 313 Candlestick Charting Candlestick Charting Candlestick Charts Explained You may be asking yourself If can already use bar charts to view prices gt Upper then why do I
49. shift to the left so that the last price bar is centered and then continues playing data until approaching the right edge again causing the process to recur Track n Trade Pro 4 0 User Manual 261 Accounting amp Simulator Plug in 262 Track n Trade Pro 4 0 User Manual TRACK N TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time Options Plug in Options Plug in 264 Track n Trade Pro 4 0 User Manual Options Plug in Options Plug in Implementing Options Strategies in Your Trading Introduction The Track n Trade Pro Options Plug in gives you the ability to place put call orders on the futures chart calculate profit loss on an option or on an option strategy calculate the Greeks plus two indicators that display the option as under or overvalued Requirements In order to place options orders or use any of the options tools you will also need to own the Accounting amp Simulator Plug in See the Accounting amp Simulator Plug in chapter for more information Call us at 1 800 862 7193 to reach the sales department and order the plug in today Placing an Options Put Call Order Option orders can be placed by selecting the Options Put or Options Call order tools in the Accounting toolbar or in the OS Calculator Call Order Put Order Accounting T 1 Select either the Call or Put Accounting tool 2 Click onto the futures chart and hold down the mouse button 3 When you
50. tility affects the price of an option when all other factors remain the same Rho Measures how a change in a short tem risk free interest rate affects the price of an Option Note Ifyou DO NOT have a contract open the only item available in Op tions Tab is the Interest Rate History Strike Price History The Options Tab defaults to the Date View which shows a list of all strike prices available for that day To see the history for a particular strike price 1 Click on the Strike button and a dropdown box will appear below the buttons f Options IE Calc Date Strike Rate tions Strike data in Australan Dollar Li pen Outer Sep Select Strike Price Select Strike Price 59 50 Call 59 50 Put 60 00 Call 2 Click on the dropdown box to choose the specific Put Call Strike price 3 Once this value is selected the history for that price is generated Track n Trade Pro 4 0 User Manual Options Plug in Interest Rate History The Options tab defaults to the Date View which shows a list of all strike prices available for that day To view the Interest Rate s history click on the Rate button to the right of the Strike button P B Mains Calc Date Strike E Interest Rates Delete Selected Rate Add Interest Rate 1363 01 201 1363 02 01 The historical interest rate data consists of the monthly average interest rate of the three m
51. ting our options trade simulator was that options data is often times very spotty and full of holes and due to the enormous amount of data generated by the options exchanges there is very little done to try and repair these holes or bad data ticks When options trade they begin a data stream where they generate an Open High Low and Close for each day s trading range but some options which are usually further out of the money don t trade every single day This causes gaps or holes in the data stream One way or another these gaps or holes are either filled or just left blank Often times these gaps are filled by data vendors who simply pull yesterdays values forward to today They ll do this for weeks on end which only serves to create a very inaccurate and unreliable value stream a stream of data that would be difficult to use in any kind of simulated trading environment or to provide much real market value Perfect Options Stream a as a E Typical Options Stream a gt a O Common Options Stream LILJLLJ Gecko Options Stream Cs Market Data Black amp Scholes Just like the genetic scientists did in the classic movie Jurassic Park where they filled the gaps in the dinosaurs DNA strand with frog DNA which allowed them to recreate or clone a dinosaur our computer scientists here at Gecko Software fill the gaps in the live options market data stream with Black amp Scholes theoretical prices giv
52. to cancel OS Calculator The OS Calculator determines profit loss on an option or option strategy 1 Click on the Calc button to open the OS Calculator Strike Hate Options Strikes in wheat e Dec 2003 on Friday 12 of December 003 Change 4 2 Click on the Add New button to add an option order to the calculator This will open the Option Order window apro aires coreto Ae COT Dee OR Purda Til JUD Meto cit ot Ham manh roe lm porti E 00 Say prins OH dew Ed e 8 Ba Type 1 LL Dam Thiri Deste MMOs af fik Pune jah DO fi m E 1 m fi wil ETT EI ie OD E onirgencg CUTS Tnm Fui pie rega TE Total S 1730000 iri ciem aft M use 5 Dust Ske W Pe T Vals Emm 8 Lad LL Delete Seleciod Selected Addie Cancel Puce Orders 3 Specify the details of the options order and then click on OK to add the order to the calculator For more information on this window see the Placing an Options Put Call Order section 4 The options order details have now been added to your option strategy list on the left side of the OS Calculator and the Profitability Graph of the Option Expiration is available on the right side See the screenshot on the following page 272 Track n Trade Pro 4 0 User Manual
53. y the second a small real body which gaps opens lower a star pattern The third candlestick is a white real body that moves well into the first period s black real body This is similar to an island pattern on standard bar charis Morning Star Formation pe M Evening Star A bearish top reversal pattern and counterpart to the Morning star Three candlesticks compose the evening star the first being long and white The second forms a star followed by the third which has a black real body that moves sharply into the first white candlestick Evening Star Formation Track n Trade Pro 4 0 User Manual 321 Candlestick Charting 322 Doji Stars When a Doji gaps above a real body in an uptrend or gaps under a real body in a falling market that particular Doji is called a Doji star Two popular Doji stars are the evening star and the morning star Evening Doji Star This is a Doji star in an uptrend followed by a long black real body that closed well into the prior white real body If the candlestick after the Doji star is white and gapped higher the bearishness of the Doji is invalidated Evening Doj Star Formation Morning Doji Star A Doji star in a downtrend followed by a long white real body that closes well into the prior black real body If the candlestick after the Doji star is black and gapped lower the bullishness of the Doji is invalidated Track n Trade
54. ying the Commitment of Traders Indicator Click on the COT button located in your indicators menu bar shown below Cota cb Aa ji TIT pum aro With ll buy arrow url i ah Ay H 11 il of Displaying the Indicator Bearish Bullish This type of chart displays as the COT as bearish or bullish position It is calculated by taking the number of Long positions minus the number of Short positions If it is positive then more trades are long if it is negative more trades are short if it is zero then it is equal 2 Total Position This type of chart displays the COT values as a stacked column The long position number on top and the short position number on bottom 298 Track n Trade Pro 4 0 User Manual Commitment of Traders Plug in Customizing Commitment of Traders Indicator olemassa He 63m To customize your Commitment of Traders indicator pull up your Program Options screen by clicking on this button on your main Toolbar Click on the My Default Settings to make changes to the default options on the COT Indicator Click on the Current Chart Settings to make changes to the cur rently opened chart only In each of these sections you can click on the COT section Track n Trade Program Options E Commitment of Traders COT nu ES My Deis rn pu Correa mn E E T Dorian Chirnada Kien Lange 5 peculad
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