Day Trade Room FAQ's and Info
What are the trade room hours?
Our day trading time window:
You may anticipate trading signals anytime from 815 to 900 CST. The Live voice and charts show up at 845.
We don’t trade the market open, but instead wait for clear trading cycle patterns to emerge. Jerome will post educational commentary prior to the first trade of the session.
The purpose of the CycleTrader Pro day trade room is to equip you with the cycle trading knowledge you need to confidently trade the intraday e-mini stock index futures markets.
More to know in the day trade room.
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What You Will Know Because You are In The CycleTrader Day Trade Room. Here
How do I log in?
1.) Click the ‘Trade Room’ drop-down box at the top of each page.
2.) Click on ‘log in’ and you will be automatically logged into the Trade Room.
3.) Alternatively, you can log in via the Trade Room link at the bottom of each page.
WHICH TIME FRAME CHARTS WILL WE BE TRADING?
We rely on a very specific set of time-based price charts.
Long-term cycle charts set the stage for more effective intraday trading. We use the 30-, 45-, 60-, 120-, 180- and 240-minute charts to track intraday cycles, even as we pay attention to the all-important daily and weekly cycles.
Short-term cycle charts, such as the 2-, 5-, 10-, and 15-minute charts offer us the ability to locate prime, low-risk, high-reward cycle trade entry points.
The key elements in the CycleTrader Pro path to successful trading:
1.) Always trade in the same direction of the longer-term cycles and trends.
2.) Fine-tune your trade entries and exits with short-term cycles charts for the best possible risk/reward profile.
WHICH CYCLETRADER PRO INDICATORS WILL WE BE USING?
We rely on a very specific, small set of CycleTrader pro indicators. You don’t need dozens of technical indicators cluttering your trading screen in order to trade successfully.
By keeping our stable of regularly-used indicators small in number, you”ll quickly learn how each indicator works, why it works, and how it interacts with the other indicators. Best of all, you’ll be able to confidently rely on them to help you spot the very best cycle trading patterns to profit from.
Here are the 11 essential CycleTrader Pro indicators that we use every single day in the Trade Room. Please see the list below:
WILL WE NEED TO RELY ON ALL OF THE CYCLE TRADER PRO INDICATORS IN ORDER TO TAKE A TRADE?
Jerome monitors a wide array of Cycle Trader Pro indicators during the trading session.
However, he mainly focuses only on the 11 key indicators previously mentioned. This will help shorten your Trade Room learning curve, getting you up to speed – and profitability – more quickly.
All of the critical, cycle-based math can be quickly factored with the 11 key CT PR indicators.
Our goal in the Trade room is to identify the primary long-term trend, and then only taking the best risk/reward trade setups on much smaller time frames.
We seek to do this again and again, and this helps provide a degree of predictability and consistency in our trade outcomes.
AS DAY TRADERS, WHY DO WE NEED TO FOCUS ON LONG-TERM CHARTS?
Long-term charts clearly reveal cycle patterns and the ‘bias’ of each and every market that we trade.
This provides us with a potent trading ‘edge’ that most other day traders are simply unaware of.
For example, we always track the cycles on the 60-minute chart. It tends to provide powerful clues as to the dominant intraday direction of the market.
But we don’t stop there.
We then look at the cycles on one of our smaller entry/exit charts.
The five-minute chart.
Did you realize that the five-minute chart will make approximately TWELVE cycle lows, even as the 60-minute chart goes from one cycle low to the next?
Our powerful 4-to-9 cycle bar count indicators can help time these cycle lows with pinpoint accuracy. So, if the cycle on the 60-minute chart is UP, we’ll look to buy only five-minute chart cycle LOWS ( and vice-versa if the 60-minute cycle is moving DOWN).
Again and again.
WHICH OF THE HIGHER TIME FRAME CHARTS ARE THE MOST USEFUL FOR DAY TRADING?
We use a ‘top-down’ approach when it comes to long-term charts.
Mostly, we start with analysis of the 240-minute chart. Then we progressively drop to the 180-, 120-, and the 60-minute time frames. Our trained eye can easily spot the ‘confluence’ of cycle lows (or highs) among these time frames, thus giving us a trading edge as the session begins.
We’ll also closely monitor the ‘medium-term’ charts, too. These are the 45-, 30-, and 15-minute charts. Same deal here, too – we’re looking for multi-chart agreement on the cycle patterns.
Long-term or medium term, the story is the same; the cycle math among the majority of the charts will eventually align in such fashion as to create potentially low-risk, high-reward cycle trade setups.
WHEN SHOULD WE FOCUS ON THE SHORT-TERM CHARTS?
When any/all of our stable of short-term charts are flashing a potentially low-risk, high-reward cycle trade signal, of course!
After we’re convinced that the majority of the long- and medium-term charts feature cycle patterns that are in strong agreement, all that’s left to do is wait for our short-term charts to deliver prime cycles-based trade entries.
Most often, the trades are winners.
However, there are losing trades, too.
But here’s the good news about our losing trades:
By relying mostly on 2-, and 5-minute charts for our entries, we’re keeping our dollar risk per trade as small as possible. So even when a trade goes bad, we’ll likely lose less money than a trader who’s not tracking the cycles on multiple time frame charts.
Yet, we still retain the potential for relatively large profits on such short-term entries, and this is the ‘secret sauce’ ingredient in our Trade Room.
Going further, if our analysis of the long- and medium-term cycles reveals no clear directional bias, we’ll simply stand aside, preserving our trading capital until one inevitably re-appears.
WHAT ARE THE MOST EFFECTIVE CYCLE TRADING PATTERNS?
There are literally dozens of identifiable cycle trading patterns that we look for, but they all have this particular factor in common:
The cycle math must all come into proper alignment before we ever consider taking a trade.
That noted, here’s a very effective bullish cycle trade pattern that we’ll definitely use again and again her in the Trade Room:
1.) Our long-term charts must all be ‘Ops-Up’, their cycle lows must be confirmed as valid, and each chart must also be above its key moving average. This helps assure us that the long-term trend is up, or ‘bullish.’
2.) Next, we drop to our short-term 2-, and 5-minute charts to seek prime, low risk setup where the Red Line indicator is in a ‘sell’ zone, even as the faster Green Line indicator is in it’s ‘buy’ zone.’
The above cycle pattern setup is actually very simple and straightforward, and all we need to do to potentially profit from it is to patiently WAIT until all of the cycle math adds up. When it inevitably does align in our favor, we strike without hesitation, riding the move higher and locking in a gain.
Even if we’re wrong (happens once in a while, we’re human), because we entered in the direction of a higher degree bullish trend, our losses tend to be modest.
JEROME EMPHASIZES THE IMPORTANCE OF THE MOVING AVERAGE IN THE TRADE ROOM. WHY IS IT SO VITAL TO TRADING SUCCESS?
Two certainties exist in all freely-traded markets:
1.) There exists numerous sets of cycles that drive the price action in each market, and these cycles can be identified, quantified, and exploited for financial gain.
2. All freely-traded markets will eventually mean-revert back to their moving averages. This is also a visible effect of time and price cycles at work.
Test this yourself; plot a moving average of any reasonable length (10-, 20-, 50-, 200-periods, etc.) and see if there is ever a time when the price did not eventually return to meet up with the average.
Given the reliability of this mean-reversion phenomenon, we’ll often use our key moving averages to set up low-risk trade entry and exit points.
Stick around our Trade Room, and you’ll definitely possess the ability to use this powerful market dynamic for maximum leverage!
HOW DOES THE 4-to-9 CYCLE BAR COUNT AFFECT OUR TRADE ENREY AND EXIT DECISIONS?
The 4-to-9 cycle bar count is a core element of our Trade Room’s methodology.
We rely on it for every single trade setup, without exception.
Remember, we always enter trades in the direction of our long-term chart cycles and trends, using our short-term charts, to pinpoint the best risk/reward entry zone.
We do this again and again, for we believe in the repetitive, predictive power of the 4-to-9 cycle bar count.
Our 60-minute chart is only two bars into it’s bullish 4-to-9 cycle bar count, and we’ve already confirmed that the cycle low is valid. Therefore we also know that there’s a very high probability that the 60-minute chart will trend higher for at least the next two bars (two hours).
Now, stretch your imagination a little further; imagine that during that second bar UP on the 60-minute chart, the 15-minute chart makes a 4-to-9 cycle bar low, and then begins to turn higher. Do you realize the significance of this?
You should, because it might just be great news for your trading account!
That’s because you now have TWO adjacent price cycles moving higher in unison! And they’re likely to keep trucking higher for the better part of the next two hours!
In our Trade Room, you’ll learn to expertly spot these powerful cycle alignments, day in, day out.
You’ll quickly realize just why the 4-to-9 cycle bar count is the best trading tool you’ll likely ever encounter.
HOW CAN THE TRADE ROOM CYCLE PATTERNS HELP ME BECOME A BETTER TRADER?
All of the above CT PRO trade patterns form the nucleus of our highly effective trading methodology.
Each one paints a compelling picture of the market’s current trade opportunities, even as each one also helps reveal important clues about emerging cycle pattern setups.
For example, our ‘RBBS’ or retracement bar buy setup signal can help you enter trades with far lower dollar risk. Learning to spot – and profit from – the mighty RBBS pattern might alone be worth the cost of your monthly Trade Room subscription!
Then there’s the neat trade entry tactic that we like to call “Go fishing for better fills.’ Master this one well, and you can lower your average, all-in trade entry price. Done correctly, you’ll make more on winning trade setups, even as your occasional losers will become smaller.
Our San Francisco Effect pattern may be just the thing for timid, easily shaken out traders who need more confidence in the markets. Grasp the dynamics of the SF Effect pattern, and you’ll easily comprehend the destructive trading psychology that causes most traders to exit winning trades – but way before they actually become winners!
Even worse, ignorance of the SF Effect can even cause traders to exit a great trade as it makes a temporary, adverse move against it’s original entry price. Then they kick themselves as the trade quickly recovers, going on to make a nice gain.
Such hapless trader get two black eyes from Mister Market – one for exiting at a needless loss, and the other for missing out an a potentially big winner!
Pow, right between the eyes!
Stop being one of the clueless ‘sheep’ that keep getting slaughtered in the stock index futures market! Learn all of our essential trading patterns, and get ready to embrace the market like the successful trader that you’re truly capable of becoming!
WHY ARE THE GREEN LINE (GL) AND RED LINE (RL) INDICATORS SUCH VITAL COMPONENTS IN THE CYCLETRADER PRO METHODOLOGY?
The Green Line indicator or ‘GL’ is a cycles-based oscillator that captures fast, yet significant cycle high and low turning points for us every day in the Trade Room.
When we combine it with the slower, trend-identifying Red Line or ‘RL’ indicator, we experience the trading world’s equivalent of a ‘match made in Heaven.’
The key is to buy right after the GL makes a cycle low, even as the RL is moving higher, AND at the same time that our medium- and long-term trends are in confirmed cycles and momentum up trends.
A skilled trader could probably use the GL and RL indicators to trade only in the direction of the higher-degree trends, creating a virtually complete, self-contained, profitable trading strategy of its own.
Same goes for catching cycle highs, riding the down trends on to healthy, consistent trading profits.
That’s how good the GL and RL are.
You’ll become very familiar with both indicators in our Trade Room, and once you do, you’ll always want to rely on both to help capture consistent trading profits.
HOW ARE KELTNER BANDS USED IN THE CYCLETRADER PRO TRADE ROOM?
We use Keltner Bands that are set 1.5 standard deviations away from our key Trade Room moving average.
The bands tend to provide valuable price forecasts, alerting us to potential cycle turns – even before prices eventually reach them.
This Keltner forecasting ability can help us to profit from highly reliable ‘mean-reversion’ trades in directionless markets.
Even better, when prices violate a band, moving significant past it, the band still retains it’s predictive ability! That’s because markets tend to mean-revert right back to the price level of the band break (like a magnet attracting metal), possibly allowing yet another opportunity to enter a trade.
It’s not ‘magic,’ but Keltner Band mean-reversion and magnet moves do tend to happen on a regular basis.
You can learn to take advantage of Keltner Band forecasting power – and potentially profit from it – as you join us here in the Trade Room.
WHY ARE YOUR 'SMOOTH CHARTS' SO IMPORTANT, AND WHEN SHOULD THEY BE USED?
Our primary trade entry/exit tactics rely mostly on the use of the 2- and 5-minute charts. But we day trade long term charts.
However, for added confirmation, we will also use our Smooth Minute and Smooth Volume charts to help ID internal cycle momentum that may not be apparent on our standard short-term charts.
Smooth Minute charts use a 3-period average of the 15-minute price bar’s open, high, low and close. This clearly show us the current market momentum, by eliminating much of the intraday noise and chaos.
If the Smooth Minute chart is green, that means that the market is trending higher on the 15-minute time frame. If it’s red, the momentum is trending lower.
Smooth Volume charts work exactly the same when using a 5000-volume bar (our standard setting for the ES).
WHAT'S THE IDEAL TIME TO 'FISH' FOR BETTER TRADE ENTRY PRICES?
Jerome’s been trading for many decades. His trained eye and daily interactions with the markets have convinced him that it’s virtually impossible to consistently buy the exact cycle low or to sell the exact cycle high.
He’s also quite certain that markets will oftentimes pull-in (retrace) right after he’s entered a new trade.
Therefore, the best entry tactic is to only put on a portion of your desired position at the original recommended entry price. Then simply wait for the near-certain pull-in to occur before scaling in the balance of your contracts.
For example, depending on market volatility, we’ll usually fish for a two-to eight tick price improvement on our ES trade entries.
We’ll also look for a six- to twenty tick price improvement on our YM and NQ trades.
There are many nuances, tips and tricks involved in putting this ‘fishing’ for better average entry prices technique to work. You’ll learn all of them via Jerome’s daily stream of charts and commentary in the Trade Room.
WHAT IS THE BEST WAY TO ENTER AND EXIT OUR TRADES IN NINJA TRADER 8?
Here’s how we handle all trade entry, exit and trade management orders in NinjaTrader 8:
1.) We enter and exit the majority of our trades using the DOM.
2.) For trade management, however, we rely on NT8’s Chart Trader.
NT 8’s DOM makes single-click order entries and exits a breeze, but for maximum speed and flexibility in moving stops and targets on the chart itself, Chart Trader is our choice for trade management.
For example, when Jerome identifies a long trade setup, he’ll use the DOM, clicking one or two ticks below the market price to enter his first third of a position.
Then, he’ll use the ‘Go Fish’ technique, progressively entering at lower prices until the final two-thirds of the position have been loaded.
Next, he’ll use Chart Trader to actively manage his stop loss and price targets, effortlessly moving them up or down on the chart itself.
It’s very fast, efficient, enabling Jerome to get in to, manage and get out of trades with a minimum of time and hassle.
The DOM and Chart Trader combine to give us the speed, flexibility and convenience we seek when it’s time to trade.
WHY SHOULD TRADE ROOM PARTICIPANTS QUICKLY TAKE PROFITS ON HALF OF THEIR FULL TRADE POSITIONS?
Decades of hard-won trading experience have convinced Jerome that taking fast profits on half of his trade positions is a wise course of action.
Even though cycle math is reliable, leading the majority of Trade Room positions into the win column, the fact is that each individual trade is a random event with an unpredictable outcome.
Therefore, by taking quick gains on half our positions, we accomplish three important tasks:
1. Once half profits are booked and our stop loss is move to break even (BE), we get to enjoy a ‘free’ trade, with zero risk of loss – and plenty of probability of further gains.
2. Booking fast gains on half our position also reinforces the reality of our status as consistent winners, providing us with a trading psychology ‘edge.’
3. Best of all, we reduce our stress level by an appreciable degree, especially when trading in volatile markets.
WHY IS IT ILL-ADVISED TO 'FADE' AN APPROACHING CYCLE HIGH OR LOW ON THE LONG-TERM CHARTS?
Jerome, like all other professional traders, has learned to respect the power of a trend in motion.
How many times have you looked at a chart, saying,
“ There’s just no way this market can go any higher (lower)!”
And then it blasts even higher (lower), picking up another ten handles in less than a minute.
Wise traders never, ever underestimate the power of a trending market.
That’s the reason why we do not attempt to fade anticipated cycle highs or lows on any of our long-term charts. That would be counter-trend trading, and generally speaking, you always want to be trading in the direction of the longer-term trends.
Most traders get killed when they trade counter-trend.
Yes, our cycles are accurate, but remember, cycle lengths regularly expand and contract. So even if we’re expecting a long-term cycle to top after 15 bars, we won’t fade it.
Because it’s possible that the cycle could extend several bars longer, that’s why!
In a powerful up (down) trend, that happens quite often.
So why risk fading a strong trend and getting stopped out for a needless loss? What we do is patiently WAIT for the cycle to actually turn lower, (higher) and THEN we may attempt to profit from it on the short (long) side.
That way, the cycle math is working FOR us, rather than AGAINST us.
Trade smart – never, ever fade a strong trend on one of our long-term charts!
Trade Patterns to learn that we use in the room each day -
WHY IS YOUR FIRST ENTRY ON EACH TRADE ONLY A THIRD OF YOUR DESIRED POSITION?
Here in the Trade Room, we realize that no one can consistently – if ever – enter or exit their trades at the extreme high or low of a cycle. Therefore, when we get a signal, we’ll enter the market right away, but with only a third of our intended position.
Usually, we’ll be able to use our ‘Go Fish’ tactic to add the remaining contracts at more favorable prices. This will lower our average trade entry price for all contracts, boost the gains on our winners, and help lessen losses on our occasional losers.
And even in a ‘worst-case’ scenario, where the market moves strongly right after our initial, small position is on (thus causing us to miss out on adding the rest of the contracts), we’re still happy to book a nice winning trade!
Trade Room Abbreviations
- Upper Bands = Upper Keltner Bands
- Lower Bands = Lower Keltner Bands
- VMI Up = Volume Up – Bullish
- VMI Down = Volume Down – Bearish
- Ops Up = Open Pivot Long
- Ops Down = Open Pivot Short
- Legs Up – Bullish
- Legs Down – Bearish
- Swing Up = Above Swing Low – Bullish
- Swing Down = Below Swing High – Bearish
- GL Step Up = Greenline Bars Turned Up – Bullish
- GL Step Down = Greenline Bars Turned Down – Bearish
- RL Steps Up = Redline Bars Turned Up – Bullish
- RL Steps Down = Redline Bars Turned Down – Bearish
- X Bars Up = Cyclewave Count Up
- X Bars Down = Cyclewave Count Down
- Matrix Up = Matrix Chart Is Up – Bullish
- Matrix Down = Matrix Chart Is Down – Bearish
- RBBS– Retracement Bar Buy Sell Pattern
- Back To MA – Prices Are Likely To Go Back To Moving Average MA.
- Sf Effect – San Francisco Effect
- RBBS – Retracement Bar – Buy Sell
- NBLB – Never Be Left Behind
- C-Zone – Congestion Zone Sideways Market
- Go Fishing – Placing Orders at Better Pricing.