Live Trading Recap: Polarity-Assisted Trading Interface (ATI)
Overview
- Main Topic: Introduction and usage of Polarity-Assisted Trading Interface (ATI)
- Objectives: Showcasing when to enter and avoid trades using Polarity ATI
- Importance: Understanding how to filter out bad trades and identify optimal trading times.
Polarity-Assisted Trading Interface (ATI)
- Functionality: Enters trades based on three stacked imbalances with an allowance for a one-tick gap.
- Configurability: As configurable as the Analytica Chart Three, which it requires to function.
- Arming System:
- Can arm and disarm strategy for one or both directions.
- Default state is disarmed to prevent accidental entries.
- Instructional Manual: Includes all necessary information to trade the system and adapt settings to market regimes.
- Market Adaptability: Designed to adapt to any market condition.
Testing and Results
- Testing Method: Both backtesting and forward testing over the past two months.
- Results: Achieved exceptionally good results.
- Performance: Faster than any manual trader.
Examples and Strategies
- Initial Trade Example: Entered a trade post-market open after positive delta indication.
- Armed for long only.
- Disarmed strategy due to negative delta and less favorable absorption levels.
- Range Identification: Disarming in range-bound markets until a breakout or delta divergence.
- Speed Importance: Critical for trading stacked imbalances.
- Machine assistance crucial as humans can't consistently spot imbalances quickly.
- Trend Observations: Observed price and delta trends to inform strategy decisions.
- Positive delta with upward price trend -> re-armed for long.
- Negative delta advised disarming.
Technical Specifics
- Delta and Price Correlation: A lack of correlation indicates possible range-bound market.
- Absorption Levels: Marked and retained until no longer relevant.
- Disarming and Arming: Crucial to arm or disarm based on delta, absorption levels, and overall market movements.
- Range Charts Advantage:
- Focus on price movements, ignoring time aspect.
- Helps identify trading opportunities based on price action alone.
Practical Implementation
- Example Trades and Analysis: Highlighting entries, exits, and key levels.
- Observed regression channels and marked key levels for strategic arming/disarming.
- Trigger-happy incident and the importance of discipline.
- Adjusting stop-loss and take-profit settings based on volatility and volume.
- Settings: Consistent ratio usage and adjusting take profit/stop loss based on market conditions.
Benefits of Polarity ATI
- Reducer of Mental Workload: Allows traders to focus on decision-making rather than execution.
- Educational Value: Trading stacked imbalances taught for free on the YouTube channel.
- System accessibility for all, especially older traders who might not want to stay glued to the screen.
Content Creation and Future Plans
- Ease of Content Creation: Non-hyper-fixated trading allows for more educational content.
- Focus on Education: Aims to educate traders for long-term success, not dependence on daily live streams.
- Institutional Trading Insight: Provides data points that retail traders usually lack, putting them on the same footing as institutions.
- Live Trading Considerations: Believes live streams might not be effective in providing substantial educational value.
Final Remarks
- Avoiding Losses: Important to avoid unnecessary losses due to the one-to-one risk-reward ratio.
- High-Probability Trades: Focus on capturing alpha with high probability trades only.
Call to Action:
- Website and E-Manufacturers: More information and purchases available online.
- Educational Content: Continuous learning and content creation to bring more people into order flow trading.
Conclusion: Thank you for watching and for the support. Encouragement to like, subscribe, and leave comments.