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Live Trading Recap: Polarity-Assisted Trading Interface (ATI)

Jul 11, 2024

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.