hey everyone welcome back to another live trading recap video today is going to be a little bit different from our usual formula not only are we going to be showcasing the polarity-assisted trading interface or polarity ati for short but we are also going to show you guys when to not enter previously i have only highlighted entry cases but i want to be specific on how to filter out bad trades and win the best times the trader so the way the polarity ati works is that it enters on three stacked imbalances with an allowance for a one tick gap it has the same level of configurability as the analytica chart three and it requires it to function the special aspect of this system is that it has an arming system so you can arm and disarm the strategy for one or both directions at once the resting state is disarmed so you're safe from any accidental entries there's a full instructional manual included with purchase with has everything you need to know about how to trade this system and how to adapt the settings for any market regime this is an all-inclusive product meaning it is a full trading system meant to be adaptable to any market condition we have been vigorously testing this system in many market conditions we're using back testing and forward testing for the past two months and we've had some exceptionally good results one of the best aspects of having a semi-automated trading system is that although it's you calling the shots the system is faster than any manual trader by a long shot and you'll see what i mean as we continue this footage so let's get to the footage that's showing on the screen right now it's currently about five to ten minutes after market open right now and we actually already had a trade when it bounced off of that 4140 level we decided to wait until we saw positive delta and then we armed the strategy for long only we got filled pretty quickly and then once again after that we had no really reason no real reason to disable strategies so we re-armed it for long once we got filled on that second strategy we decided to continually arm that again for long but once delta turned negative we decided to disarm it there was also an absorption level at this point from pre-market although price did end up breaking through this point we still wanted to disable it as we saw that stacked imbalance go through right there just for a second and then it disappeared off on the short side as well as the fact that it just wasn't really a good high probability area we already filled on two trades on 10 ticks five contracts so we decided to just cut right there it's currently about 10 minutes after our last trade and as you can see there are a lot of stacked imbalances but it was in this range right here remember like i said earlier the default resting state of your strategy should be disarmed a lot of the times the market is not trending in a certain direction and it's going to be in a range like right here when you spot these ranges you're going to want to stay disarmed until you see a breakout or some kind of delta divergence on one side so as you can see there we got a small almost breakout however that bar didn't close above that absorption level we had marked prior however this mech bar does do that so we arm the strategy for long only and we wait for an imbalance and a balance immediately appears for two bars forward we get entered in really quickly and almost immediately filled speed is exceptionally important for trading stacked imbalances and i guarantee you if you're trading this manually you're going to run into a lot of areas where you're just not quick enough to spot the imbalances no man can stay behind the screen and just constantly be paying attention and enter instantly when they see a stacked imbalance this system is supposed to allow you to focus on the decision making aspect of trading not the trading execution that's left to the machine and you tell it what to do and it executes it perfectly circling back there we rearmed the strategy for long because we saw that delta continued to be positive as well as price continued to move in that uptrend we do get stopped out on that trade pretty quickly however we didn't do anything wrong on that trade things like that happen and if anybody tells you there's a 100 win rate strategy out there they're lying to you that's happening and i'm going to be really transparent of when i lose and that was one of the times where this trade lost however what i can tell you is that if this strategy is traded correctly it will give you an exceptional edge after this trade we see a pretty clear range forming or at least the trend stops we can see this happening pretty easily just by taking a glance at the delta and comparing its price although there is and there isn't really any consistent way that price and delta are moving there's not really a correlation if there's no correlation between delta and price then you're probably looking at an area where there isn't a trend and you're probably going to want to disarm the strategy a strategy is already disarmed by default so we're fine we're waiting for a breakout in a certain direction before we enter long or short once again i want to show you guys that i am clearly visually marking absorption levels as we continue i leave these on the chart until they become irrelevant so if you guys have these have this tool it's actually accessed with shift plus f2 on your keyboard with any version ninjatrader you guys can use that and draw lines really quickly and easily we actually are in that range for an entire hour until we see an area where there is a little bit of a breakout see it bounces off this level a few times however we see that negative delta start to overcome and we wait here we wait for it to close below that level of absorption before we arm the strategy for short and then really shortly after that breakout in the downward direction we see that imbalance form and our system spots that immediately and enters us short it disappears for a little bit there however we it continues to be an imbalance or a stacked imbalance and we stay in that short direction we get filled pretty quickly and then we want to keep that strategy armed because we see that price movement in the downward direction and we want to continue capturing as much alpha as we can when we see these trends where there are continuous levels of negative delta we want to capitalize that on as much as possible most of your trading gains are going to happen within small little 15 minute blocks where you're going to see lots of movement happen and in a really really consistent direction you can and what's great about this system is that you can actually find when these movements are going to stop so as we continue seeing here you're going to see that delta slowly decrease and then you're going to see it bounce off of key levels that we had marked before we get entered again again short on this position we end up getting stopped out so because we get stomped out there we're not as eager to rearm the strategy however that downward direction does end up continuing and you can see why right after this we're going to mark key levels on this point right here and then once it breaks out in that direction we're going to want to arm it short if it broke out in the long direction we would not arm long because the market doesn't really like to move and straight upward v movements especially with range charts you might see a lot of somewhat v movements on minute charts or second charts or whatever but you're not really going to see that kind of thing with range charts because what's really really great about range charts is that you're focusing just on price movement it takes out the time aspect of it because the market doesn't really care what time it is there's no aspect of the market that affects time auction structure is not affected by what time it is so it's just going to be price delta and order flow that's all you need to be successful with trading and i'm going to show you guys here why when it bounces off that level we're going to wait for it to close below that bar once it closes below that bar we arm short as you can see a little trade opportunity did appear there but because it's not below that level we we didn't take it however it closes below right there we arm it short and now we just have to wait for a stacked imbalance i get a lot of questions asking about what settings i'm using on a day-to-day basis and to be completely honest with you the ratio doesn't really change that much depending unless i'm trading a different instrument but on es i pretty much like to stick with 0.35 however what does change is the range take profit sl and the minimum volume required to see an imbalance i switch a lot between 50 100 and sometimes 150. what you're going to want to see is that when volatility goes up you're going to want to change your take profit stop loss and range amount and when volume daily volume goes up you're going to want to increase your minimum volume because you need to compensate for that extra level of noise that's happening because that volume has increased the ratio is going to want to stay around the same level i don't really like to go below 0.35 it's a little bit too sensitive anything below that however if you guys are just starting i'd probably go for something a little bit higher like 0.45 but um i really only go that high when i'm trading a 15 range chart or sometimes even a 20 range chart you're gonna see a lot less trading opportunities however it'll help you guys get the feel for things and maybe filter out some more trades that are in ranges that you might not have spotted yet because you're new to spotting these kinds of order flow based ranges circling back to what's happening the video right now we saw that breakout in the short direction again we re-armed short waited for an imbalance we got entered pretty quickly the imbalance disappeared however delta continues to be negative so we stay in the trade what's interesting about this is that you're going to want to stick with trades even when the imbalance disappears once you're in unless delta switches to positive especially if price can start to stay the same if prices around that zero level wear that bar open and delta's starting to move the direction against you you might want to close out that trade early because your success rate probably just dropped significantly if you're watching earlier you might have noticed that we didn't instantly rearm the strategy after we got filled we waited to see what price action was doing because this is such a long downtrend you're going to start to see small little pullbacks there we wanted to make sure that wasn't a real pullback so we waited we saw it bounced off of a level we marked it and then we marked a previous level of imbalance if it went above that we would decide to not rearm again however it closed below that level we marked and then we decided to rearm it for short and then we got another entry about another 20 ticks down and we got filled pretty quickly we continue to rinse and repeat this process we're marking levels seeing where their imbalances are and if there are any and if there's any breakouts in the opposite direction we're going to stop trading and just observe and see if there's any ranges remember don't get greedy there are plenty of opportunities it's okay to miss imbalances you're going to want to look for high probability trades remember we're scalping you're looking for as much alpha as you can get as the highest success rate you can get you do not want to take losses as it is a one-to-one risk reward ratio strategy when you lose you've actually just moved yourself back an entire step it's not like a regular strategy where you have a higher than one-to-one risk reward ratio you're going to want to avoid losses as much as possible even if that means missing out on potential profit we did end up being right about that level of range being formed after it bounced off of that level and broke out in long direction we didn't see a real pullback and an actual trend start to form long until we saw a range form we saw this range form we saw stacked imbalances but we did not get entered because we did not arm the strategy since it was in a range very important guys don't hit that button unless you are very confident that it is not in a range but as you can see here we saw a small little breakout and we decided to arm the strategy what happened early right here in this level that i marked i saw it the thing is that the previous bar didn't close above that level so we decided to not on the strategy there would have been an entry there however we just didn't get the opportunity to take it however if you were watching you would have seen that we did arm the strategy for long once it closed above there we were a little bit late i was actually kind of distracted by looking at whether or not that trade would have failed that i forgot to arm the strategy but we do arm it and an entry condition is found now this is a perfect example of a trade that we closed early and we're okay with we saw that our entry condition which was that imbalance on one side kind of disappeared there we end up having pretty much only white numbers on the right side and then delta starts to continually decrease we see that point and we're like you know what it's not a high probability trade anymore so we're going to cut our losses short there but it ends up working in our favor and we would have lost that trade if we had stayed in it so now about two hours have gone by where nothing has really happened however we're seeing this really interesting regression channel form we're using the regression channel tool that is in ninjatrader itself to mark these levels so at this point we're just waiting for something interesting to happen there isn't really a lot of volume there's not really a ton of movement in either direction and delta is pretty inconsistent there's no real correlation with price so about another 10 minutes go by and then it starts to break out of that regression channel however we're not ready to arm it yet we see kind of an increase in delta there and we see a little bit of a price movement kind of breaks out and then moves back down nothing really that interesting yet however we're going to mark key levels on this new small little blocky range there where all of the bars are adjacent to each other and when we see this we're seeing that delta is kind of skewed towards the negative at this point but price is staying pretty similar like i've said in my previous videos this is an example of a delta divergence we may see a breakout in the long direction we're not really looking for a short trade here as i said earlier the regression channel was moving in that downward area unless we saw a violent decrease in price moving downwards breaking through tons of previous price levels we're not really looking for a long trade as slow degradation of buyers isn't really the kind of trading that we're looking for we're not doing swing trading we're looking for quick scalps so at this point i made a little bit of mistake i want to point it out to you guys nothing bad happened luckily but i was really trigger happy at this point we hadn't gotten to trade in a while and i clicked arm long before that bar closed please be disciplined in your strategy see nothing bad happening because of it but i disarmed it right after because i realized what i did make sure you don't do that because it might cost you but we do end up getting an opportunity right after that when we arm the strategy as expected once it closes above that range it enters pretty quickly and it was a pretty standard film price just moved upwards and hit our take profit but right as we get filled another stacked imbalance forms right in front of us we see that and this is kind of a manual entry because we arm it and it's already there so the strategy spotted that and then it enters on that position so the way the strategy works is that it's not going to double enter however when you arm it it's going to check and see if there's any stacked imbalances on that bar and if it's near enough to it it'll enter you in that direction but because we entered kind of manually we got filled one tick above es is really nice because it's very liquid on nq you're going to get a little bit more slippage just because the spread is a little bit wide for es usually the spread is only one tick and with market orders if you have a really quick connection you can actually usually get filled exactly where you want to when we see this point we had this little um we had a one tick disadvantage here so we drew that take profit uh stop loss tool it's just included with ninjatrader and then we set our stop loss to what the standard entry would have been we don't move our take profit because we do want to secure the same amount of ticks however we're a little bit more skewed in the lost direction which is fine i'm okay with that i have a little bit of cash to burn here uh just in this in the sense of improving the reward rate at this point but um as you can see it's kind of a little bit of a long more drawn out trade but we end up getting filled right after that it kind of entered another range at this point and we're getting that little bit of a wii u shape and i don't like to trade those um we are in probably the most calm time of the day which is around 11 a.m my time which is pacific standard time so at this point you know we're already up 3 800 and i think it's okay to just step away from the computer there so now i want to talk about the polarity ati that i was using in this video so we sell the system on our website which is in the description and it includes a full instructional manual about how to trade this strategy both with the automated aspect and manually includes a full breakdown on how to find the best settings for the current market regime and how to continuously hone your edge so if you guys are interested in that head over to our website however the main goal of this channel is to educate so to trade the stacked and balanced strategy you don't need our automated system we teach everything for free on this youtube channel and you can manually trade this with any footprint chart but i wanted to make it more accessible to everyone especially older guys who might not want to be staring at a screen intensely on full alert for six and a half hours a day this type of system should reduce the mental workload you need to perform to be profitable and allow you to focus on being the decision maker when trading order flow which really is the key to being profitable long term so now to talk about the future of the content on this channel uh what i really like about this kind of trading style is it makes my job both as a trader and a content creator a lot easier i can pump out more content because i am not as hyper fixated on watching the charts as i usually have to be it's quite easy i simply make decisions and i tell the strategy when to make those decisions and it does it for me i can kind of be a little bit more relaxed when trading and i can be a little bit more distracted and maybe have more content for you guys without having to detriment to my trading experience because you know i as much as i love creating content for you guys the number one priority for me is to be profitable as a trader but i also want to tackle some of the questions about doing live streams and all that the thing about trading for me is that i like having flexibility i think doing live streams daily not only does it make you rely on me to be profitable which the goal here is that when i step away from the channel you guys don't immediately lose your entire quality of life but to teach you guys and give you that long-term success that you need 20 10 years in the future stuff like that but the thing is that's not going to happen if because i'm not going to be live streaming in 10 years um i plan on doing other things with my life than trading and i'm very transparent about that but i want to teach you guys what you're really missing out on and what retail traders aren't teaching you this is the way institutional traders get into the market they actually look at data points that retail traders usually don't have access to if you have access to order flow you have access to more data than 99.9 of other retail traders on the market and you're competing now on the same footing as institutions but anyway i think that this style of video where i show you guys when not to enter should clear up a lot of the misconceptions you guys have about this trading system should show you guys some more information about uh when not to trade which is a very important aspect of trading but um that should cover all the bases that live trading would consider i think that live trading content would be very dull i wouldn't be really giving commentary and frankly it just doesn't really fit the style of my channel i like having quick bites of content where you guys can learn a large amount of information in a short period of time and i can appeal to as many people as possible i want to bring as many people into this order flow space as possible because frankly oh my gosh i hate these systems that just don't work you're never going to be profitable trading with these stupid macd indicators or bollinger bands and stuff like that the market changes so much that it just it might work in a certain regime but it's not going to work in the next but order flow as long as auction systems exist it will continue to have an edge in markets if you guys enjoyed the video make sure to like subscribe and leave a comment and um as always thank you guys for watching and i will see you guys next time