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TRACK `N TRADE® PRO - Gecko Software, Inc.

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1. 262 Tade LOG a ter ere mnie a 263 SIMUNO s cia CD a DR 264 Options Plug In 270 NERO e leji lela o xod rct eae LI M EE LL nC 270 Options Accounting ais EE Cere abet 273 Interest Rate HIStOY 276 OS Calculator pm ER 277 OSV amp STRK Options Indicators 279 Black and Scholes 282 Seasonals Plug In 206 2 tele Sen A 288 Seasonal Trends sapata 288 Historical Average S 289 Market P ropapillty 291 Spreads Plug In 295 NO OUCH OR 297 Spread Margins ee oes neh 300 Candlestick Charting 304 Track n Trade Pro 4 0 User Manual END USER LICENSE AGREEMENT FOR GECKO SOFTWARE IMPORTANT READ CAREFULLY This Gecko End User License Agreement EULA is a legal agreement between you either an individual or a single entity and Gecko Software Inc corporation for the Gecko software product identified above which includes computer software and may include associated media printed materials
2. Calculation Parameters Period 20 the number of bars or period used to calculate the study You may alter this to use any number greater than 1 for the close The historical volatility displays in simple percentage values Formula The calculation for the historical volatility is rather involved The number of periods per year vary depending on the type of price chart used for the study The following table lists the number of periods for each type of chart Chart Type Trading Periods per Year Perpetual 262 Daily 262 Weekly 52 Monthly 12 Variable Based on chart period see below Tick Not available for this study When using variable charts you must first calculate the number of trading periods per year To do this you must determine the trading time of the selected commodity The formula is as follows TP Tt Pn 262 TP The total number of trading periods per year Tt The total trading time in a day Pn The length of the period 262 The number of weekdays per year For instance the S amp P 500 trades from 8 30 a m to 3 15 p m That is a total trading time of 6 hours and 45 minutes On a variable chart using 5 minute bars the number of periods for the day is 81 as demonstrated 6 hours 60 minutes 360 minutes 45 minutes 45 minutes Total minutes of trading 405 minutes 405 5 minute bars 81 trading periods per day Now that you have calcul
3. 121 FIDONACCLATC TOON gt 123 Fibonacci 1 Ea ERES 125 Calculating Trading Actual 127 Rounded amp Bottom 129 Rounded Top amp Bottom 130 Isounded TOD ves ewe 130 Rounded BONO e En 130 ce eee 130 DOUDE BOLOF aan 131 PADO TOD are core 131 TPS BONO pee IINE 131 PRC ken PN NN LEE EE 132 Personalizing Your Charts with Notation Tools 137 ire e lel DIETER 137 NOIES rm 138 AOW TOON RETI 138 IAG E E 139 TONE TOG MER RUMP 141 er eae Meee en i RR 142 Circle C 143 Using Indicators ori 147 INFO QUIOTO iate ud YE a ERREICHT 147 Displaying Indicators the Indicator Window 147 One Sil lale n C 147 grise ere CET t 148 R Williams Percent R cccccccsececseeeceseeeceeeeseeeesseeeeseeeesees 149 WV MAIS AD a 151 CCI Commodity Channel Index
4. 154 DMI Directional Movement 158 HVOL Historie Volalllily s Ls sesin ke a tubes 164 MACD Moving Average Convergence Divergence 170 MOM 174 RSI Relative Strength Index 177 FSTO Fast Stochasilcs ia ae es 181 SS Os SIOW SIOCNASHCS odi ea ancien tes 184 VOL OI Volume Open 187 Displaying Indicators in the Chart Window 189 Moving Average Lines o oc donas sena avian 190 Double Moving Average 190 Triple Moving Average 191 PIVOL ONO NR race ope 195 TOXO MAC iiie ec dum ui Lu E IU MU ME 197 PSAR Parabolic Stop and Reversal 200 Long Term Charts ee 203 Using Calcul ators 2 eiae 211 Dollar Calculator sene cid su Sen Va dah Myer iced E 211 Risk Reward 213 Program OPtlONS e eor eec cot eens ee 219 NATO GUC HON P 5c oc RR E E nn 219 Global 220 Track n Trade Pro 2 221 WONG cM MOSES 222 TOO sacs i
5. 4 Apply to active charts Restore Factory Defaults Corel B Hep Style Color 2 NE 1 To enter the values for the Initial Acceleration Additional Acceleration and Acceleration Limit highlight the current numbers and type in your value 2 Style amp Color To change the style click on the dropdown menu and choose from squares dots lines or crosses Click on the color box to change the color of the indicator 3 Check this box to Display the PSAR Indicator 4 Click on Apply to active charts if you would like to see your selected settings on all the charts you have open Click on Restore Factory Defaults if you would like to restore original software settings 5 Help Information from the Manual has been integrated into the software When clicking on the Help button and you will get specific documentation based on the location of the button You may also press F1 on your keyboard Scaling amp Price Bars Track n Trade Program Options Select Category Chart Scaling and Price Bar Style lm Global Settings Horizontal Scaling Default Settings Each price bar style can have separate horizontal scaling attributes Appearance Bollinger Bands Ht Scales tol 16 days per inch Draw dark grid every 9 days MAC Moving Averages pr Scales tol 16 days per inch Draw dark grid every 8 days 1H Pivot Points PSAR qo Scales to 16 days per inch Draw dark grid every 8 days Scaling
6. Formula The computational procedure for the parabolic time price study is a logic exercise The actual computations are quite simple The logic to derive those computations is somewhat more complex Once the market establishes a direction the initial SAR becomes the extreme price for the two intervals The extreme price is either the lowest price or highest price for the two trading intervals The short position uses the high and the long position uses the low The formula for the PSAR is SARt SARt 1 a EPtrade SARt 1 SARt The stop and reverse price for the current interval SARt 1 is the stop and reverse price for the previous interval a The acceleration factor EPtrade The extreme price for the trade The SAR is always the stop and reverse price point This is the point you liquidate your current position and establish the opposite position The acceleration factor a is a weighting factor In Wilder s work the initial value for the acceleration factor is 02 The acceleration factor increases by a value of 02 each time the extreme price changes for the trade You do not increment the acceleration factor if the extreme price fails to change The value for a acceleration factor never exceeds 20 in Wilder s methodology The extreme price for the trade EP is just that What was the highest or lowest price achieved during this trade If you have a long position use new highs as the extreme pri
7. Show Text Select to view or hide the H LS and RS Send to back Changes the layer of the tool This option is used when more than one tool is in the same area of the chart Click on Send to back when you need to access Triangle and Wedge Formations The triangle formation comes in many varieties There are Rising Inclining Wedges and Symmetrical Non Symmetrical Triangles Inclining Wedge The Inclining Wedge Formation occurs when the slope of price bar highs and lows join at a point forming an inclining wedge formation The slope of both lines is up with the lower line being steeper than the higher one A To Trade the Inclining Wedge Place a BUY order on a break up and out of the wedge or a SELL WF order on a break down and out of the wedge Inclining Wedges with a prior downtrend are anticipated to break down and out rather than up and out Example of an Inclining Wedge in Track n Trade Comida OU CLA Eslguarg MOF c Inclining Ah d Declining Wedge A Declining Wedge Formation occurs when the slope of price bar highs and lows join at a point forming a Declining wedge The slope of both lines is down the top line being steeper than the lower one This formation is opposite the Inclining Wedge To Trade the Declining Wedge Place an order to buy on a break up and out of the wedge or an order to sell on a break down and out of the wedge Falling wedges with a prior up trend are anticipated t
8. Text Tool PEE The Text Tool enables you to type text on the chart Adding Text to a Chart 1 Select the Text Tool Button in the Notation Toolbar Left click on the chart where you would like to place the upper left corner of the text box continue holding down the mouse button and drag to the lower right corner position release the mouse to place the box 3 Once the text box is drawn the Text Tool Options window will open see screenshot below 4 The Text Tool Options window allows you to enter the text set the font size position color and style of the text Also you can select a border and background for the text box 5 Click on OK when finished and the text will be placed on your Chart Text Tool Options Window in Track n Trade Text Tool Options Font Size Justify Color Style T Arial fo x Let B 5i ul Display Border Color Width Fill Background Color Cancel Moving Text on the Chart Left Click to select the text box and continue holding down the mouse button while dragging the text to the new location Release mouse button to place text 1 2 3 Deleting Text Left click to select the text box and then press the Delete key on your keyboard Or right click the text and select Delete from the popup menu Changing Properties of the Text Right click to view the properties menu Select Settings to view the text tool options Make changes
9. Line Style Font w Shaw Text Send Ta Back Delete Changing the Properties of a Fibonacci Time Zone Right click on the drawing to view the properties menu Properties that can be changed are Foreground Changes the line color of the Fibonacci Time Zone Line Thickness Changes the thickness of the Fibonacci Time Zone Line Choose values from 1 6 Line Style Changes the line style of the Fibonacci Time Zone Line Choose from solid dashed dotted and more Font Changes the Font Size Style and Color of the Fibonacci Time Zone numbers Show Text Select to view or hide the numbers Send to Back Changes the layer of the tool This option is used when more than one tool is in the same area of the chart Click on Send to Back when you need to access a tool under the Fibonacci Time Zone drawing Delete Select to delete tool Example of a Fibonacci Time Zone in Track n Trade Soybeans Nov 2003 790 25 752 50 2 715 00 2 677 25 639 50 601 75 4 584 25 E 526 50 lius EE Sep 2005 24 um a Nov 2003 STNT Calculating Trading Actual Days In the futures industry trading days are scheduled around holiday and weekends therefore when looking at a futures chart often times it is difficult to determine how many actual days have passed while working a trade The number
10. MH Candlestick bars ignore this setting they use the current open 8 Apply to active charts Restore factory defaults 9 Help Cancel 1 Grid Lines and Day Line a Light amp Dark Grid Lines Select the check box in front of the line to display them on the chart Change the color of the Grid Line by clicking on the color box and selecting a new color from the Windows Color Palette These lines are based on the scaling selected for the chart For more information see Scaling b Day Line Displays an additional vertical line based on the day of the week on the chart by selecting the check box Select a particular day of the week by clicking on the drop down menu Change the color by clicking on the color box and select a color from the Color Palette 2 Expiration and Notice Dates Click on the corresponding check box in front of the item to display Options Expiration Last Trading Date or First Notice Date on your Chart To change the color of the line click on the corresponding color box and select a new color from the Windows Color Palette 3 Ruler Colors a Ruler Text Marks Indicates the color used for the ruler lines and text b Ruler Background Indicates the color used for the background of the rulers 4 Chart Background and Order Colors a To change the background color of your chart window click on the color box and select a new color from the Color Palette b To change th
11. ou C Jm qv 9 Bg a TAU ede C EL at 1531 1474 2 1410 2 1349 Displaying the Historical Average Indicator Play To 1 12 2004 j vv To display the Historical Average on your chart simply right click the chart window HLC Close and select Historical Averages from the candle menu Proportional Width v Charts To unselect use the same process right Moving Averages Click and select Historical Averages w Historical Averages Bollinger Bands Points 10 Parabolic 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 specific 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 ina net number of positive or settles In other words the 1 reading in these examples would be indicative of a market which has settled highe
12. Delete Selected Modify Selected f Calculate options strategies for commodity 120042 Dec Dec 20032 Friday 12 of December 2003 Market closed 380 50 Graph based on Option Orders Graph Increment points 5 00 2500 00 1666 67 833 33 0 00 833 33 1666 67 2500 00 Profitability of Option Strategy at Expiration Potential Profit Breakeven point Cancel Place Order s OSV amp STRK Options Indicators Determining if your Option is Over or Under Valued The Options Plug in contains two indicators used to determine if an option is over or under valued 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 in 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 Indicator Buttons tj ONE ALL AD CCl DMI HYOL MACD MOM R RSI FSTO SSTO wo SEAS PROB K os 29 00 P z4 J Section 12 Options Plug In 2 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 indi
13. MOM iU n Candlestick bars ignore this setting they use the current open RSI Am STO Proportional Width Price Bars Fil Candes Smooth Scroll VOL Ol Apply to active charts Restore factory defaults Smooth Scroll Selected As the data nears the right edge of the Chart Window 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 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 266 Section 14 Accounting amp Simulator Plug In Track n Trade Pro 4 0 User Manual 267 TRACK N TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time OPTIONS PLUG IN Section 12 Options Plug In Track n Trade Pro 4 0 User Manual 269 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 over valued Options Requirements In order to place options orders or use any of the options tools
14. Trade Pro may encounter problems downloading through the firewall It may appear that the downloader is idle for a long period of time and then it will display an error stating it could not find the server This is because the firewall does not allow the server from sending the new data to your computer Track n Trade Pro has a new feature to allow for both standard and non standard methods for downloading data The standard method uses port 80 which is accepted by most firewalls as regular traffic but this method is slower The non standard method uses port 60184 and will need to have an exception made in order for this method to work with a firewall this method is much faster than Port 80 in downloading data Configuring Track n Trade Pro for Firewalls 1 Click on the Data Download button from Track n Trade Pro toolbar which will start FIDO Track n Trade Pro s Data Download Utility 2 There is a button located on the far right called Options Click this button 3 This will open a new window where you can select which method to download data 4 f you are working behind a firewall select Port 80 and then click OK 5 Once done click Begin to start downloading data Section 4 Analyzing Charts with Charting Tools Track n Trade Pro 4 0 User Manual 66 TRACK TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time ANALYZING CHARTS WITH CHARTING TOOLS Section 4 Ana
15. 1 Select the drawing by clicking on it Note The drawing is selected when boxes appear on the corners 2 Click on one of the boxes on the corners to drag the select point and release the mouse button Changing Properties of a Narrow Sideways Channel To view the properties menu right click your mouse on the channel drawing tool Properties that can be changed are Foreground Changes the top and bottom lines of the channel Background Changes the inside colors of the channel Line Thickness Changes the thickness of the channel lines Choose values from 1 6 Line Style Changes the line style of the channel lines Choose from solid dashed dotted and more Send to back Changes the layer of the tool This option is used when more than one tool is in the same area of the chart Click on Send to back when you need to access a tool under the Narrow Sideways Channel drawing Section 4 Analyzing Charts with Charting Tools Inclining Channel The Inclining Channel is a formation with parallel price barriers along both the price ceiling and floor Unlike the sideways channel the inclining channel has an increase in both the price ceiling and price floor The breaking of the bottom trend line on this formation shows a change in trend from bullish to bearish To trade an Inclining Channel Place an order to sell on the break down and out of the channel Example of an Inclining Channel in Track n Trade Soybeans N
16. 7 Click on Apply to active charts if you would like to see your selecting settings on all the charts you have open Click on Restore Factory Defaults if you would like to restore original software settings 8 Help Information from the Manual has been integrated into the software When clicking on the Help button and you will get specific documentation based on the location of the button You may also press F1 on your keyboard CCI Commodity Channel Index Track n Trade Program Options Select Category Commodity Channel Index Global Settings Period Style Color My Default Settings 1 2 Appearance Commodity Channel Index 20 m Bollinger Bands MAC Moving Averages Pivot Points PSAR Scaling amp Price Bars quu HVOL MACD MOM 3 Display Commodity Channel Index 9 XR RSI 4 1 STO VOL Ol ES Current Chart Settings 6 Apply to active charts Restore Factory Defaults 7 Help Cancel 1 Period To specify the number of days used in calculating simply click on the box highlight the current number and type in a new value 2 Style amp Color The CCI Line can be displayed as a solid dashed or dotted Click on the drop down menu to specify the type of line style To change the color click on the color box select the new color in the Color Palette To Display the indicator click the check box Ruler Bar See the Ruler Bar a
17. Just as leverage magnifies the amount of force used as in the case of pulleys allowing men to lift very heavy objects financial leverage magnifies the amount of money which can be made or lost in the markets As they say in Chicago The futures markets have made millionaires of more young men than Rock and Roll However we want to point out that leverage is a two edged sword Over leveraging your trading is a sure fire way to lose your money and fast Think about the leverage of a roulette wheel Each bet in roulette on a specific number pays off at 35 to 1 For example if you bet 6 and the ball bounces and lands on 6 every 1 you bet is paid back to you with 35 dollars 25 to 1 is great leverage Now assume that you start off with 1 and bet 6 and win You now have 35 and bet it all on 6 which comes up again You take your 1 225 winnings and let them ride on 6 again and win reaping 42 875 You can win big even if you don t bet big as they say let it ride again making a phenomenal 1 500 625 You let it ride one more time and up pops 00 You loose everything Though roulette is strictly a game of chance the above results are possible with futures due to the leverage involved For example you buy 1 Corn futures contract at 210 and the price goes up to 219 giving you open position profit enough to post margin for a second contract Prices then rise another 04 cents and you buy a third contract
18. Many markets are quoted in decimal numbers and don t need to be viewed as fractions Key Tab The Key Tab is the tab with the graphic that looks like a Key Click on the tab and it will expand to say Key as you see in the screen shot below The Key Tab displays the information from the exchanges on the conitract that you are currently viewing in the Chart Window See what each value represents below Symbol Gecko Software s symbol for the commodity For Mame Group Exchange Contract Size Contract Units Tic Size Minimum Move Tic Units Full Paint Value Init Margin Maint Margin FAD First Notice Dap LTD Last Trading Day Market Oper Market Close Options Expiration Options Strike Interval Options Min Move Ma of strikes above below Wheat CBOT GRAINS CBOT 5000 00 Bu 1 4 0 25 Cents 50 00 1012 00 750 00 11 29 2004 12 14 2004 09 30 00 13 15 00 11 29 2004 5 000000 0 125000 Track n Trade Pro v4 0 we have re done our symbology to make our symbols match the exchanges as much as possible Name Short name including an indication of the session type Types include for open outcry and c for combined Group The group that Gecko Software has put the One contract represents 5000 00 Bu commod ity or minimum move 151 4 0 25 Cents per Bu and worth 12 50 per contract Exchange The exchange where the commodity s trad
19. Select Settings from the menu to open the Flag Options window In Flag Settings you can select a different flag change or import a custom flag Importable formats wmf jpeg and gif 4 After making selections click on OK to make changes or Cancel to exit this window Flag Settings Window in Track n Trade Select New Flag 25 811 ENProgiam Files Gecko Software Track n Trade Flags o po D flag01 wmf flag02 wmf flag03 wmf flag04 wmf flag05 wmf flagQ6 wmf flagQ7 wmf flagQ8 wmf flag09 wmf flag1 0 wmf flag11 wmf flag12 wmf flag 3 wmf flag 4 wmf Qoa flag15 wmf flag 6 wm flag 7 vrnf flag18 wrnf flag1 9 wmf flag20 wmf flag21 wrnf OK Cancel Moving a Flag To move a flag left click on the flag and drag to the new location Release the mouse button to place To Delete a Flag Left click on the flag and press the Delete Key on your keyboard Or right click the flag and choose the Delete option from the popup menu Changing Size of Flag To change the size of a Flag simply click on the flag so that it is selected and then drag one of the handles to change the size Changing Chart Position of Flag If another tool has been drawn the same area as the flag right click on it and select Send to Back from the properties menu to access a tool under the flag Default Flag To change the default Flag open the Program Options window and view the Tools Tab under Global Settings
20. To chart a Dart Blip Up or Down formation use the Dart Blip Advanced Charting Tool To Draw a Dart Formation 1 Select the Dart Tool from the Advanced Charting Tool Menu bar 2 Left Click your mouse on the Left Feather LF 3 Continue to hold down the mouse button while moving to the tip of the dart 4 Release the mouse button then move the mouse to the Right Feather and release the mouse button To Lengthen or shorten the Formation 1 Select the dart by clicking on it The formation is selected when boxes appear on the corners of the drawing 2 Click on one of the boxes to drag the select point and release the mouse button To Move the Entire Dart Select the dart by clicking on it and drag to the new location and release the mouse button To Delete the Dart Select the dart by clicking on it and press the delete key on your keyboard Or right click on the drawing and select Delete from the popup menu Changing the Properties of a Dart Blip Drawing Right click on the drawing to view the properties menu Properties that can be changed are Foreground Changes the line color of the Elliot Wave Line Thickness Changes the thickness of the Elliot Wave Line Choose values from 1 6 Line Style Changes the line style of the Elliot Wave Line Choose from solid dashed dotted and more Send to Back Changes the layer of the tool This option is used when more than one tool is in the same area of the chart Click o
21. Your trading plan should be realistic and well tested over past history Once it has been developed take six months and paper trade simulate trading in real time using Track n Trade Pro If the plan still holds up then remember the mantra of futures traders Plan your Trade and Trade Your Plan Good Luck Lan H Turner CEO Gecko Software Inc D ction 1 Introduction to Futures e TRACK TRADE INTRO Main Toolbar 5 Bookt tnt modified Track n TradePro File view Help lt File Menu Dias Eco BAI k amp Commodities Available Charts Sort by Commodity Ascending Click here to choose w Symbol Active Charts Wheat CBOT o Dec 2003 Charting Tools Advanced Charting Tools 5 A se pa vo aes te Control Panel Notation Tools P alolo 330 00 11 Sep 2003 s RM EWE M ES 49000 25 Jul 2003 Aug 2003 For Help press F1 Cursor Tue Jun 17 2003 329 50 336 50 1 328 75 C 332 75 Vol 6542 23036 leg Accou A 5s 388 00 388 25 378 50 369 00 359 25 348 50 339 75 320 50 310 75 V Ol Volume Interest ting Tools 0 300 Status Bar This section includes a quick look at Track n Trade Pro features and there location in the software For more inf
22. is the opposite of support Resistance is defined as a horizontal ceiling where the pressure to sell is greater than the pressure to buy Therefore an increase in price is reversed and prices revert downward Typically support can be located on a chart by a previous set of highs Line Tool Hense zem ARI To draw a support resistance line also referred to as a trend use either the Line or Multi Line Tools Drawing a Line 1 Select the Line Tool 2 Left click on the chart where you want the Line to begin 3 Hold down the mouse button and move to the position where the Line ends 4 Release the mouse button to place Resizing the Line 1 Select the Line drawing by clicking on it You will know the Line is selected when boxes appear at the ends of the Line 2 Click on a box and drag to the desired length Release the mouse button to place the end point of the Line Moving the Line 1 Select the Line drawing by clicking on it 2 Click on the Line not on a box and drag to new location and release mouse button to place To Delete the Line Left click on the Line Tool to select and then press the Delete key on your keyboard Or right click the line and select Delete on the popup menu Examples of the Line Tool in Track n Trade Corn Dec 20017 157287714 2 2001 Apr 2001 Some contracts will have a continuous line trend of alternating support a
23. main Toolbar This will open the Data Update Internet Download screen Notice that the Track n Trade program will close and the data download program FIDO will open Se F ED O Financial industry Data btaiser Camaro Props Begn Duet Comore liproming mina Shortcuts to Gecko Software Help Cente Resources and Services 4 Note When the program closes all changes are saved on your working charts and will be reopened to the last chart you were working on when finished Soe tha Before opening the Data Update Window Track n Trade will check for product updates If one is available you will be notified and given a window to choose Yes or No on the update It is recommended that you install each update as it becomes available After you are finished with the program update you will be returned to the data download window Click on BEGIN to start the data download Watch the status bar to see the progress of the data download When the download is complete the following window will appear Update Successful Data download completed successfully Connection Performance Bo 0 Optimal Performance 00 0 Lower is better Click on OK button and then DISMISS to exit the Data Download Utility You will notice that the bottom Status Bar will display DATA CURRENT when finished Note The Data Download Utility FIDO is able to
24. order Buy stops are always placed above the market while sell stops are placed below the market For example a customer wishing to buy July Soybeans at 485 when the current market price is 475 would place a stop order Buy one July Soybean at 485 stop If the Soybean market trades as high as 485 or is bid at 485 the order would become a market order and would be filled as quickly as possible A customer wishing to sell July Soybeans at 465 when the market is currently priced at 475 would place a stop order as follows Sell one July Soybean at 465 stop If the Soybean market traded as low as 465 or was offered at 465 the order would become a market order and would be filled as quickly as possible Stop orders are usually used to liquidate earlier transactions to cut losses or protect profits For example let s assume that a speculator bought three July Corn at 210 and the market is currently trading at 225 He she may wish to protect some of his her 15 cent profit per contract 2 250 00 profit before commissions and fees by placing a sell stop at 220 to protect 10 cents 1 500 of the profit before commissions and fees Placing the following order would do this Sell three July Corn at 220 stop There are many other different types of orders such as stop limits and market if touched orders but the above orders are the most commonly used and are really the only orders a beginning trader needs to learn Look
25. the market versus its contract high and low On the seasonal charts the high is depicted as 1 0 or 100 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 averaged and the average is depicted in the indicator window When the trend line is at 100 or 1 0 it indicates where the contract has on average been at its highest value for 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 all previous years and are not affected by the current year s trend 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 i Hesk modified Track n Trade Pre F e Ves Heb Cie eom an E e el e H 4 a 4 i E Historical Averages The Historical Average indicator is very similar to a moving
26. two lines The ADX is the main factor in using this indicator During periods of extreme price variation the two lines can become very volatile the ADX is used to compensate for this Interpretation The best application of DMI is present when used with another indicator DMI should either confirm or contradict the indicator being used It is also best to use DMI in long term trade situations Because the study is not as sensitive as other indicators it is appropriate to use it as a confirmation tool When the DMI is advancing the average is higher on the 0 to 100 scale trend following systems are best employed Likewise with a decreasing DMI average the line is lower on the scale closer to 0 a counter trend system might be best These traits represent the fact that as the average line goes higher in the scale the strength of the trend is gaining and as the ADX goes lower the trend is loosing strength It is also important to look at the individual lines for changes in price movement The other application for DMI is to look at the D and D lines themselves When the D line crosses above the D line a buy signal is initiated This indicates that the positive price direction is greater than the negative Conversely once the D line crosses below the D line a sell trigger is present The negative price movement is overtaking the positive Welles Wilder himself said that he was not comfortable using these two lines by themselves
27. 2002 W 20032 Cancel 1 356 25 STP Mon Nov 04 2002 Fri Nov 15 2002 W 20032 MOV BUY 1 348 25 STP to 1 347 00 STP Mon Nov 04 2002 Fri Nov 15 2002 w 2003z Cancel 1 347 00 STP Fri Nov 15 2002 Fri Nov 15 2002 W 20032 SELL 1 306 00 STP To generate the trade log click on the Trade Log button on the Accounting 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 traded You can print and or save this trade log by clicking on the corresponding button in the upper left corner Simulation The ability to play charts forward and backward using the Play Controls gives you the ability to go back in time and simulate the trading experience using historical data Play Controls ET Ayia lt gt iw MI E EE Lock Charts to Date This option will lock all the charts to the date displayed on the current chart 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 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 Play to
28. 334 00 334 00 3 5 15 2003 33800 33800 33800 338 00 Track n Trade Pro 4 5 5 2003 33800 33800 338 00 338 00 database so they 5 5 18 2003 33700 33700 33700 33700 are available the E 5 20 2003 33600 336 00 336 00 336 00 next time you run 7 5 21 2003 336 00 336 00 33600 336 00 the software You E 22 2003 33400 334 00 334 00 33400 canus fastis 52972003 337 00 331 00 331 00 331 00 S to adjust the open high low close volume and open interest values if you don t agree with them Note If you let Gecko Software Technical Support know about the data that seems incorrect they can research your data question and make a correction available on the next data download or help you understand why the data is correct disk button with the red arrow on it is for undoing any data changes you have made but have not saved You can change a value in Track n Trade and see the results of that change on your current chart without saving the changes If you mistyped a value just click this reload button and the data will reload from the disk If you have already saved the incorrect value this action will not recall the original value In that case just type the correct value and push the save button 25 2 The group of three buttons with 25 2 8 and 1 4 on them are for changing the data format in the data tab Some markets are easier to understand or match up to the floor quote if they are displayed as fractions
29. A Average 1 Weighted Solid E cel Average 2 Weighted 5 soia NE DMI ADX al HVOL Market Probability Years Style Color MACD Probability Histogram 20 MOM ZA Rol M STO VOL Ol Display Seasonal Trend Current Chart Settings Display Historical Averages Display Market Probabilit 9 Apply to active charts Restore factory defaults 4 0 Help Cancel 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 Tochange the number of years the trend is based on select the number from the drop down menu 3 Style amp Color Trend lines can be displayed as a solid dashed or dotted 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 like to fill the area from the Trend line selected to the bottom of the indicator window 10 check this option and then choose the trend line to apply it to 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 Historical Averages This section changes the properties for calculating the average lines for the Historical Averages Indicator on the Chart Window Market Probability This sec
30. Before You Leap Getting Ready to Start Trading Futures Before starting a business it is important to have a business plan and have adequate capital Most new businesses start off with a dream and the proprietors are willing to work hard Despite the hard work they fail because of unforeseen difficulties poor preparation or lack of capital Remember this when starting your trading business and try to have adequate capital and plan for the unforeseen by developing and testing a trading plan Before trading it is imperative that you develop a trading plan Your trading plan should be capitalized with money you can afford to lose Generally trading funds are categorized as genuine risk capital if it is money that you can afford to lose Again this is not your child s college education fund the mortgage money or grocery money Proper planning and adequate capitalization are the cornerstones of any new venture The first step in building a house is drawing up plans for the completed house The workmen who erect the house consult the blueprints when placing walls placing sinks appliances and electrical outlets The transition from bare ground to a finished home is laid out in the blueprints or the plan for the completed structure Trades should be planed with as much detail Every situation should be planed for so decisions are made not in the heat of the moment when money is on the line The goal of your trading plan is to allo
31. Determines Profit Loss on an Option or Option Strategy 1 Click on the CALC button to open the OS Calculator J Date Strike Rate Uptions Strikes in wheat a Dec 2003 on Friday 12 of December 2003 Change enge T 2 Click on the Add New button to add an option order to the calculator This will open the Option Order window Calculate options strategies for commodity Wheat Dec 20032 Option Strategy Delete Selected Modify Selected Add New Options Orders Thursday 30 of October 2003 Market closed 369 00 Graph Increment in points 5 00 piration Commodity w2003z Quantity Strike Buy 1 23 00 Contingency Order Futures price breaks On Screen Text Example Buy 1 Call Date Thursday October 30 2003 Brokerage fee this trade each go 00 Buy Sell Quantity Stike Cal Put Premium Value Premium 346 0000 Value 17300 00 Total j 7300 00 Cancel Help Cancel Orderfs 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 Placing an Options Put Call Order 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
32. Dollar a 2004H Mar Symbol DX2004H Orange Juice FC n Mar 2004 UJ2004H 3l S amp P 500 0 Mar 2004 SP2U04H Soybeans n Mar 2004 5 Z004H U S Dollar Mar 2004 Dix 2004H Gray Ticket Open order on chart deir Ticket Filled order s on chart L 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 delete 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 on 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 from the menu Deposits and Withdrawals Track n Trade Pro s Accounting systems allows entering deposits and making a withdrawals in your trading account as well as placing orders To Place a Deposit 1 Click on the Deposit button in My Account Window This will bring up the Deposit wind
33. End All Charts This option will display all available data on both saved and new chart that are selected Icon Action 004 Play Buttons ack One Day Play Backward one day at a time Stop Play Forward one day at a time Fast Forward orward One day Forward One Month I KEIN cil ni Go to the Last Day in the Contract Chart Option Buttons Action ii Center Chart with in Chart Window Daily Chart Weekly Long Term Chart Monthly Long Term Chart Smooth Scroll The Smooth Scroll option changes the way that the chart plays when coming to the right edge of the chart window The default is for this feature to be selected This option is located on the Appearance tab in the Program Options Section 14 Accounting amp Simulator Plug In Track n Trade Program Options Select Category Chart Appearance fm Global any Light Grid Lines E Chart Background a 23 My Default Settings EEZENEN Dark Grid Lines mi Orders m padi n Odanda 2 Bollinger Bands Day Line First of week m MAC Option Expiration E Moving Averages Phot Ponts Last Trading Date a Price Bars PSAR First Notice Date El No Change B Scaling amp Price Bars Ruler Text Marks m Closed Lower m AD CCI Ruler Background Closed Higher Bm DMI ADX Highlight colors day BI HVOL MACD Bar color changes comparing previous close to current close mA
34. 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 by 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 charts Morning Star Formation 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 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 Dogji Star in Uptrend Evening Doji Star Formation Evening Doji Star 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 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 t
35. Manual 131 Arc Tool To illustrate a Rounded Top Bottom Formation on your futures chart use the Arc Tool in the Advanced Charting Toolbar Drawing a Rounded Top Formation 1 Select the Arc Tool from the Toolbox Left click your mouse on the left side of the arc and drag the mouse to the right side release mouse to place tool Resizing the Arc Drawing 1 Select the arc by clicking on it Note The tool is selected when boxes appear on the corners of the drawing 2 Click on one of the boxes to drag the select point and release the mouse button Moving the Arc Drawing Select the arc by clicking on it and drag to the new location and release the mouse button Deleting the Arc Drawing Select the arc by clicking on it and press the Delete key on your keyboard Or right click on the drawing and select the Delete option on the popup menu Foreground Line Thickness Line Style k Send To Back Delete Changing the Properties of an Arc Drawing Right click on the tool to view the properties menu Properties that can be changed are Foreground Changes the line color of the arc Line Thickness Changes the thickness of the arc line Choose values from 1 6 Line Style Changes the line style of the arc line Choose from solid dashed dotted and more Send to Back Changes the layer of the tool This option is used when more than one tool is in the same area of the chart Click on Send to Back when you need to acce
36. March Corn at 2 35 bushel on January 2nd He is able to buy 2 contracts of March Corn because he has more than the initial margin requirement of 810 00 405 00 initial margin x 2 contracts 810 00 With 50 00 round turn commission rate 25 00 in 25 00 out our speculators broker would charge him 50 00 in commissions as well Assume that March Corn settled at his entry price of 2 35 bushel His account liquidating value would be 950 00 or 1 000 00 initial deposit 50 00 commission to buy 2 contracts of Corn Since the liquidating value of the speculators account Funds on Deposit Open Position Profit or loss is greater than the maintenance margin requirement of 300 00 per contract or 600 00 for 2 March Corn he is able to stay in the trade The next day much to our speculators detriment Corn prices drop by 5 cents Our speculator now has an open position loss of 500 00 and an account liquidating value of 450 00 1 000 00 50 00 commission 450 00 open position loss 450 00 Since this value is less than the Maintenance Margin requirement of 300 00 per contract or 600 00 our speculator is on a Margin Call In order to keep the position the speculator must either send enough money to bring the account back above the Initial Margin Requirement of 810 00 or liquidate the position The Maintenance Margin Requirement is the minimum amount of money which must be in the account including open position profits a
37. Moving average Convergence Divergence Trading Signals for other possible trading signals If the study is displayed as a histogram each value for the lines is calculated as DIFFt OSCt EMAosct DIFFt The difference between the oscillator for the current interval and the exponential moving average of the oscillator OSCt The oscillator for the current interval EMAosct The exponential moving average of the oscillator Customizing To change the settings of this indicator open the Program Options screen by clicking the Program Options button located on the main Toolbar See the Program Options section for more details on changing the settings alta E 6 MOM Momentum Introduction The momentum indicator describes how price changes occur It is a measure of the price change It lets you know if prices are increasing at a continually increasing rate or decreasing at a more decreasing rate Momentum can help gauge the current market trend This indicator will sometimes shift ahead of a price change It is both an indicator of trend as well as an indicator of a changing trend The main thing to look for when using it is a divergence or difference between price behavior and the indicators behavior Interpretation Momentum measures the rate of change in prices rather than actual price levels themselves By measuring this rate of incline or decline momentum tells whether the current trend is strengthening o
38. Nison completely explains candlesticks and their formations but more importantly explains how to combine candlestick analysis with traditional technical analysis 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
39. Settings Commodity Commodity initial Maint Long Term 1 Australian Dollar 1 Australian Dollar 34 00 25 00 Spreads 1 Australian Dollar 1 British Pound 1350 00 1000 00 Tools 2 Australian Dollar 1 Canadian Dollar 0 00 0 00 25 My Default Settings 1 Australian Dollar 1 Japanese Yen 182300 1350 00 1 Australian Dollar 1 Swiss Franc 1215 00 900 00 1 Australian Dollar 1 Swiss Franc 0 1215 00 900 00 1 British Pound 1 British Pound C 34 00 25 00 1 British Pound 1 Canadian Dollar 1080 00 800 00 1 British Pound 1 Japanese Yen 1620 00 1200 00 1 British Pound 1 Swiss Franc 0 1080 00 800 00 1 CRE 1 CRE 466 00 35000 1 Canadian Dollar 1 Canadian Dollar 34 00 25 00 1 Canadian Dollar 1 Japanese Yen 1620 00 1400 00 1 Canadian Dollar 1 Swiss Franc 0 1215 00 900 00 1 Cocoa c 1 Cocoa c 350 00 250 00 1 Coffee C fol 1 Coffee C fol 29000 20000 To remove the selected item click Delete Qty Commodity Initial vs Add Modify Maint Restore factory defaults Help Cancel 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 Restore factory defa
40. Simulator Plug In enables you to place orders deposits and withdrawals using the 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 which 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 1 Order Placement Tool 2 Order button in My Account Window This section will step you through placing orders both ways Order Placement Tool To Place an Order using the Accounting Toolbar 1 Click on the Order Placement Tool on the Toolbox 2 Click 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 Select the details af pour order in the Farm below Brokerage Fee This Trade each Placement Detail 2 so rj Cty Symbol Order Tupe Price e I Stop 737 On Screen Text iw BuySell i Quantity i OrderType Price M
41. These tools are covered in the Personalizing Charts with Notation Tools section 5196 Accounting Tools This toolbar consists of the Dollar Calculator and the Risk Reward Tool These calculators are covered in the using Calculators Section Control Panel The Control Panel consists of the Commodity Key Data and Notes Tabs Commodities BEI Available Charts Sort by Commodity Ascending Click here to choose E Symbol Active Charts Syme 3 Wheat o Dec 2003 W201 Commodity Tab This section of the Control Panel gives you the ability to open a chart add a chart to your Chartbook and select between the charts that are open See the Creating Chartbooks from Start to Finish section for detailed information Key amp Data Tabs These sections display the key details and data from the contract displayed in the Chart Window See the Data Download section for detailed information Notes Tab This section gives you the ability to save notes with charts See Personalizing Charts with Notation Tools section for detailed information 393 00 388 25 378 50 369 00 359 25 349 50 339 75 F 330 00 E HH HH 320 50 HH H 310 75 SE J E kd P ENT Chart Window Section of the software that displays the chart Play Controls These controls consist of
42. This option is used to check for new updates for the software or to update your version of the software to include any new plug ins you may have purchased Change Registration Info If you mistyped your Activation Code or needed to change your code for any reason click on this option to change the Activation code Keyboard Shortcuts Select to get information on the quick reference list of keyboard shortcuts for common commands ed Sa MZ Main Toolbar This menu consists of quick buttons for Open New Save Capture Print Preview Print Commodity Chooser Program Options Data download Pointer and Hand Tool These features are covered in the following sections Creating Chartbooks from Start to finish Data Downloads HA E SA Charting Tools This toolbar consists of the Cross hair Line Multi Line 1 2 3 Head amp Shoulders Channel N Inclining Declining Wedge and Trend Fan Tools These tools are covered in the Analyzing Charts with Charting Tools section IPAE Ed o e e Advanced Charting Tools This Toolbar consists of the Elliot Wave Dart Blip Gann Fan Andrew s Pitchfork Fibonacci Retracement Fibonacci Arc Fibonacci Time Zone Day Offset and the Arc Tool These tools are covered in the Advanced Charting Tools section Notation Tools This Toolbar consists of the Arrow Flag Text Box and Circle Tool
43. Track n Trade Wheat CBOT Dec 20007 Day Offset Calculator 35 Trading Days 7 up 2 dn E 47 Actual Days B 2b Oct 2000 EE N 3 2000 TNT i Section 6 Advanced Charting Tools Rounded Top amp Bottom Formations The Rounded Top amp Bottom Formation is a very gradual change in trend This formation includes Rounded Top amp Bottom Double Top amp Bottom amp Triple Top amp Bottom Rounded Top The Rounded Top Formation consists of a gradual change in trend from up to down Rounded Bottom The Rounded Bottom Formation consists of a gradual change in trend from down to up This formation is the exact opposite of a Rounded Top Formation Double Top This formation includes two distinct tops and anticipates a change in trend from up to down Track n Trade Pro 4 0 User Manual 130 Section 6 Advanced Charting Tools Double Bottom This formation includes two distinct bottoms and anticipates a change in trend from down to up This formation is the exact opposite of a Double Top 7 W Triple Top This formation includes three distinct Tops and anticipates a change in trend from up to down Triple Bottom This formation includes three distinct Bottoms and anticipates a change in trend from down to up This formation is the exact opposite of a Triple Top Track n Trade Pro 4 0 User
44. With Corn prices having risen 13 cents you were able to buy 3 contracts with an initial investment of only 405 00 However all it takes is a 05 cent decline in the price of Corn and all your profits are gone Of course another 5 cent rise would yield a 1 450 00 profit or a 35896 return on the initial margin It is possible to make highly leveraged and possibly highly profitable transactions in the futures markets by trading with relatively little financial cushion and pyramiding contracts However it has been our experience that those that practice this type of trading generally do not break the bank unless of course you are referring to your own bank account which is usually drained quickly using this type of money management Most people are attracted to trading futures because of the leverage involved and it is the leverage involved which seems to do in most traders Though futures trading should only be done with genuine risk capital this does not mean you should take undo risk As a general rule of thumb traders should learn to diversify their risk only placing a small percentage of their capital at risk at any one time Though this style of trade will reduce your bang for your buck in the short run it may prevent you from getting the bust for your buck common to many futures traders Remember in order to learn this game you need to be able to stick around to learn all the rules both written and unwritt
45. a down trend when a market is in an overall down trend it is considered a Bear Market In this chart you will see how the market made lower highs and lower lows while still maintaining the overall down trend Corn Dec 2001 Notice how far back those retracements went before they continued on in their original direction it is about 50 of the last move 50 280 50 25780 2251 75 ji Mil HEB L 240 00 23425 E me 25 t Em 50 Emp 75 2a0 75 t ons 00 400 nn Feb 01 01 Markets have tendency to retrace half or 50 of the last move as well as in overall long term trends N Tool You can measure a retracement with the N Tool The default on this charting tool is 5096 but can be changed by simply dragging the middle bar up or down See Fibonacci Time Zone and Fan Tools in the Advanced Charting Tools for more information on retracements Drawing an N Channel 1 Select the N9o Tool from the Charting Toolbox Position the mouse pointer where you would like to place the top left point of the channel and left click continue to hold down the mouse dragging it to the right bottom point of channel release mouse button to place Note The default retracement percentage on the N tool is 50 Moving the Line Select the channel drawing by clicking on it You will notice that the
46. and online or electronic documentation and data SOFTWARE PRODUCT The SOFTWARE PRODUCT also includes any updates and supplements to the original SOFTWARE PRODUCT provided to you by Gecko Any software provided along with the SOFTWARE PRODUCT that is associated with a separate end user license agreement is licensed to you under the terms of that license agreement By installing copying downloading accessing or otherwise using the SOFTWARE PRODUCT you agree to be bound by the terms of this EULA If you do not agree to the terms of this EULA do not install or use the SOFTWARE PRODUCT you may however return it to your place of purchase for a full refund SOFTWARE PRODUCT LICENSE The SOFTWARE PRODUCT is protected by copyright laws and international copyright treaties as well as other intellectual property laws and treaties The SOFTWARE PRODUCT is licensed NOT SOLD 1 GRANT OF LICENSE This EULA grants you the following rights Track n Trade Software You may install and use one copy of the SOFTWARE PRODUCT on two desktop systems and one laptop system Intended for one copy at work one copy at home and one copy for travel You may not allow remotely connected COMPUTERS nor to invoke application sharing of the software This connection includes any indirect connections made through software or hardware which pools or aggregates connections This multi station license agreement allows you to personally use the software while at
47. and the Fibonacci Arc Fibonacci Retracement Tool e a uc Ap De es e The Fibonacci Retracement Tool is used to measure the different retracement levels within a market Drawing a Fibonacci Retracement 1 Select the Fibonacci Retracement Tool from the Toolbox Left click on the chart where you would like the ruler to begin 3 Move the mouse pointer to the lower right position of the ruler and left click to place Resizing the Fibonacci Retracement 1 Select the ruler by clicking on it You can tell the ruler is selected when boxes appear on the corners of the drawing 2 Click on one of the boxes to drag the select point and release the mouse button Moving the Fibonacci Retracement Select the ruler by clicking on it then drag to the new location and release the mouse button Deleting the Fibonacci Retracement Select the ruler by clicking on it and press the delete key on your keyboard Or right click on the ruler and select Delete in the popup menu Right click Menu Foreground Background Line Thickness Font Show Text Show Retracements Show Projections Show Prediction Show Time Zones Send To Back Delete Changing Properties for the Fibonacci Retracement Right click on the ruler to view the properties menu Properties that can be changed are Foreground Changes the line color of the ruler Background Changes the background color of the ruler Line Thickness Changes the thickne
48. created will NOT be affected by this change unless you press the Apply To All Charts button These new default settings will then be stored in Track n Trade and applied to any new AND past files upon the opening or reopening of those files Simply click on the Apply all Color Changes button if you would like to apply ONLY the color changes to the tools in all the Active Charts If you would like to change settings for one specific tool you will need to right click on that tool and select the individual tool settings See Individual Tool Settings for more information section 10 Program Options Track n Trade Program Options Select Category Tool Default Options f Global Settings Font Options Tool Labels Text Boxes Change E My Default Settings E Current Chart Settings meus 000000 mcus 0000002 2 Line Options Line Color Line Style Solid v Line Thickness 1 Are Thickness 1 Backoround Color Default Flag 4 5 Reset Questions 6 Restore Factory Defaults ce 1 Font Options a Tool Labels This setting changes the text in any tool included in Track n Trade Pro To change font size color etc click on the Change Button See the Font Window that opens on the following page Font Window in Track n Trade Program Options Fort Font style Arial Regular Regular Ir Arial Alternative r Italic TT Arial Alternative Symbc Bold Aral Black B
49. detect the last date available in your database Therefore if you add a commodity or miss a couple of days your data will be completely updated upon the next data download session To Stop a Data Download If you need to end a data download before it is finished with all of the contracts click on the DISMISS button This will signal the Data Download Utility to end the download after the current commodity is finished Note Do not press the power or reset buttons if the Data Downloader freezes and you are unable to close the window If this happens press the buttons CTRL ALT DEL at the same time to open the Tasks Screen Only press them ONCE Then Select Spot exe from the window and click on End Task This will close the Download Program and allow you to restart the program and download utility Data Tab The Data Tab is the tab with the graphic that looks like a spreadsheet Click on the tab and it will expand to say Data as you see in the screen shot below This tab is spreadsheet representation of the data available in the specific contract that you are currently viewing in the chart window The Data Tab has values for the date open high low close volume open interest and each indicator for each day on the contract Ele left disk button is used to save any changes Clase 0 5412 2003 335 00 335 00 335 00 335 00 you have made to 1 53 2003 33000 33500 33000 335 00 hedata inthe 2 54 2003 334 00 33400
50. discretion may from time to time contact you by telephone fax email paper mail express mail etc By agreeing to this EULA and installing this software you are giving digitally written consent to receive telephone calls from Gecko Software Incorporated its affiliates and associated vendors and you wave your rights to any laws prohibiting Gecko from contacting you via telephone fax email or any other method preferred by Gecko Portions of the grid controls used in the data tab broker s report and Spreads module are copyright c 1998 Chris Maunder DATA DOWNLOAD IS DEFINED AS This is a non guaranteed service with no rights or privileges whatsoever and is only an extension of the service provided by Track n Trade and Gecko Software Inc not a standard feature SUBSCRIPTION BASED DATA DOWNLOAD IS DEFINED AS Data in which Gecko Software provides by computer transmission services to their subscribing customers This service is not a guaranteed service and may be discontinued or off line for any given period or amount of time without warranty or restitution Data subscription services and fees are a non refundable non guaranteed extension of service provided by Gecko Software Inc Data has been provided from sources believed to be reliable but no guarantee is made as to its accuracy therefore use of this data in making real life trading situations is strongly discouraged When trading real markets consult a licensed broker
51. extend for you to get an idea of placement on the ticks Resizing the Fibonacci Arc Select the arc by clicking on it You can tell the arc is selected when boxes appear on the corners of the drawing Click on one of the boxes to drag the select point and release the mouse button to place Moving the Fibonacci Arc Select the arc by clicking on it then drag to the new location and release the mouse button Deleting the Fibonacci Arc Select the arc by clicking on it and press the delete key on your keyboard Or right click the arc and select Delete on the popup menu Foreground Line Thickness k Line Style k Font Show Text Show Extensions Send To Back Delete Changing Properties for the Fibonacci Arc Right click on the drawing to view the properties menu Properties that can be changed are Foreground Changes the line color of the arc Line Thickness Changes the thickness of the arc lines Choose values from 1 6 Line Style Changes the line style of the arc which shows when the line is selected Choose from solid dashed dotted and more Font Changes the Font Size Style and Color of the values Show Text Deselect Select to view or hide the values Show Retracements Select Deselect to view the additional retracement percentages Show Prediction Select Deselect to view the additional prediction percentages Send to Back Changes the layer of the tool This option is used when mor
52. home work or on the road this is not the right to lend out copies of this software to your friends and family Even though you are allowed to install the SOFTWARE on multiple workstations the SOFTWARE can only be executed and running on one COMPUTER at a time no simultaneous use is allowed without the purchase of additional licenses Storage Network Use You may also store or install a copy of the SOFTWARE PRODUCT on a storage device such as a network server used only to install or run the SOFTWARE PRODUCT on your other COMPUTERS License Pak If this package is a Gecko License Pak you may install and use additional copies of the computer software portion of the SOFTWARE PRODUCT up to the number of copies specified above as Licensed Copies 2 DESCRIPTION OF OTHER RIGHTS AND LIMITATIONS Academic Edition Software If the SOFTWARE PRODUCT is identified as Academic Edition or AE you must be a Qualified Educational User to use the SOFTWARE PRODUCT If you are not a Qualified Education User you have no rights under this EULA Furthermore you are only allowed to install the SOFTWARE PRODUCT on one single COMPUTER not the three systems as described above To determine if you are a Qualified Educational User please contact the Gecko Sales Information Center in the USA at 435 752 8026 Not For Resale Software If the SOFTWARE PRODUCT is labeled Not For Resale or NFR then notwithstanding other sections of this EULA your use of
53. horizontal line This represents when the Open and Close are the same or very close The length of the shadow can vary Candlestick Reversal Patterns 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 direction but merely that the current direction may end The market may then decide 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 Harnmer Hanging Man identical in appearance to the hammer but appears within the context of an uptrend Hanging Man Engulfing Patterns Bullish when a white real body totally covers engulfs the prior day s real body The market should be in a definable trend not chopping around s
54. is recommended that you use a moving average instead of the MAC Indicators 3 Type Choose between Simple Linearly Weighted and Exponentially Smoothed averages for each line Click on the drop down menu and select the type desired 4 Data To change the data that the line is based on click on the drop down menu The options available are High Low Open and Close 5 Style amp Color Average lines can be displayed as solid dashed or dotted lines Click on the drop down menu to specify the type of line style Next to the drop down menu is the color box for the line Click on the color box to choose a new color from the Color Palette 6 Check these boxes to display the 3x3 and or the 10x8 MAC Lines on your charts 7 Click on Apply to active charts if you would like to see your selecting settings on all the charts you have open Click on Restore Factory Defaults if you would like to restore original software settings 8 Help Information from the Manual has been integrated into the software When clicking on the Help button and you will get specific documentation based on the location of the button You may also press F1 on your keyboard Moving Averages Track n Trade Program Options Select Category Moving Average Lines Global Settings 2 Color My Default Settings Appearance 1 Second Resistance Line Sold Bollinger Bands MAC fiu Moving Averages Pivot Point Lin
55. legendary rice trader and gained a huge fortune using candlestick analysis He is said to have executed over 100 consecutive winning trades The candlesticks themselves and the formations they shape were give colorful names by the Japanese traders Due in part to the military environment 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 the midst of trading battle What do Candlesticks Look Like Candlestick charts are much more visually appealing than a standard two 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 Upper Shadow The body of the candlestick is called the real body and represents the range between the open and closing prices 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 bullish The thin vertical line above and or below the real body is called the upper lower shadow representing the high low price extre
56. month s contract See Diagrams 2 amp 3 Diagram 2 Contracts tend to have more activity during the middle of the contract and less toward the end when trader s are transferring their orders to the next month s contract Track n Trade Pro can cut out the N O Track n Trade Pro 4 0 User Manual middle of each contract and then paste them together as a long term chart contract one contract vo contract three mem contract four Diagram 3 Using options available in Track n Trade Pro traders are able to specify the number of days at the end of a contract that they would like excluded from a long term chart Setting Long Term Chart Options See the Program Options Section of the Manual for more information IMPORTANT After applying the new settings in Program Options you will need to delete the long term chart from the Active Charts list if you currently have a long term open and then re generate the chart to apply the new settings to the long term chart Section 8 Long Term Charts Track n Trade Pro 4 0 User Manual 208 TRACK N TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time amp UsiNG CALCULATORS Section 9 Using Calculators Track n Trade Pro 4 0 User Manual 210 USING CALCULATORS Calculations Made Easy with Track n Trade Pro Market Calculators Introduction Track n Trade includes two calculators to help simplify the trading process Wit
57. new thickness 0 6 Arc Thickness Change the Default Arcs Thickness on the Track n Trade Tools that include Arcs An example is the 1 2 3 Tool Click on the drop down menu to select a new thickness 0 6 4 Background Color Change the Default Color used for backgrounds of tools that have background capabilities Click on the color box to choose a new color from the Windows Color Palette Default Flag Change the Default Flag for the Flag Notation Tool by clicking on the Flag Button A window will open with a selection of Flags to choose from You may also import a custom flag Reset Questions In Track n Trade you will get extra help in using the software with questions that prompt you throughout your use These questions are initially shown when you install the software however on each question window there is an option to hide the display questions If you have selected this option but would now like to see the questions again click on the Reset Questions button To set the options back to Factory Defaults click on the Restore Defaults button on the bottom of the Properties screen Help Information from the Manual has been integrated into the software When clicking on the Help button and you will get specific documentation based on the location of the button You may also press F1 on your keyboard Section 10 Program Options My Default Settings The My Default Settings allows you to set custom sett
58. normalized the index while others added extra smoothing factors through the use of moving averages The first comparison checks for accumulation i e Is the current close higher than previous close If the market is accumulating then compute the difference between current close and low Next add that arithmetic difference to the Accumulation Distribution Index Traders perceive an undervalued market and buy The procedure is If Closet gt Closet 1 then ADt ADt 1 Closet Lowt The second comparison checks for no change in price If correct the AD index does not change It states If Closet Closet 1 then ADt ADt 1 The last and final comparison checks for a down market It checks for current close below previous close If that is correct the market is distributing The software first computes the difference between current high and close It then subtracts that difference from the AD index This measures market distribution Traders perceive an overvalued market and are selling The final computation is If Closet lt Closet 1 then ADt ADt 1 Hight Closet ADt The accumulation distribution index for the current period ADt 1 The accumulation distribution index for the previous period Closet The closing price for the current interval Closet 1 The closing price for the previous interval Hight The true high price for the current interval Lowt The true low price for the current interval Note T
59. of trading days is also significant for traders using the number of trading days as a rule in conjunction with a formation For example with the 1 2 3 Top or Bottom Formation many traders use the 10 20 50 rule This rule defines a 1 2 3 if there are 10 trading days between the 1 and 2 and 10 days between the 2 and 3 points To calculate the Actual or Trading days on a chart use the Day Offset Tool Days Up and Down Another statistic used along side formations and other theories is the day up and down calculation This calculation determines how many days in a defined set of price bars were or down day is considered an Up Day if the close is higher than any previous close in the set of price bars selected Conversely a day is considered a Down Day if the close is lower than any previous trading day in the defined set of price bars This statistic is available in Track n Trade Pro when using the Day Offset Tool D ay Offset Tool UNOS c The Day Offset Tool enables you to measure the number of trading days vs actual days that expired between two points on the chart Also calculated on this tool is the number of days that the market closed up or down in comparison with the previous day Charting a Day Offset Select the Day Offset Tool from the Toolbox This tool is drawn like a line Left click for the left point Move the mouse to the right position and left click to finis
60. 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 Pivot Points are available in Traditional Variation 1 and Variation 2 Display Pivot Point Lines Click on the check box to display Pivot Point Lines in the chart window You may also choose to show the historical and prediction lines separately by checking the boxes by each of those choices Click on Apply to active charts if you would like to see your selected 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 software When clicking on the Help button and you will get specific documentation based on the location of the button You may also press F1 on your keyboard PSAR Wilder s Parabolic Time Price Track n Trade Program Options Select Category im Global Settings 25 My Default Settings Appearance Bollinger Bands MAC Moving Averages Pivot Points CCI DMI ADX HVOL MACD MOM XR RSI STO VOL Ol E Current Chart Settings Wilder s Parabolic Time Price Parabolic Stop and Reversal PSAR A initial Acceleration 20 1000 Additional Acceleration 20 1000 Acceleration Limit 200 1000 3 Display Parabolic Stop And Reversal
61. prices fell from 235 to 220 over the next two weeks Given the 15 cent drop in Corn prices our speculator has a 1 500 00 open position profit and decides to cash in his winning by buying 2 March Corn futures at 220 Profit or Loss Sell Price Buy Price x Contract Size x Number of Contracts 235 220 15 cents 0 15 x 5 000 bushel contract size 750 00 per contract 750 00 per contract x 2 contracts 1 500 00 before commissions and fees Now assume that another speculator buys initiating a long position 2 March Corn at 235 After two weeks prices again drop by 15 cents to 220 at which time he offsets the long position by selling 2 March Corn at 220 His loss from the transaction would be 1 500 00before commissions and fees Profit or Loss Sell Price Buy Price x Contract Size x Number of Contracts 220 235 15 cents 0 15 x 5 000 bushel contract size 750 00 per contract 750 00 per contract x 2 contracts 1 500 00 before commissions and fees As you can see whether you are long or short the basic idea of speculating in the futures market is to BUY LOW and SELL HIGH In the futures market this can be done in any order You can initiate a Long Position by buying the futures first and then at a later time offsetting by selling and you profit if the sale price exit price is higher than the purchase price entry price Or you can initiate a Short Positi
62. the center chart button and the daily weekly and monthly chart buttons Center Chart Button This button scales the price bars based on the highest lowest values displayed in 4 the chart window For more information on Scaling see the Creating Chartbooks from Start to Finish section Daily Chart Button Automatically selected when opening a chart Weekly Chart Button Opens a long term weekly Chart based on the daily chart shown Monthly Chart Button Opens a long term monthly chart based on the daily chart shown 111 See the Long Term Chart section for more information 071 V Ol 23036 Volume Interest Ei li Indicator Window Displays the Indicators See the ndicators section for more information ONE ALL AD Ce Dhil HVOL MACD rsro ssro wo Indicator Buttons Used to select the indicators shown in the Indicator window See the ndicators section for more information Scaling Controls Gives the user quick access to changing the price bar and ruler scaling See the Creating Chartbooks from Start to Finish for detailed information For Hel press FL Cursor Tu Jun 17 Z B Ci 379 50 550 Li 328 78 557 75 dA Status Bar status bar gives you the cursor location You have two values displayed Yo
63. the same area of the chart Click on Send to Back when you need to access a tool under the Elliot Wave Drawing Exercise Select on 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 window Once you have hidden the order you can right click on the order listed in the My Account Tab and toggle the Hide option to show the order on the chart again Section 12 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 purchase the Options Plug in FIUIPTETETETETTITETETR ty MyAccount 5s E N pos Withdraw Order Trade Log Open Order PAL 6025 00 6025 00 Closed Onder PIL 0 00 0 00 Onder Commissions 20 00 20 00 Irders Subtotal S 00 bili Ut zou Open Option P L Closed Option P L Option Commission Op poms Subtotal My 8 20 2003 F 4 5 2003 F Buy 1 690 00 Call 11 00 for 550 00 9 11 2003 F 520 Sell 3 500 00 Put 3 00 for 150 00 B T2 2003 Deposit Amount 1304 50 mm 8 12 2003 F Buy 1 6 533 25 5 Filled 554 Em 3 3 2003 i Amount 2000 00 l Call Option Orders Put Option Orders Track n Trade Pro 4 0 User Manual 273 Opt
64. time span The last calculation is to sum the squares of the difference between the individual logarithms for each period and the average logarithm This is accomplished in the following formula i 2 SSD gt LOGSi ALOGS J i SSD The sum of the squared differences S Indicates to total the squares of all n differences LOGSi The logarithm of the price change for period i ALOGS The average of the logarithms Now that the elements of the final formula are complete the following formula calculates the historical volatility for a given period over a specified time span SSD HV 1 SSD The sum of the squared differences n The number of periods for the specified time span TP The total number of trading periods for the year Due to the complexity of the formula it is preferable to use a scientific calculator when attempting to manually calculate the historical volatility of a futures instrument Customizing To change the settings of this indicator open the Program Options screen by clicking the Program Options button located on the main Toolbar See the Program Options section for more details on changing the settings Dieser BI E oi MACD Moving Average Convergence Divergence Introduction In an attempt to determine the strength of a trend along with the direction of that trend MACD was created Gerald Appel created a system that looked at two exponential moving aver
65. to color font size and style then click on OK to close window Changing Text Placement on Chart Right click to view the properties menu Select send to back to changes the layer of the tool This option is used when more than one tool is in the same area of the chart and you need to access the tool under the text Box Tool 1 2 The Box Tool enables you to draw square or rectangle shaped drawings on the chart Drawing a Box Select Box Tool Button in the Annotation Toolbox Left click where you would like to place the upper left hand corner of the box hold down the mouse button and drag to the location of the lower right hand corner of the box To Move the Box Left Click on the box continue holding down the mouse button while dragging to the new location Release mouse button to place To Delete the Box Select the box and press the Delete Key on your keyboard Or right click the box and select Delete from the popup menu Circle Tool P AD The Circle Tool enables you to draw circle shaped drawings on the chart 1 2 Changing Properties of the Drawn Box Right click on the box to open the properties menu Properties that can be changed are Foreground Changes the line color of the box Background Changes the inside color of the box Line Thickness Changes the thickness of the box outline Choose values from 1 6 Line Style Changes the line style of the box outline Choose from solid dashe
66. tool under the circle Delete Select to delete tool TRACK N TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time amp USING INDICATORS Section 7 Using Indicators Track n Trade Pro 4 0 User Manual 146 USING INDICATORS Implementing Indicators into your Trading Strategy Introduction Track n Trade Pro includes 11 indicators that are displayed in the window below the chart window This window is referred to as the Indicator Window Also available are five Overlay Indicators that are displayed directly on your chart in the Chart Window Displaying Indicators in the Indicator Window The Indicator Buttons are found on the bottom left hand side of your screen shown below The indicator toolbar can be closed open by selecting View on the Menu Bar and clicking on ndicator Buttons ONE ALL AD NN voL Maco FoR RSI ESTO ssro wzo To display an indicator in the indicator window click on the button that has the abbreviation for the name of the indicator you would like to display One Button The One button on the left end of your indicator toolbar allows you to have as many indicators as you like selected but only view them one at a time in the indicator window To switch between each selected indicator click the Indicator Information Display to the left of the Indicator Window B S Nov 2003 17 25 22 M nade Feb HM SINT Indicator Information 100 0
67. uses this value to know how many strikes above the highest high and below the lowest low to auto generate If the exchange sends data out on strikes outside of these ranges they are also available in the software Below this table is a description of the units used the calculations for the minimum move and the full point movement Importing Data Track n Trade Pro gives you the ability to import a day s worth of data to any contract To add data open the contract you would like to add the data to and then click on the Data 3 0 2004 Tab in the Control Panel Click on the Add Data button and the Add Data Window will open This window gives you the ability to add the values for the contract s Open High Low Close Volume and Open Interest for a specified date Close Volume Dpen Intrest The volume and open interest entered One day of data can be added to a here is for the previous trading day Cancel contract and then a data download must be completed before another day can be entered Any data entered through the Add Data option will be overwritten in the database by the data downloaded Note If the contract you have selected is expired you will not be able to add data to this contract Exporting Data Data subscribers to Track n Trade Pro have the ability of exporting data as an ASCII file There are two ways of exporting data from the software and from the internet Export from the sof
68. using a length of ten trading intervals The price ten intervals ago was 7400 The calculation is MOM 7470 7400 70 The momentum value can have a very broad range It is a function of the length you select for the momentum and the volatility of the underlying futures contract Thus it could swing very widely and wildly about the zero line Customizing To change the settings of this indicator open the Program Options screen by clicking the Program Options button located on the main Toolbar See the Program Options section for more details on changing the settings oleas nA x ej RSI Relative Strength Index Introduction The RSI was developed by J Welles Wilder Jr as a measure of the market s strength or weakness The principle idea of this study is that it will indicate a general zone that the market is in either the buy or sell zone This indicator is similar to Stochastics in that it shows regions of overbought and oversold This indicator should be incorporated into a system rather using it by itself Wilder s popular indicator is known for its accuracy and its ability to compensate for erratic price movement Interpretation RSI computes the difference in recent prices as a solid line and plots this line on a scale similar to the scale used by Stochastics The area above 70 is generally considered to be the overbought region and the region below 30 is referred to as the oversold region Simply selling i
69. value Be sure to click on Ok to save your changes Style amp Color The DMI Lines can be displayed as a solid dashed or dotted Click on the drop down menu to specify the type of line style desired Next to the drop down menu is a color box click on this box to change the color of the line Directional Indicator The two methods available in displaying the DMI Indicator are Averaged Directional Index ADX and the Directional Index DX Click on the radio button in front of the method to select For more information on the different values refer to the article above Use Relative Scale When choosing this option the 100 location is changed to the highest point value in the DMI Indicator To display the indicator in the chart window click the check box Ruler Bar See the Ruler Bar at the end of this section Preview Window This Window allows you to make changes and preview them before saving them Click on Apply to active charts if you would like to see your selecting 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 software When clicking on the Help button and you will get specific documentation based on the location of the button You may also press F1 on your keyboard HVOL Historic Volatility Track n Trade Program Options Select Category Historic V
70. will open choose a color and click on OK E k Clear All 1 Clear Select Color You may also Clear the item that right clicked on or Clear All items in the Indicator window by selecting these items from the right click menu Section 10 Program Options Current Chart Settings This folder only appears in the Program Options screen when a Chart is open Track n Trade Program Options Select Category Current Chart Settings Ge Global Settings 5 My Default Settings Appearance Track n Trade Pro Bollinger Bands MAC Moving Averages Pivot Points PSAR Scaling amp Price Bars AD CCI DMI ADX HVOL MACD MOM XR RSI STO VOL Dl Restore My Defaults Restore Factory Defaults Cancel All of the options that appear in this folder are identical to those found in the My Default Settings folder The difference between the two folders is when you set your options in the Current Chart Settings folder the options you change will only affect your currently opened chart Track n Trade Pro 4 0 User Manual 253 TRACK TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time amp ACCOUNTING amp SIMULATOR PLUG IN Section 14 Accounting amp Simulator Plug In Track n Trade Pro 4 0 User Manual 255 ACCOUNTING amp SIMULATOR PLUG IN Track your Account Profits Losses with Ease Introduction The Accounting amp
71. 0 6 Display DIMI 14 50 00 DM DM uu n Eat Ra SS 0 100 00 100 um 0 00 100 00 DMI AWOL HVOL 400104 DM 14 50 00 Hamy Am O 50 00 Dhi De 3 A E DA J Mellaf l by volatility ADX ADA gt o 1 Us When you click on the Indicator Information Display window the indicator information will rotate to the next indicator you have selected as simulated above All Button The All Button will display all the indicators you have selected on the Indicator Toolbar in the Indicator Window You will still be able to rotate the information for each indicator to the right of the Indicator window Indicators displayed in the Indicator Window are Y R Williams Percent R AD Williams AD CCI Commodity Channel Index DMI Directional Movement Index HVOL Historic Volatility MACD Moving Average Convergence Divergence MOM Momentum RSI Relative Strength Index FSTO Stochastics fast SSTO Stochastics slow VOL OI Volume Open Interest Y R Williams Percent R Introduction Larry Williams originally used a ten day interval and plotted where the current price compared to that interval He used it to measure conditions of overbought and oversold The overbought region is the area below 20 and the oversold region is the area above 80 with the ability to invert the values it can be loo
72. 3 JOE BOOM 87 JF 88 Head amp Shoulders Formation 90 Head amp Shoulders 90 Head amp Shoulders 91 Head amp Shoulders 0 92 Triangle and Wedge 94 Te T la e ll Zele SC NNN UU 94 Dedlinll 0 Wedge an p lek ak e WA AR a ede PAA 95 Symmetrical 96 Non Symmetrical Triangle 0 97 Wedge and Triangle eta dag vede e pieni cd 98 TES RTI T IM 100 PENAF aN loe 103 Advanced Charting Tools 107 Ta ll ye e Je ale e XT 107 ENOL Wave TLI SOL PTS 107 Eliot Waye TOOL x 109 Dart Up Blip Formations 111 Dart Up Blip Formations 111 Dart Down Blip Formation 111 Dar BID TOO T TN 112 Gann Fan 114 Gann Fan TOU M 115 Andrews Pitchfork Theory 117 Andrews TOO Wis 118 Fibonacci Retracement 120 Fibonacci Retracement Tool
73. 9 00 WAD BESO aks LORG p 2 Microsoft wios Ef modified Te B Gecko Sofiane Fron ub 4 2007 PM When you click on either the Week or Month buttons a long term chart is then created and listed in the Active Charts window Comparison of Chart Ticks Chart TIER Low Close Represents 1st Day s High for the Low for the Last Day s 1st Day s High for the Low for the Last Day s MORNY pe Meh n Open Value o tall eee Value ection 8 Long Term Charts How are Long Term Charts created Because commodity contracts overlap over each other Track n Trade Pro creates Long Term charts using the data from the front month contracts This method includes the data for the section of the contract that is actively being traded therefore has higher volume and open interest This is demonstrated in the Diagram 1 contract one contract Do contract three contract four Diagram 1 The boxes represent the portion of the contract that Track n Trade Pro uses to create the long term chart Long Term Chart Options Another way to create a long term chart is to take only the fat portion of each front month contract and paste them together With this method you are both cutting off the beginning of the chart where there is typically less volume and open interest and the end of the chart where it is cooling down Most traders are transferring their orders to the next
74. ARE PRODUCT on the COMPUTER you may make one copy of the SOFTWARE PRODUCT solely for backup or archival purposes Except as expressly provided in this EULA you may not otherwise make copies of the SOFTWARE PRODUCT or the printed materials accompanying the SOFTWARE PRODUCT 7 U S GOVERNMENT RESTRICTED RIGHTS All SOFTWARE PRODUCT provided to the U S Government pursuant to solicitations issued on or after December 1 1995 is provided with the commercial license rights and restrictions described elsewhere herein All SOFTWARE PRODUCT provided to the U S Government pursuant to solicitations issued prior to December 1 1995 is provided with Restricted Rights as provided for in FAR 48 CFR 52 227 14 JUNE 1987 or DFAR 48 CFR 252 227 7013 OCT 1988 as applicable 8 EXPORT RESTRICTIONS You agree that you will not export or re export the SOFTWARE PRODUCT any part thereof or any process or service that is the direct product of the SOFTWARE PRODUCT the foregoing collectively referred to as the Restricted Components to any country person or entity subject to U S export restrictions You specifically agree not to export or re export any of the Restricted Components i to any country to which the U S has embargoed or restricted the export of goods or services which currently include but are not necessarily limited to Cuba Iran Iraq Libya North Korea Sudan and Syria or to any national of any such country wherever located who int
75. Arrow_ Thresholds gif rack n Trade Pro 4 0 User Manual 30 TRACK TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time CANDLESTICK CHARTING Candlesticks Track n Trade Pro 4 0 User Manual 305 CANDLESTICK CHARTING An Introduction to Japanese Candlestick Charting By Erik Gebhard 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 intrinsic facts they also represent human emotion and the pervasive mass psychology and mood of the moment Prices are in the end a function of supply and demand However on a moment to moment basis human emotions fear greed panic hysteria elation etc also dramatically effect prices Markets may move based upon people s expectations not necessarily facts A market technician attempts to disregard the emotional component of trading by making his decisions based upon chart formations assuming that prices reflect both facts and emotion Standard bar charts are com
76. Bands He says that the optimal period for most applications is 20 or 21 days Standard Deviation 2 the percent of one standard deviation John Bollinger suggests if you reduce the number of days used to calculate the bands you should also reduce the number of deviations and vise versa For example 200 percent of a standard deviation means two deviations above and two deviations below the moving average If you use a period of 50 you may want to use 250 percent of a standard deviation For a period of 10 you may want to use 150 or 100 percent Formula 1 Calculate the moving average The formula is Fe snb MA UT 09 ri Pn The price you pay for the nth interval n The number of periods you select 2 Subtract the moving average from each of the individual data points used in the moving average calculation This gives you a list of deviations from the average Square each deviation and add them all together Divide this sum by the number of periods you selected 4 _ P MAY P2 MAJ s Po MA i 3 Take the square root of d This gives you the standard deviation 5 4 Compute the bands by using the following formulas Upper Band 2 Middle Band MA Lower Dand MA 2 Pn The price you pay for the nth interval n The number of periods you select Pivot Points Introduction Pivot points used to be referred to as traders numbers because of the popularity of these points amongst flo
77. DX HVOL MACD MOM XR RSI FSTO 5570 v 0I Period Smoothing Style Color a Display Slow Stochastics 7 8 Apply to active charts Restore factory defaults 8 Help Cancel 1 Period To specify the number of days used in calculating the Slow Stochastics Indicator simply click on the box highlight the current number and type in a new value 2 Smoothing To specify the number of days used in calculating Smoothing simply click on the box highlight the current number and type in a new value 3 Style amp Color The Slow Stochastics Indicator lines can be displayed as a solid dashed or dotted Click on the drop down menu to specify the type of line style desired To change the line color click on the color box 4 Stochastic Formula Using Chose from the drop down menu the type of formula you prefer to be used The choices are the Exponential Moving Average and the Simple Moving Average For more information on the formulas used see the Slow Stochastics information under the Using Indicators Section 5 To Display the Slow Stochastics indicators check the box by the corresponding indicator 6 Ruler Bar See the Ruler Bar at the end of this section 7 Preview Window This Window allows you to make changes and preview them before saving them 8 Click on Apply to active charts if you would like to see your selecting settings on all the charts you have open Click on Restore Factory D
78. Factory Defaults if you would like to restore original software settings 8 Help Information from the Manual has been integrated into the software When clicking on the Help button and you will get specific documentation based on the location of the button You may also press F1 on your keyboard MACD Moving Average Convergence Divergence Track n Trade Program Options Select Category Moving Average Convergence Divergence MACD lm Global Settings E My Default Settings 1 Difference as Histogram 2 Period 3 Style Color Appearance 4 Exponential Moving Average 1 12 Bollinger Bands MAC Exponential Moving amp verage 2 26 Moving Averages Bullish MACD Li Pivot Points E d L PSAR 5 Bearish MACD Line m herg amp Price Bars Trigger Line s Soid 25 E CCI MACD Type DMI ADX 6 Standard Calculation Extra Smoothing PT 7r Display MACD Indicator STO VOL Ol 5 Current Chart Settings 1 0 Apply to active charts Restore Factory Defaults 11 Cancel 1 The MACD Indicator can be displayed differently choose from Difference as Histogram or Difference as Line in the drop down menu 2 Period To specify the number of days used in calculating the MACD simply click on the box highlight the current number and type in a new value 3 Style amp Color MACD Trigger line can be displayed as solid or dotted line Click on the drop down menu to spe
79. OL 0l Current Chart Settings C Common highest close highest lowest Updated close lowest highest lowest i 7 Apply to active charts Restore factory defaults 8 Cancel 1 Period To specify the number of days used in calculating the R simply click on the box highlight the current number and type in a new value 2 Style amp Color The R line can be displayed as a solid dashed or dotted line Click on the drop down menu to specify the type of line style desired Click on the color box and a color panel will open for you to specify the new color 3 There are a couple different calculations used for the R Indicators click on the preferred calculation under the Calculation used in R section For more information on the different calculations see the Indicator Section under Williams 9o R 4 To Display the indicator in the chart window click the check box 5 Ruler Bar See the Ruler Bar at the end of this section 6 Preview Window This Window allows you to make changes and preview them before saving them 7 Click on Apply to active charts if you would like to see your selecting settings on all the charts you have open Click on Restore Factory Defaults if you would like to restore original software settings 8 Help Information from the Manual has been integrated into the software When clicking on the Help button and you will get specific documentation based
80. OWNLOADS Update your Track n Trade Pro Database with the simple click of a mouse Introduction The Data Download Utility in Track n Trade Pro is simple to use Easily control the commodities that you download with the Commodity Chooser and keep current with the Data Utility Commodity Chooser The Commodity Chooser is a utility for managing the available commodities To open the Commodity Chooser Click on the View Menu and selecting Commodity Chooser or click on the Commodity Chooser button on the main Toolbar ties ale a aon Selecting Deselecting Commodities You may select deselect futures and options data for each commodity by clicking the appropriate check box The options data is only available if you own the Options Plug in and the Futures amp Options Subscription service If you would like to select all futures options or deselect all futures options data click on the and buttons at the end of each column Note Saved Chartbooks containing charts from commodities that you have removed from the chart window will not be affected by the Commodity Chooser This utility will not delete data from your hard drive You will still be able to access your previously saved charts The Commodity Chooser will only hide this commodity from the Commodity Tab and from the Daily Downloads Adding Commodities When you add commodities to your data set the Data Download Utility will retrieve any mi
81. So when looking at reversals the ADX should be above both lines and once it turns lower we should see a change in market direction One should also look to ADX for confirmation For a good sell signal the D should be greater than D and both should be lower than ADX D gt D lt ADX For a good buy signal D should be lower than D and both should be lower than ADX D lt D lt ADX This application is much the same as momentum showing a change in the market sentiment Wilder also says that a trend following system should not be used when the ADX line is below both D lines as this means that the market has no discernable direction When using the D and D crossover method Wilder stresses the use of an extreme point On the day the crossover occurs the extreme point is the high or low of the day high for a buy and low for a sell The market should be able to take out that price and stay beyond it for several days before the trade is initiated or exited This use of extreme points should keep the trader from getting into whipsaws or false breakouts Example of the DMI in the Indicator Window Calculation Parameters Period 14 the number of bars or interval used to calculate the study Show Hide DI 1 this parameter is used to show or hide the DI line O hide 1 show Show Hide DI 1 this parameter is used to show or hide the DI line O hide 1 s
82. TRACK TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time USER S GUIDE Track n Trade Pro 4 0 User Manual A Special Thanks to Lan Turner Janie Blair Erik Larson Jacob Anawalt Nick Russell Jana Perkins Ben Marchant Phillip Arnoldson Krystal Anderson Gecko Software Inc 95 West Golf Course RD Suite 107 Logan UT 84321 http www geckosoftware com Copyright 2004 Gecko Software Inc All Rights Reserved Introduction to Futures 15 FIVER OCI eji e petu cU 15 Wharare FUTUROS Dee cds aed 15 Margins and Guaranteeing Futures 16 Long and Short of Trading 19 581 55 25 Ia es idet k ya ba 20 POIS VS COMIS cR 21 Margins Cents Points amp the Power of Leverage 24 Types of Odes 27 Look Before You Leap sims erri 29 Creating Chartbooks from Start to Finish 43 Opening or Creating a New 44 Adding Removing Charts in your Chartbook 45 Switching between Charts in your Chartbook 45 Saving and Closing a Chartbook 46 Opening an Existin
83. Technical and Fundamental Educators in the Futures Industry allowing you as a trader to apply their studies easily to your trading In this section you will both learn basics about their theory and learn how to apply it in Track n Trade Pro using the Advanced Charting Tools provided you For more detailed information on the different theories and concepts see the educational products also offered by Gecko Software Inc www trackntrade com Elliot Wave Theory This theory was developed by Ralph Nelson Elliot and bares his name Elliott wave theory is an idea that market behavior is based on waves rather than random timing Elliott believed that market prices rose and fell in a series of waves based on the same Golden ratio or Golden mean that Fibonacci proved This ratio is present in many aspects of nature and science and Elliott felt that it had great significance on the financial markets as well Interpretation The basic idea of this theory is that a market rises in series of 5 waves as he called them and that a market declines in a series of 3 declines Elliott s theory is that on the first wave a market rises on wave two it declines begins again to rise on wave three has a period of decline again on wave four and finally completes the rise on wave five Then thee period of correction is referred to as a three wave correction where the market declines for wave A begins to rise for wave B and falls again for wave C E
84. To change the color of the line click on the corresponding color box and choose a new color from the Color Palette Options Strike Value This indicator is a histogram style chart measuring Under and Over Valued Options To Display the Strike Price Indicator or the Options Strike Value select the check box in front of the indicator Ruler Bar See page 247 for full instructions Preview Window This Window allows you to make changes and preview them before saving them To apply the changes you made to all open chart 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 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 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 ae EHE Over V rike 10 25 OSV 420 00 C 0 Premium Under Valued Discount 10 25 The Strike Price Indicator STRK This Indicat
85. ade Pro gives you the ability to save charts in one file which is called a Chartbook Each Chartbook can contain several charts these charts are like the pages of your Chartbook Every time you open Track n Trade Pro a blank Chartbook named Book1 will open You can either continue with the new Chartbook that is open or you can open a Chartbook that has already been created Each chart that you open and view from the Commodities tab is listed below in the Active Charts list found on the left side of the screen This list is your Table of Contents per say for your Chartbook Charts are listed in Alphabetical order in this window To switch between charts simply double click on the different charts listed Active n in Aic n Trade Available Charts n Trade Pro 4 0 User Manua Section 2 Creating Chartbooks from Start to Finish Opening or Creating a New Chartbook After opening Track n Trade Pro a new Chartbook has already been started for you It is called Book1 All this Chartbook needs are pages or charts added to it You can add pages to your Chartbook by simply opening charts using the Commodity Tab See below Opening a in Track n Trade DED SAS Charts Sort by Commodity E Ascending Click here to choose a commodity Symbol Active Charts 1 Choose your commodity from the dropdown menu Then choose the
86. age firm to confirm ALL price action always remember this is a game and the data provided is for simulation and practice purposes only This license does not give any recipient the right to re transmit or re distribute this data in any format whatsoever Much of the options data provided by Gecko Software is not even real market data but fictitious data generated by the Black and Scholes mathematical model it is never recommended that you use Track n Trade Pro options data as a reference to the actual live market data Final Disclaimer Track n Trade pro and all plug in modules were specifically designed for entertainment purposes only have fun TRACK TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time INTRODUCTION TO FUTURES Track n Trade Pro 4 0 User Manual 16 INTRODUCTION TO FUTURES The Basics of Futures Trading Introduction The Stock Market evolved into being a way for companies to raise capital By exchanging ownership in a company for cash early business ventures were able raise capital to buy equipment or build factories Companies hundreds of years ago as well as today primarily use the stock market as a means to raise capital The modern futures market evolved not from a need to raise capital but from a need to transfer risk The futures market makes it possible for those who wish to manage price risk hedgers to transfer that risk to those who are willing to accep
87. ages and the difference between those two averages Looking at these moving averages of the market we are able to see clear buy and sell signals By also looking at an average of the difference in the two moving averages we are able to get a more accurate signal Interpretation Computing this indicator requires the use of exponential moving averages Exponential moving averages are different than simple moving averages because instead of looking at only the last few days and averaging them the exponential averages look at all the prices and then put more weight on the most recent data This type of weighted average gives a smoother average price that reacts more quickly to market moves The two averages of MACD move above and below a base line which gives indication of the strength of the current move This placement of the two averages in relationship to the base line is calculated by looking at the exponential moving average of the difference between the two averages So even though the two averages may cross the divergence or true indication of the signal is not shown until both averages cross the base line Keeping this in mind an ideal buy signal is seen on a move where the shorter term average moves above the other average and both averages cross above the base line of zero Inversely a sell signal would be the opposite of this The histogram method of MACD is read as a straight line above or below the zero baseline This line repr
88. al damages the entire liability of Gecko and any of its suppliers under any provision of this EULA and your exclusive remedy for all of the foregoing except for any remedy of repair or replacement elected by Gecko with respect to any breach of the Limited Warranty shall be limited to the greater of the amount actually paid by you for the SOFTWARE PRODUCT or U S 1 00 The foregoing limitations exclusions and disclaimers described above shall apply to the maximum extent permitted by applicable law even if any remedy fails its essential purpose Hypothetical or simulated performance results have certain limitations Unlike an actual performance record simulated results do not represent actual trading Also since the trades have not actually been executed the results may have over or under compensated for impact if any of certain market factors such as lack of liquidity No representation is being made that any account will or is likely to achieve profits or losses similar to those shown The risk of loss in trading futures stocks and options can be substantial therefore only genuine risk funds should be used in such trading Futures stocks and options may not be suitable investments for all individuals and individuals should carefully consider their financial condition in deciding whether to trade Option traders should be aware that the exercise of a long option would result in a futures or stock position Gecko Software Inc at its
89. als It determines the trading range for that time period The trading range changes on a continuous basis The calculations for the K are as follows Kt Closet Lown Highn Lown 100 Kt The value for the first K for the current time period Closet The closing price for the current period Lown The lowest low during the n periods Highn The highest high during the n time periods n The value you specify Once you obtain the value you start computing the D value which is an accumulative moving average Since the D is a moving average of a moving average it requires several trading intervals before the values are calculated properly For example if you specify a 20 period stochastic the software system requires 26 trading intervals before it can calculate valid K and D values The formula for the D is DT DT 1 2 6Kt 3 DT The value for D in the current period 1 The value for in the previous time period Kt The value for K in the current period The values 2 and 3 are constants You specify the constants and the length of the time period to examine for the trading range Once the K and 96D values for the normal stochastic are derived the slow stochastic can be computed The formula for the slow stochastic is below ZKSLOW DNORMAL DSLOWt D SLOWt 1 2 SLOWt 1 3 JoKSLOW The 96D for the normal stochastic JoDSLOWt Slow D val
90. amp Price Bars UNSERE Scales 0 16 days per inch Draw dark grid every EE E days DMI ADX HVOL MAIS PiceBa 2 t HH OF m MOM 3 Vertical Scaling ki ZR RSI Charts are always auto scaled when they are opened STO Autoscale Charts automatically re scales charts to visible high and low VOL Ol Current Chart Settings 4 Apply to active charts Restore Factory Defaults 5 Help Cancel 1 This section allows you to select your own preferences on scaling You can select different scaling on each tick style OHLC HLC Close or Candlestick You can select how many days are in one inch on your charts as well as when the dark grid lines appear 2 The Price Bar determines what style of tick is shown on your charts This also can be selected by right clicking on your open chart and selecting OHLC HLC Close or Candlestick The no tick option is only available on the screen shown above 3 Vertical Scaling Check this option to automatically adjust to fit your chart window vertically Note If you have the Accounting amp Simulator Plug in which includes the play controls the Auto Scale Chart feature will re scale the chart each time you click a Play button 4 Click on Apply to active charts if you would like to see your selecting settings on all the charts you have open Click on Restore Factory Defaults if you would like to restore original software settings 5 Help Info
91. an Four different Plug in are available for Track n Trade Pro to help you maximize your trading strategies The Plug ins are listed below Accounting Plug in Enables Track n Trade Pro users to simulate placing life like orders applying deposits and making withdrawals Also it keeps track of commissions paid to your simulated or live broker tracks orders placed profits amp losses and even simulates margin calls Options Plug in The order tools included with this Plug in automatically snap to the different strike prices then it shows you the actual dollar value of the option on that particular day Track n Trade Pro users who have this Plug in keep track of options profit and losses concurrent with your futures orders allowing them to practice mixing futures and options strategies simultaneously Seasonal Plug in Comprised of three indicators for the seasonal market this plug in assists the Track n Trade Pro user to calculate Seasonal Trends Market Probability and gives Historical Averages All this information is based on what has happened in the past to a particular seasonal contract Spreads Plug in Place orders directly on the spread chart and let Track n Trade automatically simulate placing both orders in the opposing contracts then calculates your daily profits and losses in the Accounting and Simulation Plug in module So before ever attempting to trade in the futures market develop a strategic plan
92. and press the Delete key on your keyboard Or point mouse cursor over the Channel and right click Select Delete on the popup menu Resizing the Inclining Declining Channel 1 Select the drawing by clicking on it Note The drawing is selected when boxes appear on the corners 2 Click on one of the boxes on the corners to drag the select point and release the mouse button Changing Properties of an Inclining Declining Channel To view the properties menu right click your mouse on the channel drawing tool Properties that can be changed are Foreground Changes the top and bottom lines of the channel Background Changes the inside colors of the channel Line Thickness Changes the thickness of the channel lines Choose values from 1 6 Line Style Changes the line style of the channel lines Choose from solid dashed dotted and more Send to Back Changes the layer of the tool This option is used when more than one tool is in the same area of the chart Click on Send to Back when you need to access a tool under the channel drawing 50 Retracements 0 Markets move waves called retracements these waves have up and down trends Notice in the above diagram that the market is in an overall uptrend considered a Bull Market but that within the uptrend there are small areas where the market falls back or retraces each time establishing a new higher high The following chart displays an example with
93. anual 102 Trend Fan Tool S ze A a To identify a Trend Fan within a chart use the Trend Fan Tool To draw a Trend Fan Select the Trend Fan Tool Left click where you want the Fan to start Move the mouse pointer to where the first line is to end and left click to place Repeat Step 3 until you get to the last line To place the last trend move the mouse pointer to the ending point and right click to place Resizing the Trend Fan Select the Trend Fan by clicking on it Note The formation is selected when boxes appear on the corners of the drawing Click on one of the boxes to drag the selected point and release the mouse button to place Moving the Trend Fan Select the Trend Fan by clicking on it Then drag to the new location and release the mouse button Deleting the Trend Fan Select the drawing by clicking on it then press the delete key on your keyboard to remove the Trend Fan Or right click on the fan and choose the Delete option from the popup menu Section 4 Analyzing Charts with Charting Tools Track n Trade Pro 4 0 User Manual 104 TRACK TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time ADVANCED CHARTING TOOLS Section 6 Advanced Charting Tools Track n Trade Pro 4 0 User Manual 106 ADVANCED CHARTING TOOLS Applying Technical Formations and Theories Introduction Track n Trade Pro has incorporated concepts and theories from leading
94. ar 2004 Cattle Live Feb 2004 Spread B1 S1G LA dy 4 MAT en i uu S T A yer vr n vr ver vorn Terr vr vr vor verser qur n vor vn or gue vont Dur n Yer er Ye vr n n or qur vor vorn rr wo Pr en er E qur verno ver vor rn yo rer vor vr n ver ver va jon qon n n qur or vorn Tr vr vn ur vr verser Yo qur m ven a o er vn n vr er et n eren vr n ajn 127 13 77 12030 82 11347 87 10664 92 9981 97 9299 03 8616 08 7933 13 i 298 The Spreads Plug In includes Spreads Tab in the Control Panel Margins Section in the Program Options Opening a Spreads Chart TE Step One Select the E Spread Charts Spreads tab in the Control Buy ji E Panel Sel 1 Step Two Select the two Symbol 1 D futures 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 opread 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 of your Chartbook when you save and close it m 4 Candlesticks Spread Margins In the Program Options panel under Global Settings you are able to modify spread margin requirements Track n Trade Program Options Select Category Spread Margins fm Global
95. are not difficult but they are tedious You first calculate the difference between the current closing price and the previous closing price The general formula is DIFt Closet Closet 1 If that difference is a positive value it is an up period the current close is higher than previous close If the difference is negative it is a down period the current close is below the previous close The DIF value for a series of UP and DOWN days The DOWN value is always a positive number for all computations It is the absolute value of a negative DIF The worksheet below shows the calculations needed to create a 9 period RSI Current Previous Day Close 7450 7460 7470 7480 7485 7490 7480 7470 7455 amp nbsp amp nbsp BR Ww No oa Close 7430 7450 7460 7470 7480 7485 7490 7480 7470 amp nbsp Dif Up 20 20 10 10 10 10 10 10 5 5 5 6 10 0 10 0 15 0 Totals 60 Down Ooo OOO 10 10 15 35 You now compute the up and down averages which are calculated as follows Ut UP1 UPi n Dt DOWN1 DOWNn n UT The up average for the current period DT The down average for the current period UPn The UP value for the nth period DOWNn The DOWN value for the nth period n The number of periods for the RSI Now use the values from the worksheet The up average is U 60 9 6 67 and the down average is D 35 9 3 89 The general f
96. arts in your Chartbook When you have several charts open in Track n Trade Pro you are able to switch back and forth between the charts listed in the Active Charts by Double clicking the chart in the Active Charts list Pressing the Tab key on your keyboard Clicking on the Chart Window Title Bar see below N British Pound CME c Mar 2004H ey on the Chart Window Title Bar 162 40 di 159 80 Ll 3 r 157 22 E LI pil 8 ET 154 62 Pe 72 Saving and Closing a Chartbook When you have your Active Chart list the way you want it you can save it as a Chartbook and have it available to open later To Save a Chartbook click on the File menu and then choose Save Book As This will open the Save As window Save As Seven E MyDoomens My eBooks Music My Pictures My Webs File name hook trit save as Track n Trade Pro Files tnt Cancel In the Save As window you will need to note two things First look at the folder specified next to the words Save In The default folder is My Documents it is recommended that you use the default folder unless you are familiar with the directory structure of Windows and feel comfortable browsing to other folders This is the location in which your Chartbook will be saved Second notice the name of your file Default is Book1 tnt located afte
97. ated the trading periods per day you now must calculate the number of periods for the year Since historical volatility considers every weekday of the year when calculating total periods for the year the multiplier is 262 TP 405 5 262 TP 81 262 TP 21 222 Note This formula applies only to historical volatility on a variable chart It does not apply to other chart types Now that you have the total number of periods per year continue with the calculation of the historical volatility Next calculate the logarithm of the price change for each price in the specified time span of n periods The formula is LOGSi LOG Pi Pi 1 LOG The logarithm function Pi The current price Pi 1 The previous price Now that you have the logarithms of the price changes calculate the total logarithms for the time span you are reviewing To calculate the total of the logarithms use the following formula n T ios gt LOGS i Tlogs The total of the logarithm price ratio for the time span S Indicates to sum all n logarithms LOGSi The logarithm of the price change for period i n The number of periods for the specified time span The next step is to calculate the average of the logs by dividing the total logarithm by the number of periods as shown below ALOGS Tlogs n ALOGS The average of the logarithms Tlogs The total of the logarithm for the time span n The number of periods for the specified
98. ators displayed in the _ Chart Window are the e OHLC Moving Averages H Bollinger Bands Close Pivot Points Candle 10x8 MAC Proportional Width Parabolic SAR Auto Scale Charts Moving Averages Bollinger Bands Pivot Points 10 x Parabolic SAR Moving Average Lines Introduction The moving average or simple moving average as it is commonly referred to as represents the average of the last several closing prices The moving average is simple to compute easy to understand and reliable under tests This simplicity is the strength of the moving average The basic moving average is computed exactly the same as any other mathematical average The most common way of determining the moving average of a market is to take the closing price over a certain number of days add them together and then divide by the select number of days Interpretation Generally moving averages are thought to be indicators of trend For example conventional interpretation is that once prices cross from below the moving average to above it the trend is considered up On the other hand if prices go from above the moving average to below it the trend of the market is considered down The purpose of the simple moving average is to track the progress of the trend Moving averages keep you in the trend for potentially a long time The moving average gives you an indication of the trend being up prices above the moving average or dow
99. available on the right side See the screenshot on the next page Option Strategy Calculator Calculate options strategies for commodity Wheat CBOT Dec 20032 Friday 12 of December 2003 Market closed 380 50 Graph Increment in points 15 00 Option Strategy Profitability of Option Strategy at Expiration Type Strike Price 2500 00 1 Buy 1 Cal 23 00 357 50 1666 67 833 33 0 00 833 33 1666 67 2500 00 CO X423 C9 E JE CO DSO DUO SS DOSE ED EM O O O ww wu wu LO LO wu LO LO wu wu wu wu LO LO lt gt C iD C i OQ iD Gi OS OO ONO m b WM MD O CO CO C C CO we NIN UC Delete Selected Modify Selected Add New Help Cancel Place Order s 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 Selected 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 The Profitability of Option Strategy at Expiration The OS Calculator enables you to enter an Option Strategy to see the potential profit loss of that strategy order See diagram below with the details of the OS Calculator Option Strategy Calculator Add Delete Option orders for your strategy here Option Strategy
100. average indicator 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 100 they are the average historical price for that day This feature also may help traders divine value in a commodity in that with a quick look not only can the trader see how current prices line versus average prices historically but they can also see seasonal trends By simply checking the Historical Average check box within the Seasonals tab displays 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 Example of Historical Averages Cocoa c Mar 2004H
101. ay Example Sell 1 STP This order has not been placed pel 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 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 on OK to place the order and Cancel to dismiss order screen To Place an order using the Accounting Tab 1 Click on the Order button in My Account Window 2 Release the mouse button and the order placement dialogue box will open Place an order Select the details af pour order in the Farm below Brokerage Fee This Trade each Placement Detail ef 922004 ha Symbol Order Type Price a A AD2004 Stop ilo v Screen T est iw BuySell i Quantity i rderTuvpe Price RBTC Day Example 5ell 1 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 change the pric
102. buying you want the lowest price The lower the price the better and limit orders can only be filled at the specified price or lower Hence one can only place a limit buy order at the current price or lower A customer wishing to sell two July Corn contracts at 215 when July Corn is trading at 211 would place the following order Sell two July Corn at 215 limit Sell limit orders must be placed at the current market price or higher this is because when selling you want the highest price possible The higher the price the better and sell limit orders can only be filled at the specified price or higher An important note about limit orders is that when a buy limit is placed above the market it can turn into a market order and get filled immediately This is because if the current price is below the limit price the market is ina better situation and it becomes a market order The same principle applies to sell limits when a sell limit is placed below the market it becomes a market order as the higher market price is better Remember Gecko Software s Track n Trade program helps you learn all these rules by allowing you to simulate placing these orders allowing you to practice and make sure you have each order under your belt before ever moving on to trade the live markets Stop Order A stop order is not executed until the market reaches the specified price level Once the stop level is hit the stop order becomes a market
103. call for 10 tonnes at delivery so a 1 move in Cocoa is worth 10 00 before commissions and fees Metals Gold and Platinum prices are quoted in dollars per troy ounce Most quote vendors display there prices in this format as well so prices are easy to read A Gold price of 285 10 is 285 10 per troy ounce while a Platinum price of 475 5 is 475 50 per troy ounce However each contract has a different contract size Each Gold futures contract represents 100 troy ounces so a 1 00 per troy ounce move equates to 100 00 before commissions and fees Platinum futures represent only 50 troy ounces as Platinum is much more rare than Gold Each 1 00 per toy ounce move in Platinum is equal to 50 00 before commissions and fees Silver and Copper Futures are quoted in cents cents per troy ounce in Silver and cents per pound in Copper For example a Silver price of 452 5 is actually 4 525 per ounce while a Copper price of 70 20 is really 0 7020 per pound Each Silver contract represents 5 000 ounces therefore a 1 0 cent move equals 50 00 before commissions and fees Copper contracts control 25 000 pounds of copper therefore a 1 00 cent move equals 250 00 before commissions and fees Petroleum Crude oil is quoted in dollars per barrel bbl A price of 20 50 is 20 50 per barrel Each contract represents 1 000 barrels of oil therefore a 1 00 barrel move is equal to a 1 000 00 profit or loss before commissions and fees Heatin
104. cator is shown with a check mark below William s Dist CCI Commodity Channel Index YOL volume DMI Dir Mov Index FSTO Fast Stochastics HvOL Historic Volatility MACD Mov Ave Conv Div MOM Momentum SSTO Slow Stochastics RSI Relative Strength PR William s Percent R SEAS Seasonal Trend PROB Market Probability OSY Option Strike Value STRE Strike Price 3 OSV STKE Section under the My Defaults or My Chart Settings in Program Options Track n Trade Program Options Select Category Option Strike Value Strike Price Indicators lm Global Settings 25 My Default Settings 2 Style Appearance 1 Strike Price Indicator 4 Bollinger Bands MAC a Black and Scholes Theoretical Solid Y i Moving Averages Reported Market Value Solid v m H Pivot Points PSAR 3 Options Strike Value Scaling amp Price Bars Under Valued ih AD CCI Over Valued DMI ADX HVOL MACD 4 Display Strike Price Indicator MOM Display Options Strike Value 05 STRK il RSI STO Ka VOL OI 7 Apply to active charts Restore factory defaults 8 Help Cancel Track n Trade Pro 4 0 User Manual 280 Strike Price Indicator The lines that make up the OSV indicator are the Black and Scholes Theoretical and the Reported Market Value Style and Color To change the line style click on the drop down menu and choose from solid dashed or dotted lines
105. ce When you have a short position use the new lows as the extreme price The extreme price concept allows for normal market corrections without immediately triggering the SAR price but it keeps the SAR price moving in the direction of the market Customizing To change the settings of this indicator open the Program Options screen by clicking the Program Options button located on the main Toolbar See the Program Options section for more details on changing the settings of each indicator lai a OOD o TRACK N TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time amp LONG TERM CHARTS Section 8 Long Term Charts Track n Trade Pro 4 0 User Manual 204 LONG TERM CHARTS Generating and Customizing Long Term Charts Introduction Track n Trade Pro generates weekly and monthly long term charts with up to 25 years of historical data To open a long term chart click on the appropriate button to the right of the chart window The day button is selected automatically when you open a commodity contract 22 Book imedified Track m Trade Pro F e Help Pies REE Re 15 Cem Mar 2004H by Commodity Ascending Spmbot 20 Oper Chad ETs Eee ERR RR Com cj Har AL 20048 gt an ILs 1 1 11 Last Fei Feb 06 2008 0 276 50 FE 275 80 1 276 50 27
106. ces have violated the 1st resistance level then this level should act as support on future pullbacks as should the pivot point The converse is true for support levels A violation of the daily pivot to the downside indicates that the daily trend is down with a downside target being the 1st support level If the market stalls then traders may wish to take profits on short positions or initiate long positions in anticipation of a retracement to the daily pivot However if the 1st support level is violated the day is said to be a strongly down trending day and as such should move down further to test the second support level As with the resistance numbers the support numbers once violated become resistance lines to trade with in the trend Though originally used as a means for floor trading longer term traders can use pivot points of longer periods Try plotting the pivot points on a weekly chart and using it for shorter term positioning on the daily charts Pivot points can also be calculated using the monthly charts and used for longer term positions Example of Pivot Points in Track n Trade U S T Note 10 Sep 2003U ivot Points esistance 1 amp 2 120 0156 H R2 119 38 R1 118 88 PP 118 45 1 117 95 52 117 52 Calculation There are several methods used to determine the Pivot Point we have included the three different formulas in Track n Trade Pro Tradit
107. cify the type of line style Click on the color box and a color panel will open for you to specify the new color 4 The MACD is calculated using two exponential moving averages To change the periods used in the formula highlight the number value and type in the new value desired 5 There are three components that create the MACD Indicator Bullish Bearish and Trigger lines More information on how these components are calculated in the Indicators section under MACD 6 7 8 9 10 11 MACD Type Choose from two types of MACD Indicators a Standard Calculation b Extra Smoothed This Calculation is a proprietary formula developed by Lan H Turner president and founder of Gecko Software Inc and Gecko Software s Programming staff This method increases the movement in the MACD Indicator and has shown to be more accurate in Gecko Software s market testing than the standard calculation Click the Extra Smoothed option to test it s accuracy for yourself Its relationship to the MACD is similar to the relationship between the Fast and Slow Stochastics so think of this indicator as the Fast MACD To Display the indicator in the chart window click the check box Ruler Bar See the Ruler Bar at the end of this section Preview Window This Window allows you to make changes and preview them before saving them Click on Apply to active charts if you would like to see your selecting settings on al
108. d B 4 The second point completes the base and is placed at the bottom of the trend C 5 Once you have completed the first three steps you can elongate the pitchfork to length desired Left click to place final point Resizing the Andrews Pitchfork Drawing 1 Select the drawing by clicking on it Note The drawing is selected when boxes appear on the corners 2 Click on one of the boxes to drag the select point and release the mouse button Moving the Andrews Pitchfork Drawing Select the drawing by clicking on it continue holding down the mouse button drag to the new location and release the mouse button Track n Trade Pro 4 0 User Manual 11 Deleting the Andrews Pitchfork Drawing Select the drawing by clicking on it and press the delete key on your keyboard to remove Or right click on the drawing and select Delete from the popup menu Changing the Properties of the Andrews Pitchfork Drawing Right click on the drawing to view the properties menu Properties that can be changed are Foreground Changes the line color of the Andrews Pitchfork Line Thickness Changes the thickness of the Andrews Pitchfork Choose values from 1 6 Line Style Changes the line style of the Andrews Pitchfork Line Choose from solid dashed dotted and more Send to Back Changes the layer of the tool This option is used when more than one tool is in the same area of the chart Click on Send to Back when you need to acce
109. d dotted and more Send to Back Changes the layer of the tool This option is used when more than one tool is in the same area of the chart Click on Send to Back when you need to access a tool under the box Delete Select to delete tool Drawing a Circle Select the Circle Tool Button in the Annotation Toolbox Left click on the chart where you would like the circle to start Continue holding down the mouse button and drag the tool until it has formed a circle Release the mouse button to place the circle Moving a Circle Left Click on drawing so that it is selected Continue holding down the mouse button while dragging to the new location Release mouse button to place circle Deleting a Circle Select the circle and press the Delete Key on your keyboard Or right click on the circle and then select Delete from the popup menu Changing the Properties of the Circle Right click on the circle to view the properties menu Properties that can be changed are Foreground Changes the color of the outline Background Changes the inside color of the circle Line Thickness Changes the thickness of the outline on the circle Choose values from 1 6 Line Style Changes the style of the outline Choose from solid dashed dotted and more Send to Back Changes the layer of the tool This option is used when more than one tool is in the drawn in the same area of the chart Click on Send to Back when you need to access a
110. d comparing it to the current days close If the close of today was higher then the low for the period is subtracted from the current days close and added to the current AD A pattern of higher highs would show a consistently increasing AD If the close of today is the same as yesterday then there is no change in the AD If the close of today is lower than yesterdays low the close of today is subtracted from the high for the current period and that difference is subtracted from the AD The main thing to look for is a difference in the AD and the market trend If a market were to make a matching or lower low or a matching or higher high and the AD fails to follow the market trend then this is divergence Divergence implies a reversal in the dominant trend may be near A series of lower lows would read as a decreasing AD The pattern created by the AD and the differences in the chart are what the trader looks for Divergence or a difference from the pattern is what you want to see For example if the market continues to march to higher territory and the AD follows by doing the same then there is no divergence However if the market makes several new highs but the AD fails to make new highs it is a warning signal of a market about to reverse direction Example of the Williams AD in the Indicator Window Calculation Formula The AD index is computed several different ways Some computations
111. dashed dotted and more Arc Thickness Changes the arcs formed at the 1 5 and ABC points Choose values from 1 6 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 Send to Back Changes the layer of the tool This option is used when more than one tool is in the same area of the chart Click on Send to Back when you need to access a tool under the Elliot Wave Drawing Dart Up Blip Formations The Dart Blip Formation occurs when there is a dramatic price change which is followed by an equally dramatic price change There are two types of Darts Up and Down Dart Up Blip Formations This formation is where a sudden dramatic price increase occurs followed by an equally dramatic drop in price A dart formation can appear anywhere in a chart To Trade a Dart Up Place a sell order on the break down of the Right Feather RF along with a stop loss order just above the Tip Trading on a Dart Formation is very risky Dart Down Blip Formation This formation is where a sudden dramatic price decrease occurs followed by an equally dramatic increase in price This formation can appear anywhere in a chart To Trade a Dart Down LF RF Place a buy order on the break up of the Right Feather and then place your stop loss order right below the tip Trading on a Dart Formation is very risky Dart Blip Tool p we em
112. 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 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 mar
113. de was heavy or light That will give you an idea of the possible volatility present in that market Contracts that have not been settled at the end of the day are represented by open interest New buyers and sellers entering or exiting the market change open interest The key to this indicator is to look at volume as a percentage of open interest VOI does not give straight buy or sell signals or have set trading rules Rather it shows the cyclical tendencies of the market The flow of the underlying market can be represented Looking at VOI shows whether new buyers or sellers are entering the market or if they are liquidating positions There are basic common sense rules for this indicator Prices are up and VOI is increasing the market is strong Prices are up and VOI is declining the market is getting weaker Prices are down and VOI is rising the market is getting weaker Prices are down and VOI is declining the market is gaining strength In bull markets volume tends to increase during rallies and tends to decrease on reactions In bear markets volume tends to increase on declines and decrease during rallies Trading volume usually increases dramatically at tops and bottoms Look at volume and open interest will show you which contract month to be in When looking at trading a specific commodity it is important to know which contract month to be in Commodities expire or are delivered several times a year This creates a situa
114. e 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 absolute price level of the underlying commodity 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 Candlesticks 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 Example of a Spreads Chart in Track n Trade 4 d 15 31 1 2003 Dec 2003 Jan 2004 Track n Trade Pro 4 0 User Manual Cattle Feeder M
115. e futures market Reminder Long or buy positions are offset or closed by selling while short or sell positions are offset or closed out by buying The dual margining system initial and maintenance of the futures market ensures that all positions are adequately financed insuring the integrity of the futures market The exchanges set the minimum margin requirement based on the volatility and dollar value of the contract Margin levels are subject to change both up and down at the discretion of the Exchange Most brokerage firms charge the exchange minimum margin but they are entitled to charge more so be sure to check with your broker before entering into any futures transaction The Long and Short of Trading There are two basic positions one can have in the futures markets 1 Along position entails the purchase of futures contracts in anticipation of rising prices Purchasing a futures contract enters into a long position Long positions are profitable if the underlying futures contract increases in price during the holding period Selling the same quantity and contract month that one initially purchased offsets a long position Long positions are typically used by consumers to hedge against rising prices and initiated by speculators in anticipation of higher prices 2 A short position entails the sale of futures contracts in anticipation of lower prices A short position is entered into by initially selling a futures con
116. e pack or hot fixes provided to you after the expiration of the thirty 30 day Limited Warranty period are not covered by any warranty or condition express or implied LIMITATION ON REMEDIES NO CONSEQUENTIAL OR OTHER DAMAGES Your exclusive remedy for any breach of this Limited Warranty is as set forth below Except for any refund elected by Gecko YOU ARE NOT ENTITLED TO ANY DAMAGES INCLUDING BUT NOT LIMITED TO CONSEQUENTIAL DAMAGES if the SOFTWARE PRODUCT does not meet Gecko s Limited Warranty and to the maximum extent allowed by applicable law even if any remedy fails of its essential purpose The terms Exclusion of Incidental Consequential and Certain Other Damages below are also incorporated into this Limited Warranty Some states jurisdictions do not allow the exclusion or limitation of incidental or consequential damages so the above limitation or exclusion may not apply to you This Limited Warranty gives you specific legal rights You may have others that vary from state jurisdiction to state jurisdiction YOUR EXCLUSIVE REMEDY Gecko and its suppliers entire liability and your exclusive remedy shall be at Gecko s option from time to time a return of the price paid if any for or b repair or replacement of the SOFTWARE PRODUCT that does not meet this Limited Warranty and that is returned to Gecko with a copy of your receipt You will receive the remedy elected by Gecko without charge except that you are responsible fo
117. e Solid First Resistance Line Solid v PSAR First Support Line Sold Scaling amp Price Bars Second Support Line Solid AD CCl 3 Traditional DMI ADX a HVOL f Variation 1 MACD Variation 2 MOM XR RSI STO VOL Ol ES Current Chart Settings zul 4 Show PivotPoint Lines Show Historical Lines Show Prediction Lines 5 Apply to active charts Restore Factory Defaults 6 Help Cancel 1 Average1 6 Each Moving average displayed on the chart is referred to as an Average You may have up to 6 different averages displayed at once on the screen 2 Period To specify the number of days used in calculating the moving average simply click on the box highlight the current number and type in a new value 3 Type Choose from simple linearly weighted and exponentially smoothed calculations Click on the drop down menu to specify the type 4 Data The average can be based on four values Open High Low or Close Click on the drop down menu and select the data value 5 Style amp Color Average lines can be displayed as solid dashed or dotted lines Click on the drop down menu to specify the type of Line Style Also change the color of the line by clicking on the color box for the line ands elect a new color from the Color Palette 6 Check this box to Display the Moving Average Lines Only the lines checked above will show on the chart 7 Click on Apply to active charts i
118. e color of your order arrow click on the color box and select a new color from the Color Palette 5 Price Bars a Changes based the 6 condition are displayed by tick color specify the color for No Change Close Lower and Close Higher by clicking on the color box and selecting a color from the Color Palette b Highlight When holding down the SHIFT key while using the pointer tool you will see a vertical line highlighting the chosen trading day from the chart window through the Indicator Window To change the highlight color click on the color box and select a color from the Color Palette 6 Choose the value used to calculate the price bar change You may choose yesterday s open high low close or today s open high or low to compare to today s close If you would like to modify the colors of the ticks based on this change see step 5a 7 Proportional Tick Thickness When selected this feature increases the thickness of both chart price bars and indicator lines Fill All Candles When this feature is selected all of the candle bodies will be filled 8 Click on Apply to active charts if you would like to see your selecting settings on all the charts you have open Click on Restore Factory Defaults if you would like to restore original software settings for this window 9 Help Information from the Manual has been integrated into the software When clicking on the Help button and you will get specific documentation bas
119. e folder The blue Global Settings folder contains your Long Term Chartings settings and your Tool settings Track n Trade Pro 4 0 User Manual 220 Track n Trade Pro Themes 1 2 Track n Trade Pro gives you the ability to take all of the settings in the Program Options settings and save them into a theme file This gives you the ability to have different themes and apply many settings quickly to a chart Creating a Theme To create a Theme simply select your desired settings within the three sections of settings Global My Defaults and Per Chart Next go to the Global Settings main page and select the Save Settings button Save settings to file Save in themes r E File name Type Mame of File HERE Save type Theme File tts Cancel This will open the Save As window Choose a name for the file and click on the Save button The theme will be saved in the themes folder located in the Track n Trade Pro folder where you installed it Default location for the software is C Program Files Gecko Software Track n Trade Pro 4 0 To Apply a Theme Open the Program Options window Click on the Load settings button located on the Global Settings page This will open the themes directory Click on the theme file that you would like to apply by clicking on the Open button Long Term The Long Term section allows the user to define how long term charts are calculated There are two types
120. e highest high in between the divergent lows then technical lore holds that higher prices should follow Example of the MACD in the indicator Window JN mm Calculation Parameters First 12 the number of bars or interval used to calculate the first Exponential Moving Average Second 26 the number of bars or interval used to calculate the second Exponential Moving Average Difference 9 the number of bars or interval used to calculate an additional Exponential Moving Average Formula In this study the oscillator is the simple difference between the first two exponential moving averages The formula is as follows OSCt 1 EMA2 OSCt The oscillator for the current period 1 The first exponential moving average EMA2 The second exponential moving average The second part of the study computes an exponential moving average of the oscillator You have EMAosct EMAosct 1 k OSCt EMAosct 1 EMAosct The exponential moving average of the oscillator OSCt The oscillator for the current interval EMAosct 1 The exponential moving average of the oscillator for the previous interval k The exponential smoothing constant Since the second value EMAosct is an exponential moving average it rises and falls more slowly than the oscillator Hence the two lines generate crossover points These crossover points are the buy sell signals Review Reading
121. e 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 5 Click on OK to place the order and Cancel to dismiss order screen 1 2 To Edit an Unfilled Order To edit an order on a chart right click on the order and select Settings to view the order placement window To edit an order in My Accounts Window right click on the order and select Settings to view the order placement window A Filled Order When you order is filled the triangle will fill in red on the chart see chart below In 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 Eurodollar c Jun 2004M BERTE 22 B a P a 98 61 28 590 28 800 4 98 385 t 98 485 V SELL1 STP un GTC 898 280 l Unfilled Order My Account From the My Account Window user s can place orders 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 Withdraw Order Trade Log Accounting Date Open Order PL Closed Order PL Order Commissions Orders Subtotal Total Open P L Total Closed P L Total Commissions Account SubTotal Account Balance Margin Requirement A
122. e than one tool is in the same area of the chart Click on Send to Back when you need to access a tool under the Fibonacci Arc Delete Select to delete the tool Example of a Fibonacci Arc in Track n Trade Soybeans Nov 2003 770 50 733 00 6 78 61 8 695 25 557 50 520 00 582 25 544 50 mur 506 75 Fibonacci Time Zones W er re OAE The Fibonacci Time Zone uses Fibonacci numbers rather than the percentages used in the Ruler and Arc tools Charting a Fibonacci Time Zone 1 Select the Fibonacci Time Zone Tool from the Toolbox This tool is drawn like a rectangle Left click for the upper left point 3 Move the mouse to the bottom right position and left click to finish the drawing Resizing the Fibonacci Time Zone 1 Select the drawing by clicking on it Note The drawing is selected when boxes appear on the corners 2 Click on one of the boxes to drag the select point and release the mouse button Moving the Fibonacci Time Zone Select the drawing by clicking on it continue holding down the mouse button drag to the new location and release the mouse button Deleting the Fibonacci Time Zone Select the drawing by clicking on it and press the delete key on your keyboard to remove Or right click on the tool and select Delete from the popup menu Foreground Line Thickness
123. eates and inserts the theoretical data into the actual data stream is code named Frog Data Section 12 Options Plug In Track n Trade Pro 4 0 User Manual 285 TRACK TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time SEASONALS PLUG IN Section 12 Seasonals Plug In Track n Trade Pro 4 0 User Manual 287 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 Seasonal 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 showing 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
124. ed a Channel consists of a section of price bars that are between parallel support and resistance lines There are three types of channels the first is the Narrow Sideways Channel then the Inclining Channel and finally the Declining Channel Narrow Sideways Channel A Narrow Sideways Channel is a formation that features both resistance and support with a sideways movement Support forms the low price bar while resistance provides the price ceiling To trade a Narrow Sideways Channel Place an order to buy ona break up and out of the channel or sell on a break down out of channel v Narrow Sideways Channel Tool To illustrate a Narrow Sideways Channel in a chart use the Narrow Sideways Channel Tool Drawing a Narrow Sideways Channel 1 Select the Narrow Sideways Channel Tool from the Charting Toolbox 2 Position the mouse pointer where you would like to place the top left point of the channel and left click continue to hold down the mouse dragging it to the right bottom point of channel release mouse button to place Moving the Narrow Sideways Channel Select the channel drawing by clicking on it drag to the new location and release the mouse button to place Deleting the Narrow Sideways Channel Select the drawing by clicking on it and press the Delete Key on your keyboard Or point mouse cursor over the Channel and right click Select Delete on the popup menu Resizing the Narrow Sideways Channel
125. ed on the location of the button You may also press F1 on your keyboard Bollinger Band Track n Trade Program Options Xi Select Category Bollinger Bands Global Settings Period 1 Dat Style Col 25 My Default Settings 2 ux 3 ype 4 57 5 NT an Appearance 1 Upper Band Solid er HHHH HHHH r rm i Bolinger Bands Bolinger Bends 1202 ES esc ei Moving Averages Lower Band E Pivot Points PSAR 200 Deviation Scaling amp Price Bars AD CCI DMI ADX HVOL MACD MOM XR RSI STO VOL Ol Current Chart Settings 6 Display Bollinger Bands 7 Apply to active charts Restore Factory Defaults 8 Help Cancel 1 Bands The Bollinger Band Indicator is made up of three lines on the chart They are Upper Middle amp Lower 2 Period Define the period interval for the Bollinger Band This value affects all three lines 3 The Bollinger Band Indicator can be based on Simple Linearly Weighted or Exponentially Smoothed Average Click on the drop down menu to change the type of average 4 Data The average can be based on four values Open High Low or Close Click on the drop down menu to change the data option 5 Style amp Color Bollinger Band lines can be displayed as solid dashed or dotted lines Click on the drop down menu to specify the type of line style Next to the drop down menu is the color box for the line Click on the color box t
126. ed when a box appears at the center point Deleting a Crosshair Drawing 1 There are two ways to delete the Crosshair tool 2 Select the Crosshair drawing by clicking on it and press the Delete Key on your keyboard 3 Place mouse cursor over the Crosshair and right click In the popup menu select Delete Deleting only the Horizontal Vertical Line of the Crosshair 1 Right click on the center point of the Crosshair to view the properties menu 2 Select Deselect Show Horizontal Vertical Line A check will appear in front of the item when it is shown Changing Properties of a Crosshair Right click on the drawing to view the properties menu Properties that can be changed are Foreground Changes the line color of the Crosshair Line Thickness Changes the thickness of the Crosshair lines Choose values from 1 6 Line Style Changes the line style of the Crosshair lines Choose from solid dashed dotted and more Font Changes the font that the cursor price is displayed in Show Text f this option is selected the text will stay on the chart after the Crosshair has been drawn If not selected the value will only appear when drawing the Crosshair Vertical Line Select Deselect to view or hide the vertical Crosshair line Note If both the vertical and horizontal lines are deselected the crosshair tool will be deleted Show Horizontal Line Select Deselect to view or hide the horizontal Crosshair line Note If both t
127. efaults if you would like to restore original software settings 9 Help Information from the Manual has been integrated into the software When clicking on the Help button and you will get specific documentation based on the location of the button You may also press F1 on your keyboard VOL OI Volume and Open Interest Track n Trade Program Options Select Category Volume VOL and Open Interest Ol g lm Global Settings Style Color 65 My Default Settings Ap n anca Open Interest Line Solid fcn Bands Volume Bars Down m t Moving Averages Show Volume In Two Colors Up m Pivot Points PSAR Volume and Open Interest Scale Scaling amp Price Bars e Use Same Scale AD A CCI Use Individual Scale DMI ADX HVOL a die 4 Display Volume and Open Interest XR RSI STO A 8 Help Cancel 1 Style amp Color The Volume Open Interest line can be displayed as a solid dashed or dotted 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 If you would like to Display the Volume Indicator in two colors check this box Choose how you would like to view the VOL Indicator by selecting the radial button you prefer a Same Scale The VOL Indicator will not be proportional to the size of the indicator window b Individual Sca
128. elect all commodities For ER Cancel Commodity Symbols Track n Trade Pro will accept contracts typed in the following format Commodity Symbol Contract Month eA p RR2002H Qua em Contract Year Track n Trade Pro Commodity Symbols Symbol Exchange Group BP British Pound CME o CME IMM Icurrencies US US T Bond 30 yr o U S T Note 10 yr c U S T Note 10 yr o U S T Note 2 yr c TFV FV U S T Note 5 yr ED Eurodollar c ED Eurodollar LIBOR 1mo EM _ LIBOR 1mo O Oats 0 RR SM Soybean Meal SM Soybean Meal BO Oil c Soybean Oil o S Soybeans S Soybeans W W KW MW DJ YM ND NASDAQ 100 NQ NK Nikkei 225 RL Russell 2000 c S amp P 500 S amp P 500 S amp P 500 Stock mini S amp P MidCap 400 c indices S amp P MidCap 400 indices CR indices Y DENI ne indices FC Feeder meats LC meats Hogs Frozen Bellies o meats lHogs Lean meats DA meats HG High Grade NYMEX COMEX metals Legend for the Commodity Symbols Refers to a Combined Contract c Combined Data 0 Open Outcry Session e Electronic Session Commodity Month Symbols Data Download Utility Olelas ja vl To perform a Data Download Click on the Data Download icon shown below on the
129. en and the only way to stick around is through prudent money management Orders to Manage Your Future The size of your account and the amount of risk you are personally able to bear is a completely personal matter Some very successful traders like Richard Dennis who is rumored to have parlayed 1 000 00 into several million in the futures markets have made fortunes starting with relatively small sums of money Most professional fund managers risk as little as 1 of their account equity on any given trade Though both of these are probably out of the question for most people starting out in the futures market as the odds of turning 1 000 00 into several million in a couple of years is akin to hitting 6 on the roulette wheel 5 times in a row Also risking 1 of a 1 000 means only risking 10 00 per trade which just is not practical However by maybe postponing your entrance into the futures market until you have for example a 5 000 00 minimum of genuine risk capital not the kids college fund the rent or your next mortgage payment you could achieve a level of diversity and risk theoretically then risking 10 of your account 500 00 before commissions and fees on any one trade is realistic This would greatly reduce your risk of ruin increasing your ability to trade longer and hopefully become more proficient in the long run Types of Orders At the core of all risk management and trading is using the appropriate order f
130. en extremely volatile for the past 3 months for example then near term options should be more expensive If the market has been calm for an extended period of time longer term options should be reasonable lts use in futures is for observation telling the trader if prices are calming down or becoming more erratic Interpretation The key to using historic volatility is determining the correct period of time for each market The market you are looking at may show a history of volatility years ago but may have been relatively calm the last few months Getting an idea of the markets behavior recently may be of no use to the trader that is looking at distant options and vice versa for the trader looking at near term options For the futures trader this tool is useful as a guide for order placement Seeing that market volatility is changing may indicate that it is time to move stops closer or farther away If the trader is profitable with the trend and volatility is changing it might be a time to move stops closer to protect profits If a trader is trading against the trend they might want to move stops further away to avoid getting bumped out prematurely Options traders could use this study to help them purchase profitable options The basic idea is to buy options when volatility is decreasing to take advantage of a change in that volatility Any rise in volatility will translate to an increase in option values Look at options strategies t
131. ends to transmit or transport the Restricted Components back to such country ii to any person or entity who you know or have reason to know will utilize the Restricted Components in the design development or production of nuclear chemical or biological weapons or iii to any person or entity who has been prohibited from participating in U S export transactions by any federal agency of the U S government You warrant and represent that neither the BXA nor any other U S federal agency has suspended revoked or denied your export privileges MISCELLANEOUS This EULA is governed by the laws of the State of Utah If this product was acquired outside the United States then local law may apply Should you have any questions concerning this EULA or if you desire to contact Gecko for any reason please contact Gecko on the World Wide Web at www GeckoSoftware com LIMITED WARRANTY Gecko warrants that the SOFTWARE PRODUCT will attempt to perform in accordance to our advertisements for a period of thirty 30 days from the date of receipt If it does not perform to your expectation the only guarantee Gecko Software gives is a refund of the purchase price paid for the application This warranty is only good for a period of 30 days from the date of purchase Gecko does not guarantee that any mathematical formulas are correct or that any data is correct or that any of the rules used to create the software to simulate real life situations are correct Th
132. entries and exits should be placed Resizing the Risk Reward Calculator 1 Select the calculator by clicking on it Note The calculator is selected when boxes appear on the corners 2 Click on one of the boxes to drag the select point and release the mouse button Moving the Risk Reward Calculator Select the calculator by clicking on it continue holding down the mouse button drag to the new location and release the mouse button Deleting the Risk Reward Calculator Select the calculator by clicking on it and press the delete key on your keyboard to remove Changing the Properties of a Risk Reward Calculator Right Click on the drawing to view the properties menu Properties that can be changed are Foreground Changes the line color of the Risk Reward Calculator Line Thickness Changes the thickness of the Risk Reward line Choose values from 1 6 Line Style Changes the line style of the Risk Reward Calculator line Choose from solid dashed dotted and more Font Changes the Font Size Style and Color of the values Show Text Deselect Select to view or hide the values Settings The settings window allows users to adjust the end points and make their calculations more accurate as well as specify the number of contracts purchased Click on OK to make the change or Cancel to exit this window Send to Back Changes the layer of the tool This option is used when more than one tool is in the same area of the cha
133. er The user of the SOFTWARE PRODUCT may make a one time permanent transfer of this EULA and SOFTWARE PRODUCT only directly to an end user This transfer must include all of the SOFTWARE PRODUCT including all component parts the media and printed materials any upgrades this EULA and if applicable the Certificate of Authenticity Such transfer may not be by way of consignment or any other indirect transfer The transferee of such one time transfer must agree to comply with the terms of this EULA Even though we have given the right to transfer the software application license we do not give the right to transfer data subscription services Data subscription services are non transferable Termination Gecko Software Inc may terminate your license and this EULA at any time for any reason what so ever without the obligation of reimbursement or compensation Therefore if Gecko gives notice of termination of your license or you fail to comply with the terms of use set forth in this agreement you must destroy all copies of the SOFTWARE PRODUCT and all of its component parts 3 UPGRADES If the SOFTWARE PRODUCT is labeled as an upgrade you must be properly licensed to use a product identified by Gecko Software Inc as being eligible for the upgrade in order to use the SOFTWARE PRODUCT A SOFTWARE PRODUCT labeled as an upgrade replaces and or supplements the product that formed the basis for your eligibility for the upgrade You may use
134. es are processed Sometimes a primary A full point movement is 1 1 00 Cents per Bu and worth 50 00 per contract Dates indicated with are calculated approximations exchange will be listed with a subsidiary exchange Eg Contract Size The number of units that one contract represents Contract Units The unit measurement Tick Size A tick is defined by the exchanges as the smallest increment the quote of a contract will fluctuate This is also called the minimum move or a point Minimum Move The tick size is displayed as a decimal value instead of a fraction Tick Units The unit of measure for quotes This is usually the same as the unit the exchange uses If Gecko Software uses a different unit than the exchange we will adjust the full point value so that all accounting is still correct Full Point Value This value represents how much a move in the ones place is worth For the few commodities that trade in whole values this is the same as the minimum move Generally it represents several minimum moves Init Margin The initial margin is the amount the Exchange and your Brokerage Firm requires you to have available in your account at the end of the first day your order is filled in the market Maint Margin The maintenance margin is the amount of available funds required to be in your account at the end of each trading day after the first day your order is filled It is ge
135. ese are just our best guess and you as the licensee of the software agree not to hold Gecko liable for any mistakes discrepancies inaccuracies or errors that may be included with the software application supporting materials manuals or supplemental products provided by Gecko Software Inc or its subsidiaries groups friends associates managers employee s spouses or anyone else who lives on planet earth You agree to play with this software totally and 100 at your own risk This software application was written as a game in an attempt to simulate real market situations and as an educational tool to practice such teachings and techniques therefore you take upon yourself the total and entire risk of loss if you decide to actually use this software in an attempt to help you make any real life decisions whatever they may be If an implied warranty or condition is created by your state jurisdiction and federal or state provincial law prohibits disclaimer of it you also have an implied warranty or condition BUT ONLY AS TO DEFECTS DISCOVERED DURING THE PERIOD OF THIS LIMITED WARRANTY THIRTY 30 DAYS AS TO ANY DEFECTS DISCOVERED AFTER THE THIRTY 30 DAY PERIOD THERE IS NO WARRANTY OR CONDITION OF ANY KIND Some states jurisdictions do not allow limitations on duration of an implied warranty so the above limitation may not apply to you Any supplements or updates to the SOFTWARE PRODUCT including without limitation any if any servic
136. esents the difference between the Moving Averages Therefore when the moving averages move above the base line they are indicating a buy and as the difference between the averages increases the lines will get taller The opposite is true of a sell signal Track n Trade s ability to display MACD in this fashion is vital because it allows you to read the strength of the current trend along with the signal to buy or sell When MACD is plotted as a histogram the values used to plot the histogram are the differences between the two moving averages on each day The trigger line that appears on this chart is an average of the histogram data or put more simply a smoothed view of the histogram Using the MACD as a histogram also allows the trader to spot divergences between the indicator and the market price A divergence is present when the market makes a higher high than the previous high but the MACD histogram fails to make a corresponding higher high This is considered in technical lore to be a sign of weakness and a sell signal when the MACD breaks below the lowest point in between the divergent highs Bullish divergence is seen in an exact opposite fashion Assume a market has been trending downward The market has been consistently making lower lows as has been the MACD histogram indicator However eventually the MACD fails to make a lower low corresponding to the lower low in price If the MACD histogram line crosses above th
137. evious are equal Directional movement is up or positive when the difference between the highs is the greatest It is down or negative when the difference between the lows is the largest value Thus the up directional movement is DM and down directional movement is DM Do not let the plus and minus sign designation mislead you They only indicate upward or downward movement not values The directional movement value is always a positive number or absolute value regardless of upward or downward movement This concept is crucial to understanding the computations for the indicator If you are confused or do not understand draw some illustrations or work with actual price data to determine the directional movement values The next step in determining the DMI is to compute the true range According to the author the true range is the largest value of the following equations Hight Lowt Hight Closet 1 Lowt Closet 1 The true range is always a positive number From this point forward all references to the true range are designated as TR Continue this process for the specified trading interval In this example use a value of 14 This is the same value Wilder used on daily data His logic for using this value is that it represented an average half cycle period When this task is accomplished for the specified interval you compute the average value of the DM DM and TR Wilder prefers to use an accumulation technique
138. f intervals The symbol designates absolute value In mathematical terms negative differences are treated as positive values Now the computation for the final CCI value is CCIt TPt TPAVGt 015 MDT CCIt The Commodity Channel Index for the current period TPt The typical price for the current period TPAVGt The moving average of the typical price 015 A constant MDT The mean deviation for this period Customizing To change the settings of this indicator open the Program Options screen by clicking the Program Options button located on the main Toolbar See the Program Options section for more details on changing the settings Diamesa my ke DMI Directional Movement Index Introduction Wilder s DMI is similar to the historic volatility indicator in that it shows the market tendencies The main use of this tool is to show the strength of a trend This could direct the trader to use a trend following system or a counter trend system in their trading It also indicates possible price reversals Directional Moving Index is plotted as three lines on a scale of O to 100 This scale is a measure of market trend The two lines of DMI show the amount of positive and negative movement The positive line is called D and the negative D The direction of these lines and the use of crossovers can show the changes in the current market The key to this indicator is the ADX or average of the difference of these
139. f the Dollar Calculator line Choose from solid dashed dotted and more Font Changes the Font Size Style and Color of the values Show Text Deselect Select to view or hide the values Settings The settings window allows users to adjust the end points and make their calculations more accurate Click on OK to make the change or Cancel to exit this window Send to Back Changes the layer of the tool This option is used when more than one tool is in the same area of the chart Click on Send to Back when you need to access a tool under the Dollar Calculator Example of the Dollar Calculator U S T Note 10 yr Sep 2003U Risk Reward Calculator To draw a Risk Reward Calculator 1 Click on the Risk Reward Calculator on the Financial Toolbox 2 Leftclick at the beginning of your technical formation highlighting in red the area between your initial order and your risking stop loss order 3 This will automatically create an equal sized reward area in green which can then be stretched to the proper distance you expect the graph to retrace Note the numbers in the tool indicate the dollar amount of risk and reward 4 When the chart is trading within the red area you risking your own money When the chart is trading within the green area you are risking OPM or Other People s Money 5 Use the Risk Reward Calculator on all trades to calculate where your order
140. f you would like to see your selected settings on all the charts you have open Click on Restore Factory Defaults if you would like to restore original software settings 8 Help Information from the Manual has been integrated into the software When clicking on the Help button and you will get specific documentation based on the location of the button You may also press F1 on your keyboard Pivot Points Track n Trade Program Options Select Category Pivot Points lm Global Settings Style Color 25 My Default Settings 2 Appearance 1 Second Resistance Line Solid 7 1H Bolli Band a eee First Resistance Line Solid Moving Averages Pivot Point Line First Support Line Sold Scaling amp Price Bars Second Support Line Solid AD CCI 3 Traditional fai DMI ADX a HVOL Variation 1 MACD Variation 2 MOM ZR RSI STO VOL Ol ES Current Chart Settings 5H 4 Display Pivot Point Lines Show Historical Lines Show Prediction Lines 5 Apply to active charts Restore Factory Defaults 6 Help Cancel 1 Pivot Point Lines Pivot Points are made up of 5 Lines You can specify preferences for each line independently For information on their value and how they are calculated refer to the Indicator Section Style amp Color The Pivot Point Indicator lines can be displayed as a solid dashed
141. g 47 Saving Charts as an 48 a 49 Soaling aG hart Dak er 50 Auto Scale Chars aus selle oe DO ar h k k 50 SIZIHQ COMMONS a po ra r esa 50 Data DownloadS kk oae ac exa 53 Commodity CHOOSER 53 Commodity 5 55 Data Download LM cai 58 c 60 Analyzing Charts with Charting Tools 69 UC OT c PES 69 Crosshair TOO niece 69 Header 72 SUID DON PRENNE 72 Resistance arma rate E TIT 72 EINE A2 xak e ner ry ce 73 VU HL Sin Foro P 14 76 Narrow Sideways 76 Narrow Sideways Channel 76 jare aliajo 82e MING lel xe Seu 78 Declnin GMa di bod 79 Inclining Declining Channel 80 50 RetracementS ac ee agora iste tutae 82 Moo wc T 8
142. g Oil and Unleaded Gasoline are just like they are at the pump but lower as taxes are not included nor service station mark ups in cents per gallon Therefore a price of 52 46 is 0 5246 per gallon Both contracts call for delivery of 42 000 gallons therefore a 1 cent per gallon equates to 420 00 before commissions and fees Currencies Currencies represent an exchange rate or how many US Dollars it take to buy one Swiss Franc Japanese Yen Euro or Mexican Peso Prices are quoted in many different fashions but the basic convention is that a 0 01 move in the Swiss Franc or Yen equals 12 50 before commissions and fees because of the contract size The Canadian Dollar US Dollar Index and Euro have a different contract size and therefore a 0 01 move equates to 10 00 before commissions and fees Financials The same basic principles apply to the financial markets which are generally quoted in terms of points Prices are usually read as is though some like the treasury securities US TY FV TU are traded in different combinations of 1 32nd or 1 64th Each of these markets has the dollars per point already calculated into Gecko Software s Track n Trade application and a list of the different contract sizes and pricing terms are available from the various exchanges they trade on as they do not follow a single convention Margins Cents Points amp the Power of Leverage Before entering into either a long or short positi
143. ge Quantity Default 1 Highlight and change to increase the number of Options to purchase Strike Price Value of the Strike Price Value pre filled when placing on chart Brokerage Fee This value is based on per side fee highlight and change value Default is 0 00 CALL or PUT Choose the order type from the dropdown menu Value pre filled with type of option order tool chosen Premium Point value for the strike price Value The Dollar amount of the Premium Contingency Order If this box is check then the option order is executed based on a specific Futures price 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 Cancel 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 To change the properties of an order right click on the diamond shape representing an options order on the chart window Font w Show Text Settings Send To Back Excercise Hide 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 tool This option is used when more than one tool is in
144. h Resizing the Day Offset Select by clicking on it Note The drawing is selected when boxes appear on the corners Click on one of the boxes to drag the select point and release the mouse button Moving the Day Offset Select the drawing by clicking on it continue holding down the mouse button drag to the new location and release the mouse button Deleting the Day Offset Select the drawing by clicking on it and press the delete key on your keyboard to remove Or right click on the tool and select Delete from the popup menu Foreground Line Thickness Line Style j Font w Show Text Send To Back Delete Changing the Properties of a Day Offset Right click on the Day Offset drawing to view the properties menu Properties that can be changed are Foreground Changes the line color of the Day Calculator Line Thickness Changes the thickness of the Day Calculator Line Choose values from 1 6 Line Style Changes the line style of the Day Offset lines Choose from solid dashed dotted and more Font Changes the Font Size Style and Color of the Day Calculator numbers Show Text Select to view or hide the Day Calculator numbers Send to Back Changes the layer of the tool This option is used when more than one tool is in the same area of the chart Click on Send to Back when you need to access a tool under the Day Calculator drawing Delete Select to delete tool Example of the Day Offset Tool in
145. h both the Dollar Calculator and the Risk Reward Calculator simply click and drag between two locations on the chart and instantly know what the value between the two points Dollar Calculator JE Risk vs Reward Calculator Accounting Tools Dollar Calculator To Calculate the Effect of a Chart Movement Click on the Dollar Calculator Tool Left click where you want the calculator to start Left click where the calculation is completed The dollar amount of the chart movement will be calculated from the beginning and end point values and will then be displayed in the center of the line prep Resizing the Dollar Calculator Select the drawing by clicking on it Note The drawing is selected when boxes appear on the corners Click on one of the boxes to drag the select point and release the mouse button N Moving the Dollar Calculator Select the drawing by clicking on it continue holding down the mouse button drag to the new location and release the mouse button Deleting the Dollar Calculator Select the drawing by clicking on it and press the delete key on your keyboard to remove Changing the Properties of a Dollar Calculator Right Click on the drawing to view the properties menu Properties that can be changed are Foreground Changes the line color of the Dollar Calculator Line Thickness Changes the thickness of the Dollar Calculator line Choose values from 1 6 Line Style Changes the line style o
146. h regard to the SOFTWARE PRODUCT and the provision of or failure to provide Support Services ALSO THERE IS NO WARRANTY OR CONDITION OF TITLE QUIET ENJOYMENT QUIET POSSESSION AND CORRESPONDENCE TO DESCRIPTION OR NON INFRINGEMENT WITH REGARD TO THE SOFTWARE PRODUCT EXCLUSION OF INCIDENTAL CONSEQUENTIAL AND CERTAIN OTHER DAMAGES To the maximum extent permitted by applicable law in no event shall Gecko or its suppliers be liable for any special incidental indirect or consequential damages whatsoever including but not limited to damages for loss of profits or confidential or other information for business interruption for personal injury for loss of privacy for failure to meet any duty including of good faith or of reasonable care for negligence and for any other pecuniary or other loss whatsoever arising out of or in any way related to the use of or inability to use the SOFTWARE PRODUCT the provision of or failure to provide Support Services or otherwise under or in connection with any provision of this EULA even in the event of the fault tort including negligence strict liability breach of contract or breach of warranty of Gecko or any supplier and even if Gecko or any supplier has been advised of the possibility of such damages LIMITATION OF LIABILITY AND REMEDIES Notwithstanding any damages that you might incur for any reason whatsoever including without limitation all damages referenced above and all direct or gener
147. hanged without a change to also the opposite scale To square the Gann Fan to the current chart s scaled settings hold down the CTRL key on your keyboard while clicking on and rescaling with the mouse pointer Some Gann experts have reported that to get a truly squared chart one must set the scaling to 8 price bars per inch width and 4 price bars per inch height A Gann Fan is used to define a market direction or a new trend For example a bull market exists if prices are maintaining strength between the1x2 lower line and 1x2 higher line A bear market would be the exact opposite of the previous scenario During an uptrend the breaking of one line would suggest a further price drop to the next lower line Correspondingly if prices break above one line they would be expected to rally to the next higher one Example of the Gann Fan in Track n Trade 1x8 1x4 1x3 1x2 1x1 You can apply this theory to your charts by using the Gann Fan Tool on the Advanced Charting Toolbar To draw a Gann Fan 1 Select the Gann Fan Tool 2 Left click where you want the Fan to start continue holding down the mouse button until reaching the final position of the fan release button to place Resizing the Gann Fan 1 Select the Fan by clicking on it Note The formation is selected when boxes appear on the corners of the drawing 2 Click on one of the boxes to drag the selected point and release the mouse button to place Mov
148. hat the divergence is where D line makes a group of lower highs while the market makes a series of higher highs This would indicate an overbought condition The reverse would be true of an oversold market with D making higher lows and prices making lower lows Trade triggers to buy are created when during an oversold condition Stochastics below 20 the slow line D is crossed by the faster moving line K The opposite would occur with a sell signal The faster K line crosses above the slower D line when both are ata reading above 80 As with a dual moving average system when the faster reacting indicator crosses the slower moving indicator a buy or sell is signaled Because Stochastics give an indication of either overbought or oversold you would first want to see both lines in that above 80 or below 20 range and sloping out of that range back to the middle before looking for these trade triggers Calculation Parameters Overall Period 3 the number of periods used to determine the highest high and lowest low D MA Period 14 the number of periods used to determine the moving average for the D value Formula The first step in computing the stochastic indicator is to determine the n period high and low For example suppose you specified twenty periods for the stochastic Determine the highest high and lowest low during the last twenty trading intervals It dete
149. hat take advantage of low volatility such as straddles or ratio spreads When volatility is high selling options would be better because any decrease in volatility will translate to a loss of option value Option strategies that take advantage of a decrease in volatility are strangles and regular short option positions Obviously historic volatility is only one component of option pricing Any changes in the underlying futures market could negate the changes in option prices due to volatility For example if you were to buy a low volatility Put option and prices go higher that option will lose value but not as quickly as a higher volatility option For the futures trader the basic concept is to expect market changes during periods of increased volatility George Soros the trading legend said Short term volatility is greatest at a turn around and diminishes as a trend becomes established This indicator is commonly viewed as very mean regressive What this term means is that the historic volatility indicator tends to return to the opposite end of the spectrum and therefore return to an average If volatility is great it will eventually cool off and return to that place If volatility is low it will not stay quiet forever What this means to traders is that a market that is erratic will sooner or later calm down and a market that is quiet will eventually get loud again Example of Historical Velocity in the Indicator Window
150. he short term price direction The second average is a medium average that reacts to a longer period of time but not as long as the final average The third average is the slowest to react because it takes an average of the longest period of time Interpretation A 10 20 and 40 day moving average system would be considered a triple moving average The first average the 10 day is the quickest to move when prices show a change The second average the 20 day is the medium average that does not show change until the prices have moved for a longer period of time Finally the slowest moving of the averages is the 40 day This slow average will not indicate a difference until prices have made a significant move Shorter term moving averages being more sensitive to changes in price are said to follow the trend more closely The middle or medium average would follow less closely and the slowest or least sensitive average would lag the most The use of the triple moving average is to buy when all three averages move to be in an upward trend or to sell when these averages are in a downtrend The upward trend appears when the fastest average is higher than both of the other averages the medium is above the slowest and the longer term moving average is on the bottom This look would be reversed for a strong down trend with slow average on top followed by the medium average and the fastest on bottom Calculation Parameters Period1 4
151. he doji star is black and gapped lower the bullishness of the is invalidated 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 critical 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 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 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
152. he slower version of Stochastics is commonly believed to be a more reliable indicator In this version of Stochastics the more sensitive K line is dropped The original D now becomes the slower line K The new D is a 3 day moving average of the K This basically gives you a smoothed version of the original indictor This modified counter trend indicator is less reactive but considered to be more accurate Interpretation Slow Stochastics are interpreted the same as fast Stochastics Quite often the faster of the two indicators moves into and out of the overbought oversold regions quite quickly Example of the SSTO in the Indicator Window Calculation Parameters Overall Period 14 the number of periods used to determine the highest high and lowest low MA Period 3 the number of periods used to determine the moving average for the K value D MA Period 3 the number of periods used to determine the moving average for the D value AdditionalLinePeriod 3 the number of periods used to determine an additional Moving Average on the Stochastic Formula The calculations for the slow stochastic are similar to the normal stochastic The first step in computing the stochastic indicator is to determine the n period high and low For example suppose you specified twenty periods for the stochastic Determine the highest high and lowest low during the last twenty trading interv
153. he true high is the higher value of the current high or the previous close The true low is the lower value of the current low or the previous close Customizing To change the settings of this indicator open the Program Options screen by clicking the Program Options button located on the main Toolbar See the Program Options section for more details on changing the settings Diamesa my ke CCI Commodity Channel Index Introduction The Commodity Channel Index CCI is designed to detect beginning and ending market trends The formula standardizes market prices so that the trader can spot deviations from the market s trend more easily Proponents of this indicator say that 70 to 80 of all price fluctuations fall within 100 and 100 as measured by the index This is akin to technical lore that most of the time markets trade in a sideways trend or channels However when the indicator moves out of this range it is said that a trend is underway The calculation for CCI is very similar to the histogram Moving Average Convergence Divergence MACD as the CCI measures the average daily prices distance from a moving average of average daily prices in much the same way that MACD measures the distance between moving averages from a base line The trading rules for the CCI are as follows Establish a long position when the CCI exceeds 100 Liquidate when the index drops below 100 For a short position you use the 100 value as
154. he vertical and horizontal lines are deselected the crosshair tool will be deleted Setting To define the date and value of the Crosshair select settings and type in the values You can also choose to view or not view the horizontal and vertical lines Section 4 Analyzing Charts with Charting Tools Send to Back Changes the layer of the tool This option is used when more than one tool is in the same area of the chart Click on Send to Back when you need to access a tool under the 1 2 3 drawing Example of the Crosshair in Track n Trade year THote TUAN June ANI BM pm me Hi an aa 4 new E h Fr AE Track n Trade Pro 4 0 User Manual 11 Technical Analysis The remaining nine charting tools are used to identify Technical Analysis formations and trends Take a look at the different patterns available then read about how to use each of the charting tools and apply the Technical concepts learned Support Markets have a tendency to move in troughs and peaks or more appropriately Support and Resistance These troughs are called Support The term is self explanatory and indicates that support is a level or area on the chart under the market where buying interest is strong enough to overcome selling pressure Therefore a decrease in price is reversed and prices rise once again Typically a support level is identified by a previous set of lows Resistance Essentially resistance or the peaks
155. how Show Hide ADX 1 this parameter is used to show or hide the ADX line O hide 1 show Computations The computations needed to generate the final figures for the DMI are not complex but are numerous and lengthy The following discussion attempts to unravel the computational mysteries of the DMI If you need further explanation please refer to the author s original work The book titled New Concepts in Technical Trading Systems by J Welles Wilder Jr explains this indicator and several others You must first compute the directional movement DM for the current trading interval Directional movement can be up down or zero If directional movement is up it is labeled as DM The expression DM refers to downward directional movement Wilder defines directional movement as the largest part of the current trading range that is outside the previous trading range From a mathematical view it is the largest value of the following differences Hight Hight 1 or Lowt Lowt 1 This is only true when the current low is less than the previous low or the current high exceeds the previous high Please note that both of these conditions do not have to be met only one It is the largest portion of the trading range outside of the previous trading range It is possible for the directional movement to be zero This occurs when the current trading range is inside the previous trading range or the trading ranges current versus pr
156. ideways The shadows of the prior candlestick do not need to be engulfed Bullish Enguiting Line Bearish when a black real body totally covers 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 Enquiting Line Dark Cloud Cover 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 Piercing Pattern bullish opposite of the dark cloud cover 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 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
157. in click on the Program Options and select the Indicator from either My saias til Candlesticks Default Settings or Current Chart Settings Next select the drop down menu for Show Buy Sell Arrows and select either Show Always or Only When Indicator is Visible to view the buy sell signals Remove buy sell signals from chart click on the Program Options and select the Indicator from either My Default Settings or Current Chart Settings Next select the drop down menu for Show Buy Sell Arrows and select Never Show Arrows Track n Trade Program Options Select Category Moving Average Convergence Divergence MACD B Global Settings 2 5 My Default Settings 1 Difference as Histogram gt Period ste Color 1H Appearance xponential Moving Average A 4 ial Moving A 1 12 Bands Exponential Moving Average 2 2 Moving Averages Bullish MACD Line i Pivot Points Bearish MACD Line m H PSAR Scaling amp Price Bars Trigger Line 3 Solid AD MACD Type CCI Standard Calculation DMI ADX Extra Smoothing Ea HvOL MACD Show Buy Sell Arrows Only When Indicator is Visible Y m MOM Display MACD Indicator 05 STRK XR RSI Seasonals STO v 0l oP 10 1 1 Apply to active charts Restore factory defaults 12 ve Images Arrows_MACD gif Customizing the Indicators Plus Plug in To change the color of the buy sell a
158. in Track n Trade Wheat CBOT Mar 2004H Elliot Wave Tool 9 l c s ka wee on To identify an Elliot Wave on a chart use the Elliot Wave tool located in the Advanced Charting Tools Section Charting an Elliot Wave 1 Select the Elliot Wave Tool from the Toolbox 2 Left click your mouse on the 1 point to place 3 Continue throughout the wave by clicking on each point 1 5 and A B C to place When you get to the last point C the drawing is complete Resizing the Elliot Wave Drawing 1 Select the drawing by clicking on it Note The drawing is selected when boxes appear on the corners 2 Click on one of the boxes to drag the select point and release the mouse button Moving the Elliot Wave Drawing Select the drawing by clicking on it continue holding down the mouse button drag to the new location and release the mouse button Deleting the Elliot Wave Drawing Select the drawing by clicking on it and press the delete key on your keyboard to remove Or right click the drawing and select Options from the popup menu Changing the Properties of an Elliot Wave Drawing Right click on the drawing to view the properties menu Properties that can be changed are Foreground Changes the line color of the Elliot Wave Line Thickness Changes the thickness of the Elliot Wave Line Choose values from 1 6 Line Style Changes the line style of the Elliot Wave Line Choose from solid
159. ing an Arrow Left click on the arrow to select and press the delete key on your keyboard Or right click on the arrow and select Delete from the popup menu 1 2 Changing the Length of an Arrow Left click to select the arrow Next click on a box markers located each end of the arrow continue to hole the mouse button and drag to lengthen shorten arrow and then release to place Changing the Properties of the Drawn Arrow Right click on the arrow to open the properties menu Foreground Changes the color of the entire arrow Line Thickness Changes the thickness of the stem on the arrow Choose values from 1 6 Line Style Changes the style of the arrow stem Choose from solid dashed dotted and more Send to Back Changes the layer of the tool This option is used when more than one tool is in the same area of the chart Click on Send to Back when you need to access a tool under the arrow Delete Select to delete tool Flag Tool NO Ar no The Flag Tool enables you to place a flag or a graphic on your chart There are a basic set of flags available to choose from or you can also import custom flags Placing a Flag Select the Flag Tool Button in the Annotation Toolbox Left click on the Chart Window where you would like to insert the Flag The default flag seen below the screenshot will be placed in this location Changing the Flag Type and Settings Right click on the flag to display properties menu
160. ing that the contract was sold at 2 45 per bushel the holder of the March Corn contract would receive 1 000 00 before broker commissions and fees for holding the position for six weeks Profit or Loss Sale Price Purchase Price of bushels 2 45 2 25 0 20 5 000 1 000 00 Our person in this example is 1 000 00 richer for the experience and has no further obligation in the Corn market because the sale of the March Corn futures contract at 2 45 per bushel offset the earlier purchase at 2 25 per bushel Notice in this example that all of the features of the contract were predetermined by the exchange except price Quantity 5 000 bushels for Corn futures Quality of the Corn 2 Yellow Delivery time 7th to last business day of the contract month Location exchange recognized warehouse or transfer station Because futures contracts are standardized with the only variable being price buyers and sellers are able to exchange one contract for another and actually offset their obligation to deliver or take delivery of the commodity underlying the futures contract Offset means taking an equal and opposite position in the futures market to one s initial position Margins and Guaranteeing Futures The exchanges and their members are able to guarantee all trades because they require all parties in a transaction to deposit performance bond margins Performance bond margins are financial guarantees requi
161. ing the Gann Fan Select the Fan by clicking on it Then drag to the new location and release the mouse button Deleting the Gann Fan Select the drawing by clicking on it then press the delete key on your keyboard Or right click on the fan and select Delete from the popup menu Changing Properties of a Gann Fan Right click on the drawing to view the properties menu Properties that can be changed are Foreground Changes the line color for the fan Background Changes the color of the background for the fan Line Thickness Changes the thickness fan line Choose values from 1 6 Font Changes the Font Size Style and Color of the fan values Show Text Select to view or hide the fan values Send to Back Changes the layer of the tool This option is used when more than one tool is in the same area of the chart Click on Send to Back when you need to access a tool under the Gann Fan Example of a Gann Fan in Track n Trade Wheat CBOT Mar 2004H Gann Fan Section 6 Advanced Charting Tools Andrews Pitchfork Theory Dr Alan Andrews developed a channel technique to show areas of support and resistance from a baseline This use of a median line is the key to using the Andrews Pitchfork Buying near lows and selling near highs that are identified by the tines of the pitchfork The basic premise is to trade the channel from one
162. ings for chart appearance and indicator options These settings will only affect newly created charts after the selection has been made If you wish to apply your chosen settings to all the charts you have open click the Apply to all charts button that appears on all the screens in this folder Track n Trade Program Options Apply to all charts Restore Factory Defaults open the My Default Settings folder Click on the plus sign to the left of the yellow My Default Settings folder and select the section you want to customize Track n Trade Pro 4 0 User Manual 228 Appearance This screen allows the user to change tick color options ruler paper options background changes and much more Track n Trade Program Options Select Category Chart Appe arance Ge Global Settings 23 My Default Settings 4 Light Grid Lines Appearance Dark Grid Lines B ollinger Bands Day Line First of week MAC Option Expiration Moving Averages 2 i Por Bori Last Trading Date PSAR 7 First Notice Date Scaling amp Price Bars Pilar Testa Man AD 3 Closed Lower E CCI Ruler Background Closed Higher m DMI ADX Highlight colors day JJI HVOL MACD e Bar color changes comparing previous close to current close MOM XR RSI 7 i ee STO Proportional Width Price Bars Fil All Candles kai VOL 4 DI Chart Background Orders m 5 Price Bars No Change i _
163. ion and file type Once the image is saved you are ready to email or import this graphic into your document The standard web file types are gif or jpg Save Chart Image Save in chartbooks EJ X5 My Recent Documents L Desktop My Documents da My Computer My Asa File name Capture Places Save as type Portable Network Graphic png Cancel Printing a Chart To print a chart in Track n Trade Pro click on the File Menu and select Print This will open the Windows Printer Screen for your default printer You can also print a Chart by clicking on the Printer button circled below on your main Toolbar Book1 modified Track n Trade Pro File View Help em printed chart will always the indicator window printed at the bottom of the chart The size of the chart will depend on the size that it is when you press the Print button For an idea of what the chart will look like click on the ta Print Preview button to view the output before printing the chart Also printed on the chart are the last day s Open High Low and Close Printing Options Portrait Prints a half page chart Landscape Prints a full page chart Scaling a Chart There are many scaling tools available for you use for scaling your charts in Track n Trade Pro Take a look at each individual tool and how to use them Au
164. ional Pivot Point H L C 3 First Support Line 2 Pivot Point H First Resistance Line 2 Pivot Point L Second Support Line Pivot Point H L Second Resistance Line Pivot H L Variation 1 This method Changes the formula used to derive the Pivot Point The changes include adding the trading day s open and calculating the average of the four values In doing this Variation one takes into account both opening gaps and overnight trading The formula is Pivot Point H L C O 4 Yesterday Variation 2 This method changes the formula used to derive the Pivot Point as well In this method you substitute yesterday s close with today s open In doing this Variation 2 also takes into account opening gaps and overnight trading The formula is Pivot Point H L O 3 Yesterday Today Customizing To change the settings of this indicator open the Program Options screen by clicking the Program Options button located on the main Toolbar See the Program Options section for more details on changing the settings of each indicator Cis Gal e JEY 10x8 MAC Introduction It has often been said that prices fall faster than they rise or simply put it is easier to ride a bike downhill than uphill Due to this perceived quirk in pricing the legendary market analyst author and seminar speaker Jake Bernstein developed the 10x8 moving average syste
165. ions Tab The Options Tab is located in the Control Panel after the Data Tab It looks like a green up and purple down arrow Once you click on this tab it will expand and display Options See the screenshot below for further clarification ES Book1 tnt modified Track nT File wiew Help D e Hi 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 Date gt Strike Rate Options Strikes in Cocoa c May 2004 on Friday 04 of August 2000 0 00 x 000 Instructions 1 Open the corresponding futures chart in the Commodity Tab for the options 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 are a Strike The price at which the futures contract underlying an option 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 and today s strike Diff Dollar amount for the Change g VOL Implied Volatility of the underlying futures contract h Delta Measures how much the options price changes when the underlying futures contract changes by
166. is used when more than one tool is in the same area of the chart Click on Send to back when you need to access a tool under the N Channel Drawing Example of the N Tool in Track n Trade Track n Trade Pro 4 0 User Manual 85 Cantian A A BAK ina Charte uith Chartine Tanle gt ection 4 aly Zli 10 Unarts with nartun g ools 1 2 3 Formations The 1 2 3 Formation anticipates a change in trend It is available in both a Top and Bottom 1 2 3 Top The 1 2 3 Top Formation anticipates a change in trend from up to down on a break below the number two point This formation is easily identified because the number one point is the annual price high To trade a 1 2 3 Top Place a SELL order on a break down past the 2 point Then place a stop loss order just above the 1 point Considered to be an industry standard or just above the 3 point A more conservative stop loss placement wv Example of a 1 2 3 Top in Track n Trade Pro aim i j Man TOE 1 2 3 Top Formation a agen E W s A dt XB NIG o E E em m jp ATI s mi AF rnnt ia nar n les wan fe om re ITNT Tass Track Trade Pro 4 0 User Manual 86 Section 4 Analyzing Charts with Charting Tools 1 2 3 Bottom The 1 2 3 Bottom Formation anticipates a change in trend from down to up on a break above the number two point A 1 2 3 Bottom Formation is easily identified because
167. ked at in the same manner as other overbought oversold indicators Note we will use the traditional method not the inverted in our discussions Choosing the time period which the indicator looks at the interval for the indicator is crucial to finding the optimal sensitivity Interpretation Williams s basic rule is simple When the R reaches 20 or lower it is interpreted as a sell signal and conversely when the R goes to 80 or higher a buy signal is activated Changing the sensitivity of the indicator to work for you is essential to making the study a better tool The longer the period for the R the less sensitive it will be The indicator will move less but will be more smoothed A number of technical traders use a value that is less volatile in other words a larger value Many traders find it better to use a strategy where the market leaves the areas of overbought oversold before entering a trade position In either case using solid exit strategies is important with this indicator Example of the R in the Indicator Window Calculation Parameters Period 10 The number of price bars or the interval used to calculate the study Common Formula You must first determine the highest high and lowest low for the length of the interval This is the trading range for the specified interval The general formula for the R is as follows YRt Highn Closet Highn Lo
168. kets It also allows experienced traders the ability to create and back test advanced simulated trading models and systems Another way in which Gecko Software computer scientists have implemented 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 will plot the actual value of the option along side the Black amp Scholes model creating an overvalued or undervalued indicator letting our users know from a 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 creating 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 which causes gaps or holes in the data stream One way or another these gaps or holes are either filled or just left blank Often time
169. l 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 software When clicking on the Help button and you will get specific documentation based on the location of the button You may also press F1 on your keyboard MOM Momentum Track n Trade Program Options Select Category Momentum MOM g lm Global Settings i Period Styl Col 65 My Default Settings 1 2 o Appearance Momentum 14 Solid n Bollinger Bands MAC Show Momentum as Moving Averages 3 9 E Graph Pivot Points Histogram Graph ed TT MOMMA Momentum Moving Average 28 Solid m AD CCI DMI ADX HVOL Sees Display Momentum Indicator zh Display MOMMA Kai VOL 0I 5 5 Current Chart Settings 7 Apply to active charts Restore Factory Defaults 8 Help Cancel 1 Period To specify the number of days used in calculating the Momentum or MOMMA Indicators simply click on the box highlight the current number and type in a new value Be sure to click on Ok to save your changes 2 Style amp Color The Momentum Indicator Line when displayed as a Line Graph can be displayed as a solid dashed or dotted line Click on the drop down menu to specify the type of line style desired Next to the drop down menu is a color box click on this box to change the color of the li
170. last 0 005 cent per pound is dropped so a price quote of 74 02 is really 74 025 while a price quote of 74 17 is actually 74 175 Live Cattle Lean Hogs and Pork Bellies contracts all call for delivery of 40 000 pounds thus a 0 025 cent per pound is worth 10 00 before commissions and fees Profit or loss of a 1 cent move 400 00 before commissions and fees Feeder Cattle prices are quoted the same way except that Feeder Cattle futures call for 50 000 pounds thus a 0 025 cent move is worth 12 50 and a 1 cent move in Feeder Cattle 500 00 before commissions and fees Softs or Exotics Coffee Sugar and Orange Juice are all quoted in cents per pound but each has a different contract size For example a Coffee price of 50 40 is 50 40 cents per pound while an Orange Juice price of 89 95 is 89 95 cents per pound and a Sugar price of 762 is really 7 62 cents per pound decimal is moved over in Sugar as prices are quoted in cents per hundred weight Now just to confuse everyone Cocoa prices are quoted in dollars per metric ton so a price of 1301 is really 1301 per ton The contracts size for Coffee is 37 500 pounds so a 1 cent move is worth 375 00 before commissions and fees Orange Juice futures call for delivery of 15 000 pounds so a 1 cent move is worth 150 00 before commissions and fees Sugar is traded in 112 000 pound increments so a 1 cent move in Sugar is equal to 1 120 00 before commissions and fees Cocoa contracts
171. ld like to see your selecting settings on all the charts you have open Click on Restore Factory Defaults if you would like to restore original software settings 8 Help Information from the Manual has been integrated into the software When clicking on the Help button and you will get specific documentation based on the location of the button You may also press F1 on your keyboard FSTO Fast Stochastics Track n Trade Program Options SEC CUR Fast Stochastics FSTO i Global Settings 4 Period Smooth Styl Col 5 E51 My Default Settings smoothing yle olor Appearance Percent K Line 14 Solid ut E ai Bands Percent D Line Ine Solid mE Moving Averages 4 Stochastic formula using Exponential Moving Average Default Pivot Points PSAR Scaling amp Price Bars AD fai DMI ADX HVOL MACD T 5 Display Fast Stochastics RSI FSTO 5570 Ol 8 Apply to active charts Restore factory defaults 1 Period To specify the number of days used calculating the Fast Stochastics Indicator simply click on the box highlight the current number and type in new value 2 Smoothing To specify the number of days used in calculating Smoothing simply click on the box highlight the current number and type in a new value Style amp Color The Fast Stochastics Indicator lines can be displayed as a solid dashed or dotted Click on the drop down menu
172. ld then be placed just above the Head The stop loss order can also be placed above the Right Shoulder as a more conservative point Example of Head amp Shoulders Top in Track n Trade Cattle Live c Feb 2004G 101 575 Track n Trade Pro 4 0 User Manual 90 Section 4 Analyzing Charts with Charting Tools Head amp Shoulders Bottom This formation is simply an inverted version of the Head and Shoulders Top Formation Therefore a Head and Shoulders Bottom anticipates a rise in price above the Neckline To trade a Head amp Shoulders Bottom Place a buy order on the break up of the Neckline Then place a stop loss order just below the Head The stop loss order can also be placed below the Right Shoulder as a more conservative point Example of Head amp Shoulders Bottom in TNT Cotton 2 Dec 20027 ea rs iem Track n Trade Pro 4 0 User Manual 91 Head amp Shoulders Tool Heee To identify either a Head amp Shoulders Top or Bottom formation use the Head amp Shoulder Tool Charting a Head amp Shoulders H amp S Formation 1 Select the H amp S Tool from the Charting Toolbox 2 Position the mouse pointer where you would like to place the Left Shoulder LS point and left click to place 3 Move to the valley point between the LS and the Head left click to place 4 Move
173. le The VOL Indicator will be displayed with their highest value being equal to 100 To Display the indicator in the chart window click the check box Ruler Bar See the Ruler Bar at the end of this section Preview Window This Window allows you to make changes and preview them before saving them 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 Information from the Manual has been integrated into the software When clicking on the Help button and you Will get specific documentation based on the location of the button You may also press F1 on your keyboard Ruler Bar The Ruler Bar inside the Program Options windows 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 and drag either up or down to the end point of the region To place a line Click in side 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
174. lease the mouse button Changing Properties of a 1 2 3 Drawing Right click on the drawing to view the properties menu Properties that can be changed are Foreground Changes the line and arc color of the 1 2 3 Line Thickness Changes the thickness of the 1 2 3 line Choose values from 1 6 Line Style Changes the line style of the 1 2 3 line which shows when the line is selected Choose from solid dashed dotted and more Arc Thickness Changes the arcs formed at the 1 2 and 3 points Choose values from 1 6 Font Changes the Font Size Style and Color of the 1 2 and 3 Show Text Select to view or hide the 1 2 and 3 Send to Back Changes the layer of the tool This option is used when more than one tool is in the same area of the chart Click on Send to Back when you need to access a tool under the 1 2 3 drawing Section 4 Analyzing Charts with Charting Tools Head amp Shoulders Formation This Formation can appear anywhere in the chart and is made up of the Head Left Shoulder and Right Shoulder There are two types Top and Bottom Head amp Shoulders Top This formation has three definite peaks the Head Left Shoulder and Right Shoulder The middle peak the Head H is higher than either shoulder LS RS This formation anticipates a drop in price below the Neckline see below To trade a Head amp Shoulders Top Place a sell order on the break of the Neckline Your stop loss order shou
175. level of support or resistance to the next Interpretation The first element to draw the Andrews Pitchfork is the centerline The middle tine or median line begins at the most recent contract low or high To plot the direction of this point we must attain the other two points The top tine is determined by looking at the highest move made from the origin of the contract low or high The next point is found by looking at the retracement of that move For example a contract begins at point A rallies to point B and sells off from B to point C A line is drawn from point B and C and then the line originating at point A splits those two lines equally This pitchfork shows continuing points of support and resistance The general use of this tool is to sell when the market rises to line B and take profits once prices reach line A the middle tine Also to buy when prices dip to line C and take profits when they reach line A This series of movements within the pitchfork affords traders the opportunity to trade a channel system within a trending market Section 6 Advanced Charting Tools Andrews eo pe ee Charting Andrews Pitchfork 1 Select the Andrews Pitchfork Tool from the Toolbox The first three clicks setup the pitchfork The first point is the handle of the pitchfork and is places at the end of the previous trend A 3 Next you are forming the base of the fork The first point is the top of the next tren
176. lliot went on further to explain that a complete market cycle consisted of a 144 wave cycle broken down into an 89 wave bull cycle and a 55 wave bear cycle This is based on his observation of Fibonacci s golden ratio The series of numbers Fibonacci describes 1 2 3 5 8 13 21 34 55 89 and 144 shows a relationship of 1 618 Elliot further showed that a market usually rises or falls based on this wave cycle Each wave in the cycle has its own characteristics Five Wave Advance Wave one Normally very short and easy to miss Wave two A retracement wave usually gives back all or most of what the first one gained Wave three Usually very prominent as it follows a period of what appears as consolidation most people trade this wave Wave four Noted to be very intricate yet still a consolidation One of Elliot s main rules is that in a 5 wave advance cycle wave 4 can t overlap wave 1 Wave five Often very active yet at some point declines and leads to the 3 wave corrective cycle Three Wave Decline Wave A Normally seen as a minor pullback of wave 5 of the advance cycle Wave B Follows Wave A of the downtrend and is often hard to spot but should result in a third wave continuing down Wave C Usually quiet significant and many traders see this selling opportunity Trading an Elliot Wave See Wave three in the Five Wave Advance and the Wave C in the Three Wave Decline Example of an Elliot Wave
177. lyzing Charts with Charting Tools Track n Trade Pro 4 0 User Manual 68 ANALYZING CHARTS WITH CHARTING TOOLS Applying Technical Formations Introduction Track n Trade Pro has a complete set of charting tools that enable the futures trader to apply concepts from Technical Analysis to their charting Take a look at some of the Technical Analysis formations and trends in this chapter and see how to apply these concepts in trading with Track n Trade Pro charting tools For more information on these formations and tools see Gecko Software Educational CDs available on trackntrade com The first tool in the Charting Toolbar is the Crosshair Tool Although this tool is not used in helping you define and technically analyze data it is used when lining up your technical indicators and recurring patterns Crosshair Tool O API The Crosshair Tool is used to draw a line vertically and horizontally on the chart The vertical line is drawn through the Indicator Window as well To help place the Crosshair line on a specific value you will notice the cursor price is displayed on the vertical line of the crosshair Charting a Crosshair 1 Select the Crosshair Tool from the Charting Toolbox 2 Click on the Chart Window to place Crosshair Moving a Crosshair Drawing 1 To select the Crosshair click on the center point or lines of the crosshair and drag to the new location release mouse button to place Note The tool is select
178. m This system uses two simple moving averages but they are calculated in a slightly different manner than those traditionally used The first moving average is a moving average of the daily highs as opposed to that of the daily settlement like most traditional moving averages The second moving average is calculated using the daily lows Though Mr Bernstein recommends using a 10 period moving average of the daily highs and an 8 period moving average of the daily based on his observation that prices tend to fall about 2096 faster than they rise any combination would do the trick Generally though accepting market lore that prices fall faster than they rise the moving average of the lows should be of shorter term duration than that of the highs Interpretation The most basic use of the 10x8 Moving Average is to look for a breakout above the upper moving average to initiate a buy signal When the daily settlement price exceeds the average high of the last 10 days this indicator flashes a buy signal indicating that the trend of the market should be up section 7 Using Indicators Example of 10x8 MAC in Track n Trade Cattle Live c Feb 2004G DO Cattle Live e Feb 20086 2 ewe o Li M on Customizing To change the settings of this indicator open the Program Options screen by clicking the Program Options button located on the main Toolbar See the Program Options section for more details on changing the se
179. mes for the period Bar Compared to Candlestick Charts Below is an example of the same price data conveyed ina standard bar chart and a candlestick chart Notice how the candlestick chart appears 3 dimensional as price data almost jumps out at you 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 Common Candlestick Terminology 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 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
180. middle line has a box in the middle of the line This is the handle that you will use to change the position of the percentage line within the tool drawing As you change the position of the percentage line the percentage value to the left will change as well Moving the N Tool Left click on the channel and drag the tool release mouse button to place drawing Deleting the N Channel Select the drawing by clicking on it and press the Delete Key on your keyboard Or right click on the channel tool and select the delete option on the popup menu Resizing the N Channel Select the drawing by clicking on it Note The drawing is selected when boxes appear on the corners Click on one of the boxes on the corners to drag the select point and release the mouse button Changing Properties of an N Channel To view the properties menu right click on the drawing Properties that can be changed are Foreground Changes the color for top and bottom lines of the channel Background Changes the inside color of the channel Line Thickness Changes the thickness of the channel lines Choose values from 1 6 Line Style Changes the line style of the channel lines Choose from solid dashed dotted and more Font Changes font size style and color of text Show Text Select Deselect to view or hide the text on the channel Section 4 Analyzing Charts with Charting Tools Send to Back Changes the layer of the tool This option
181. monly 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 session is a small dash to the right of the bar L w 1 Figure Candlesticks Standard Bar Chart Example Candlestick Charts Explained You may be asking yourself If can already use bar charts to view prices then why do need another type of chart The answer to this question may not seem obvious but after going through the following candlestick chart explanations and examples you will surely see value in the different perspective candlesticks bring to the table In my opinion they are much more visually appealing and convey the price information in a quicker easier manner 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
182. month and year from the dropdown menu to the right 2 Click on the Open Chart button to open your chosen chart Sorting the Commodity List Notice that you have sorting options above the choose a commodity drop down menus You can sort commodities by Group or Exchange plus you can display them in an ascending or descending order Symbol Search If you know the symbol of the chart that you are opening you can type the symbol into the box after Symbol A complete list of Commodity Symbols and Commodity Month Symbols can be found in the Data Download Section Track n Trade Pro 4 0 User Manual 44 Adding Removing Charts in your Chartbook Now that you have charts in your Chartbook you might want to delete some of the charts you have opened before you save it as a Chartbook Hy Commodities f E 54 Remove Available Charts Chart Sort Commodity Ascending Simply select on the uin Chart by clicking on It then right click Delete Chart Coffee C o Mar 2004 j To Add a Chart Euro FX Mar 2004 2004 Gas Natural c Feb 2004 HG20046 Dats c Mar 2004 02004 chart using the S amp P 500 n Mar 2004 SP2004H instructions found in Soybeans c Mar 2004 5 2004H Opening New Simply open another sugar 11 a 2004 0 4 0 5 Dollar c Mar 2004 02004H Wheat 0 Mar 2004 Ew 2004H Chartbook Switching between Ch
183. more negative but begins to level out We would be looking for a buy signal when the indicator turned upward and out of that oversold region It is in this way that momentum can sometimes shift ahead of the price movement This use of the momentum indicator is a counter trend usage In either implementation of this indicator the key is divergence seeing momentum make lower highs while prices are making higher highs or momentum making higher lows while prices are making lower lows Being aware of a difference in price movement and the momentum level can help the trader make informed trading decisions Example of the Momentum in the Indicator Window p Bu Calculation Parameters Period 20 the number of bars or period used to calculate the study You must determine a value suitable to your trading needs and methods Some technicians argue the length of the momentum indicator should equal the normal price cycle The best method is to experiment with different lengths until you find the length that works best for that particular commodity you are trading Formula The general formula to calculate momentum is as follows MOMt Pi Pi n MOMt The momentum indicator for the current period Pi The price of the i interval Pin The price n intervals ago n The number of intervals or length specified Assume the current price is 7470 This example examines a momentum study
184. n below the moving average However the moving average gives you no indication of the length or duration of the trend Double Moving Average Introduction Double moving averages use two different averages in tandem The first average is generally a faster reacting average using a shorter period of time usually 10 days The second average is a slower reacting average that will indicate longer term price movement Using these two averages together helps to alleviate whipsaws by giving a basis of comparison The faster average breaking above the slower average is a buy signal the faster average breaking below the slower average is a sell signal Interpretation When using two different moving averages the trader gets a clearer picture of price indications By combining a slower moving average 20 day average with a quicker reacting average 10 day average you can see where the long term indications are going The trend being your friend until it ends you would sell once the faster moving average crosses below the slower trend because that is an indication of change in trend Near term prices should be rising at a greater rate than longer term prices in a good upward trending market and vice versa for a down trend Triple Moving Average Introduction The system of triple moving averages is employed by plotting three different moving averages together The first of these averages is a faster average that only looks at t
185. n Send to Back when you need to access a tool under the Elliot Wave Drawing Example of a Dart Up and Down in Track n Trade Pro Gasoline Unleaded Feb 20046 100 66 97 33 94 00 90 67 87 34 84 01 80 68 Gann Fan Theory W D Gann designed several unique techniques for studying price charts One of these techniques included the use of geometric angles in conjunction with time and price Gann believed that specific geometric patterns and angles had unique characteristics that could be used to predict price action Gann s techniques require that charts be drawn with equal time and price intervals so that a rise run of one price unit for each time unit called a 1 x 1 trend or angle will equal a 45 degree angle anywhere on the chart Gann believed that the ideal balance between time and price exists when prices rise or fall at a 45 degree angle relative to the time axis Interpretation The Gann Fan is made up of nine angles based on this concept These trend lines are used to indicator support and resistance levels When one line is broken by the entire days price range prices should move to the next line The drawing of these lines should start from either a market top or bottom It is important to note that this theory is based on a squared 45 degree angle on the chart Obviously a 45 degree angle drawn on a chart is no longer 45 degrees when the scale is c
186. n the overbought region and buying when RSI is in the oversold region is not a consistent method of trade Trade signals are not generated until the RSI leaves these regions So a sell signal would not be present until the RSI has begun sloping down and leaves the 70 region A buy signal in the simple methodology associated with this pattern is derived when RSI leaves the oversold region crosses from below 30 to above it Just like sell signals RSI buy signals are present when the market begins to turn and the indicator leaves the oversold region Another use of the RSI is to look for a divergence in prices When a market makes higher highs or lower lows and the RSI fails to follow suit This difference in the indicator and the market could be a signal that the market lacks the momentum to continue its current price direction So you may be able to take a position sooner using this strategy than you would with the previous way Wilder says that this divergence is the single most indicative characteristic of the RSI The RSI indicator uses in it s calculation a moving average of price changes over the period You can select which type of moving average is used to produce the desired amount of smoothing on the RSI indicator Example of the RSI in the Indicator Window Calculation Parameters Period 14 the number of bars or period used to calculate the study Formula The RSI computations
187. n your long term chart click on the empty check box in front of the text Read ahead to next contract month before the end of the current contract month Next specify the number of days in the box that you would like to exclude Note This option is best used for historical data If you are looking at a long term chart that includes current data remember that if you set this option to exclude 10 days the last few days will apply this rule and exclude the last 10 days of data To set the options back to Factory Defaults click on the Restore Factory Defaults button on the bottom of the Properties screen Help Information from the Manual has been integrated into the software When clicking on the Help button and you will get specific documentation based on the location of the button You may also press F1 on your keyboard IMPORTANT After applying the new settings in Program Options you will need to delete the long term chart from the Active Charts list if you currently have a long term open and then re generate the chart to apply the new settings to the long term chart Tools The Tools Default Options section allows you to change properties of the Charting Advanced Charting Notation and Accounting Tools Clicking the OK button will apply new default settings and will apply all changes made in this window to any NEW tools or text created from this point forward Any tools within the active Chartbook that have already been
188. nd losses to maintain an open position in the futures market If the value of the account dips below this level then the account holder must either send additional funds to his her broker or liquidate the position Usually traders have 5 business days to get funds posted to the account but in some cases the brokerage firm may liquidate the futures positions in order to meet the Margin Call Note Brokerages have the right to liquidate your position immediately and many may require you to wire funds immediately to avoid liquidation Also be aware that margin requirements are subject to change without notice Remember Initial Margin is the minimum amount of money you must have in your account to open up a futures position Maintenance Margin is the minimum amount of money you must have in your account to maintain the position So in our Corn example the initial margin was 405 00 per contract meaning that a trader must have at least 405 00 per contract in his her margin account before a Corn futures position can be entered into After the position is entered into a balance of 300 00 per contract or the Maintenance Margin must be maintained in order for the position to be left open If the available funds in the account funds deposited open position profit or loss are less than the Maintenance Margin Requirement then more funds must be deposited or the futures positions will be liquidated or offset by taking an opposite position in th
189. nd resistance You may illustrate these multi lines with the Line or Multi Line Tool Drawing a Multi Line 1 Select the Multi Line Line Tool 2 Left click on the chart where you want the Line to start 3 Move the mouse to the next point on the Multi Line and left click to place 4 Repeat step until the last point When placing the last point on the Multi Line right click to place Resizing the Multi Line 1 Select the Multi Line drawing by clicking on it You will know the Multi Line is selected when boxes appear at the ends of the Multi Line 2 Click on a box and drag to the desired length Release the mouse button to place the end point of the Multi Line Section 4 Analyz Charts with Charting Tools Moving the Multi Line 1 Select the Multi Line drawing by clicking on it 2 Click on the Multi Line not on a box and drag to new location release mouse button to place To Delete the Multi Line Left click on the Multi Line Tool to select and then press the Delete Key on your keyboard Or point mouse cursor over the Multi Line and right click Select Delete on the popup menu Example of Multi Line Tool in Track n Trade Pro Corn o Dec 2001Z E gp Ee p o Jy T Ae eee Rf CEM E 225 50 A Hanna az EE o i U 2 05 00 199 75 16 2 Fe tb 2001 Ma 2001 Track n Trade Pro 4 0 User Manual Channels The Technical Formation call
190. ne 3 Show Momentum As a Histogram Graph Momentum represented as a Time Progression Bar Chart b Line Graph Momentum represented as Lines c MOMMA Momentum Moving Average This is moving average of the Momentum line 4 To Display the indicator in the chart window click the check box Once the box is checked you may also select the box to display the MOMMA Indicator 5 Ruler Bar See the Ruler Bar at the end of this section 6 Preview Window This Window allows you to make changes and preview them before saving them 7 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 8 Help Information from the Manual has been integrated into the software When clicking on the Help button and you will get specific documentation based on the location of the button You may also press F1 on your keyboard R Williams Percent R Track Trade Program Options Select Category Williams Percent R R g lm Global Settings Period Styl Col 25 My Default Settings erio 2 yle Color Appearance William s Percent A ZR 14 Solid E Bollinger Bands MAC Moving Averages 3 Calculation used in Pivot Points PSAR Scaling amp Price Bars AD CCI DMI ADX HVOL 4 Display William s ZR OSV STRK kil RSI Seasonals 5 STO V
191. nerally a smaller amount than the initial margin FND First Notice Day Depending on the exchange this date can indicate various rules have come into effect Overall this is a warning that the contract will expire soon This value is different per contract and applies to the contract that is currently open in the charting window LTD Last Trading Day The last day that you can trade the contract month that is currently open Market Open The time that the market opens This time is the exchange s time zone as listed the 5 web site Market Close The time that the market closes Like market open it is in the 5 time zone Time is in 24 hours so 13 15 is 1 30PM Subtract 12 hours from values greater than 12 00 Options Expiration The date that options for the active contract will expire worthless or be automatically exercised into futures orders Options Strike Interval The value for the minimum spacing between options as listed by the exchange Some contracts have rules that make strikes further out of the money or on contracts that aren t the next to expire have larger strike price intervals Track n Trade auto generates strikes on all contract months at the minimum strike price value Options Min Move The value of the minimum price fluctuation for the options contract this is similar in function to the futures minimum move No of strikes above below Track n Trade Pro v3 0
192. ng in the software Click on to toggle them on or off If a check mark is in front of the option it is selected and shown in the software Tool Button Lock This option gives you the ability to lock a tool selected until you select another tool Normally when you click on a tool you draw one item and then the tool ends and you are defaulted to the pointer tool Program Options Select this item to open the Program Options section Commodity Chooser Select this item to open the Commodity Chooser section See the following sections for more information Program Options Data Downloads Book Track n Trade Pro File View Help Dl About Track n Trade online Help Electronic Manual Available Account Manager HOW TO videos CD ROM Check For Updates Click here Change Registration Info Symbol Keyboard Shortcuts The Help Menu gives you information about your software needed for technical support as well as links for accessing documentation for the software About Track n Trade Select to get information about the version installed activation code and plug ins installed Online Help Link to http help geckosoftware com Electronic manual Opens the manual My Account Manager Open an internet page that you can use to update your customer information payment information and placing additional orders How To Videos CD ROM Instructions on playing videos Check for Updates
193. nly the specific chart that you have open and have selected To View the Program Options Screen There are two ways to pull up the Program Options screen Click on the View Menu and select Program Options You can also click on the Program Options icon on the main Toolbar shown below 4 Book modified Track n Trade Pro File View Help i kija Section 10 Program Options Global Settings The Global Settings section of the Program Options folder gives you the ability to change settings that will affect only new Chartbooks or new charts opened within a saved Chartbook saved Charts will keep the settings on currently drawn tools and apply the new settings to new tools drawn on the chart For example if you change the Global setting Line Tool Color to blue and then open a previously saved chart that contains tools drawn on it in green these tools will keep the green color Any new tools that you draw on this saved chart will be colored blue until the setting is changed See the Tool section for more information Global Settings Window in Track n Trade Track n Trade Program Options Select Category Global Settings lm Global Settings 25 My Default Settings Current Chart Settings Track n Trade Pro m 4 gt A 4 Save Settings Load Settings Restore Factory Defaults Help E Cancel open the Global Settings folder click on the plus sign to the left of th
194. o Back when you need to access a tool under the Triangle drawing Trend Fan Trend fans are an extension of the regular trend line and accent simple trend line trading concepts by extending the single trend line to a multiple of fan lines that give you a better look at a trend its retracements and market reversals Take a look at this diagram As a trend moves up in scale chartist will generally draw a vertical line across price bar lows or alternatively when a market is moving down across the price bar highs Then as the market continues to make its retracement we can then draw another trend line across the next level of support or resistance The line is support if the market is moving up and resistance if it is moving down You will notice how the last move of the trend which was resistance for the first trend line is now support for the second trend line Now draw the third trend line At this point you can see that the market has made a solid retracement down past this third fan line When the market crosses the third fan line it is considered to be confirmation of market retracement a market that was Section 4 Analyzing Charts with Charting Tools once considered bullish is now bearish or if bearish would now be considered bullish Rule of Thumb When the markets price bars cross above or below the third trend fan line this is your signal and confirmation that the market has shifted from bullish to bea
195. o break up and out rather than down and out Example of a Declining Wedge in Track n Trade Sapieha JO Declining Wedge Symmetrical Triangle A Symmetrical Triangle Formation occurs when there is a pause in the current trend after which the previous trend is resumed Also notice that the price bars for a perfectly symmetrical triangle shape To Trade a Symmetrical Triangle Place a BUY order on a break up and out of the triangle or a SELL order on break down and out of the triangle Symetrical Triangle E 000 Em 75 206 9 313 25 507 00 A Analvaina Charte uith Chartinn section 4 Analyzing Charts with Charting Tools Non Symmetrical Triangle A Non Symmetrical Formation occurs in exactly the same situation as a symmetrical triangle only the pattern lacks symmetry This formation resumes the previous trend as well when a break out occurs A To Trade a Non Symmetrical Triangle Place a BUY order on a break up Yv and out of the triangle or an order to SELL on a break down and out of the triangle Example of a Non Symmetrical Triangle in TNT Lean Hogs LH2001J April 2001 4 vex bar T Jun Cf Fab 1 Mart Agi Software Track n Trade Pro 4 0 User Manual 97 J l Wedge and Triangle Tool Wl a e Sl HI e gt To identify any type of Wedge or Triangle use the Wedge Tool Drawing Wedge Triangle Forma
196. o choose a new color from the Color Palette 6 Check this box to Display the Bollinger Bands 7 Click on Apply to active charts if you would like to see your selecting settings on all the charts you have open Click on Restore Factory Defaults if you would like to restore original software settings 8 Help Information from the Manual has been integrated into the software When clicking on the Help button and you will get specific documentation based on the location of the button You may also press F1 on your keyboard Track n Trade Program Options Select Category 10x8 and 3x3 Moving Average Convergence MAC Global Settings 2 Period 3 Type 4 Data D sye 29 My Default Settings Appearance 10x8 Line 1 10 Simple High Solid m cam n 8 sme low Said Moving Averages Pivot Points 1 PSAR Scaling amp Price Bars 3x3Line1 3 Simple High Solid gt EN ae 3x3 Line2 3 simple v Low x Soia EH DMI ADX HVOL MACD MOM XR RSI STO VOL Ol 5 Current Chart Settings Show 10x8 Lines Show 3x3 MAC Lines T7 Apply to active charts Restore Factory Defaults 8 Help Cancel 1 Lines The 10x8 amp 3x3 MAC consists of two lines Each line s parameters may be changed independently in the options screen 2 Period The period values of the MAC Indicators are not editable If you would like to specify different time periods for an average it
197. ochastics Fast Stochastics are said to be more sensitive to price changes and can give very greatly in the short term hence the need for Slow Stochastics Interpretation Stochastics display two lines that move in a vertical scale between 0 and 100 representing percentiles from 0 to 100 Think of the level of Stochastics as where the most current close is within a specific range For example if Stochastics are reading 50 the current close is in the middle of the price range for specified period of time If Stochastics are reading 100 the close is at the high of the range and 0 represents current close price being at the low of the range Of course because Stochastics are smoothed this is not exactly true but should help you visualize the information being shown This will also help you to understand why Stochastics are a counter trend indicator in that the underlying principle behind Stochastics is that prices will move back to the center of the trading range or the opposite extreme When both lines move to an area below 20 on this scale they are said to be in an oversold zone Conversely when both K and D move to above 80 on this same scale they are indicating overbought It is this indication of market sentiment that makes this counter trend indicator useful George Lane emphasized that the most important signal generated by this method was the difference or divergence between D and the underlying market price He said t
198. of Long Term Charts Weekly and Monthly See the Long Term Charts Section for information on how these charts are generated and how to use them in your trading Track n Trade Program Options Select Category Long Term Charting Options f Global Settings Weekly Long Term Options 1 Build Long Term Chart From Front Month Data Y 25 My Default Settings 2 How much data should be included i Yeas v i Current Chart Settings l Yeas v r Read ahead to next contract month before the end 3 of the current contract month Ignore the last day s Monthly Long Term Options 1 Build Long Term Chart From Front Month Data Y 2 How much data should be included 25 Years Y E Read ahead to next contract month before the end of the curent contract month Ignore the last day s 4 Restore Factory Defaults Long Term Charting Options 1 Build Long Term Charts From a Front Month Data This option uses data from one contract month to the next in historical order For example Jan 2001 Mar 2001 May 2001 and so on b Contract Month Data This option uses data from a contract month from each successive year For example Jan 2001 Jan 2002 Jan 2003 and so on 2 How much data should be included 2 10 years of data can be displayed at a time on a long term chart Click on the drop down menu to specify the number of years to be displayed 3 To cut off the end of the contract used i
199. olatility HVOL im Global Settings l Period Styl Col s My Default Settings 1 2 yle olor Appearance Historic Volatility 14 sea Bollinger Bands Te a Historic Yolatility Ratio Moving Averages Pivot Points PSAR Scaling amp Price Bars AD CCI DMI ADX Use Relative Scale 3 HVOL Relative Scale VOL OI Current Chart Settings 7 Apply to active charts Restore Factory Defaults 8 Help Cancel 1 Period To specify the number of days used in calculating Historic Volatility simply click on the box highlight the current number and type in a new value Be sure to click on Ok to save your changes 2 Style amp Color The Historic Volatility Line can be displayed as a solid dashed or dotted line Click on the drop down menu to specify the type of line style desired Next to the drop down menu is a color box click on this box to change the color of the line 3 Use Relative Scale When choosing this option the 100 location is changed to the highest point value in the HVOL Indicator 4 To display the indicator in the chart window click the check box 5 Ruler Bar See the Ruler Bar at the end of this section 6 Preview Window This Window allows you to make changes and preview them before saving them 7 Click on Apply to active charts if you would like to see your selecting settings on all the charts you have open Click on Restore
200. old Italic Aral Narrow O Arial Rounded MT Boh IP AvantGarde BK BT Effects Strikeout Underline u Color Black Script Westem m Sample Track n Trade Pro 4 0 User Manual N N O1 Font Change the Default Font by clicking on a Font listed below Font Style Change the Default Font Style by clicking on a new Font Style listed below Size Change the Font Size by clicking on a new size listed below Effects Add a Strikeout or Underline effect to the Default Font by checking one or both of these items Color Change the Color of the Default Font by clicking on the drop down arrow and selecting a new color Sample See a Preview of the newly created settings for the Default Font Script Change the Font Script by clicking on the drop down arrow and selecting a new Script Text Boxes This tool applies to the Text Tool only Click on the Change button too see the Font Window and change the Default Text Box settings 3 Line Options Line Color Change the Default Line Color used by all Track n Trade Tools by clicking on the color box and choosing a new color from the Windows Color Palette Line Style Change the Default Line Style to Solid Dashed Dotted and more by clicking on the drop down arrow and choosing a new style Line Thickness Change the Default Line Thickness used on all Track n Trade Tools by clicking on the drop down menu and choosing a
201. on one must post a performance bond or have the Initial Margin Requirement necessary Because it is only necessary to post a fraction of the underlying value of the worth of the underlying contract futures are a highly leveraged trading vehicle Initial Margin Requirements vary from market to market but generally are only 3 to 18 of the value of the underlying contract value For example with March Corn trading at 211 per bushel 2 11 bushel the current initial margin requirement is 405 per contract Each Corn futures contract represents 5 000 bushels of Corn so the underlying value of a contract of Corn at 211 is 10 550 In other words for 405 you can control 10 550 worth of Corn Thus by putting up just 3 9 of the value of the contract you can control 5 000 bushels of Corn remember margin requirements are subject to change without notice In the above example a 1 cent move in the price of Corn 50 00 before commissions and fees represents a 12 3 return on the initial Margin Requirement This is the power of leverage A small move in the price of the futures contract can mean a large move in your account Another example a 3 9 move in the price of Corn could yield a 10096 return double your money or lose it all if properly or improperly positioned The power of trading on margin is that a small move in the price of the underlying equates to a large return either positive or negative on the money posted
202. on by selling the futures first and then offsetting the contract s at a later time by buying them A profit will still occur if the sale price entry price is higher than the purchase price exit price Of course the profit or loss amount is determined by the contract you are trading Each market is quoted differently Some markets are quoted in points while others are quoted in cents Points vs Cents Quoting Prices and Calculating Profit or Loss Each futures contract is quoted in a slightly different manner and as such your profit or loss calculation for most markets is slightly different The following is a basic highlight of the major markets and how they are quoted Of course Gecko Software s Track n Trade Pro charting software has tools to convert price moves to profit or losses but we thought we would show you a few examples so you can understand how they are quoted Grains Corn Wheat Oats and Soybeans are quoted in cents per bushel The contract size for all of these is 5 000 bushels For example a Corn price of 235 is really 2 35 per bushel Each of these grains moves in 1 4 cent increments which equates to 12 50 before commissions and fees Profit or loss of 1 cent move 50 00 before commissions and fees Meats The contracts are quoted in cents per pound So if Live Cattle is trading at 74 00 the price is actually 0 74 cents per pound Meat prices move in 0 025 cents per pound increments but usually the
203. on the location of the button You may also press F1 on your keyboard RSI Relative Strength Index Track n Trade Program Options Select Category Relative Strength Index RSI lm Global Settings Period Styl Col 65 My Default Settings 1 2 x Appearance Relative Strength Index 14 Solid m Bollinger Bands MAC Average Calculation Moving Averages Exponential Pivot Points Simple PSAR am Wilder s Smooth Scaling amp Price Bars nd AD CCI fai DMI ADX HVOL bim 4 Display RSI Pen ie VOL OI 5 Current Chart Settings 7 Apply to active charts Restore Factory Defaults 8 Help Cancel 1 Period To specify the number of days used in calculating the RSI simply click on the box highlight the current number and type in a new value 2 Style amp Color The RSI line can be displayed as a solid dashed or dotted line Click on the drop down menu to specify the type of line style desired Next to the drop down menu is a color box click on this box to change the color of the line 3 Average Calculation Choose between Exponential Simple and Wilder s smoothing calculations 4 To Display the indicator in the chart window click the check box 5 Ruler Bar See the Ruler Bar at the end of this section 6 Preview Window This Window allows you to make changes and preview them before saving them 7 Click on Apply to active charts if you wou
204. one point i Gamma Measures how much the delta changes when the underlying futures contract changes by one point j Theta Measures time decay of an option k Vega Measures how a change in volatility 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 If you DO NOT have a contract open the only item available in Options Tab is the Interest Rate History Viewing the 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 ta B AM Options Calc Date ED Rate Options Strike data in Cocoa c May 2004 for Select Strike Price 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 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 Rates history click on the Rate button to the right of the Strike button Hy 1 Options 74 Calc Date Stike 1 Interest Hates Delete Selected Hate Add Interest Hate The historical interest rate data consists of the m
205. onthly average interest rate of the three month Treasury Bill secondary market rates Interest rates are used by the Black Scholes More information is available in the Black amp Scholes description at the end of this section 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 however 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 Window will open 2 Chose 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 3 for 7 3 interest rate Effective Date Interest Rate 2 10 2004 0 Cancel 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 A window will open asking you to verify that you would like to delete this interest rate Click on YES to continue and NO to cancel OS Calculator The OS Calculator
206. or traders The theory behind them is that markets tend to have overlap from one period to another On most days the daily high or low is within the previous days range as with the previous week s extremes and previous month s extremes In this sense pivot points are a counter trend indicator However many traders believe that once one point is violated the next point will tested making a violation of these support and resistance levels a clue in trend following Though we cannot vouch for the truth of this statement the popularity of pivot points amongst floor traders tends to make these points worth watching The popularity of these numbers can be seen on any day when the exchanges are cleaned up The trading floor is literally piled high with folded pieces of paper that contain pivot points calculated on them Interpretation The uses of pivot points or traders numbers varies greatly by trader The most common interpretation is this The daily pivot is used as a guide If prices are trading above the pivot point then the trend is considered up Traders may wish to take short term positions on a violation of the daily pivot to the upside with an initial upside objective of the 1st resistance level If prices stall or slow at the 1st resistance level then aggressive traders may wish to take profits However if the 1st Resistance level is violated to the upside then the market should go on to test the 2nd resistance level If pri
207. or 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 valued options See the example below Pee iL TERE EEE BESE SEBE BESE SER EEE EEE STRK 420 00 15 44 Theoretical Actual m Actual Price Black and Scholes Calculations 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 model uses a sophisticated mathematical formula to calculate the theoretical value of an option using variables such as market open high low close values interest rates volatility calculations 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 practice trading forward one
208. or your market objective The following are some basic definitions of the common order types all of which can be replicated in Gecko Software s Track n Trade Pro charting software The Market Order The market order is the most common type of order With a market order the customer states the number of contracts of a particular delivery month of a specific commodity he she wishes to buy or sell The price of the order is not specified as the market order is filled at the market or at the current price when the order enters the trading pit Market orders are placed when the speculator or hedger wants in or out of the market fast since time is the most important factor in this type of order not price Market on Close is a common variation of this type of order and is used when the trader wishes to have his her order executed during the closing of the market closing range The Market on Open is another common variation instructing the order to be filled during the markets opening price range The Limit Or Better Order The limit order specifies a price limit at which the order can be filled The limit order can only be filled at the specified price or better For example a customer wishing to buy two July Corn contracts at 210 when July Corn is trading at 211 would place the following order Buy two July Corn at 210 limit Buy limit orders must be placed at the current market price or lower this is because when
209. ormation see the following sections referenced Track n Trade Pro 4 0 User Manual File Menu This menu consists of File View and Help File View Help Mew Ctrl h Open Save Crl 5 Prin Ctrl F Print Preview Save S Prink Setup Download Data Exit The File Menu consists of New Opening New Chartbook Open Opening a Saved Chartbook Save Saving current Chartbook with existing name if Chartbook has been saved If it hasn t the Save As window will open for you to name the Chartbook that you are working on Save As Opens the Save As window allowing you to choose a location to save the Chartbook default My Defaults and name the Chartbook Print Print the Chart Window You will need to click in the Chart Window if this option is not available Print Preview Opens a window showing you what the chart will look like when it is printed Print Setup To change the printer options before printing Download Data To open the data download utility Exit Closes the Program See the following sections for more information Creating Chartbooks From Start to Finish Data Downloads Toolbar w Status Bar w Play Controls w Charting Tools w Motation Tools Accounting Tools Advanced Tools w Indicator Buttons w Sizing Controls Current Price Bar Tool Button Lock Program Options Commodity Chooser The View Menu controls the toolbars that are showi
210. ormula for the RSI is RSIt UT UT DT 100 If you use the above values and place them in the formula it appears as follows RSI 6 67 6 67 3 89 100 63 16 Assume the market continues the downward trend The next DIF value is 15 which sets the UP value to O zero and the DOWN value to 15 Calculate the next up and down average by using Wilder s accumulative moving average technique The formulae are UT UT 1 n 1 UPt n 6 67 9 1 0 9 5 93 DT DT 1 n 1 DOWN n 3 89 9 1 15 9 5 12 The value for the new RSI equals the following RSI 5 93 5 93 5 12 100 53 67 Customizing To change the settings of this indicator open the Program Options screen by clicking the Program Options button located on the main Toolbar See the Program Options section for more details on changing the settings nasal es 0 FSTO Fast Stochastics Introduction Stochastic Process was invented by Dr George C Lane many years ago under this basic premise During periods of decrease daily closes tend to accumulate near the extreme low of the day and conversely during periods of increase daily closes tend to accumulate near the extreme highs of the day This indicator is designed to show conditions of overbought and oversold markets Stochastics are divided into two types regular Stochastics often referred to as Fast Stochastics and Slow St
211. ov 2003 d L4 fall l p p ET gt RE t HH Track n Trade Pro 4 0 User Manual 78 Section 4 Analyzing Charts with Charting Tools Declining Channel The Declining Channel is the exact opposite of the Inclining Channel Formation The Declining Channel has a decrease in both the price ceiling and price floor The breaking of the top trend line on this formation shows a change in trend from bearish to bullish To trade a Declining Channel Place an order to buy on the break up and out of the channel Example of the Declining Channel in Track n Trade U S Dollar Mar 2004H wand BE le Fi eee E 91 67 Track Trade Pro 4 0 User Manual 19 Inclining Declining Channel Tool You can identify an Inclining Declining Channel by using the Inclining Declining Channel Tool Drawing an Inclining Declining Channel 1 Select the Inclining Declining Channel Tool from the Charting Toolbox 2 Position the mouse pointer where you would like to place the top left point of the channel and left click continue to hold down the mouse dragging it to the right bottom point of channel release mouse button to place Moving the Inclining Declining Channel Select the channel drawing by clicking on it drag to the new location and release the mouse button to place Deleting the Inclining Declining Channel Select the drawing by clicking on it
212. ow See below Next select the day of the deposit and the amount Click OK to enter deposit Click Cancel to dismiss Deposit Window m ead as Deposit Select date for deposit transaction Deposit Amount ER January 2004 5 1 j 29 30 31 2 4 5 8 7 8 3 Hin CNET 18 19 20 2 25 26 27 28 Cancel To Make a Withdrawal 1 Click on the Withdrawal button in My Account Window This will bring up the Withdrawal window see below Next select the day of the withdrawal and the amount Click OK to enter withdrawal Click Cancel to dismiss Withdrawal Window pu 9 Withdrawal Select date for withdrawal transaction Withdraw Amount December 2003 0 4 5 b 11 12 13 19 0 5 26 27 Cancel Deleting Deposits Withdrawals Right click on the deposit or withdrawal and select Delete from the menu to remove Editing a Deposit Withdrawal Right click on the deposit or withdrawal and select Settings you can change the date amount or order type Trade Log The Accounting and Simulator Plug In also includes a trade log that tracks the changes that you make to orders Chartbook This trade log will list new orders placed orders cancelled as well as any order that you have moved 2 bed From 11 14 2002 11 15 2002 m J History report generated successfully Filter fal Charts Placement Date Activity Date Contract Activity Detail Mon Oct 07 2002 Fri Nov 15
213. r File Name It is recommended that the Chartbook be renamed so as not to accidentally over write this file the next time a file is saved Some Track n Trade users have named Books according to Groups Commodities or Exchanges depending on the charts that they are saving in the Book As you become familiar with Track n Trade you will soon develop a system of your own Opening an Existing Chartbook To open an existing Chartbook click on the Open Folder button shown circled in the main Toolbar or click on the File Menu and select Open My eBooks Music My Pictures My Webs Grains tnt Files of type Track n Trade Pro Files tnt Cancel In the Open window select your file and click on the Open button In the screenshot above the Chartbook is named Grains tnt Another way to access recently saved Chartbooks is to go to the bookmarked section at the end of the File Menu Tr cnl in radoa AN Illear N ana IFACK rade rro User Saving Charts as an Image Many Track n Trade Pro users include Chartbooks and images of their charts in emails websites etc To save the current chart as it is on your screen to an image follow these instructions Step One Click on the Screen Capture button in the Main Toolbar See below Booki modified Track n Trade Pro Step Two The Save Chart image window will appear In this window you may specify file name locat
214. r any expenses you may incur e g cost of shipping the SOFTWARE PRODUCT to Gecko This Limited Warranty is void if failure of the SOFTWARE PRODUCT has resulted from accident abuse misapplication abnormal use or a virus Any replacement SOFTWARE PRODUCT will be warranted for the remainder of the original warranty period of thirty 30 days Outside the United States neither these remedies nor any product support services offered by Gecko are available without proof of purchase from an authorized international source To exercise your remedy contact Gecko Software Inc Attn Gecko Sales Information Center at the Web address specified above DISCLAIMER OF WARRANTIES The limited warranty that appears above is the only express warranty made to you and is provided in lieu of any other express warranties if any created by any documentation packaging or outside reseller advertisements or claims Except for the limited warranty and to the maximum extent permitted by applicable law Gecko and its suppliers provide the SOFTWARE PRODUCT and Support Services if any AS IS AND WITH ALL FAULTS and hereby disclaim all other warranties and conditions either express implied or statutory including but not limited to any if any implied warranties or conditions of merchantability of fitness for a particular purpose of lack of viruses of accuracy or completeness of responses of results and of lack of negligence or lack of workmanlike effort all wit
215. r better communications iind af concepts and ideas Hohe bullis inan dis Dur AD nics nada a sod crossover buy on AS n theo poker or Cha ists persi alba bus ona besik the ranae tammer Fed 137 u Greer az Lav TET Bie n z d l ba Coles 1 Coden Ered fome OI ea tua oa A RS pm eii is E f Fer Help preis FL 3 Cursor Hen Hev 10 2003 Oc 83 80 H 53 20 1 81 38 Co 62 30 WT 85 20 Notes Window The Notes Window is located in the Control Tab after the Data Tab The Notes Tab is for you to keep notes on the charts that are saved within your Chartbook Each Chart has a new Notes section available to keep notes for that particular chart Notes Tab in Track n Trade Arrow Tool Glano The Arrow Tool is located in the Notation Toolbar This tool enables you to draw arrows to help point out areas of interest on your chart To draw an Arrow 1 Select the Arrow Tool Button Position mouse pointer where you want to place the point of the arrow and click the left mouse button 3 Continue holding down the mouse button and drag the mouse pointer to the location you would like to end the arrow and release Moving an Arrow Left click and continue holding down the mouse button drag to the new location and release to place Delet
216. r 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 Section 12 Seasonals Plug In Displaying the Market Probability Indicator Click on the PROB button located in your indicators menu bar shown below Halaas le apo Gas Natural Feb 20046 i 5 4 NL Cursor Fri ev 14 2083 0 09 IH 5 88 Li 2 C 3 20 MIROR 019 Track n Trade Pro 4 0 User Manual 292 Customizing Seasonal Indicators To customize your seasonal indicators pull up your Program Options Screen by clicking on this button fri on your main Toolbar Click on the My Default Settings TO make changes to the default options on the Seasonal Indicators Click on the Current Chart Settings to make changes to the currently open chart only In each of these sections you can click on the Seasonal section Track n Trade Program Options Select Category Seasonal and Historical Studies Global Settings Seasonal Trends 2 Years Style Color u Default Settings v ren 10 Solid My Default Setti Trend 1 i Appearance z Bolinger Bands Trend 2 15 soa NE MAC 4 Fill Background Trend 1 Trend 2 Moving Averages e e Pivot Points 5 Scale Seasonal to Entire contract Last 12 months ae vat Historical Averages Years Style Color 1H Scaling amp Price Bars
217. r weakening If prices are rising and the momentum indicator is above the zero line then the trend is gaining strength If prices were rising but the indicator was sagging or went below the zero line then we would interpret this as a sign of a coming change in trend This is true because although prices were still increasing they are doing so at a decreasing rate The reverse would be true during a declining market For example think of a race car gaining 20 miles an hour each lap until it starts to only gain 15 miles an hour then 10 mph then 5 mph until eventually it reaches its top speed Like a race car a market can not sustain growing momentum forever and in many occurrences momentum slows before prices change direction Typically the trade signals are to buy when the momentum indicator crosses from below the zero line to above it This indicates that a new upward trend has begun as the market is able to violate resistance levels and continue higher with increasing speed The sell signal would be to sell when the line crosses from above the zero line to below it This indicates that the market is picking up speed to the downside and should be able to violate support areas It is in this way that this unique indicator is a trend following tool Another way to use momentum is to establish regions of overbought or oversold For example when in a declining market the prices continue downward and the momentum indicator moves toward
218. rather than computing a pure moving average It was actually a short cut designed to save computational time and effort That technique is as follows Averaget 7 Averaget 1 Averaget 1 n Valuet Thus when you substitute the above symbols you have DMt DMt 1 DMt 1 n DMt DMt DMt 1 DMt 1 n DMt TRt TRt 1 TRt 1 n TRI If you think about it it really is a timesaving convention Remember this indicator was developed before microcomputers were invented The only tool available was the desktop calculator or adding machine You could spend a great deal of time and effort calculating averages You now have the average values The next step is to compute the directional indicator Again it can either be up or down depending upon the directional movement On up intervals the formula is DI DM TR 100 On a down interval the formula is DI DM TR 100 The plus and minus directional indicator values are computed as percentage figures You are expressing the percentage of the average true range for both up and down trading intervals If you have followed this process so far the last few steps are relatively simple You compute the difference between the DI and the DI Again you use the absolute value of this difference Simply convert any negative value into a positive number The formula is Didiff DI DI Next compute the sum of the direc
219. rbought and oversold conditions and to project price targets John Bollinger created Bollinger bands in an effort to gage the volatility and condition of a market These bands are used to determine the trading range and give an indication of when to buy and when to sell Bollinger bands are also used to indicate market volatility the wider the bands the greater the volatility Inversely the narrower the bands the lesser the volatility By plotting two lines at an interval around a moving average Bollinger bands give a good indication of market conditions and price relation The moving average which the band is based on works as an indicator to confirm trade signals Interpretation The most basic use of the Bollinger Band is to look for a chart top that occurs above the uppermost band followed by another top that is below the upper band This set of chart tops would create a sell signal as neither upward price direction was able to sustain a rally The opposite would occur for a buy signal there would be a chart bottom below the lower band followed by a bottom above the lower band This is a buy signal because neither sell of was able to continue indicated by one below and the other above the lowest band Calculation Parameters Period 20 the number of bars or period used to calculate the study John Bollinger the creator of this study states that those periods of less than ten days do not seem to work well for Bollinger
220. red of both parties buyers and sellers of futures contracts to ensure fulfillment of the contract obligations That is buyers and sellers are required to take or make delivery of the commodity or financial instrument represented by the futures contract unless the position is offset before contract expiration Before entering into a transaction both parties have to post Initial Margin Requirement The Initial Margin Requirement is the amount of money a party must have on account with a Clearing firm your broker at the time the order is placed Initial margin funds must be on deposit before any trade can be accepted Maintenance Margin is a set minimum margin per outstanding futures contract that a party to a futures contract must maintain in his her margin account to hold a futures position Initial Margin Requirements vary from commodity to commodity but are generally between 5 and 10 of the total value of the contract For example if March Corn futures are trading at 2 11 bushel the initial Margin Requirement for CBOT Corn futures is 405 00 per contract with a maintenance margin requirement of 300 00 Our speculator would have to have at least 405 00 on deposit with his broker before he could enter the market He would need to have an account liquidating value of at least 300 00 per contract in order to stay in the position Let s assume that our speculator has 1 000 in his account and decides to buy 2 contracts of
221. rices this indicator attempts to isolate only strongly trending markets similar to momentum and MACD In the Track n Trade CCI indicator pane 100 is 33 of the window 100 is 66 of the window Therefore guides could be set at these two points for ease in tracking Example of the CCI in the Indicator Window Calculation Parameters Period 20 the number of bars or period used to calculate the study Formula The proper calculation of the CCI requires several steps They are listed in the proper sequence below You must first compute the typical price using the high low and close for the interval It is the simple arithmetic average of the three values TP Hight Lowt Closet 3 TPt represents the typical price Hight The highest price for this interval Lowt The lowest price for this interval Closet The closing price for this interval Next you calculate a simple moving average of the typical price for the number of periods specified TPAVGt TP1 TP2 TPn n TPAVGt The moving average of the typical price TPn The typical price for the nth interval n Number of intervals for the average The next step is rather complex it computes the mean deviation The formula is MDt TPAVG1 TP1 TPAVG1 TPn n MDT The mean deviation for this interval TPn The typical price for the nth interval n Number o
222. rish or bearish to bullish To Trade a Trend Fan Place an order to enter the market on the break out past the third trend fan line See the example charts Example of a Trend Fan using Track n Trade Pro Cotton 2 May 2003 ppm ny hn 4 E a a 1 amp 3 np RNC a DX li 12 26 8 21 34 12 28 Gecko Oct 02 AL Dec 92 Jan 03 Feb 03 Software ss nsn Track n Trade Pro 4 0 User Manual 101 Section 4 Analyzing Charts with Charting Tools Example 2 of a Trend Fan using Track n Trade Pro Cocoa Dec 2002 4 2 hhh ic a ey E qria UV hhh TTT TT TTTTTITTT TTT TTT TN TTT TT zo 40 20 46 26 7 49 2 41 23 3 45 25 18 Jun 02 vals Aug 92 Sep 02 Oct 02 Now 02 Dec 02 Software aL a a a Gas a EN NE vr o SE can 1c dc Example 3 of a Trend Fan using Track n Trade Pro Com Dec 2001 434 gt CM NS Reversal E 1 es 15 Vs d L2 A NR NO ML Vi N NM i ha 2 2 2 2 3 25 6 48 30 9 21 3 4 27 9 48 3 42 23 5 Gecko Jul 01 Aug 01 Sep 04 Oct 04 Nov 04 Dec 01 Software Track n Trade Pro 4 0 User M
223. rmation from the Manual has been integrated into the software When clicking on the Help button and you will get specific documentation based on the location of the button You may also press F1 on your keyboard AD Williams Accumulation Distribution Track n Trade Program Options Select Category Williams Accumulation Distribution Index AD g lm Global Settings tyl 25 My Default Settings 1 6 2 Appearance Willams Accumulation Distribution Index Solid v E Bollinger Bands MAC ADMA Moving Average of AD 28 Solid m Moving Averages Pivot Points PSAR Scaling amp Price Bars qu HVOL MACD MOM al ZR RSI SE STO VOL Ol ES Current Chart Settings ES Display wiliam s AD Display ADMA 7 Apply to active charts Restore Factory Defaults 8 Help Cancel 1 Period To specify the number of days used in calculating the ADMA Indicator simply highlight the current number and type in a new value 2 Style The AD Indicator lines can be displayed as a solid or dotted lines Click on the drop down menu to specify the type of line style desired 3 Color Click on the color box and a color panel will open for you to specify the new color 4 Todisplay the indicator in the chart window click the check box 5 Ruler Bar See the Ruler Bar at the end of this section 6 Preview Window This Window allows you to make changes and preview them before saving them
224. rmines the trading range for that time period The trading range changes on a continuous basis The calculations for the K are as follows Kt Closet Lown Highn Lown 100 Kt The value for the first for the current time period Closet The closing price for the current period Lown The lowest low during the n periods Highn The highest high during the n time periods n The value you specify Once you obtain the K value you start computing the D value which is an accumulative moving average Since the Y D is a moving average of a moving average it requires several trading intervals before the values are calculated properly For example if you specify a 20 period stochastic the software system requires 26 trading intervals before it can calculate valid K and D values The formula for the D is DT 76DT 1 2 6Kt 3 DT The value for D in the current period DT 1 The value for in the previous period Kt The value for K in the current period The values 2 and 3 are constants You specify the constants and the length of the time period to examine for the trading range Customizing To change the settings of this indicator open the Program Options screen by clicking the Program Options button located on the main Toolbar See the Program Options section for more details on changing the settings BIST TET C oM SSTO Slow Stochastics Introduction T
225. rrows click on the color box to open the color panel Choose a new color by clicking on it Thresholds A threshold is the area defined by the study as a region used to determine buy sell signals Not all studies include thresholds see the Using Indicators Section for further documentation Track n Trade Pro 4 0 User Manual 302 Changing the threshold numbers Click on Program Options and select the Indicator under My Default Settings or Current Chart Settings Select the threshold number and type the new number in the edit box To change the color of the threshold lines displayed in the Indicator Window click on the color box next to the threshold and select the new color from the color panel Displaying Removing threshold lines Click on Program Options and select the Indicator under My Default Settings or Current Chart Settings Before each threshold is a check box check to display and uncheck to remove Track n Trade Program Options Select Category Commodity Channel Index CCI B Global Settings i Period Style Color Appearance Commodity Channel Index 20 Solid x m Bollinger Bands MAC Moving Averages Pivot Points PSAR 27 amp Price Bars Show Buy Sell Arrows Only When Indicator is Visible n Upper Threshold 100 Dunn HVOL MACD MOM 05 STRK XR RSI Seasonals STO v 0l odity Channel Index BIRA ENG Apply to active charts Restore factory defaults Coca bml Images
226. rt Click on Send to Back when you need to access a tool under the Risk Reward Calculator Section 9 Using Calculators Example of the Risk Reward Calculator U S T Note 10 yr Sep 2003U poe E Track n Trade Pro 4 0 User Manual 215 Section 9 Using Calculators Track n Trade Pro 4 0 User Manual 216 TRACK N TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time amp PROGRAM OPTIONS Section 10 Program Options Track n Trade Pro 4 0 User Manual 218 PROGRAM OPTIONS Customizing each chart for your maximum benefit Introduction The Program Options in Track n Trade Pro enable you to customize the chart appearance tool options and indicator settings on either a Global or Per Chart basis The Program Options window includes three setting areas 1 Global Settings This section contains settings for Tools and Long Term settings and some Plug in Settings if you have the Plug in installed These settings will only affect new charts that are opened My Default Settings This section contains settings for the chart appearance and indicators Anything changed in this section will affect new Chartbooks and new charts opened in a saved Chartbook it will not affect currently opened charts or already saved charts Current Chart Settings This section contains all of the settings also in the My Default Section of Program Options Anything changed in this section will affect o
227. s these gaps are filled by data vendors who simply pull yesterdays values forward to today often times doing 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 bk n bs l Typical Options Stream MJ LIA ALL Common Options Stream LITII 1 Gecko Options Stream n E jin 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 giving a more accurate representation of the actual options value which in turn 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 cr
228. ss a tool under the Andrews Pitchfork Example of Andrews Pitchfork in Track n Trade Canadian Dollar CME Mar 2004H Andrews Pitchfo 77 82 76 60 75 38 Key points along gt the fork HH La ee 74 16 72 93 271 71 70 49 8585658585858 EENES n n er et Yer Yat y n n n n EEREN 8 18 28 1b 22 Nov 2003 is bec 20ST INT Aug 2003 Sep 2003 Fibonacci Retracements Fibonacci Retracement levels correspond with percentage retracements that occur in the ebb and flow of a market trend According to the Elliot Wave Theory market trends tend to occur in five distinct waves See the Elliot Wave for more information Elliot asserted that these counter trend waves will usually retrace against the trending waves by 38 2 50 and 61 8 percent These Retracement Percentages correspond to natural ratios discovered by the Greeks called the Golden Ratio and rediscovered by Fibonacci a medieval Italian Mathematician 0 100 Interpretation Commodity prices will frequently consist of an initial wave a second wave often retracing 61 8 of the initial move the third wave usually the largest then another retracement and finally the 5th wave the last gap which would exhaust the movement In Track n Trade Pro you have three tools that you can use to apply these concepts the Fibonacci Retracement Fibonacci Time Zone
229. ss a tool under the Arc Tool Drawing Delete Select to delete the tool Example of the Arc Tool in Track n Trade Wheat W1999U September 1999 Rounded Bottom Section 6 Advanced Charting Tools Track n Trade Pro 4 0 User Manual 134 TRACK TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time PERSONALIZING YOUR CHARTS WITH NOTATION TOOLS Section 6 Personalizing Your Charts with Notation Tools Track n Trade Pro 4 0 User Manual 136 Cartinn Q Darcanalisina Vni Oha rte wntla NI U r vci ouUlidl Z HQ Wild o VVILI VII I OOI PERSONALIZING YOUR CHARTS WITH NOTATION TOOLS Express Yourself with Text Graphics and More Introduction In Track n Trade Pro you have a variety of tools available to you to help personalize notate and analyze your futures charts Type text make drawings import flags plus keep notes on each chart The Notation tools as well as the Notes Tab in the Control panel enable you record and remember what you learn from others tips and tricks In this section you will learn how to use these features Example of Personalizing a chart in Track n Trade m jara tnt imadllind Track n Trade Pra Demasa MME m 15 s ss erg 119 18 Coffee C Mar 7004H Tbe Hah 2004 Colles mich has becker io ot up Annotate your charts fo
230. ss of the ruler lines Choose values from 1 6 Font Changes the Font Size Style and Color of the values Show Text Deselect Select to view or hide the values Show Retracements Select Deselect to view the additional retracement percentages Show Prediction Select Deselect to view the additional prediction percentages Show Time Zones Select Deselect to overlay the Time Zones on the ruler Send to Back Changes the layer of the tool This option is used when more than one tool is in the same area of the chart Click on Send to Back when you need to access a tool under the Fibonacci Retracement Delete Select to delete the tool Example of a Fibonacci Retracement in Track n Trade Soybeans Nov 2003X ibonacci Ruler Highlights areas with a high degree of likelihood you ll see some kind of arket reversal action with strong levels of support and resistance 746 25 695 16 Fibonacci Arc Togl 1 1 The Fibonacci Arc Tool is used to measure the different retracement levels within a market Drawing a Fibonacci Arc Select the Fibonacci Arc Tool from the Toolbox Move the mouse pointer to the point on the chart that you would like to start the stem of the arc tool left click start Move the mouse pointer to the ending point for the arc tool and left click to place While moving to the end point the arc will
231. ssing historical data for the commodity on the next data download Limit Historical Data If you would like to limit the contracts listed in the Commodity Tab drop down menu select the Limit History to years and then select the number of years that you would like to see in the drop down menu Note This option does not change the amount of data stored on your hard drive it simply controls the data that is displayed in the Commodity Tab If you were to manually type the symbol in the symbol search to a chart not seen in the menu it would still be displayed Commodity Chooser window in Track n Trade Commo dity Chooser Check the bos in the FUTURES column to make that commodity available for use and download Check the bos in the OPTIONS column to download options data for that commodity Commodity Name Futures Options Australian Dollar c Australian Dollar n British Pound CME c British Pound CME a Canadian Dollar CME c Canadian Dollar CME 0 Cattle Feeder c Cattle Live c Cocoa c Cottee C n Copper High Grade c Corn c Corn 0 Cotton 2 a CRE a Dow J lA c Dow J ASM 5 mini e Euro c Franc e F rr rlr llar amp S amp amp X S amp K X S K X X amp I amp I amp I amp I amp I amp I lt S I S S S S I I S I amp I S amp I S S I I I i S
232. t it in the hopes of a profit speculators Futures markets are first and foremost a risk transference vehicle Futures markets also provide price information that the world looks to as a benchmark in determining value of a particular commodity or financial instrument on any given day or at any specific time of the day These benefits risk transference and price discovery reach every sector of the economy of the world where changing market conditions create economic risk including such diverse fields as agricultural products foreign exchange imports exports financing and investment vehicles What are Futures Futures contracts are standardized to meet the specific requirements of buyers and sellers for a variety of commodities and financial instruments Quantity quality and delivery locations all the essential ingredients are pre established The only variable is price which is discovered through an auction like process on the trading floor of an organized futures exchange For example assume an individual buys one contract of March Corn at 2 25 per bushel on January 2nd initiating a long position This contract calls for the delivery of 5 000 bushels of Number 2 Yellow Corn seven days before the last business day of the delivery month March at an exchange recognized facility If on February 15th the purchaser of the March Corn contract wishes to exit his position he can do so by selling one March Corn contract Assum
233. t the end of this section Preview Window This Window allows you to make changes and preview them before saving them 6 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 7 Help Information from the Manual has been integrated into the software When clicking on the Help button and you will get specific documentation based on the location of the button You may also press F1 on your keyboard DMI ADX Directional Movement Index Track n Trade Program Options Select Category Directional Movement Index DMI lm Global Settings Period Styl Col 455 My Default Settings 1 2 yle olor prae Appearance Dynamic Momentum Index 14 Bollinger Bands MEN Positive Directional Movement Solid E Moving Averages Negative Directional Movement DM Solid m Pivot Points PSAR Directional Indicator Solid Scaling amp Price Bars 3 Averaged Directional Index AD Directional Index 0 DMI ADO Use Relative Scale MACD MOM 5 RSI 1 STO VOL Ol Current Chart Settings 8 Apply to active charts Restore Factory Defaults 9 Help Cancel 1 Period To specify the number of days used in calculating DMI simply click on the box highlight the current number and type in a new
234. the number one point is the annual price low A To Trade a 1 2 3 a Bottom Formation Place a BUY order just above the 2 point and then place your stop loss order just below the 1 point Considered an industry standard or just below the 3 point Considered a more conservative position Example of a 1 2 3 Bottom in Track n Trade Pro Corn Dec 20017 1 2 3 Bottom sal 205 75 eee al EE a to WNT Oo Track n Trade Pro 4 0 User Manual 1 2 3 Tool EEE Use the 1 2 3 Tool to chart both a 1 2 3 Top and Bottom Formation Drawing a 1 2 3 Top Bottom 1 Select the 1 2 3 Tool from the Charting Toolbox 2 Position the mouse pointer where you would like to place the 1 point and left click to place 3 Move to the 2 point and left click to place 4 Move to the 3 point and left click to place Moving a 1 2 3 Drawing Select the 1 2 3 drawing by clicking on it drag to the new location and release the mouse button to place Note The tool is selected when a line appears connecting the 1 2 and 3 Deleting a 1 2 3 Drawing Select the 1 2 3 drawing by clicking on it and press the Delete Key on your keyboard Or right click the drawing and select Delete from the popup menu Resizing the 1 2 3 Drawing 1 Select the 1 2 3 drawing by clicking on it The drawing is selected when boxes appear on the corners 2 Click on one of the boxes to drag the select point and re
235. the SOFTWARE PRODUCT is limited to use for demonstration test or evaluation purposes and you may not resell or otherwise transfer for value or install the SOFTWARE PRODUCT on more than one single COMPUTER Limitations on Reverse Engineering Decompilation and Disassembly You may not reverse engineer decompile or disassemble the SOFTWARE PRODUCT except and only to the extent that such activity is expressly permitted by applicable law notwithstanding this limitation Separation of Components The SOFTWARE PRODUCT is licensed as a single product Its component parts may not be separated Rental You may not rent lease or lend the SOFTWARE PRODUCT Trademarks This EULA does not grant you any rights in connection with any trademarks or service marks of Gecko Software Inc Support Services Gecko may provide you with support services related to the SOFTWARE PRODUCT Support Services Use of Support Services is governed by the Gecko polices and programs described in the user manual in on line documentation and or other Gecko provided materials Any supplemental software code provided to you as part of the Support Services shall be considered part of the SOFTWARE PRODUCT and subject to the terms and conditions of this EULA With respect to technical information you provide to Gecko as part of the Support Services Gecko may use such information for its business purposes including for product support and development Software Transf
236. the number of bars or interval used to calculate the first moving average Period2 9 the number of bars or interval used to calculate the second moving average Period3 18 the number of bars or interval used to calculate the third moving average Formula The formula to calculate a moving average is as follows Mat P1 Pn Mat The moving average for the current period Pn The price for the nth interval n The length of the moving average Compute the average of the past n intervals using the price specified for that period Now use real values to compute a five interval moving average If you assume the following prices the calculations are MA 7380 7375 7385 7390 7395 5 36925 5 7385 Customizing To change the settings of this indicator open the Program Options screen by clicking the Program Options button located on the main Toolbar See the Program Options section for more details on changing the settings Dias Me B BI E oi Bollinger Bands Introduction Bollinger Bands are a type of trading envelope They are lines at an interval around the moving average They consist of a moving average and two different standard deviations represented as a line above the MA Moving Average and a line below the MA The line above is the MA plus two standard deviations the line below is the MA minus two standard deviations Bollinger Bands are used to determine ove
237. the resulting upgraded product only in accordance with the terms of this EULA 4 COPYRIGHT All title and intellectual property rights in and to the SOFTWARE PRODUCT including but not limited to any images photographs animations video audio music text and applets incorporated into the SOFTWARE PRODUCT the accompanying printed materials and any copies of the SOFTWARE PRODUCT are owned by Gecko Software Inc or its suppliers All title and intellectual property rights in and to the content which may be accessed through use of the SOFTWARE PRODUCT is the property of the respective content owner and may be protected by applicable copyright or other intellectual property laws and treaties This EULA grants you no rights to use such content All rights not expressly granted are reserved by Gecko Software Inc 5 DUAL MEDIA SOFTWARE You may receive the SOFTWARE PRODUCT in more than one medium Regardless of the type or size of medium you receive you may use only one medium that is appropriate for your computer You may not loan rent lease lend or otherwise transfer the other medium to another user except as part of the permanent transfer as provided above of the SOFTWARE PRODUCT 6 BACKUP COPY After installation of the SOFTWARE PRODUCT pursuant to this EULA you may keep the original media on which the SOFTWARE PRODUCT was provided by Gecko solely for backup or archival purposes If the original media is required to use the SOFTW
238. tion 1 Select the Wedge Tool from the Toolbox 2 Left click your mouse at the top of the triangle 3 Drag the mouse pointer to the bottom of the triangle and left click to place 4 Next drag the mouse pointer to form a triangle and left click the mouse to place the final point Resizing the Wedge Triangle Formation 1 Select the drawing by clicking on it Note The formation is selected when boxes appear on the corners of the drawing 2 Click on one of the boxes to drag the select point and release the mouse button Moving the Wedge Triangle Formation Select the drawing by clicking on it drag to the new location and release the mouse button Deleting the Wedge Triangle Formation Select the drawing by clicking on it and press the delete key on your keyboard Or right click on the formation and choose the Delete Option in the popup menu Changing the Properties of the Triangle Formation Right click on the drawing to view the properties menu Properties that can be changed are Foreground Changes the line color of the Triangle drawing Background Changes the inside color of the Triangle drawing Line Thickness Changes the thickness of the Triangle line Choose values from 1 6 Line Style Changes the line style of the Triangle line Choose from solid dashed dotted and more Send to Back Changes the layer of the tool This option is used when more than one tool is in the same area of the chart Click on Send t
239. tion 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 indicator 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 computer visit http www adobe com TRACK TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time SPREADS PLUG IN Candlesticks Track n Trade Pro 4 0 User Manual 296 SPREADS PLUG IN Expand your Trading Options Introduction The futures markets provide a variety 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 differential of the spread rather than the absolute contract price levels The contract that is viewed as cheap is purchased or a long position is established The contract that is viewed as expensiv
240. tion where traders are constantly rolling over from one contract month to the next This means that traders need to know which month to be in VOI is the tool that shows us which contract month The months that have the highest open interest are usually the best to be in because they are the most liquid The months that have higher volume will afford the trader a better opportunity to enter and exit the market Example of V Ol in the Indicator Window Volume Interest i i Calculation This study has no computations The values for the volume and open interest are transmitted from the exchanges However the actual volume and open interest figures are always one day behind price information You will not know Monday s volume and open interest until Tuesday at approximately noon for U S markets central time That is due to the exchanges and their reporting requirements Customizing To change the settings of this indicator open the Program Options screen by clicking the Program Options button located on the main Toolbar See the Program Options section for more details on changing the settings uE ol Displaying Indicators in the Chart Window The Overlay Indicators are displayed in the Chart Window To select these Indicators right click on the chart window and select the name of the Indicator that you would like to display on the chart Play 3 12 2003 Indic
241. tional indicator values The formula reads as follows Disum DI DI Once you compute the and the Disum you calculate the DX or directional movement index This value is always a percentage The formula is DX Didiff DIsum 100 The DX is always a value between 0 and 100 If your calculations exceed this range you made an error Wilder was not comfortable using just the directional movement index It could become very volatile during periods of extreme price movement especially markets that rise and fall quickly Again he implements his accumulated moving average technique to smooth the DX The result is the ADX or average directional movement index The computational procedure is as follows ADXt ADXt 1 n 1 DXt n Customizing To change the settings of this indicator open the Program Options screen by clicking the Program Options button located on the main Toolbar See the Program Options section for more details on changing the settings Diamesa mA ke HVOL Historic Volatility Introduction The Historic Volatility indicator is used mainly as an option evaluation tool It does not give trading signals like those given with other technical indicators What it does do is give the trader an idea of how volatile the market has been for the previous period of time Changing the period of time the study observes allows the trader to fine tune options prices If a market has be
242. to Scale Charts The Auto Scale Chart feature in Track n Trade Pro forces the chart to scale the price bars displayed in the chart window based on the highest and lowest point available in this set of price bars If you have the Accounting amp Simulator Plug in which includes the play controls the Auto Scale Chart feature will re scale the chart each time you click a Play button Play To 3 12 2003 OFLC HL Close Candle Proportional Width w Aun Scale Charts Moving Averages Bollinger Bands Pivot Points 10 x 8 Parabolic SAR Sizing Controls Turning on the Auto Scale Chart Feature Right click on the Chart Window to see the menu shown at the left and select the Auto Scale Chart option You will notice that a check mark will appear when this option is selected You may also select this feature in the Program Options Asie e Bis I 1C 8 1 A The first set of controls scales the vertical height of the price bar B The middle set of controls scales the number of price bars displayed per inch on the chart C The last set of controls scales the days along the bottom of the chart and the points displayed on the right side of the chart TRACK N TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time amp DATA DOWNLOADS Section 3 Data Downloads Track n Trade Pro 4 0 User Manual 92 DATA D
243. to specify the type of line style desired To change the line color click on the color box Stochastic Formula Using Chose from the drop down menu the type of formula you prefer to be used The choices are the Exponential Moving Average and the Simple Moving Average For more information on the formulas used see the Stochastics information under the Using Indicators Section To Display the Fast Stochastics indicators check the box by the corresponding indicator Ruler Bar See the Ruler Bar at the end of this section Preview Window This Window allows you to make changes and preview them before saving them Click on Apply to active charts if you would like to see your selecting 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 software When clicking on the Help button and you will get specific documentation based on the location of the button You may also press F1 on your keyboard SSTO Slow Stochastics Track n Trade Program Options Select Category Slow Stochastics SSTO lm Global Settings 25 My Default Settings Appearance Percent K Line 14 Solid m 7l nois Sy Percent D Line Sold m Moving Averages 4 Stochastic formula using Exponential Moving Average Default Pivot Points PSAR Scaling amp Price Bars AD CCI DMI A
244. to the Head point and left click to place 5 Move to the valley point between the Head and Right Shoulder RS left click to place 6 Move to the RS point and left click to place Moving H amp S Drawing Select the H amp S drawing by clicking on it drag to the new location and release the mouse button to place Note The tool is selected when a line appears connecting the LS H and RS Deleting H amp S Drawing Select the H amp S drawing by clicking on it and press the Delete Key on your keyboard Or right click on the drawing and choose the Delete option in the popup menu Resizing the H amp S Drawing 1 Select the H amp S drawing by clicking on it The drawing is selected when boxes appear on the corners 2 Click on one of the boxes to drag the select point and release the mouse button Changing Properties of a H amp S Drawing Right click on the drawing to view the properties menu Properties that can be changed are Foreground Changes the line and arc color of the H amp S drawing Note The line is only seen when the drawing is selected Line Thickness Changes the thickness of the H amp S line Choose values from 1 6 Line Style Changes the line style of the H amp S line which shows when the line is selected Choose from solid dashed dotted and more Arc Thickness Changes the arcs formed at the LS H and RS points Choose values from 1 6 Font Changes the Font Size Style and Color of the H LS and RS
245. tract In the futures market unlike the stock market it is just as easy to establish a short position as a long position Short positions are profitable if the underlying futures contract decreases in price during the holding period Buying the same quantity and contract month that you initially sold offsets your short positions If the resulting purchase price is less than the original sale price a profit is achieved However if the resulting purchase price is greater than the original sale price a loss is incurred Commodity producers who wish to avoid potentially lower prices as a short position increases in value and prices decline usually establish short positions Speculators anticipating lower prices in the future establish short positions Calculating Profit Loss To figure out the profit or loss associated with a position is the same regardless of either a long or short position The profit or loss from a futures position is calculated as follows Profit or Loss Sell Price Buy Price x Contract Size x Number of Contracts For example assume a speculator thinks that Corn prices will go down in the coming weeks As such he sells 2 March Corn contracts at 235 2 35 per bushel but corn prices are quoted in cents per bushel so the price is said to be 235 cents per bushel thus initiating a short position Having studied the behavior of Corn using his Track n Trade software our speculator was correct and Corn
246. ttings of each indicator rack n Trade Pro 4 0 User Manual 19 PSAR Parabolic Stop and Reversal Introduction The Parabolic SAR Developed by Welles Wilder creator of RSI and DMI sets trailing price stops for either long or short positions Also referred to as the stop and reversal indicator SAR stands for stop and reversal Parabolic SAR is more popular for setting stops than for establishing direction or trend Wilder recommended establishing the trend first and then trading with Parabolic SAR in the direction of the trend If the trend is up but the underlying price drops back below the trailing PSAR indicator then sell or liquidate your long position If the trend is down and the underlying price rises above the trailing PSAR indicator then buy or liquidate your short position Example of PSAR in Track n Trade Soybeans o Mar 2004H SAR erse 828 50 rk B UNT E rl E 48 50 Followthe sa market up with stop loss z T E 584 00 h T as orders placed P and moved to HENE SERBEN Ea I these points 2 25 E Mee M n 502 50 i NND P MC MEL CMM TIN Calculation Parameters Initial 20 the initial acceleration factor in 1 1000 Addition 20 the additional acceleration factor in 1 1000 Limit 200 the acceleration factor limit in 1 1000
247. tware In the Commodity Tab right click on the contract in the Active Charts list A quick menu will open giving you the option of Deleting the Chart or Exporting the Data Select the Export Data option and a Save Window will open Type a name in the File name section and then select a save location with the Save in drop down menu This option will save your data for the selected contract in a csv or comma separated value file This file can be opened by a spreadsheet type application Exporting from the ASCII Data Download Website If you are interested in downloading multiple Commodities and contracts along with customizing the data format visit the ASCII Data Download Website at http ascii geckosoftware com Firewalls A firewall is a piece of software or hardware that protects your computer from other people accessing your computer from the Internet A firewall only allows basic types of Internet and Network communications such as surfing the Internet When you log onto the Internet or your network you are open to attacks from other people Although attacks are rare they do pose a big enough threat to warrant the protection or a firewall Track n Trade Pro uses a special utility called the Data Downloader or FIDO to download the current market data and update the charts The Data Downloader does not use conventional means to download the data in order to speed up the downloading process Because of this Track n
248. ue for the current period JoDSLOWITt 1 The slow for the previous period JoKSLOWt 1 The slow for the previous period The values 2 and 3 are the smoothing constants You may select different values Customizing To change the settings of this indicator open the Program Options screen by clicking the Program Options button located on the main Toolbar See the Program Options section for more details on changing the settings Dieser BI E oi VOL OI Volume Open Interest Introduction Volume is a measurement of the number of contracts traded in a day It is a sign of market activity Open Interest is the number of contracts outstanding or those held overnight This is a measure of market participation In liquid markets these numbers will be consistently higher than in a thin or illiquid market These numbers are always a day behind because it takes the exchange that long to tabulate these figures When displayed Track n Trade offsets these values to put them beneath their respective data in the chart consequently there is not a value for either volume or open interest for the most recent day of any contract Volume and Open Interest indicate participation and urgency This tells the trader which market is the correct one to be in based on its participation Interpretation Volume measures the number of contracts that changed hands during that trading session This indicator of market activity can show whether tra
249. ults To restore the margins to software defaults click on the Restore factory defaults button Track n Trade Pro 4 0 User Manual 300 Indicators Plus Plug in Introduction The Indicators Plug Plug in includes added studies and indicator buy sell signals Corn Dec 2001Z 285 50 4 261 00 fil i j 5 25675 E l ML j i i 252 25 247 75 53 243 50 239 00 234 50 2 230 25 22575 221 25 21700 212 50 208 25 203 75 199 25 L Pie Rus ee 2001 Feb 2001 2001 2001 2001 Jun 2001 Jul 2001 Aug 2001 Sep 2001 Oct 20 Buy Sell Signals Many of the indicators included in Track n Trade Pro have buy sell signals Using the Indicator Plus Plug in users will be able to view these signals on the chart The indicators that have buy sell signals are e AD Williams Accumulation Distribution CCI Commodity Channel Index DMI Directional Movement Index MACD Moving Average Convergence Divergence MOM Momentum YR Williams Percent R RSI Relative Strength Index FSTO Fast Stochastics SSTO Slow Stochastics Displaying the Indicators Plus Plug in To display the Indicators Plus Plug
250. ur mouse position when your mouse pointer is over the Chart Window The last day shown on the chart The cursor bar is also available in a floating tool bar see the View menu KEYBOARD SHORTCUTS QUICK REFERENCE CTRL and 7 CTRL and J CTRL and CTRL and gt Page Up Page Down Ctrl and Page Up CTRL and Page Down e gt HOME END SHIFT DELETE TAB SHIFT and TAB CTRL F9 Scroll Chart Up Scroll Chart Down Scroll Chart left Scroll Chart Right Half Screen Scroll Up Half Screen Scroll Down Quarter Screen Scroll Up Quarter Screen Scroll Down Step Chart Back 1 Tic Step Chart Forward 1 Tic Step Chart to Beginning Step Chart to End of Data Highlight Day Under Cursor Delete Selected Tool Move to next open Chart Move to previous chart Lock tool to 45 or 90 Degrees Increment Calculator Decrement Calculator Toggle for text on Chart Pivot Points Indicator Toggle key for showing the Control Panel TRACK N TRADE PRO VERSION 4 0 Accumulating Wealth One Tic at a Time amp CREATING GHARTBOOKS FROM START TO FINISH Section 2 Creating Chartbooks from Start to Finish Track n Trade Pro 4 0 User Manual 42 cton 2 creating UnartdoooKS otari to FIhnISI CREATING CHARTBOOKS FROM START TO FINISH All you need to know about creating your own Chartbooks Introduction Just like a novel is made up of many single pages a Chartbook contains many individual charts Track n Tr
251. ut Ac LER ab i di 224 My Default 5 228 T 229 Bollinger Band ssa deed bea ain 230 yim T 232 Moving Averages 233 m UU TT 234 PSAR Wilder s Parabolic 235 Scaling amp te a 236 AD Williams Accumulation Distribution 237 CCI Commodity Channel 238 DMI ADX Directional Movement Index 239 HVOL Historic Volatility 02 2112 241 MACD Moving Average Convergence Divergence 242 MOM Momentum sais 244 YR Williams Percent R E 245 RSI Relative Strength Index 246 STO Stochastics 5 0 247 VOL OI Volume and Open Interest 250 252 Current Chart Settings 253 Accounting amp Simulator Plug in 254 N V CC D e 260 Deposits and Withdrawals
252. vailable Funds Current Position 223 90 0 00 50 00 218750 2237 90 0 00 50 00 2187 50 r50 00 Long 1 Date Comm Details r110 20 2 Deposit Amount 10000 00 1072122 w200 1 335 75 STP Filled 12 12 2003 3917 50 0 00 100 00 3817 50 3917 50 0 00 1 00 00 3817 50 13817 50 1850 00 11967 50 2 Lang Short Placed 10 20 2003 c 335 75 T 10 31 2 W200 Sell 353 25 STP Open ET 11 2572 00 Sell 1330 00 STF Open E 122122 CC200 Buy 1 1489 00 STF Filled 1506 00 11 25 2003 1489 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 Current Position Market position not in market long or short Er Color Codes Green Filled Yellow Placed Red Placed but in the future Faded Order exists but was deleted from the chart Gray The chart that this order was placed on was deleted from the Chartbook Letter Codes W Withdrawal D Deposit Buy S Sell Orders are also noted on the commodity tab The following symbols represent the different orders placed Hy Commodities f lel Available Charts Sort by Commodity Ascending 15
253. w you to make decisions before things happen giving you a blueprint for trading before entering the market A basic trading plan should include the following features as a minimum Trade entry Initial risk or stop loss point Criteria for stop loss movement Criteria for profitable trade exit Once you have developed your trading plan put it to the test by Paper Trading Paper Trading is fictitious trading or simulated trading best done using Gecko Software s Track n Trade Pro market simulator program in which you simulate buying and selling futures contracts therefore not risking real money The whole purpose of paper trading is to be as realistic as possible when doing it It does no good to practice trading with a million dollars if you are going to start with 10 000 Don t practice your trading in the S amp P if you are intending to actually trade Corn Keep your practice as realistic as possible The one major downfall to paper trading is that it does not involve real money It is very easy to live through a fictitious losing streak but quite different to live through it when it is your money on the line Because paper trading does not involve real money your emotions are kept at bay but tend to creep up when real money is involved Gecko Software s Track n Trade Pro Charting Program comes with over 25 years of historical data on over 50 different markets allowing you to learn the markets and develop a trading pl
254. wn 100 Rt The percent of the range for the current period Highn The highest price during the past n trading periods Closet The closing price for the current period Lown The lowest price during the past n trading periods n The length of the interval Example Assume the market is Treasury Bills The high for the past ten trading intervals is 9275 and the low is 9125 The closing price in the current period is 9267 If you substitute those values in the equation you get YR 9275 9267 9275 9125 100 8 150 100 5 33 Updated Formula Rt Closet Lown Highn Lown 100 Customizing To change the settings of this indicator open the Program Options screen by clicking the Program Options button located on the main Toolbar See the Program Options section for more details on changing the settings Dieser oi AD Williams AD Introduction Larry Williams created this indicator in an attempt to measure market pressures It specifically looks for a difference in price and then measures that difference It is a tool used to measure market sentiment and strength The key is to look for strong differences in what the market does as opposed to what the indicator does Looking for substantial divergence from the AD index versus the underlying chart is the key to future price direction Interpretation The indicator is computed by taking the previous days close an
255. you will need to also 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 1 Select either the Call or Put Accounting Tool Click onto the futures chart and hold down the mouse button 3 When you drag the order tool along the futures chart you will notice that the cursor skips from striker price to strike price When you have reached the desired strike price release the mouse and the Options Order Window will open 1 2 3 po 11 Options Orders 1 2 Commodity 20032 Date Friday December 12 2003 3 4 Quantity 5 Strike 6 Brokerage fee this trade each 10 00 Buy 1 390 00 Put 7 8 Premium 16 0000 Contingency Order 10 9 Value 300 00 Futures price breaks Total 300 00 On Screen Text 11 Example Buy 1 Put Cancel The Options Orders window allows you to specify Commodity This is the commodity Symbol for the chart Value pre filled when placing on chart Date This is the date of the futures chart that the option is placed on Value pre filled when placing on chart BUY or SELL Click on the dropdown menu to chan
256. your reference point Any value less than 100 suggests a short position while a rise above 100 tells you to liquidate your short position Interpretation Generally followers of the CCI look to establish long positions when the CCI exceeds the 100 level indicating that prices are in a strong up trend Generally most users of this indicator also try to look for patterns with in the indicator such as higher highs and look for CCI movements to be confirmed by general price readings as well Standard interpretation calls for long positions once initiated on the upward exceeding of the 100 level to be held until the falls back below 85 at which time positions are exited as the market has stopped trending upward Short positions are generally established when the CCI goes lower than 100 indicating that prices are in a strong down trend Like long positions most users of this indicator try to watch out for patterns within the CCI itself to confirm the downward trend and also look for confirmation from lower prices on the chart itself Once a short position is established the original interpretation of this indicator calls for holding the position until the index climbs above 85 to the upside at which time short positions should be covered The purpose of the CCI index is to try to keep you out of the market during consolidation or weak trending periods By measuring the difference average prices versus mean average p

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