It’s been awhile since my last post, but rightfully so.  I have been extremely busy trading with The Diversified Trading System (DTS).  This is certainly the most powerful system I have ever used and, I have to say, day trading has never been so easy!  DTS packs three signal generators – the Hawk Micro Scalper, the Falcon Swing Trader, and the Eagle Trend Trader.  Each one is designed to do different things according to various market conditions and when combined with Indicator Warehouse’s Profit Manager and Risk Manager it’s unstoppable day trading system.

As many of you know, I am very slow to change ANYTHING on my chart; you also may know that if I tweak a Moving Average, for example, I will sim trade it for at least 100 trades before I consider trading it live.  Four months ago Adam Halpern, the President of Indicator Warehouse asked me to run DTS through the paces.   “Here we go again, the newest, latest, and greatest,” I thought to myself.  I was especially skeptical of the idea of trying to trade one instrument on three signal generators all at once.  I figured it would be too hard, too fast, and too complicated.

Well, I was wrong and here’s what I discovered.

As I gravitated away from my own system, which was very subjective and only provided me with 4 -6 good trading opportunities a day, I started to open my mind to the possibilities of various signals generated on three DIFFERENT charts.  The first thing I noticed was how strong the signals were.  Second was that it was easy to follow the simple set ups and rules.  The cool thing is that DTS gives you an alert/heads up that a trade might be coming your way.  Unless the market is screaming, the heads up alert gives me enough time to get in with a buy or sell stop order.  The Eagle Trend Trader is designed for bigger moves, suggested profit targets of 15 ticks for the first contract, 20 ticks for the second, and possibly a third contract for the runner.  The Eagle offers 1 – 4 entries a day on average.

Next was Falcon Swing Trader – it has the same trade warning system as the Eagle Trend Trader (as does the Hawk): A warning dot, an entry triangle, and an entry hash mark for a buy/sell stop or a market order.  Click the image below to see a larger view.

 

I have to add that I am generally not a big fan of alerts because it seems to me that all you here is annoying noises everywhere but DTS has converted me!  When there is an alert, a calm voice comes on with “swing, trend, scalp” etc. and it only happens when a possible opportunity sets up.  The Falcon Swing Trader is designed for mid-term moves, Indicator Warehouse recommends a first target at 8 ticks, second target at 12 ticks, and a third contract as a runner.

Finally, the Hawk Micro-Scalper.  I gave this signal generator the most stringent, rigid testing of all.  As  we all know, scalping can be a losing trading model and needs to generate a high percentage of winning trades.  The Hawk is a very sharp tool.  If you follow the simple rules and be conservative, taking only the easiest set-ups, with realistic profit targets you’ll do fine.   The Hawk can generate as many as 15 valid trade signals a day!  Indicator Warehouse recommends a 4 tick first target, a 8 tick second target, and as always if trading 3 or more contracts you can have one for a runner.

If you have all three signal generators working with one instrument you could see up to 30 trade signals a day depending on what instrument you are trading!

The million dollar question I often hear is “Ray, do you catch them all”?  The emphatic and honest answer is no!  And I don’t care, I get more than enough trading signals on all three signal generators that most days I can be done the first hour and a half after the regular US Market open and I don’t need to be stressed out about WHEN my next signal will be and I with that many good signals I only ever need to take the good ones!  I’m never tempted by the turkeys anymore.

If you want to learn about DTS, I suggest you grab one of the available free spots for the training which is starting up soon.  Click day trading system to sign up now – you’ll get some great training on DTS.

You also might want to check the video on this post where I show you the the clear signals and how to day trade with DTS.

 

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Reality RoomWe are all traders and we are all individuals with our own unique way of day trading.  Some are profitable, some are not.  Most traders I have met that are profitable all subscribe to simplicity just as I do.  I find the concept of “multi-tasking” to be impossible; how can anyone do two or more things at once competently?  I just don’t get it.  Many will agree that although we can do numerous tasks one at a time, it is difficult to do two things or more at once….at least not without detracting from the other.  For example: my wife calls me in the middle of my trading day and she is immediately “put-off” by my lack of attention to what she has to say.  She notices this and immediately gets on my case or gets off the phone.  Rightfully so, who wants to have a conversation with someone that isn’t really paying attention?

What has always boggled my mind is when a trader contacts me for help and they provide me with a chart that has 20 indicators on it, all needing to line up in order to take a trade.  They may have 12 Moving Averages, a Donchian Channel, and 6 or 7 Occilating Indicators, that is just too much stuff for my simple day trading mind to digest.  The common complaint is that they either miss the trade or they get in so late that it often turns into a loser.  Is it a thought that if all 20 indicators line up they will never lose?  My big question is that with all that information, how in the world they have time to look at all those indicators and have enough time to enter a trade?

Do your charts look like this?

Wouldn’t it be easier to trade with this?

I was once told that your strategy should fit on a business card, otherwise it’s too complicated.  I challenge you to give simplicity in trading a fair shake; you may be surprised!

WARNING: TOO MANY INDICATORS MAY GIVE YOU SEIZURES AND BRAIN DAMMAGE Dribble

With all that said,  I made short video which shows you just how simple your chart can be.  That way you can make quick and ultimately profitable decisions … and isn’t that the whole point?

 

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Day Trading and the Need to Prove Your Technical Indicators to Others

January 24, 2012

So you have finally started to make some consistent profits in your day trading.  You have narrowed it down to onetrading platform, you use a proven day trading system, and your day trading indicatorsare second to none.  Let’s just say that you have been trading this day trading system for months and you are making [...]

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Consistency: It’s not what you think it is.

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I recently had a disturbing conversation with a fellow trader that has had a great deal of difficulty having any kind of success.  I asked the standard questions like “are you a full time trader”, “how many contracts do you trade”, “how bad are your losses”, and so forth.  I came to find out that [...]

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A Little Bit About Me

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Hello, my name is Ray Burke and I have been trading for three years, two-and-a-half of which has been full time.  I have had a fascination with the markets since the mid-eighties and I love Technical Analysis.  Prior to entering into the trading business I was self-employed and ran several businesses, all of which were [...]

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