Congratulations !
The strategies you are going to learn is
extremely robust and with practice and
diligence you should be able to achieve
75-80% accuracy on your trades.
Peace Of Mind
When we get a signal to enter the market it
generally goes in our direction right away,
thereby helping to keep our minds
Calm and Clear
and ready to take the Profit !
This strategy is extremely
*ACCURATE*
It never has a loser
that is greater than the average of the winners.
If you are day trading and you stick to the
set up and exit rules,
you will find that almost
every day is profitable.
Losing days are rare.
AUCTION EQUILIBRIUM
真意本難移 浮沉千百因
水流石不轉 異價演平衡
• What you should know
INTRODUCTION
• Few traders seem to know how to use
Equilibrium in their trading, yet
Equilibrium trading is possibly
the safest way to trade of any other
method we have encountered.
A mature trader will take Equilibrium
trading into consideration as at least
one skill of Making A Living.
INTRODUTION
• You may think that Equilibrium trading is
only for futures traders. But thinking that
way is incorrect. You‘ll see as we go along,
that there are opportunities for Equilibrium
even for stock traders. And of course, these
days, stocks can be traded either through
the equity markets or through the futures
market. Equilibrium has gone much further
than its original intent.
WHAT IS EQUILIBRIUM
•
Both Stocks and Futures markets are Auction
markets. Auction markets have a price-based
bid-ask format. Price and value are only loosely
related. Price traces the activity, but value
reveals the meaning of the activity. Value is the
dominant variable in markets. Demand drives
value.
Change in value reveals demand, demand
reveals the state of Market Balance.
The changing state of Market Balance
is what we call Auction Equilibrium.
WHY EQUILIBRIUM EXIST
•
Time is the arbiter of value. Track a market
throughout the day and you will note that some
prices occur infrequently while prices somewhere
in the day's range are traded again and again. The
high volume region are the winners of the day's
popularity contest. Typically, the distribution of
price over time, i.e. volume, maps out a track of
perceived value through various time of a trading
period. Heaviest trading is near the central price,
smoothing out to low volume near the high and low.
Prices around the center are the ones traders see
as 'fair', where they perceive value; where the
overwhelming majority of trading occurs. The
distribution of price and volume describes an
Equilibrium.
DistributionThe basic building block for trading strategy
• Distribution of price and time and volume
serves as the basic building block from which
all market activity develops, let’s have a look
at that…
DistributionThe basic building block for trading strategy
• At times a market has just jump from a price to
another. Along the track price jumps, parites of
bid and offer sides shake hands for deals done.
Continuous jumps of
prices cause the deals
done from high to low
and low to high etc.
The time to complete
a series of deals until a Value Perception is
apparent varies from market conditions.
DistributionThe basic building block for trading strategy
• Each trader in the event responds in his own way,
in his own time frame. This response also
appears to all as a change in market behavior,
collectively maybe up, maybe down or maybe no
change. Each of us individually cannot know what
is going to happen because those who are
effecting the change by trading are just making up
their minds.
Until they make up their minds,
we cannot know which way it will go.
That activities in the time zone for the
market to make up its mind is
Distribution, most typically in the
order of 15 to 30 minutes, Daily to
Weekly etc., depends on the timeframe
used by the observer.
DistributionThe basic building block for trading strategy
• Trading is a 'me against the rest of you' situation. In a
zero sum game (no fees and commissions) the losers
buy the winners beer. Mis- direction is a valid strategy.
The old saying "if you want to sell a thousand
contracts, first buy one hundred" illustrates a strategy.
By making others believe
the market is taking an upturn,
it becomes easier to sell a large
holding. If we understand the
Value Situation, that the buying
of
the hundred was done without any apparent change
in value, it is easier to avoid such traps.
Distributionthe distribution is going to change...
• Trading and investing depend upon change for
successful results. If there were no change there
would be no opportunity. The greatest opportunities
as well as greatest moments of risk are at the
moment of change. As traders and investors, our
job is to identify the likelihood of change. Change is
a process that occurs over time;
once change is recognized,
the change process has been
occurring for some time.
Distributionthe distribution is going to change...
• Successful traders seek to increase their ability to
control and manage risk, not returns. Traders
control risk through trade location. Trade location
includes, based on the trader’s timeframe,
• Where the market offers the greatest opportunity
based on the market’s directional bias, the
conviction of that directional bias depends on the
Distribution within the
defined key zones.
• When to execute a Profitable trade
is according to the
market’s communication
of potential or probable
continuation or change.
Distributionis going to let us know...
• What’s Above and What’s Below the
Current Market Activity.
• What the market is currently doing
and what it’s trying to do.
• What the market achieved and what it
failed to achieve.
• And, the ‘why’s’ behind the displayed
information.
What Equilibrium Do
• Equilibrium takes much of the risk out of
trading the futures markets…
• Equilibrium, when used properly, takes away
much of the uncertainty for both stocks and
futures traders.
• Helps to stabilize emotions for trader
• Let trader see the market like a MAP.
THE RATIONALE FOR
EQUILIBRIUM
• The resulting MAP permits the trader to understand
the migration of value and the market's condition
within which the value change is taking place. This
knowledge answers the "what is the market saying"
question.
• "should I take what I have and run, or
should I hold in hope of additional
appreciation?". Our next thought
usually is: "I wish I knew what the
market is telling me".
EQUILIBRIUM –
ANOTHER WAY TO TRADE
•
•
•
The speculator is willing to accept the risk of price
fluctuation in return for the greater leverage that
comes with that risk in the hopes of earning a
greater profit. The true speculator makes his trading
decisions based on two things....
When is a trend starting and when is it ending?
Equilibrium terms the question as when does value
begin to change and when is the value change over?
Value is tracked with the Map integrated by Moving
Prices .
EQUILIBRIUM –
ANOTHER WAY TO TRADE
•
•
In the seminar we will first develop the theory to get
a clear picture of general market structure and let
that knowledge guide our market analysis. Then we
will apply the theory to develop trading strategy,
including risk. The process is illustrated by walking
through real world examples. Within the practical
framework.
Equilibrium alone are not adequate to develop
trading strategies. Additional auction market
techniques can buttress and augment those
strategic decisions.
EQUILIBRIUM –
ANOTHER WAY TO TRADE
• The gambler makes his trading decisions on
gut feelings, hopes, dreams of getting rich
quick, tips from the broker, “inside
information” from friends, and from the
improper understanding and use of
indicators, oscillators, moving averages, and
mechanical trading systems. In general, he
is looking for a way to shortcut having to
truly learn what is going on.
Unfortunately, most people who
attempt to trade fall into this category.
EQUILIBRIUM –
ANOTHER WAY TO TRADE
•
An Equilibrium Trader are alerted to the potential
start of a trend at the breakout. Further, the range of
the balance region, coupled with the auction of the
price - volume distribution, estimates trading risk.
Day traders get a directional cue from the balance.
They should look to be a short seller of downturns
near the top and a buyer on upturns near the
bottom. On breakout, the day trader knows to
switch, and to now trade in the direction of the trend
(e.g. seeking local bottoms in up trends).
EQUILIBRIUM –
ANOTHER WAY TO TRADE
• For Example, an
EquilbriumTrader
may take the
minimal risk of the
market balance,
and catch a trend.
EQUILIBRIUM –
ANOTHER WAY TO TRADE
• He can just as easily trade the Range
Market between narrow ups and downs.
EQUILIBRIUM –
ANOTHER WAY TO TRADE
•
Obviously, the risk taken for the trade is far less than the
risk taken by mechanical trading. This is because
Equilibrium let us know which strategy we should try to
take, that is, Directional or Non-directional.
Benefit of EquilibriumDramatic Trending
•
•
Equilibrium tend to
prognosticate the
coming of dramatic
trend than any other
trading tools.
Once it prognosticate a
trend, a trader can
simply take One Sided
trades all the way
along the trend. This
makes trading easy
and simple and safe.
Benefit of EquilibriumEliminate the problem of stop running.
• You are positioned
on the side Market Movers
are taking control. They are
not likely to run your stops.
In that respect, Eq trading
is a more pure form of trading.
The lack of stop running is
not a guarantee that you
will win, but it does provide
the trader a more level playing field.
Benefit of EquilibriumEliminate the problem associated with
lack of liquidity.
• The surest way
to encounter serious
stop running and
bizarre price movements
is to attempt to trade in
“thin”(illiquid)markets.
Equilibrium shows you
• the region where market tend to be “thin”, so
that you do not suffer from a lack of liquidity,
thereby creating many more trading
opportunities than does trading in any other
systems.
Benefit of EquilibriumEliminate the problem associated with
Direction
• When you enter an outright futures or equity
trade, the position of being long or short are
two in one. You are either right or wrong about
the direction of prices. However, with a
Equilibrium the picture changes considerably.
Let’s take a look at that situation.
Benefit of EquilibriumEliminate the problem associated with
Direction
• When trading an outright, you are
either right or wrong about the direction
of prices.
• When trading Equilibrium, you can still
win even if you were wrong about the
direction of prices as long as you were
not too wrong.
– YOU HAVE MORE CHANCES TO WIN
WITH Equilibrium!
With a Equilibrium you can win under
any of the following conditions.
• If you thought prices would rise, you
could win even if any of the following
happened:
Day Trading Equilibrium-
Day Trading Equilibrium-
Day Trading Equilibrium-
Day Trading Equilibrium-
Day Trading Equilibrium-
Day Trading EquilibriumPrice goes above it,
you decide to go
Short and hit on it !
And price goes
down right away...
Day Trading EquilibriumYou know where
price is heading(the
lower line) and you
prepare to take your
profit ...
Day Trading EquilibriumRight on
target and
you are out...
Day Trading EquilibriumPrice goes up again
and you look for
another profitable
trade ....
again and again,
day after day,
week after week and
year.....
Trading Equilibrium• What have been shown is only a little part of our
Seminar, when you complete the seminar you
grasp a safe and profitable way ....
• Day Trading
Futures, Stocks, Warrants, Options, Forex.....
• Swing Trade by holding overnight position with
larger timeframes...
• The Way to trade is all the same, that is, using
Auction Equilibrium.
BE THERE AS A WINNER!
• Read a market's
Auction Equilibrium
and you can make
reasoned and reasonable
trading decisions.
Auction Equilibrium is
your guide. It is based on
observable facts.
Facts lead to conclusions; to consistent,
intelligent trading strategies.