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Example 3: Bulls 'n Bears
In this Track 'n Trade 5.0 Futures Trading Training video, I want to start by demonstrating for you, a simple Bulls 'n Bears trading example.
Now, the Bulls 'n Bears is a very unique indicator, that is an expansion pack to Track 'n Trade. What this expansion pack does, is it has 4 mathematically calculated formulas, that go through and analyze the market for us. Tells us when the market is in an uptrend, tells us when it's in a downtrend, tells us when it's in a neutral trend. Then, it also automatically calculates mathematically calculated placement areas.
Now, in this example you can see that we're looking at the cotton contract. The Bulls 'n Bears is what's turned this market: as you can see green for bullish, yellow for neutral, and red for bearish. Of course, we're using this on long side of the Mac-D indicator. The Mac-D also has the same color encoding. It has red for bearish, green for bullish. Then the Mac-D also throws some little arrow signals up here to help us along way. We like to have confirmation 1 vs. the other.
Now, as this market is coming down, you can see that we have some special rules by the Bulls 'n Bears indicator, and I'm going to flip over to that right now and show you some of the rules.
When we change over from a yellow to a green, which is a bullish buy signal. Notice, that the close is higher than the open and the close is higher than yesterday's close. Optimally, even better, the close is higher than yesterday's high. That would be a Bullish Buy Signal. Of course, we would want to take the opportunity of getting into the market on a bullish buy signal.
A bearish buy signal is one that we're not so favorable about. It's when the green price bar that followed a yellow price bar, lower, is lower than the open, and the close is lower than yesterday's close, and the close is lower than yesterday's high. That's a bearish buy signal. Those are pretty much unfavorable. We want to wait for a confirmation that those markets are going to actually be bullish and turn up.
On the other side, it's just the opposite. A bearish is sell signal would be a yellow followed by a red. Where the red is a price bar where the close is actually lower than the open, lower than yesterday's close and lower than yesterday's low. Bullish sell signal, which is unfavorable, we don't like bullish sell signals. We want to wait for a confirmation on those, where we have a yellow followed by a red. Of course, the red price bar is closing higher than it opened, and closed higher than yesterday's close and closed higher than yesterday's low.
So, this is the quick key to...so this is the quick key to the Bulls 'n Bears guide. Now, I'm going to flip back over to the software. We're going to place just a simple order. We're going to follow along, and we're going to look for an opportunity to make some money on the Bulls 'n Bears. Now, you can see that this would've been a nice opportunity- switching from yellow to red. Getting into the market, following this down until we got stopped out.
Now, we're going to step the market forward, and look for another opportunity to get into the market. There is our signal indicating from the Mac-D indicator that the market is changing over from a bearish to bullish. Now, we're going to wait for the Bulls 'n Bears to confirm. Now, we've gone from yellow to green. That's our Buy signal.
Now, we come in here and we place an order with the Bulls 'n Bears, is we click on the BS button. We place our order in here, as a Stop Order, we're just going to place it above that green Price Bar. We're going to Buy 1 on a Stop. Then, we hit Okay. If that market does continue up, we're going to enter the market. Step forward, and it does not, it comes back against us and turns yellow, again. So, what we're going to do, is we're going to cancel that order. We don't want to be in the market during a neutral position. We step the market forward, we wait for a confirmation. It went yellow, again, and there's another green. Now, we can come back in, come in and place our order. Now, that's a very bullish green, isn't it? It closed higher than it opened, and closed higher than yesterday's close. So, we're going to buy one on a stop. If the market does continue higher, we're going to get into the market. It doesn't, it comes back against us. So, we hold our position and we wait. Next time, now we've got another position. Now, it's green, as well, so we can put our order a little bit closer, right above that Price Bar. Step forward...now, we're in the market. Of course, this is margin call indicating that I forgot to open my account in Track 'n Trade. So, since we are in a time machine, let's come back to May 1st, and deposit $5,000 into the market.
As we step the market forward, we need to also place a Stop Order. I generally like to place a Stop Order in a number of different places. We can place it behind this first green, back in here. We can place it behind the first yellow, or if we come in here, and I am going to cancel this just for a second. We go to the Settings, for the Bulls 'n Bears. We can come in here and we can turn on the Bulls 'n Bears Blue Light System. You can see where it says this would be a good place to calculate your Stop and put your Stop Order.
So, we have a number of different places we could put our trailing stop. Behind the first green, behind the first yellow, which is about the same place as the Blue Light System. So, we can put that right there. I'm just going to put it right there on the Blue Light System. I'm going to Sell 1 on a Stop. I'm going to make it a Trailing Stop, so that it automatically trails up, based on the Bulls 'n Bears Blue Light System. I'm going to hit Okay.
Now, as that market moves forward, you'll see that we will either be stopped out, as that market comes back against us, and hits the Blue Light System. Or as the market continues higher, we will just continue to trail up the market and you can see our profits and losses accumulate on this market. You can see that we're currently in the market, with a $312.00 profit. You can see right where our Stop is at. You can see where we entered the market. As this market continues to move forward this is where we will make our profits and losses. It's very simple just to follow the market up. But as long as it's green, as long as the Blue Light System is trailing behind, we're making money.
We just continue to let the market move forward, in our favor, and once the market reaches the top of it's trend, it'll come down, it will touch the Blue Light System. We will get stopped out. We got stopped out in this position, with a $4,205.00 profit.
That's the Bulls 'n Bears System.
Let's just roll it forward, just for fun, just a little bit more, and you can see this market turned around, it got out. Now, you'll notice how the Blue Light System was able to maximize our profit potential. Just as this market turned around and came back against us, we got a confirmation with the, with the Mac-D. Notice that the Bulls 'n Bears also has it's own arrows. If we come in here and go to Bulls 'n Bears, and we turn on the arrows for the Bulls 'n Bears. We're going to turn those on: Always Show Arrows. We also have confirmation arrows, that work in conjunction with the Mac-D on here. You can see there's a confirmation of the Bulls 'n Bears arrow.
Now, as this market turned yellow, you can see that it's turned sideways. Then, yellow, yellow, yellow, yellow, yellow, and it's gone red. So, that would be a Sell Signal. Of course, you'll notice that we've received a Sell Signal from the Bulls 'n Bears. We have not yet received a confirmation from the, an additional confirmation from the Mac-D. But we just use the Mac-D, to help us confirm 1 vs. the other.
Then, as we step forward, see, we could have taken a short position on this position, and as this market drops, you can see it's gone red. We just stay in the market, while it's red and trail with the Blue Light System.
That's a quick example of how to use the Bulls 'n Bears.