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Track 'n Trade Bulls 'n Bears Trading System

Trade Demonstration: Swing Trading

Video Transcript

In this Track 'n Trade Trading Training video, I want to talk to you about the Bulls 'n Bears. When we go through what we call a very narrow sideways market, or what we end up getting with a bunch of Whipsaw. Whipsaw is what we call it where the market begins to rally, but then it doesn't. Then it begins to drop, and then doesn't. Then it begins to to rally, again, and then it doesn't. It just goes sideways.

It's easy or me to show you on a nice, big, long, beautiful uptrend, with a beautiful arrow at the bottom of it. Saying, 'Oh, look how wonderful the Bulls 'n Bears is. Didn't we make a lot of money, when this thing rallied just perfectly?!' It's easy for me to show you lots of examples of that. But that's discounting the fact that markets have a tendency to go sideways, more often than they actually trend.

How do get through a market that's going sideways, without losing all of our money, before we can get to one of those big long beautiful trends? You know the saying, and we always say it, you've heard me say it a dozen times: 'Cut your losses short, let your winners run.' What do we do in a scenario like this, where the market just goes sideways for a long time. How do we handle this, so that we don't lose a whole bunch of money? So that when we do get to a nice big long trend, it can then payback the small losers and still give us some profits. That's the name of the game.

Trading is just like playing a game of checkers. In checkers, you don't win every single move, right? You know that you're going to lose some moves, in checkers. In trading, it's the same way. When we trade, we're going to lose some trades. We're not going to win every one. We can't! But we have to be there, so that we know when a market is going to get ready to rally, and go when we want to be there. So that if it does take off, we're there to take advantage of the nice, big, long run. That means we have to take every single signal, if we're going to be a trader, we watch and pick our markets. Then, we have to take every single signal that's given to us. Otherwise, we're going to miss out on the one that pays back all the losers. We want to be very careful, though. When we take these trades, that we don't risk a whole bunch of money. We want to risk a very small amount of money.

We're going to come in here, let's go through this sideways market. I've shown you some beautiful trades in the past videos, of how we get in when the market is trending nicely. Let's go through a nice, narrow, sideways market. Let's see how we can get out to the other end, without losing a whole bunch of money, okay? We know we're not going to make anything through here, right? I mean, I'm upfront, and I'm showing you this is ugly. But we have to be able to trade through this thing, so that we can get to the nice, big, long trade. We don't know when that big, long trade is going to come along. It could be any one of these signals. But we have to be prepared and ready to get to it.

Let's come through and run a scenario where this is really going to rip our wheels off. But see if we can keep it from losing all of our wheels. Let's go through and we're going to come in here now. We've got our Buy Signal, this is a yellow, followed by a green. and it's Bullish Buy Signal. Very nice Buy Signal. Notice that's it's a, it closed higher than opened and it closed higher than yesterday's high. That's a very nice Bullish Buy Signal, we could just go in with a market order, if we wanted to because this is such a Bullish Buy Signal. But I like to use Stop Orders to get into these markets. Here's a Stop, we're just going to place a Stop above that green Price Bar. If it continues higher, we're going to get in. We're going to buy 3 contracts. It's very Bullish.

A lot of people ask ,'Well, Lan, how do you know if you should get in with 1 contract, or 3 contracts?' If I get a really Bullish Buy Signal like this one, where it closed higher than it opened and it closed higher than yesterday's close, and it even closed higher than yesterday's high. That's very Bullish for me. That means I want to go ahead and I'll risk more contracts. It gives me a better feeling of knowing that this is more Bullish. Now, you'll notice that if this is a Bearish Buy Signal, I can still use a Stop. I can still get into the market, if it continues to rise, but I won't get in with as many contracts.

Here's this as an example, where we've got a very Bullish Buy Signal. We're going to put in 3 contracts. We're going to come in and this is where we have to protect ourselves, okay? So we're going to ahead and Confirm that, we're going to step the market forward. We got filled, but it's not a very strong signal. Notice, it didn't go up, it didn't really jump up, like we anticipated with such a strong Buy Signal. Nonetheless, it got us into the market, it's still green. Now we have to protect ourselves. What are we going to do? We're going to come in here, and we're going to put a Sell/Stop of all 3 contracts behind the previous Price Bar. We're going to go ahead and Confirm that. Now, we're to set ourselves up. Just like we did in our Advanced Strategy, in the previous videos. We're going to come in here, and we're going to say, Okay, let's turn on the Parabolic SAR, down here.

Let's go ahead and also go to the Bulls 'n Bears and turn on both sides of the Blue Light System. Were going to wait for this thing, we're going to step it forward, step it forward, oh, nice advance! We're going to come in here, and let me turn off some text here, so we can see a little bit better. Sell 3 contracts, maybe at this point, I want to even..uh...start considering breaking them apart. But I'm going to hold on, one more day. Oh! Look what happened...A bearish Buy Signal or a Bearish Green Signal. It closed lower than it opened, it closed lower than yesterday's close. It almost closed the same as yesterday's close. We're going to sit on this and wait. We're going to say, okay, what's going on here? I don't like this, step the market forward. It's going sideways, again. It's not doing anything good for us. Okay, now that's a nice, that's a nice move. Now I can consider breaking these things apart. Maybe I'll come in here and I'll Edit this order. I'm going to put, we're going to sell 1, right where we're at. Behind the previous Price Bar entry Price Bar's level. Which is almost at the Blue Light System. I'm going to come in here, and I've got that one set to 1. I'm going to go ahead and I'm going to place another Stop. I'm going to place this one.

Let's go ahead and set one more, here to Trail on the Blue Light System. We're gong to confirm that one. We're going to go in and we're going to do another one, right at the same spot, just like we did before. We're going to Sell 1 on the Parabolic SAR, if it catches up to us, right? Remember? We're going to wait until it catches up to up. Notice how they're all on top of each other, it's kind of hard to read? All we have to do to fix that, is we just enlarge the chart. We just blow it up. Now, we've just kind of got a very close in view of what's going on.

We step the market forward. Oh, and thing is coming back against us. the Blue Light System is now trailing. We have 1 Stop set, right behind the previous Price Bar. We have the other ones set. Oh, this one is a Trailing, so it's saying, Are You Sure You Want to Move This? We say, Yes. Still I want it to be right behind the previous Price Bar. I'm going to make that one trailing back to the P-SAR, again. We're going to step forward, and as that market moves in our favor, the Blue Light is continuing moving forward, just like before. We can step this forward, one more time. If that red light would catch up to us, it would start trailing, as well. But look what's happening, the market is starting to come back against us. This is not good. Notice that we now have a Blue Light above, because we put on both, we have a blue light above. We haven't been stopped out, yet. Oh, we just got stopped out. One of our contracts, the one that was falling on the Blue Light System, just got stopped out. It's gone, the market has gone yellow. Step forward, this is not good.

Again, if this market starts to rally, we could even come in here and prepare for the market to rally, and get back in. We can get back in and we can say Buy 1, Trailing Stop. .Based on the Blue Light System, Confirm. In case that thing rallies, we'll get back in with that other position. But it didn't, it took us all the way out. Notice how we were protecting our capital and taking very small losses on each one of these trades.

Now, we're going to come in here and we're going to Delete, we Delete that order. Notice how we were taking very small losses.

We can come back in and we can scale this thing back down to where we were. We can start to move it forward, again. Watch this market: Yellow, yellow, yellow, and of course the Bulls 'n Bears now keeps us out. We've gone yellow, 3, 4, 5, days, week, 2 weeks, now. It's just keeping us out of the market. It's saying, look, this market is not going anywhere, so don't try and trade it. You don't know, there's no reason to get into this market. Oh, now it's saying, okay, now it's giving us an indication that this market is going to start to drop. Well, we can go short in the Forex market, just as easily as we can go long. So we're going to come in here and we're going to stretch this out just a little bit more. We're going to come in here and we're going to place our order. Sell, let's, how strong is this order? It's a Bearish Buy Signal, which is what we want. We want a Bearish Buy Signal. Or excuse me, not a Bearish Buy Signal, but a Bearish Sell Signal. Bearish SELL. Those two things go together. We want to Sell, we want it to be Bearish. It closed lower than it opened, and it Closed lower than yesterday's close, but it did not close lower than yesterday's low. It's not a real strong Sell Signal. Let's only go in with 1 contract, and we can add on, if it continues to drop. So, we're going to go in here with 1 contract. Maybe we'll go in with 2, because it's not completely, it's not a Bullish Sell Signal. It's still a Bearish Sell Signal, it's just not an extremely Bearish Sell Signal. Let's go in with 2 contracts. Let's confirm that. We're going to step the market forward...and we're filled. Nice, nice fill. We're going to come in and we're going to place it behind the previous Price Bar, to buy our 2 back. We're going to confirm that. Now, we're going to step the market forward. We got stopped out immediately. We've taken another loss. Okay, we've taken another small loss. But it's been a small loss. $4,700, that seems like a lot of money. But we're trading a full size account. If we were in a min-account that would be $472. Realize the difference in the leverage in what we're doing here. This is a full size account, and we're taking very small losses, as far as a full size account is concerned.

As this market now moves back and against us, again. Oh, yellow, yellow, now it's gone red, again. Well, that's another Sell Signal. Let's go ahead and take advantage of it. Let's put our order in here. This is a pretty good Sell Signal that closed lower than previous Price Bars low, close, and lower than the previous. So this is a nice Bearish Sell Signal. Let's go ahead with all 3 contracts, Confirm that one. We're going to step into the market. The market came back against us.

Because we used a Stop Order, instead of a Market Order, we didn't get in. We have no risk. The market came back against us, we didn't get in, so we didn't get in. Let's just go ahead, it's still red, but it's a Bullish Sell Signal. Which we don't like Bullish Signals, at all. But it's still a Sell Signal, nonetheless. It's still a red sell Signal, so let's just leave our order where it's at. If we wanted to we could even suck it up a little bit, right here. Let's say, well, maybe if it comes down, we'll get in. Now, it's gone yellow. It's completely yellow, so what we do, is we just come in and go ahead and Delete the order.

We're going to step the market forward, yellow, yellow, yellow, yellow, we do nothing. We sit on the sidelines, we don't trade this. We're out of the market. Yellow, yellow, yellow, yellow, yellow, yellow, yellow, and so this is how we go through this whole process and we start it all over, once again. Protecting ourselves, so that we take very small losses. When this market does finally rally, we're there. We're in the market, we're prepared and we're ready to go.

This is a Bullish Buy Signal. It closed higher than it closed. It closed higher than it opened, it closed higher than yesterday's close and it closed higher than yesterday's high. This one would be very Bullish. We would be very optimistic on this one, that this might be the one that's going to take off to the moon. We would probably enter with 3 contracts, but again, we would protect ourselves so that if we're wrong, we get out with a very small loss.

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