WELCOME TO THE

ELITE STOCK
TRADING COLLEGE
WEEK #3

STOCK
STRATEGY #4

DISCLAIMER
Hypothetical or simulated performance results have
certain inherent limitations unlike actual performance
record: simulated results do no not represent actual
trading. Also, since the trades have not actually been
executed, the results may have under- or
overcompensated of the impact, if any, of certain market
factors, such as lack of liquidity. Simulated trading
programs in general are also subject to the fact that they
are designed with the benefit of hindsight. No
presentation is being made that any account will or is
likely to achieve profits or losses similar to those
predicted or shown.

MY GOAL IS TO TEACH
YOU HOW TO TRADE
WITH THE

SPECIALISTS EDGE

WEEK #2

REVIEW

STOCK COLLEGE WEEK #2

Strategy #1 Highlights / Donchian Indicator
Intensity Level = 2
Designed To Trade Pullbacks For Swing Trading

Aggressive Version / Conservative Version

Trading Variations / Indicator Settings

Homework Assignment

STOCK
STRATEGY #4

Strategy #4 Highlights

Strategy Is Based On Concepts #1 and #2

Designed to Trade Quick Momentum Moves
Intensity Level (1-3): 2
Main Indicator Buy/Sell Line
Only One Standard Version - Quick Gains
Any Time Frame / Any Direction / Any Market
Learn the FULL Strategy Paper Trade First!
The Specialists Edge - Consistency

STRATEGY #4
INDICATORS
50-period Simple Moving Average (sma)

STANDARD
VERSION
All Members (Beginners Advanced)
Pattern Recognition Strategy
Traders Looking To Catch Quick Momentum Moves

STRATEGY #4 RULES - BUYS

TIME FRAMES: (ALL TIME FRAMES)
STRATEGY RULES:
1. Price must be above the 50-period sma.
2. Look to buy when a price bar closes in the top 25% of its range.
(SET UP BAR)
3. Either the SET UP BAR or the bar previous to the SET UP BAR is
the lowest low or equal to the lowest low of the last 5 bars.
4. Enter to buy when price trades 1 tick above the SET UP bars high.
(If the price bar does NOT trade 1 tick above the SET UP bars high
on the next bar, then negate the trade).
5. Place protective stop below the lowest low of the pullback.
6. Sell (exit) at the 200% Range Extension of the SET UP BAR.

STEP BY STEP

Step 1
Price must be above the 50-period sma.

Step 2
Look to buy when a price bar closes in the
top 25% of its range.
(SET UP BAR)

25%

SET-UP BAR

Step 3
Either the SET UP BAR or the
bar previous to the SET UP BAR
is the lowest low or equal to the lowest low
of the last 5 bars.

Step 4
Enter to buy when price trades 1 tick above
the SET UP BARS high.
(If the price bar does NOT trade 1 tick above the
SET UP bars high on the next bar,
then negate the trade).

ENTER

Step 5
Place protective stop below the
lowest low of the pullback.

ENTER

ENTER

STOP

Step 6
Sell (exit) when price reaches the
200% Range Extension of the Set-Up Bar.

ENTER

STOP

100%
ENTER

STOP

200%

100%
ENTER

STOP

EXIT

200%

100%
ENTER

STOP

EXIT

200%

100%
ENTER

STOP

EXIT

200%

100%
ENTER

STOP

EXIT

200%

100%
ENTER

STOP

EXIT

200%

100%
ENTER

STOP

+1.48 pts.

EXIT

200%

100%
ENTER

STOP

STRATEGY #4
SELL RULES

STRATEGY #4 RULES - SELLS

TIME FRAMES: (ALL TIME FRAMES)
STRATEGY RULES:
1. Price must be below the 50-period sma.
2. Look to sell when a price bar closes in the lower 25% of its range.
(SET UP BAR)
3. Either the SET UP BAR or the bar previous to the SET UP BAR is
the highest high or equal to the highest high of the last 5 bars.
4. Enter to sell short when price trades 1 tick below the SET UP bars
low. (If the price bar does NOT trade 1 tick below the SET UP bars
low on the next bar, then negate the trade).
5. Place protective stop above the high of the pullback.
6. Cover (exit) at the 200% Range Extension of the SET UP BAR.

+.99 pts.

STOP

100%

200%

ENTER

MORE
STRATEGY #4
TRADE EXAMPLES

ENTER
26.01

+1.87 pts.

ENTER
24.43

ENTER
25.13

ENTER
23.83

STOP

ENTER
23.71

ENTER
23.56
STOP
STOP

+9.79 pts.
EXIT
225.35

200%

ENTER
215.56

STOP

+1.16 pts.

STOP

ENTER 36.11

200%
EXIT 34.95

+1.57 pts.

+1.20 pts.

EXIT
156.93

EXIT
156.98
200%

200%

ENTER
155.78

ENTER
155.36

STOP
STOP

+7.34 pts.
EXIT
110.44
200%

ENTER
103.10
STOP

+28.35 pts.

+15.26 pts.

STOP

STOP

ENTER
441.61

200%
200%

EXIT
413.26

ENTER
450.47

EXIT
435.21

+4.01 pts.

200%

EXIT
43.36
ENTER
39.35

STOP

STRATEGY #4
50% RULE

50% Rule (suggestion)

You have the option to move your stop to
unchanged once price travels half the
distance to the exit point

EXIT ?

ENTER

STOP

EXIT ?
50%
ENTER

STOP

EXIT ?
50%
ENTER

STOP

STOP

ENTER

EXIT ?

STOP

ENTER
50%
EXIT ?

STOP

ENTER
50%
EXIT ?

HOW I TRADE
STRATEGY #4

MY STRATEGY #4

All Charts Intra-day, Daily

Steep ascending/descending 50-period sma
Only take signals closest to or touching the 50 sma
Enter with limit orders
Standard stop placement, 50% rule
Exit entire position at 200% range extension
Variation - Exit half my position at 50% point, exit
balance at 200% RE

+.50 pts.
EXIT

ENTER
STOP

+.50 pts.
EXIT

50%

ENTER
STOP

+.50 pts.
EXIT

50%

ENTER
STOP

POINTS TO
REMEMBER

Be Mindful of the 50 sma

1
2

3
4

EXIT ?

ENTER

1
2

3
4

EXIT ?

ENTER

1
2

3
4

EXIT ?

ENTER

1
2

3
4

Advanced Traders
Place Your Protective Stop
Below
The Set-Up Bar

ENTER

STOP

ENTER

STOP

ENTER

STOP

STOP

ENTER

STOP

ENTER

Advanced Traders Exit

When Price Reaches the
200%, 300%, and 400%
Range Extension of the
Set-Up Bar

+2.90 pts.

400% EXIT

+1.93 pts.

300% EXIT

+.96 pts.

200% EXIT

ENTER

STOP

STOP

ENTER

+.83 pts.

+1.67 pts.

+2.51 pts.

200% EXIT

300% EXIT

400% EXIT

STRATEGY #4 REVIEW

Strategy Is Based On Concepts #1 and #2

Designed to Trade Quick Momentum Moves
Intensity Level (1-3): 2
Main Indicator Buy/Sell Line
Only One Standard Version - Quick Gains
Any Time Frame / Any Direction / Any Market
Learn the FULL Strategy Paper Trade First!
The Specialists Edge - Consistency

HOMEWORK
ASSIGNMENT

IDENTIFY RECENT
STRATEGY #4 TRADE
Time Frame ANY
1. Buy or Sell?
2. Identify Price of Entry, Stop Placement, and Exit Price.
3. Profit or Loss?

MY GOAL IS TO TEACH
YOU HOW TO TRADE
WITH THE

SPECIALISTS EDGE

ELITE EMINI
TRADING COLLEGE
WEEK #4
STRATEGY #8

QUESTIONS
stevenprimo@specialisttrading.com
brettm@specialisttrading.com

1-310-844-7220

DISCLAIMER
Hypothetical or simulated performance results have
certain inherent limitations unlike actual performance
record: simulated results do no not represent actual
trading. Also, since the trades have not actually been
executed, the results may have under- or
overcompensated of the impact, if any, of certain market
factors, such as lack of liquidity. Simulated trading
programs in general are also subject to the fact that they
are designed with the benefit of hindsight. No
presentation is being made that any account will or is
likely to achieve profits or losses similar to those
predicted or shown.