U.S.

E-mini Index futures and European Index futures

Quick Start Guide
5 April 2011

New Trader
If you are new to trading or to MTPredictor (or both), you should start by following the Standard
Trade Guidelines for trade entry and trade management. When you become more experienced, you
can move up to more advanced trade setups.

Trade Entry
Enter trades that fall in the direction of the STF. Red for a downtrend; black for flat; blue for an
uptrend.

Initial Risk
Typically, we suggest limiting your risk to 1% or 2% per trade. However, for inexperienced traders,
we suggest paper-trading until you become familiar with the setups.
While you gain experience, use the smaller 1% risk. Use the full 2% only once you become
comfortable with the setups and their trade management.

Trade Management
Exit the trade at the first target if the STF is weak (the STF is less than its Strength Band). Swap to
trail using the ATR Stop if the STF is strong (the STF is past its Strength Band).

Note
DPs (Decision Points™) - caution should be used on DPs as they are trend-termination setups and, by
definition, are higher risk than the normal TS1/2/3/4 setups.

Advanced Trader
Advanced Traders can start to move up the Techniques Curve™ and use more advanced techniques.

“Holy Grail”
Disregard the STF colour. Check the larger-degree trend - especially check that the start of the
sequence falls at larger-degree support or resistance.
Swap to using the Typical Wave 3 as the first target. The assumption is that the setup is a Wave (2)
so you anticipate a strong Wave (3) move.

Larger-degree trend
Use DPs and WPTs on charts approximately 5x greater than the timeframe you are trading, for
example 15min when trading on 3min and 5min Charts. Disregard the STF colour and look to trade in
the direction of the larger-degree trend.

100% initial risk

Move the initial protective stop to break-even after the 100% Initial Risk level has been reached
when you are unsure about the larger-degree trend direction.
Additional Trade Setups and Tips
Advanced Traders can also start to look for additional trade setups.

High Volume (VSA) spikes

Use DPs together with High Volume (VSA) spikes to identify fake-outs at important highs and lows.
Use the opposing DP for the first target.

End of Wave (5)

Trade off the end of a Wave (5) only if this also falls at larger-degree support or resistance. Initial
target is the DP from the prior minor Wave (4) swing.

Minor Wave b
Minor support or resistance can be found at the DP from the prior minor Wave b swing (if it is an
Intermediate level swing). If reached, stops should be at break-even.

FAQs - answers to common questions

What happens if I get the same signal (Buy or Sell) at the same time on more than one of the
correlated markets?
Prioritise by contract volume (or liquidity) - look at the most liquid contract first. In the US E-minis,
this would be the ES, then NQ, then TF, then YM.

Should I ever “double up”?

Only if you have your stop on your initial position at break-even - so any additional positions (in the
same direction) do NOT increase your Initial Risk to above the recommended 1-2% maximum.

What timeframes should I trade?

We like the 3min and 5min for setups and the 15min for the larger-degree trend. Trade using the
“day session only”, which is 9:30am EST to 4:15pm EST (New York time). In addition, Advanced
Traders can check setups that appear early in the session using 24hr data. We do not suggest time
frames as short as 1min, as these contain far too much noise.

What happens if I am in a trade and I get an “opposing signal”?

As a New Trader, you would “stop and reverse” as long as the opposing signal is in the same market
and on the same timeframe. Advanced Traders can look at the larger-degree trend for guidance.

Thanks and good trading…

The team at MTPredictor

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