After reading through some of the content and trading recaps here at Samurai Trading Academy you likely want to know a bit more about how we trade. Our day trading system is one that provides structure and objective rules to the trading newcomer but also offers a great deal of flexibility for the experienced trader that allows them to maximize their results. This combination not only allows for exceptional consistency for those who are still developing as traders but gives the freedom that market veterans need to quickly change their approach based on market conditions.
The Importance of an Adaptive Day Trading System
Our trading approach has been designed with adaptability and long-term profitability in mind. As anyone who has been in the markets for an extended amount of time can tell you, markets change and a trader must know how to respond otherwise they risk being left behind. There's always a new "magic" indicator out there that can predict the past with perfect accuracy but they all inevitably fail at some point in the future. In order to be consistently profitable on a daily and weekly basis, we need to do things differently.
Instead of focusing on increasing complexity and adding more and more indicators, we take the opposite approach. We strive to keep things simple by focusing on price and the market momentum while only using some basic indicators to help us quickly assess the overall market picture. As Leonardo Di Vinci said, "simplicity is the ultimate sophistication". We keep our charts clean and easy to read so that we can quickly adapt to what is actually happening NOW rather than indicators that are lagging in the past.
There are massive benefits to this approach. For one, learning to read price and trade momentum the way we do at Samurai Trading Academy allows you to trade any market with success. While we put most of our focus on the Emini S&P 500 (ES) futures market, the understanding of price and movement can be applied effectively anywhere. These techniques also allow us to be highly adaptable to any kind of market conditions.
Many traders who focus on indicators alone struggle to quickly adapt when the markets are shifting. Some systems do well in ranges, others in trends, but few are profitable in both market types or in the transition between them. By using price and momentum to effectively find high quality trading setups we are able to trade well in almost any condition the market presents us with. This leads to remarkable consistency on a weekly basis and as experience is gained a trader can have expectations of making excellent profits almost every day.
The goal at Samurai Trading Academy is for our traders to make 10-15 points of profit per week with the STA Trading System.
To get a better idea of how we achieve that with examples of typical trades, using margin and leverage, and a look at the potential income for day traders I encourage you to read Part 3 of our Emini Day Trading Series called How Money is Made as an Emini Day Trader.
Features of Our Trading Approach
Many retail traders rely on time-based charts (like the 5 Minute, 15 Minute or 4 Hour) but there are considerable advantages to looking outside conventional charts. We use Tick charts which print a new bar every time a set number of transactions have been completed in the marketplace. This separation from time allows us to see many of the finer details of price. Where a 15 minute chart might hide some of the order flow that is important to us as day traders, a Tick chart allows us to see these reactions clearly so we can plan accordingly in the future.
Two or Three Indicators
Trading well has little to do with the number of indicators on your charts - it's all about how you use them! Many people think that adding complexity and additional indicators to their charts will improve their results but this is rarely the case. All it leads to is "paralysis by analysis" where numerous indicators give conflicting readings making it nearly impossible to trade effectively. We keep our necessary indicators to a minimum so that we can focus on market momentum and price without additional distraction. STA traders use this minimalist approach as it helps them to quickly assess the market and make high quality trading decisions without unnecessary distraction.
A Single Market
All new traders at Samurai Trading Academy focus on a single market: the Emini S&P 500 (ES). While an experienced trader can potentially trade others as well, there are considerable benefits to focusing on just a single market during a trader's development and beyond. The Emini S&P 500 is an ideal market for developing traders because it has good volatility (not too high or low), smooth trending price action, and maintains high profit potential throughout the entire day. The ES market is also extremely large with excellent liquidity, so many of those who turn professional continue to trade it long-term because it can easily accommodate their large position sizes.
One Screen, One Chart
There are a lot of advantages to trading the way we do but perhaps none of them are as compelling as having a single chart setup that only requires one screen. This allows us to trade from anywhere in the world where we have a decent internet connection. Having complete freedom and mobility in your career is extremely valuable as it allows you to live whatever lifestyle you desire. Instead of needing to be around your multi-screen home office trading computer you can do your work effectively with a laptop from a huge variety of locations.
Interested in the STA Training Program?
The STA Training Program is a 3 month training course meant for those who want to become consistently profitable day traders. It includes a comprehensive written curriculum, our day trading system, live market training, along with personal coaching and mentoring. You can find out more about the STA Training Program here. You can also use the menu bar at the top of the screen to view our FAQ and some testimonials from our STA students.
Thanks for your interest and we look forward to helping you achieve your trading goals!