Trader Mode

EMASAR Trader Mode is currently in beta and is only available to those who have access to Investor Mode. For more information about purchasing Investor Mode please refer to the home page. Trader Mode will be included with Investor Mode until the end of 2020.

Trader Mode is for individuals who prefer to actively trade. Investor Mode is primarily for individuals who want to manage trades that last for months or even years.

Investor Mode words best on the 4h chart in crypto and is a great way to capitalize on the long term trends that occur. It is profitable down to the 5m but I have never believed that it is the best tool for the smaller time frames. It is too prone to whipsaw / chop and the signals can occur too frequently, specifically for markets that are open 24/7. While it may work on smaller timeframes that is not what is was designed for and it is expected to underperform indicators that are designed for day trading.

Trader Mode is well suited for all time frames and all markets. It works for swing trading if using the 1h – D chart in crypto, or 4h – W in traditional markets, and it is also profitable for day trading time frames as low as the 15 second.

Below are the signals from the 15s chart during the day of this writing (5/23/20). I did not cherry pick the best signals I could find. Instead I used the current price action, which just so happens to be in a very choppy environment. Furthermore this is my favorite timeframe / asset for day trading and as a result I was in a position as a result of these signals. Is extremely difficult to make money on a 15s chart and that is most true during periods of chop. Nevertheless EMASAR Trader Mode has consistently been able to do just that.

*PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS*

Green is buy, Red is sell, Black signals reversal. For larger image please click on chart.
XBTUSD: Long | Entry: $9,193.71 | Mark Price: $9,212.92 | Liquidation: $6,885 | Margin: (Cross) | Unrealized PnL: 21.23% (with low leverage) | Realized PnL: Position has realized PnL because XBT is green.
These are the fills from the entry, trim & re entry. Not catching exact tops and bottoms but buying low and selling high on the 15s chart during a period of chop. Also note that my exchange pays a rebate for marker markers (get paid a fee to enter / exit on limit orders)
Left orders on the books to trim more and also entered a hard stop before going to sleep.
All trim order were filled, but that still left a little bit on the table (~25% of the original entry). This capitalized a good amount of profit and still left some exposure on the table in case a big move followed.
The remainder of the position was exited at $9,178 with a stop market. This is slightly lower than the original entry and it included fees for being a taker. Nevertheless this small loss accounted for ~15% of the profit that was already realized. This minor negative change to the bottom line can be worth it when higher timeframes are giving a signal in line with the position. In this case there was a 4h buy signal so I very interested in holding onto some long exposure.

The text below outlines the objective foundation for why I bought and sold at those prices. The exact rules that I use are not provided but a thorough understanding of these concepts will allow one to develop his or her own set of rules.

Terms

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Bull Trend

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Bear Trend

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Purgatory (No Trend)

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When reversals occur in real time it may be difficult for the untrained eye to determine the trend. If you are not 100% confident with identifying the signals in Trader Mode then you can choose to include the pop ups that clearly state the signal and the price at which it triggered.

To do this simply go into settings and choose to ‘Display Signals’.

Settings is located by hovering mouse over indicator and clicking gear icon.

If your panel doesn’t look like this then make sure to select ‘Inputs’ at the top. Once the signals are displayed in Trader Mode the chart should look like this:

For a larger image please click on chart

Notice how the color of the sky, otherwise known as the weather, will change as the trend progresses. The change in weather will go as follows: Clear Skies (blue), Partly Cloudy (light grey), Cloudy (dark grey), Stormy (black). As the trend progresses it becomes more and more exhausted.

When the skies get Stormy then it indicates exhaustion and a reversal is to be expected. It is the best exhaustion indication that I have used and so far it is one of my favorite parts about Trader Mode. Like anything else it is certainly not going to be anywhere near 100% and when it doesn’t lead to a reversal then big continuation moves tend to happen.

The Sky is the trim zone, it is not meant to be a signal to bet against the trend. EMASAR does not signal entries that are against the prevailing trend.

*PAST PERFORMANCE DOES NOT GUARANTEE OR IMPLY FUTURE RESULTS*

For a larger image please click on chart

Markers

One of my favorite parts about Trader Mode are the Markers. The name is derived from the balls that are hung on telephone wires so that planes do not crash into them after taking off, or before a landing.

Markers are critical horizontals that are used to confirm reversals. Markers can also be used for targets and to identify the best areas to enter during a counter trend correction. If these levels aren’t respected after an EMASAR reversal then the price is likely to get tangled up in the EMA’s before failing to take off, just like an airplane that doesn’t respect the Markers strung from telephone wires.

For a larger image please click on chart
For a larger image please click on chart

Bringing It Together

Below outlines the objective signals on the 4h chart on Bitcoin from November 2017 to present. There is a lot going on and much to be aware of. If you don’t understand everything at first then that is okay, even to be expected. It has taken me years to bring this together and I am confident that it is only scratching the surface of what is possible with this indicator.

For a larger image please click on chart
For a larger image please click on chart
For a larger image please click on chart
For a larger image please click on chart
For a larger image please click on chart
For a larger image please click on chart

New Signals vs Original Signals

In order to maximize the profitability from the signals on lower timeframes a significant change was made was made to the original sub conditions that were used to generate the signals in EMASAR 1.2. The change has minimized chop. In theory this comes with a bigger risk but since the new conditions account for time spent at critical levels as well as distance from those prices we have noticed that the negatives are generally nominal when compared to the positives.

The user can chose which signals are used by going to: Settings > Inputs > Use New Signals. If the box is ticked next to ‘Use New Signals’ then it will use the new sub conditions. If that box is not checked then it will use the old sub conditions.

For a larger image please click on chart

After gaining a firm understanding of EMASAR Trader mode the next step will be to outline an objective set of rules so you know exactly when to buy / sell and how much. The next step will be to define the timeframe(s) and asset(s) that you will be trading. A signal is only relevant if it occurs on the timeframe and asset that you are trading.

After establishing rules, timeframe(s) and asset(s) then it is time to establish a daily process so that signals are executed in a timely manner. A signal is only relevant if you execute in a timely manner. The process will mostly depend on the asset and timeframe.

My bread and butter is Bitcoin on the 4h chart. Therefore I need to check the signals a minimum of once per day. I also need to set alerts just in case a signal occurs unexpectedly. This ensures that I can act on signals in a timely manner provided that a big move doesn’t happen in the ~8 hours that I am sleeeping.

Once a process is established it is crucial to designate a nominal amount of money to learn how to trade the new system. This shouldn’t be play money and it shouldn’t be anything more than 1% of available funds (provided that is greater than the min order). It takes time to gain confidence in a new system. Without the necessary confidence it will be next to impossible to execute properly if trading a significant amount of capital.

The first trades should be all about learning and gaining experience. Profiting from the first signals is entirely unimportant (provided that risk is properly managed).

After gaining more confidence in the signals than your personal bias / opinion then you may be ready to start risking an amount of money that is significant. If you aren’t ever able to get to that point then this system is not for you. That is quite alright because there are plenty of other ways to skin this cat. Even (especially!) if you do get to that point you should never risk more than 2% of their bankroll.

EMASAR Trader Mode is currently in beta and is only available to those who have access to Investor Mode. For more information about purchasing Investor Mode please refer to the home page. Trader Mode will be included with Investor Mode until the end of 2020.

*PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS*

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