PTU Trend Jumper Rules

7/26/2019 PTU Trend Jumper Rules

1/25

Premier Trader University

Trend Jumper

1


2/25


Basic Premise

The Trend Jumper seeks to find near term support and

resistance levels and then identifies places on thechart to JUMP off of, for quick and immediate

profits.

2


3/25


Long trades are like jumping off of a

trampoline

3


4/25


Long trades are like jumping off of a trampoline

4


5/25


Short trades are like jumping out of an airplane

5


6/25


It is a pure price action strategy

6


7/25


The indicators are designed to show us

where the near term support andresistance levels are and to give us

lines to jump off of

7


8/25

Trade Psychology

8

Indicators

1. Two EMAs; 50 and 2002. Two PTU Jumplines; 9 and 4

3. PTU_TrendJumper Calculator


9/25


Long trades are like jumping off of a trampoline

9


10/25


Short trades are like jumping out of an airplane

10


11/25


Dynamic Setups

Trades are based on the length of the setup bar itself,

making it dynamic and self adjusting.

11


12/25


Jumpline Crossover Trade

1. Fast Jumpline (JL) crosses over the slow Jumpline from below to above,

for long trades

2. Fast Jumpline crosses over the slow Jumpline from above to below, for

short trades

3. Can not take these trades against the direction of the 50 ema

4. Can adjust around the ema to get through it, even if it is against the

direction5. Trade is cancelled if the fast JL moves back to the other side of the slow

JL prior to triggering in, or, if a bar closes below the slow JL

6. Setup is the FIRST green bar for longs or red bar for shorts that occurs AT

or AFTER the crossover

12


13/25


Jumpline Crossover Examples

13


14/25


JUMP Trade

1. Island Bar(s) needed

2. Proximity Bar needed (pullback bar)3. First Green Bar is the long setup bar

4. First Red Bar is the short setup bar

5. Dojis are ok to use a setup bars

6. Fast JL must be above the slow JL for longs

7. Fast JL must be below the slow JL for shorts

8. Trades are cancelled if the Fast JL moves to the other side of the slow JL,

or, if a bar closes on the other side of the slow JL prior to triggering in

14


15/25


JUMP Trade Definitions

1. Island Bar: A bar that is above the line you are jumping off of for longs

(or below for shorts) that is NOT touching that line. It must be a certain

distance, the default being 2 ticks in most cases.

2. Proximity Bar: AFTER an island bar, this bar must pullback to the line we

are jumping off of, typically by 2 ticks or less.

3. Setup Bar: The FIRST Green (or red, for shorts) bar that closes after the

proximity bar has been established. It could be the SAME bar AS theproximity bar.

4. JL Confirmation: The fast JL4 must be above JL9 for longs and below for

shorts. It can be ON or equal to the JL9 in some cases.

15


16/25


JUMP Trade Setup ReCap

1. Island Bar(s) needed

2. Proximity Bar needed3. JL Confirmation needed

4. Can occur off of the JL9, or either of the EMAs (50 or 200)

5. Trade is cancelled when the bar closes on the opposite side of the line

that is being jumped off of, or, JL confirmation goes away.

6. First green bar or doji is the long trade setup when all conditions are met

7. First red bar or doji is the short setup when all conditions are met

16


17/25


Island & Proximity Bars

17


18/25


All TrendJumper Trade Setups Behave

the Same Way

1. Entry is a breakout beyond the setup bar, typically 2 ticks, depending on

the market.

2. Stops are typically 1 tick on the other side of the setup bar

3. Key level adjustments are very important to make both on the entries

and stops

4. The length of the bar is the x factor and dictates the size of the trade.

5. Targets are 1x, 1.5x and 2x from the high or low of the setup bar

6. Risk Reward ratios are typically 1 to 1.4 or 1 to 1.9 in most cases,

depending on what target we are going for

18


19/25


Other Aspects

Setups are color coded; Blue for Crossovers; White for Jumps off of the JL9, Yellow for

Jumps off of the 50 ema, Magenta for Jumps off of the 200 ema

Setup types can share the same setup bar but the trade profile itself is always thesame no matter what.

There is a small trade rule

There is a long setup bar rule

Breakout and stop levels can and should be adjusted for different markets

TJ can be traded as a single or multi position approach

Setups happen while in a current trade

You have the option to add to your position, or not

Trailing positions should use the Jumpline Indicators to trail, typically 2 ticks below the

last bar that closed above the JL for longs or below for shorts

We typically want to lock in a tick of profit once the trade has progressed to a certain

point, typically the 1stor 2ndtarget19


20/25


Small Trade Rule

I typically like to exit my fixed position at the 2ndtarget, 1.5x, unless the setup is too

small. Then I will exit at the 3rdtarget, or 2x.

The small trade rule is dependant upon what market and timeframe chart one istrading

Some setups are just too small to trade, depending on the market and timeframe

Crude Oil Futures 377 tick chart example: I like the 1.5x to be 15 ticks or greater. If it

is less than 15 ticks, I will exit my fixed position at the 2x, (3rdtarget)

20


21/25


Long Bar Rule

Some setup bars are larger than most of the bars that appear on the chart, making the

targets harder to achieve.

I like to exit at the first target in these cases

If the Small Target Rule is 15 ticks, as is the case with the Crude Oil 377 tick chart, then

if the first target is 15 ticks or greater, due to a long setup bar, I will exit at the first

target.

21


22/25


Trade Management Rules

Lock in 1 tick at the first target, unless the trade is a Small Trade and were going for

the 3rdtarget.

If going for the 3rdtarget, then lock in 1 tick at the 2ndtarget

Trade must also travel a minimum amount. In the case of CL 377, for example, it must

go at least 10 ticks to qualify for locking in 1 tick

If the setup is too small to lock in a tick of profit, then dont move the stop and just let

it play out as is.

You can use one of the JLs to cut risk or lock in additional profit as the trade

progresses

22


23/25


Trailing and Adding to your Position

A 2ndposition can be trailed. Use one of the JLs to trail.

For swing trading, you can scale out at different target levels and trail the remainder

You can add another position while still in a trade. Manage it independent of the

original position. I recommend being tighter with your trade management to protect

the original trade

Always make sure you are adequately capitalized to trade multiple positions and that

you have a complete mastery of the strategy

23


24/25


Nuances

EMA convergence; you will find that trades that setup inside the space of where the

50 ema is converging with the 200 ema, that the odds will be somewhat lower.

Setups that occur after a big move, and in the same direction, have a lower chance ofsuccess

Sometimes the proximity bar doesnt actually pull back, but the Jumpline gets closer

to the bar. This is ok.

The first island bar can not be a proximity bar. You need a proximity bar AFTER the

first island bar occurs.

The proximity can be and often IS the setup bar

EMA Jump trades DO require that the JL4 be below the JL9 for shorts and above it for

longs to confirm the setup. It doesnt matter what side of the JL9 the bar closes on

however. The close of the bars correspond to the LINE that is being jumped off of.

24


25/25


Trade Sensibly

TrendJumper should be able to give you enough good trades to quit positive on most

sessions and most charts and markets

Always take a good long look at your charts prior to trading live. You should be able todetermine the best times to trade and IF the chart and timeframe give enough good

trades on a consistent basis.

If trading stocks with daily charts, make sure to place your trades after the market has

opened to avoid getting bad fills due to gaps

Practice, practice, practice; you should be able to execute your trades perfectly and

without hesitation or doubts.

25

PTU Trend Jumper Rules

Documents

Transcript of PTU Trend Jumper Rules