Automated trading programs and concepts by recognized industry expert,Todd Hanson PhD

2. General Program Concepts
Mirror of our Equity, Commodity and Forex Programs
Risk Management
Professional Coaching
Grey and Black Box Systems
Ph.D. in Applied Mathematics
Professional Traders
Firm and Fund Owners

3. Todd Hanson PhD:
Recognized Industry Expert

4. Advantages of trading
e-Mini futures:
• So-called e mini, or “electronic” mini futures contracts closely
track the price of their big brothers; full-sized futures contracts
traded on the floor by institutional investors.
• Far fewer instruments to track than in equities.
• Take advantage of broad market moves without trying to figure
out how to do so in the right basket of stocks.
• Far greater leverage is available than in trading equities.
• Less reliance on fundamentals.

5. Advantages of the Livetradesignals
Futures Program
• Trade alongside veteran traders in our chat room
• Continuing education seminars and materials at the trader’s
own pace
• Our proprietary Grey Box signals will help to limit bad trading
habits
• Practice new trades on the included demo platform
• Ability to scale size gradually to ensure account integrity
• Tight risk management

6. How is an S&P 500
e-mini contract valued?
• E-Mini S&P 500 futures contracts are legally binding
agreements to buy or sell the cash value of the S&P 500
Index at a specific future date.
• The contracts are valued by multiplying $50 by the futures
price. For example, if the E-Mini S&P 500 futures contract
is trading at 920.00, the value of the contract is $46,000
($50 x 920.00).
• The minimum price movement of this futures contract is
called a "tick." The tick value for the e-mini S&P is 0.25
index points, or $12.50 per contract.
• Therefore an index point equals $50 per contract.

7. How is a Nasdaq 100
e-Mini contract valued?
• E-Mini Nasdaq 100 futures contracts are legally binding
agreements to buy or sell the cash value of the Nasdaq 100
Index at a specific future date.
• The contracts are valued by multiplying $20 by the futures
price. For example, if the E-Mini Nasdaq 100 futures
contract is trading at 2100.00, the value of the contract is
$42,000 ($20 x 2100.00).
• The minimum price movement of this futures contract, or
tick, is 0.50 index points or, $10 per contract.
• Therefore an index point equals $20 per contract.

8. How is a DOW
e-Mini contract valued?
• E-Mini DOW futures contracts are legally binding
agreements to buy or sell the cash value of the DOW Index
at a specific future date.
• These particular contracts are available in three sizes, and
are valued by multiplying $5, $10, or $25, respectively, by
the futures price. For example, if the E-Mini DOW futures
contract is trading at 12,000, the value of the $5 contract is
$60,000 ($5 x 12,000).
• The minimum tick size of this futures contract is one point,
or $5 per point on a $5 contract.

9. Understanding the
Symbols
• E-mini futures contracts have varying dates of expiration,
and several are active at any one time, so understanding
the symbol of what you are trading is important.
• The typical e mini contract symbol has five characters
SSMYY
“SS” = symbol of the underlying e-mini index
S&P 500: ES NASDAQ 100: NQ Dow Jones: YM
“M” = month of expiration
H= March M= June U= September Z= December
“YY” = year of expiration

10. Understanding the
Symbols
• Therefore, the symbol for the March, 2010 contract in the
S&P 500 e-mini would be:
ESH10
• Once again:
SSMYY
“SS” = symbol of the underlying e-mini index
S&P 500: ES NASDAQ 100: NQ Dow Jones: YM
“M” = month of expiration
H= March M= June U= September Z= December
“YY” = year of expiration

11. When to Trade
•Understanding when to trade is a
critical key for successful Futures trading
•Forcing a trade in a stale or dead
market can turn out to be a costly and
time consuming venture

12. The Sweet Spot
• Electronic trading on CME Globex is available virtually 24
hours a day from Sunday evening through late Friday
afternoon, with a break that roughly varies from 30 and 60
minutes between close and reopening each day, depending
on the product. Trading occurs during five daily sessions.
• However, Futures trading of any of the e-Mini contracts
benefits from the added volume and volatility available
during regular CME market hours, especially the opening
hours.
• Therefore, we recommend to concentrate on trading
primarily from about 9:30 AM until 12:00 PM ET. Protective
stops can be placed to protect the occasional overnight
position.

13. Can you give me a trade
setup trade I can walk away
with from this free event?

14. Levels and Location
in Futures Trading

15. Fulcrums
What is a Fulcrum?
– The support about which a lever turns
To fine tune our trading plan—in volatile, liquid
instruments we add the Fulcrum grid:
– 00 the big figure fulcrum,
– 10
– 20
– 30
– …
What a Fulcrum is NOT:
– It is not calculated

16. Fulcrum Examples
E-Mini S&P 500
1,050.00
1,040.00
1,030.00
1,020.00
1,010.00
1,000.00

17. The Hanson Trading Method
3 Key Time Frames
15 Minute – Directional Bias
14 & 48 SMA
Simple Moving Averages
5 Minute – Trade Setups
Support or Resistance at or
At or near Fulcrums: 00, 10, 20, 30…
1 Minute – Effective Entry
Long (Stochastic) <= 2 or 20
Short (Stochastic) >= 7 or 70
Slow Stochastic Setting (3,3,3)

18. The Three Trading
Time Frames

19. Three Trading Time Frames
1) 15-minute Chart – We use the 15-minute chart to determine the longer term
trend direction and to help us to establish our directional bias. As we look to
the 15-minute chart we are concerned with where the Futures Contract is
trading in relation to the 14 and 48 period moving averages and the
establishment of Higher Highs and Lower Lows. This gives us our overview of
the battlefield. We do not generate Entry Signals off of the 15-minute chart.
2) 5-minute Chart – This is our primary timeframe and the one that we use for
the establishment of our Support and Resistance Levels. This is our battlefield
where we determine if we have a Entry Signal for a trade or not. Once again
like the 15-minute chart we are concerned with where the Futures Contract is
trading in relation to the 14 and 48 period moving averages and Higher Highs
and Lower Lows. We are looking for a breakout of Support or Resistance at or
near a Fulcrum on the 5-minute chart in order to have an Entry Signal.
3) 1-minute Chart – Consider this timeframe the trenches on the battlefield.
Once an Entry Signal is established on the 5-minute chart we then drill down
into the 1-minute chart in order to tailor our Entry more effectively. On the 1-
minute chart we are looking at timing the reading on the Stochastic Oscillator
to improve the Entry Price on the order.
Note: The 14-period, the 48-period moving average are used on all three,
the 15-, 5-and 1-minute charts.

20. The Two Trading
Moving Averages

21. Two Major Moving Averages
1) 14-period Moving Average (14ma) – This simple moving average
is superior at capturing and supporting the market’s most powerful moves. If
a Futures Contract is moving with a fury (up or down), it is this moving
average that the contract will often react off of. We also use this moving
average as the basis for one of our most effective trailing stop methods,
which we will discuss shortly. Traders have the 14ma on every chart they
look at.
2) 48-period Moving Average (48ma) – This simple moving average
is the number one staple for Hanson Method traders. No chart is ever
looked at without the aid of the 48ma. In fact, we don’t regard a chart as
being valid unless it is accompanied by the 48ma. It reveals a contract’s
directional bias, acts like a magnet and tells the trader where significant
areas of support and resistance are.

22. Chart by Itself

23. 48 - SMA

24. 14 - SMA

25. Coming Together

26. The Difference Between
Indicators and Oscillators
INDICATORS OSCILLATORS
Not Range bound Range bound
Overlays Price Separate Window
Price/Direction Overbought/Oversold

27. How to use the Stochastic
• Long = %K <= 2
• Short = %K >= 7
• If Signal >= 5 Minutes, then Signal Decay
• If Signal Decay, then No Trade
– Note: prices tend to fall with more
momentum than they rise, thus the apparent
imbalance in the values used.

28. 1 Min Stochastic Example

29. The Hanson Trading Method
3 Key Time Frames
15 Minute – Directional Bias
14 & 48 SMA
Simple Moving Averages
5 Minute – Trade Setups
Support or Resistance at or
At or near Fulcrums: 00, 10, 20, 30…
1 Minute – Effective Entry
Long (Stochastic) <= 2 or 20
Short (Stochastic) >= 7 or 70
Slow Stochastic Setting (3,3,3 close/close)

30. How will the Program
Teach us to Trade?
The best way to learn to trade is by trading. Mirroring someone
successful is the easiest way to learn any new skill. We give you access to
professional traders and grey box trading systems.
On our trading platform, you can establish ongoing relationships with
other traders that want to share ideas and experiences.
With a flexible environment we learn by trading Futures and because we
wanted to be able to trade profitably there are many rules to learn such
as:
1. Exiting a loss immediately
2. Don't exit winners too quickly
3. Hold tight stops and many more

31. A Note on Fundamentals
• One of the greatest benefits of trading E-mini contracts is the
ability we have to avoid fundamental analysis, and simply let
the news price itself into the market.
• There are ways to “trade the news,” the simplest of them
being “SOH.” That is to say, get flat (“Sit On our Hands”), let
the news pass by, then resume trading.
• However, complete ignorance of fundamental news events will
be costly to the trader. That we do not attempt to analyze
them does not mean that we can ignore when Scheduled
News (i.e. Fed Rates) or geopolitical events occur.
• Missing or ignoring just one Fundamental event while in a
trade can cost hundreds or thousands of dollars.
• In the “bad old days” of trading, a retail trader outside of a
physical Prop room was literally on his or her own, and always
likely to miss something sometime.
• In our Virtual Trade Room, there are literally dozens of traders
looking at multiple news feeds and economic calendars around
the world, and sharing what they see in the room. We don’t
miss much, and this alone can pay for our services simply in
trading losses avoided.

32. The Grey Box
• The Grey Box at Livetradesignals has a proven track record of
profitability, all by itself, when running autonomously.
• The Grey Box differs from a Black Box in that the Grey Box
includes the human factor: trader intervention is required to
take trades.
• The Grey box is designed so that expert trader intervention
can actually increase profitability.
• Therefore, at Livetradesignals we do not simply drop the Grey
Box in your lap and set you loose.
• Livetradesignals provides extensive training resources for
maximizing the profitability of our Grey Box signals.
• Furthermore, our traders see our instructors evaluate Grey Box
signals on a daily basis in the Virtual Trade Room, and
therefore have the regular opportunity to see the techniques
practiced in real time.

33. The Virtual Trade Room
• The Virtual Trade Room at Livetradesignals is a place you can
go to trade alongside other traders, and, most importantly, our
professional trading staff.
• Most other chat rooms of this kind are moderated by low-paid,
non-trading staff members who provide little more than a
“help desk” function.
• Our trade room is visited regularly throughout the day by our
own professional traders who provide setups, advice, and real
guidance for your trades. This is not just a place to hang out, it
is an opportunity to advance your own trading education on a
daily basis.
• Additionally, our Virtual Trade Room will include both regularly
scheduled and off-the-cuff breakout lectures on a variety of
trading topics, including trader psychology, money
management, and specialty trade setups.

34. Contact Us
1-877-803-6739
info@livetradesignals.com