3 Core Principles of an Enlightened Trader

One of our instructors, Ken Long, developed a full trading system around that tendency that he teaches in one of our workshops. Setup: 1) You have five or more down days followed by an inside day. The inside day tells you “it’s stopped going down.” This is shown in the figure below.

Ken developed five robust swing systems out of this framework that first he presents and that second you trade in a simulator. Register For Tharp's Free Newsletter. You can understand how much price might move with some confidence. Preparing a daily trading plan is the most profitable part of the day for every swing trader!

He has taught Swing Trading, Day Trading, Discretionary Trading, and Core (Long-Term) System trading. Ken is one of the few people I know who has a graduate degree in systems design and a doctorate in management with a dissertation on making decisions under uncertain conditions.

In essence, he can determine how far a frog might hop for a whole trading day and how far within a trading day. Once he learned this, he was able to create a very simple trading system that works remarkably well. For years, Ken has been looking at regression lines to help him understand the broader trend in the market. Recently, he started applying linear regression methods to individual indexes and to individual stock prices to see what he could find.

Ken is constantly finding what works and then extending it. He knew that a regression line gave the best linear description of a data set using its slope, and its R2 figure provided very helpful information. In simpler language - they work! As have most traders, Ken has heard plenty about moving averages crossover based systems over the years. The idea has plenty of merit for finding shorter term opportunities within longer term trends. That is, when there are trends. A major problem for moving average crossover systems lies in the flat periods.

Ken wondered if regression lines would work better. They did — but not good enough to have a great trading system yet. After more thinking, a good amount of research, and testing various strategies, Ken found two additional inputs that added a lot of confidence for his entry and exit signals. Ken first paper traded the concept for a while and then started a prototype trading test with small positions of real money.

As he traded and evolved the concepts, they gained more clarity and evolved into a framework for a kind of trading with several possible entries and several possible exits. Inspired by the powerful networking Ken has seen develop over the years at VTI, both through the Super Trader program and workshop attendees, he created and leads a group of traders with a shared interest in swing trading and intraday trading which he calls the Chatroom.

Ken and his chatroom members have been developing a daily community of practice to encourage a healthy and helpful environment to support each members' development as a trader. And while this membership is free to workshop attendees, the value of this ongoing interaction and learning is likely as valuable the workshop itself. Once you are back home and studying or trading the systems you learned at the workshop, inevitably you will come up with some important questions.

In these online sessions, Ken interacts with the participants by sharing ideas and answering questions. Click here to read Ken's Vision Statement and more about the Chatroom. Ken Long started investing in mutual funds in the s but has grown over the last fifteen years into an outstanding big-picture thinker and tactical trader.

When Ken Long first attended my Systems Development workshop in the mids and submitted his objectives to me, I thought to myself, "Someone from the Army is going to apply this material? Then, as Ken started developing successful trading system, he started teaching his own workshops for VTI. Ken is one of the few people I know who has a graduate degree in systems design and a doctorate in management with a dissertation on making decisions under uncertain conditions.

Because of his academic training, military background and vast market experience, Ken spots trading ideas that most people would never think of. For example, when Ken attended our systems workshop and learned about the complex training game we were playing, he developed a procedure for strategizing about the game that I now teach in that same workshop.

Ken is one of our best instructors mainly because he treats his trading and teaching the way he treats his martial arts, his soccer coaching and life in general: Ken is a thinker, philosopher, tinkerer, and leader.

He applies what he learns to everything he does and therefore gets more done each day than anyone I know. Notes from that night are "again support at MLR Look out for hesitation at the BBmean Thank you for sharing with me. We received this set of questions from a client and would like to share with everyone.

You will learn 3 variations of the mechanical Frog system, along with reasonable points where parameters may be varied, supported by ongoing evidence from forward trading a conservative version that is positive expectancy. You will learn and practice on the RLCO framework: You will learn how to combine these intraday strategies with longer-term swing trade patterns and trades in order to get more value out of longer term systems.

So, the answer is 2 systems with 8 strategies that can also be done in tandem with swing trading in a systematic way. The expectancy of the extensively studied conservative mechanical Frog system is.

Our experience at the live trading workshops is that the RLCO can come in at an expectancy of. What is the required capital needed to trade kens day trading systems? The systems are designed for equity indices, ETFs, futures, and individual stocks, however, there is a growing body of evidence that suggests the systems may be effectively applied to Forex pairs and Forex pairs futures.

The Frog can be traded in the morning on most days, some days allow for an afternoon move as well. The RLCO framework is flexible. Time of day and the amount of management really correlates to how often you want to trade. The Frog system is robust in all market types; the RLCO framework has adaptive parameters that frame decisions and opportunities consistently across all market types. I make that statement given the particular methods I use to describe market conditions, but I believe the statement to be fair given what we generally mean by market classification.

Excel and the Excel add-in XLQ for ease of data retrieval — but only if you want to tinker with parameters and symbol sets. Any full featured charting package will have the simple indicators we apply to create the framework, which is our particular way of describing market conditions and price action.

I favor trading at the minimum risk per trade that remains acceptably cost effective. These are fully articulated in the systems definitions provided in the workshop and they are exercised daily in our chat room.

I have found, however, that it is easier for people to believe they have understood the beliefs rationally than it has been for them to actually put the beliefs into practice. I appreciate this question because I have not ever put that idea into those exact words, but I now recognize just how true and important that insight is. Does this workshop have the normal VTI guarantee policy? What if I need to cancel beforehand? Due to the unique format of this workshop, we do not provide our regular workshop money back guarantee on this workshop and there is also a cancellation fee.

Normally, attendees have until lunch on the second day of our three-day workshops to request a full refund. However, Ken reveals both of the systems on the first morning and students will practice trading it from then on so we cannot offer our normal refund policy.

Upon registration you will start receiving materials that you must study and complete before the workshop begins. Please be aware that the pre-work is extensive — do not leave the preparation for the workshop until you have arrived at your hotel the evening prior to the start of the workshop — it is impossible to be ready for the workshop for the next morning.

Because so much information is distributed before the workshop, there will be a fee for this material if you need to cancel. Customer satisfaction has always been important to the Van Tharp Institute and we would rather have an empty classroom seat than an unsatisfied client. Requests for a refund at one of his workshops have been exceedingly rare. We require that attendees at this workshop have some day trading experience and understand the various uses of market, stop, and limit orders. Without some previous day trading experience, you will likely be frustrated by the pace of the course and likely be unable to realize the full value of the workshop.

What past students say Summary of Process Learning: Insights from a day trading workshop weekend. Ken Long debriefs students in this 19 minute video, http: One Setup, Multiple Trades. In this 16 minute video, Ken Long explains a series of trades he took over the last two days using a number of his market methodologies. First, he gives a thorough review of his overall market health check chart, then provides a swing trade setup, and finally shows how a specific chart pattern offered a low risk opportunity.

You can see and hear how these different elements fit together for a profitable day trade on February 2 that then evolved into a swing trade overnight.

Then, on February 3, he closed the swing trade while the chart revealed another RLCO intraday trade opportunity in the opposite direction. In the following videos, he reviews some charts of interest and examples of his latest trading concept development — Regression Line Fractal Framework.

He explores how regression lines of various period lengths relate to each other in price action evolution. It is very instructive to review that video from June 10, and see what the follow through revealed. These videos not only illustrate trades we've completed, they frame trades going forward. Attendance at the Day Trading Workshop is required in order to attend the live trading sessions that follow this workshop.

We require that attendees have some day trading experience and understand the various uses of market, stop, and limit orders. We are happy to help if you have questions,, so call us, , or email info vantharp. Live trading is not offered in November In this short two minute video, Day Trading System students give some insight on the value of taking this course. At the first level, we help traders transform their core beliefs about the markets and trading to those beliefs that coincide with top traders.

In my research, I have modeled many of the top traders in the world to discover what they have or do in common with each other.

Once you understand how they think and what they do, others can learn their processes. There are about 50 core principles to Tharp Think. Instead they have to transform themselves so some degree before they can internalize these core principles. Let me give you an example. Larry Connors did some research on how repeated market behaviors can give traders an edge.

For example, in his book How Markets Really Work he suggested that a stock would tend to have a nice upward move after it had gone down for at least five consecutive days. One of our instructors, Ken Long, developed a full trading system around that tendency that he teaches in one of our workshops.

Risk 1R is the difference between the high of the inside day and the low of the last down day. Reward is the potential move from the high of the inside day to the old swing high, assuming this to be a target. In the figure the risk is the distance between the two bottom horizontal lines.