Futures Trading Secrets Course Confidential Copyrighted Material Page 1

Quick Start Guide for the Futures Trading Secrets Program

The Futures Trading Secrets system is broken into three parts. It is designed to build a basic
understanding of how and why we chose the indicators and approach we did. It will also help
you build belief in the system. And finally you will learn how to trade the system..

How to Use the Futures Trading Secrets Manual

I know as traders or potential traders all you want is the perfect signal that leads you to massive
profits. But, the signals described here are only 10% of a complete trading system.

We designed this manual to give you a very complete program on how to become a successful
trader. So here is what you need to know first: The philosophy, mental and money management
and finally the signals and how to execute them.

I know you just want to cut to the chase, and I know you will not follow the advice above,
because I didn’t. So if you think you can execute this program without proper preparation, jump
directly to the Futures Trading Approach Section and have at it. If you start losing money, you
will probably need to go through the course in the order presented.

It should be obvious that you cannot learn to swim by reading a book. You need to watch
someone else swim and then get in the pool. The major portion of this course is based on
watching how signals develop and then learning how to take probabilistic trades. That is what
the videos are all about.

How to Use the Videos

Part One covers all the basic indicators, techniques and principals of trading, money
management and mental preparation using standard indicators. You will want to study this
manual and refer to it for detailed information

Part Two, covers our special indicator system using the Pesavento Patterns and the Dual Ergodic
Indicator system. Part two is introduced on the first disk using a combination of the Triple
Stochastic and Dual Ergodic System.

Finally, you need to practice using the system, understand the charting program you are using
and understand the trading platform of you broker.

Part One
1. Play the first CD and read the NFA Disclosure
2. Read the Setup Instructions that gives you an overview of how to use Ensign
3. Watch the FTS Basic Training Video that shows you our settings and individual parts of
the system
4. Next review the 3 practice videos of how all the parts work together.
5. Review the Ergodic Combo Videos as a preview to disk two

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www.futurestradingsecrets.com email: [email protected]
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Part Two
1. This disk has videos on how to setup and change Ensign Software. Ensign is an
extremely robust program and is constantly being upgraded, so there may be minor
differences between the videos and the actual program. Also Ensign has now installed
training videos with each section of the program.
2. The three days of live trading videos use only the Ergodic Combo settings along with the
Pesavento Patterns. This setup was originally designed for trading with a single monitor
laptop computer.
3. The Short Term Ergodic indicator on the 133Tick time frame does not lag. It is initially
difficult to interpret if you have not gone completely through Part One because the
Ergodic is both an Oscillator and a Momentum Indicator.
4. For detailed explanations please refer to the FTS Program file.

Part Three: Practice, Practice, Practice

The three most important things in trading are that you believe in the system you are trading,
proper money management and accurate signals.

Belief and confidence is at least 50% and probably more like 90%, money management is at
least 40% and the signals account for only about 10% of the trading equation.

Unfortunately, most people are looking for the Holy Grail of trading and the perfect signal.
None exists, because it is impossible to predict the future. The advantage you can develop is
experience, practice, patience and discipline.

Here is a formula that will give you the absolute best chance of becoming a successful trader.

1. Use the Demo feature in Ensign Software in conjunction with the Trading Templates
provided with the course. Practice until you get to 70% win to loss ratio and at least a 2
to 1 point winning ratio. The reason we use Ensign Software for our charting program is
its Demo feature. The demo feature allows you to download over two months of real
market data and play it back two to ten times faster.
2. Switch to trading the daily chart of your choice with a SimBroker in real time and
achieve the same winning percentage and win to loss ratios consistently for at least a
week and longer if you need to get confidence in what you are doing. Because the
market moves slower than the Demo feature, you will need to guard against over-thinking
the trades.
3. Now start trading the live market with one to two contracts. Initially take only Sling Shot
trades which have a higher probability of success. Monitor your efforts as described in
the course. This is where you test your skill and intestinal fortitude. You need to learn
how you react to the stress of having your own money on the line.
4. If you sustain more than two losses in a row go back to step one and follow the process
all over again. Analyze your trades and mental condition before, during and after a trade
to see what you did, why you did it and how you felt. This feedback is crucial to your
growth as a trader. Document everything.
5. Finally, one tip that helps a great deal. After you complete a trade, get up and go have a
cup of coffee. Take a break and come back for a fresh look at the market. If you attempt
©Venture Planning Associates, Inc. 2003-2007, All rights reserved
www.futurestradingsecrets.com email: [email protected]
Futures Trading Secrets Course Confidential Copyrighted Material Page 3

to trade continuously or all day, the market will hypnotize you and you will give back all
your early profits.
6. The excel files will help you track your trades and analyze them.
7. The Meditation mp3 is scientifically designed to get you in a calm focused mental state.

When you have really mastered trading, you should be able to walk by any market in any time
frame and know in the blink of an eye, whether to be long, short or out. The next page gives you
a review of the Futures Trading Method.

The 1-2-3 Method

Because there are no perfect signals, we devised an approach for two different setups that relied
on three different indicators working together, with confirmation from a second time frame to
give you a 70-80% probability of a positive trading outcome.

Long Term Exponential Moving Averages can be compared to the tide of the market. These
averages are lagging, but do tell you the general direction of the market. There are two trade
setups, one is with the trend and another is counter trend. You need to be aware of these EMAs
and the price patterns that occur around them.

Details for all the following signals and how to use them are in the written manual.

Signal 1:
A Pesavento Pattern line appears. This is an exit signal. If you are in long or short you should
take one of the following actions: Exit immediately (most conservative), take half your position
off at a profit, or at the very least move your stop to a profit or breakeven position.

Pesavento Pattern lines represent a combination of Fibonacci clusters, support and resistance and
pivot points all rolled into one indicator. The more dotted confirmation lines you get to the
major line, the stronger the signal.

If you are out of the market, then this is a wake up call to look for the next trade. You want to
immediately look at your other indicators, the longer time frame and the position of the EMAs

Signal 2:
After a big up or down move (price is above or below the EMAs, you want to look for a
Divergence between price and the indicators, (Short Term Stochastic and the Short Term
Ergodic). If you get Signal 2, then you can enter immediately in the Ka-Ching (counter trend
mode) if the price is at least 2-3 points from the EMAs.

The normal price pattern for retracements is that the price will retrace to the 49 EMA, and then
make a higher low (your second chance to enter and also known as a Ross Hook). The price will
then break up through the second EMA and Pesavento Pattern will print a line for your exit.
Finally, the price will retrace to where the two EMAs cross over to signal a change in trend. At
that bounce is Sling Shot trade good for several points.

©Venture Planning Associates, Inc. 2003-2007, All rights reserved

www.futurestradingsecrets.com email: [email protected]
Futures Trading Secrets Course Confidential Copyrighted Material Page 4

If the price is not at least 2 points away from the 49 EMA, then wait and look for the price to
bounce off the EMAs for a Sling Shot trade back in the direction of the EMA Trend. With
practice and using the Dual Ergodic indicators you can take this trade at the change in color.

Signal 3:
Wait two bars or for the Short Term Ergodic to cross its moving average (the yellow line). Or if
using the MACD wait for its moving average cross over. You now have approximately a 75%
chance of a winning trade.

Remember to always follow your money management rules

Study the chart on the following page carefully. It holds the keys to your trading success for
counter trend and continuation trades. You must learn to see these setups as they are occurring at
the right side of the chart. Refer to your manual for additional charts and details.

©Venture Planning Associates, Inc. 2003-2007, All rights reserved

www.futurestradingsecrets.com email: [email protected]