Using the 10×10 Practice Strategy to Master NASA-like Trade Entries

Speeding at 13,000+ feet per second, with less than an inch protecting you from heat over 3,000 degrees. If you were manning the Apollo 11 spacecraft, you could hit your entry target of 6.49 degrees or instantly incinerate your crew. One shot, no do-overs.

Such was the pressure faced by Neil Armstrong during the Apollo moon landing. He nailed it thanks to his unshakable nerve and years of practice. The rest was history.

Using the 10×10 ATM practice strategy, you can master Armstrong-like entries that land a profit consistently — without breaking a sweat. It requires discipline, and an ability to determine acceptable conditions with NASA-like precision. You can bet that the institutional traders that drive the market have exercises like this.

A trade entry exercise that keeps your account alive

If you’ve seen Apollo 13, there are any number of things that can and will go wrong with a space mission. The process of re-entering earth’s atmosphere is considered the most dangerous portion of the mission, rivaled only by the launch.

As a result, there was no detail too small, or scenario too unlikely, that NASA didn’t practice in advance – for years – with the crew. Becoming a flight-ready astronaut took commitment to practice and repetition to ensure excellence. Treating your trade entries with the same reverence and discipline will help you lay a foundation that leads to consistent profits.

The 10×10 ATM practice strategy is designed to accomplish just that. Just as the name indicates, your Automated Trade Management Strategy (ATM), is set at a flat 10×10. This means you are willing to risk 10 ticks to make 10 ticks – with no variation in between.

By eliminating the distractions that come with trade management – namely stops and targets – you are forced simply to focus on making a successful entry. Specifically, you are zeroing in on the irrevocable conditions required to enter the trade and put your precious capital into play.

Making a high probability move in three steps

Landing conditions for the Apollo missions were dicey affairs. There was the matter of getting through the earth’s atmosphere without being burnt to a crisp. The chutes had to open. Oh, and you had to avoid a developing hurricane since you were landing in the middle of the Pacific.

Each of the Apollo astronauts internalized these conditions to the point where they became second nature. Similarly, your trade entry conditions and preparation need to be just as stringent.

Start with the 10×10 ATM, and use three basic criteria points, in conjunction with Order Flow Sequence Tracking Intelligence:

• Homework Levels & Value Areas: Levels where price has been previously rejected by volume – that coincide with breaches into either value area high or value area low zones. These indicate that price extremes are reaching a potential support or resistance point.

• Sequential Decline (SQD), Commitment of Trade (COT), & Response: Signs that buying or selling activity is tapering off at the tips of a candle (SQD), coupled with the location of the most volume (COT) and response activity from the other side.

• Market Structure or Experience: Prior knowledge of how price is likely to behave when it reaches particular points in time, or certain levels.

Effectively evaluating each of these components for optimal entry conditions takes practice and discipline. When they’re put together successfully, you have the formula for entries that will result in trades that land profitably.

Spotting favorable conditions for profitable entry

When you have the entry nailed, the rest of your trade becomes much easier. Executing the three steps starts with reading the conditions before you make your move. Optimal conditions will make your trade less adventuresome and put profits well within reach.

Take a look at the below chart, stepping through the 10×10 moves that you should internalize for successful entries.

• ATM Set-up: The ATM is set to 10×10, selected from the custom strategy pull-down in NinjaTrader.

• Spot the Price Breach: Price has moved to an extreme, into the VAH (value area high) indicating that you’re potentially in short territory.

• Locate Low Volume Node: Price has started to move towards a level of prior price rejection. This, coupled with being in VAL tells you a swing may be coming.

• Identify Buyer Fatigue: At the tip of a closing candle, you see sequential decline as the number of positions taken have tapered.

• Confirm Responsive Activity: The sellers start to step in at the tip of the candle. Meanwhile, volume starts to coalesce towards the bottom half of the candle, indicating price interest in going lower.

Making our move under these conditions, focused entirely on our entry, the rest of the trade became very easy. Price in fact responded to our homework level and was reeled back below the value extreme.

Ten easy ticks, all by focusing on the entry.

Becoming flight-ready with 10×10

So what’s the fun, and where’s the glory with 10 ticks of profit?

It’s worth noting that the Apollo crews practiced every maneuver for over two years before stepping foot into their spacecraft for launch. The total cost leading up to the mission was well over $2 billion. This was to ensure executional reliability when the stakes were raised to life or death.

The 10×10 exercise isn’t designed to let profits run. It’s meant to master entries so that you’re positioned to manage the rest of your trade when operating in your live account. After 50 or so practice trades, evaluating entry conditions will become second nature to you.

When markets are volatile and lagging indicators are letting millions of other traders down (as they always do) – you’ll have instinct to lean on. This, coupled with the real-time intelligence supplied to you with Order Flow Sequence Tracking, will allow you to pinpoint your move.

It’s the difference between being a seasoned pilot in your cockpit with live information feeds – or an amateur in your backyard with a bottle rocket.

Profits and glory while others crash and burn

The Apollo 11 flight plan was 353 pages long. Five pages alone outlined over 200 abbreviations astronauts had to memorize just to read the rest of the plan.

With the 10×10, you have three steps to master and easy-to-spot entry conditions.

While the rest of the retail trading universe looks for the right button to press, you can make precision entries in three easy steps. Simply start with the discipline of knowing what entries you’re willing to take and the terms/conditions that you require before entertaining risk.

Start with price that’s veered outside the value area, breaching value area highs, or lows. Confirm that a swing may be imminent with sequential decline and responding buyers or sellers.

Lean on your experience, having seen launch conditions like this before — confident that you know what the institutions are doing in real time.

Master your entry strategy with the 10×10 ATM while millions of other retail traders crash and burn.

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