Mastering the Mental

Game and Recovering

from Losses

I m p u l s e Tr a d i n g
Wo r k s h o p
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Introduction to Impulse Trading
 Impulse Trading
• Optimized Intra-day trading system

• Small Time frame charts (2 min) allows us to catch 20-40

minute intraday trending swings

• This gives us the capacity to potentially see 2 – 4 directional

trades per day.
 Impulse Trading
• System uses Delta 50 at-the-money Options, for leverage and
liquidity

• Impulse trading works exactly the same in both bullish and

bearish moves
 Impulse Trading
• Utilizes small timeframe Moving Average cross for entry
signals.

• Trade management calls for taking partial profits along the

way [$ Profit Targets] to create long term consistency in
profits

• Utilizes a trend following signal based exit on a micro-

timeframe (30sec) to let a portion of the winning trade run
to max profits.
 Impulse Trading
• Final Exit – trade closing exit based on micro-TimeFrame trend
change on Momentum Trender Pro as exit signal.

• Can cross reference specific EveryDay Profits / PRO workshop

trade setups & timing for potential Impulse trade opportunities.
The Impulse Charts
 Impulse Charts
• 3 Primary Charts

• 2 minute Chart [Candlesticks]

• 3 period Exponential Moving Average (EMA)
• 8 period EMA
• MQ Momentum indicator

• Provides Entry Signal and strength of Entry Candles

 2 minute chart

• 3 Exponential Moving
Average (EMA)
 2 minute chart

• 3 & 8 Exponential
Moving Average (EMA)
2 minute chart (3 & 8 ema + MQ Momentum)

• 3 & 8 EMA
• MQ Momentum
 2 minute chart (Full Chart)

• Candlesticks
• MQ Gravity Lines
• MQ Trend “dots”
2 minute chart (Full Chart)

[DEMONSTRATE]
 30 second Chart
• 3 Primary Charts

• 30 second Chart / or 20-30 tick Chart [Bar Chart]

• 8 EMA
• MQ Momentum Trender Pro indicator
• MQ Momentum indicator

• Provides Confirming Entry Signal with MTP Trend

• Provides trend monitoring & Trend Change exit Signal
30 second chart (8 EMA)

• 8 EMA
30 second chart (8 EMA)

• 8 EMA
• MQ Momentum Trender Pro
30 second chart (8 EMA)

• 8 EMA
• MQ Momentum Trender Pro
• MQ Momentum
30 second chart (8 EMA)

[Demonstrate]
 Impulse Charts
• 3 Primary Charts

• 5 Minute Chart [Bar Chart or Candlesticks]

• 8 EMA
• MQ Momentum

• Provides “longer timeframe” momentum direction with MQ

Momentum indicator line Slope
 5 min chart (8 EMA)

• 8 EMA
• MQ Momentum
5 min chart (8 EMA + MQ Momentum)

[Demonstrate]
 Impulse Charts – Primary Screen
• 2 minute Chart [Candlesticks]
• 3 EMA
• 8 EMA
• MQ momentum
• 30 second Chart / or 20-30 tick Chart [Bar Chart]
• 8 EMA
• MQ Momentum Trender Pro
• MQ Momentum
• 5 Minute Chart [Bar Chart or Candlesticks]
• 8 EMA
• MQ Momentum
 Impulse Charts – Primary Screen

• 8 EMA
• MQ Momentum
Impulse Charts – Primary Screen

[Demonstrate]
 Impulse Charts
• 3 Primary Charts

• Optional Indicators (order of importance)

1. MQ Gravity Lines
2. MQ Trend
3. MQ Powerlines
4. ValueBars / ValueCharts
Impulse Charts – Primary Screen + Optionals

• 8 EMA
• MQ Momentum
The Impulse Trade
 The Impulse Trade
• Summary

The impulse trade is designed to catch an intraday directional

trending move in an underlying stock that can run consistently
for 20-40 minutes.

We’ll utilize a leveraged Option position to generate staged

profits of $100 ➔ $200 ➔ more per contract.
 The Impulse Trade
• Summary
We use a 2 minute chart – specifically an 3 EMA / 8EMA cross
to give us the Entry signal

We use a confirming trend signal from Momentum Trender Pro

plotted on a 30 second chart.

We also confirm the trend direction for the slope of MQ

Momentum on a 5 minute chart.
 The Impulse Trade
• Summary

We enter the trade with Delta 50 options (front expiration date

/ most volume)

As price moves, we watch our 1st profit per contract. We look

to take $100 profit on a
• $2 move from entry (SPX, AMZN) with 1 contract
• $1 move from entry (NFLX, SHOP) with 2 contracts
 The Impulse Trade
• Summary

NEXT, we watch for our 2nd profit per contract. We look to take
a $200 profit on a
• $4 total move from entry (SPX, AMZN) with 1 contract
• $2 total move from entry (NFLX, SHOP) with 2 contracts
 The Impulse Trade
• Summary

For the LAST profit target watch for 30 second chart’s

Momentum Trender Pro indicator. We look to take profit on
remaining contacts when signal changes to OPPOSITE color.

• Sell /Take profits on all remaining contracts when M.T.P. on

30 sec chart changes in OPPOSITE Color.
 The Impulse Trade
• Summary
In my experience, 80-85% of these trades move favorably
when we get the Entry signal.

Main reason is that a Moving Average cross is a slightly lagging

indicator signal. The underlying security is already moving,
especially if the Entry candlestick is a strong momentum bar.

By Default, you can use 20% loss on your Option as a Stoploss

level.
 The Impulse Trade
• Summary

Another way to increase profitability efficiency is to move your

mental stoploss after taking the 2nd profit target to breakeven.

That means, that whatever position you have remaining after

you’ve taken your 2nd profit target – you do not let that Profit
drop below $0. Exit the trade before going negative.
The Impulse Trade : Entry
 The Impulse Trade: Entry
We use a 2 minute chart – specifically an 3 EMA / 8EMA cross
to give us the Entry signal
Bullish Entry Signal

• 3EMA crossing UP through

8EMA = Bullish
Bullish Entry Signal

• Also, be watching next

candles = Bullish too

• 3EMA crossing UP through

8EMA = Bullish
Bearish Entry Signal
• 3EMA crossing down
through 8EMA = Bearish
 Bearish Entry Signal
• 3EMA crossing down
through 8EMA = Bearish

• Also, be watching next

candles = Bearish too
 The Impulse Trade: Entry
We use a confirming trend signal from Momentum
Trender Pro plotted on a 30 second chart.
2 minute chart (Full Chart)

• 3EMA crossing UP through

8EMA = Bullish
2 minute chart (Full Chart)

• Momentum Trender Pro

• Goes from Red (Bearish) ➔ Blue (neutral)
• Entry is when MTP goes GREEN (Bullish)
 The Impulse Trade: Entry
We also confirm the trend direction for the slope of MQ
Momentum on a 5 minute chart.
 5 min chart (8 EMA)

• When we get the Bullish 2min EMA Cross

• Get a Bullish MTP signal
• Confirm that the slope of the MQ
Momentum line is positive slope (Bullish)
 The Impulse Trade: Entry
With all 3 signals are a GO…

GO ahead and Buy near Delta 50 Calls or Puts

• Usually Enter with limit order – almost natural price
• Buy near the Ask price
• Remember, the price & momentum is probably already
moving, so you won’t get the mid-price.
The Impulse Trade : Management
 30 sec chart

• Entry point
• Buy SPX Delta 50 Calls, front expiration
• i.e. Buy 4 calls
 The Impulse Trade: Management
Once the security starts moving, our options will become
profitable.

As price moves, we watch our 1st Profit Target per contract. We

look to take $100 profit on a

• $2 move from entry (SPX, AMZN) sell 1 Delta 50 contract

• $1 move from entry (NFLX, SHOP) sell 2 Delta 50 contracts
1st Profit Target

• SPX moves up $2
• Sell 1 SPX call for $100 profit
 The Impulse Trade: Management
Monitor your 30 sec Chart / Momentum Trender Pro
• Bullish trades should stay GREEN bars
• Bearish trades should stay RED bars
• If bars turn Blue (neutral) continue to hold, prepare to exit
30 sec chart

• SPX moves up $2
• Sell 1 SPX call for $100 profit
 The Impulse Trade: Management
NEXT, we watch for our 2nd profit target per contract. We look
to take a $200 profit on a

• $4 total move from entry (SPX, AMZN) sell 1 contract

• $2 total move from entry (NFLX, SHOP) sell 2 contracts
2nd Profit Target

• SPX moves up total of $4

• Sell 1 SPX call for $200 profit
 The Impulse Trade: Management
Monitor your 30 sec Chart / Momentum Trender Pro
• Bullish trades should stay GREEN bars
• Bearish trades should stay RED bars
• If bars turn Blue (neutral) continue to hold, prepare to exit
2nd Profit Target

• SPX moves up total of $4

• Sell 1 SPX call for $200 profit
 The Impulse Trade: Management
For the LAST profit target watch for 30 second chart’s
Momentum Trender Pro indicator. We look to take profit on
remaining contacts when signal changes to OPPOSITE color.

** Let your Winners Run **

The Impulse Trade : Exit
 The Impulse Trade: Exit
We look to take Final Profit & Exit the Trade by selling all
remaining contacts when signal changes to OPPOSITE color.

• Bullish trades turn into RED bars

• Bearish trades turn into Green bars

Note : they will turn to Blue (neutral) first

 30 second chart (MTP Opposite)

• SPX moves up total of $5.50

• Sell final 2 SPX calls for $550 profit
• Candlesticks
• MQ Gravity Lines
• MQ Trend “dots”
 30 second chart (MTP Opposite)

• Profit target #1 = $100

• Profit target #2 = $200
• Final Profit target = $550
• Candlesticks • TOTAL Profit = $850
• MQ Gravity Lines
• MQ Trend “dots”
 2 minute chart (Bullish Trade)

• Candlesticks
• MQ Gravity Lines
• MQ Trend “dots”
The Impulse Trade - Bearish Example
2 minute chart (Bearish Trade)
2 minute chart (Bearish Trade)
2 minute chart (Bearish Trade)
2 minute chart (Bearish Trade)
 30 sec chart (Bearish Trade)

• Profit target #1 = $100

• Profit target #2 = $200
• Final Profit target = $475
• TOTAL Profit = $775
 The Impulse Trade
In my experience, 80-85% of these trades move favorably
when we get the Entry signal.

Main reason is that a Moving Average cross is a slightly lagging

indicator signal. The underlying security is already moving,
especially if the Entry candlestick is a strong momentum bar.

By Default, you can use 20% loss on your Option as a Stoploss

level.
 The Impulse Trade
Another way to increase profitability efficiency is to move your
mental stoploss after taking the 2nd profit target to breakeven.

That means, that whatever position you have remaining after

you’ve taken your 2nd profit target – you do not let that Profit
drop below $0. Exit the trade before going negative.
The Intraday Impulse Plan
 The Impulse Trading Plan
As you can see, our Profit Goals per trade are

• 1st Profit : $100

• 2nd Profit : $200

• Final Profit : $200+ for the extent of the trade move x #

remaining contracts
 The Impulse Trading Plan
As you can see, our Profit Goals per trade are

Based on the size of the underlying security

• We sell @ contracts based on the size of the expected move
• SPX @$3300, AMZN @ $1900 ➔ move of $5 - $7 or more
• NFLX @ $350, SHOP @ 470 ➔ move of $3 - $5 or more

• Usually SPX, AMZN options are more expensive $10 - $14

• NFLX, SHOP options are cheaper: $6 - $9
• We buy larger # contracts of the cheaper options
 The Impulse Trading Plan
As you can see, our Profit Goals per trade are

Just as a guide,
• For Profit Target #1: sell 1 SPX/AMZN option
sell 2 NFLX/SHOP option

• For Profit Target #2: sell 1 more SPX/AMZN option

sell 2 more NFLX/SHOP option

• Sell all remaining Contracts at Final Exit signal.

 The Impulse Trading Plan

As per EveryDay Profits / EveryDay Profits PRO…

• Best trades:
1. Afternoon Breakout
2. Mid-Morning Reversal
3. Opening Breakout
4. Various intra-day swings on active days
 The Impulse Trading Plan
In a normal trading day… you can expect to find 2 – 4 of these
Impulse trades per day

On average we can make $300 - $600 per trade, trading

positions of 2 – 5 options.

Possible Daily Profits = $600 - $2000+ per day.

Nominal goal of $1,000/day with 3 trades @ 4 contracts each.

Thank You