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1. What it does 2. Who it’s for 3. 4 Steps to Set Up Trades

(QuickStart Reference)

Set-Ups

Examples

Inputs

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Trend-Line Magic A fully automated discretionary trading solution

Indicators

It is recommended that you click on a topic and use the navigation buttons (Links - throughout & Buttons - upper right) to review this document vs. using the Page-Up / Page-Down keys.

Train Your Brain

Train Your Brain

• Automates your discretionary trades You decide when you want to trade and what direction (Long or Short)

You tell the system by placing trend-lines where you want the system to take the trades – the trend-lines turn on:

• Average True Range / ATR "Trailing Stop" entries and exits

• Keltner Channel based entries and exits

• MACD / Moving Average Oscillator based entries and exits

• Or use the trend-lines themselves as entries and exits

• Multi-purpose / Combined "Standard" TradeStation Exits (Stop-Loss / Profit-Target, etc.) OR “Natural” versions based on Average True Range (ATR)

You Color the trend-line and change it’s Weight to tell the system what to do, and put the trend-line Start and End where you want the system to take trades

The system then executes your trades with no further intervention

CubicTrader Trend-Line Magic provides a very configurable trading environment – supporting simple and un-cluttered trading, or a very rich and visual trading environment

See the next few screens for an example with explanations

CubicTrader Trend-Line Magic

This system provides extensive user inputs for precision trading: • Entries and Exits / Between the Start & End of a Trend-Line • Trade-Controls -< Max Trades / Max Consecutive Losers / Session Times, etc. > • Extensive configurability – for long term trading, swing trading, day trading,

and “scalping”

Go Short

Turn On Profit Targets

Trend-Lines Turn On ATR, Keltner Channels, MACD or Trend-Line Entries & Exits

Go Long

Precision Control: • You draw the trend-lines:

Color Weight / Width Beginning / End

• The system executes your trades - full auto or with your approval

• No more being chained to a monitor all day!

This Complete Trading System includes a comprehensive set of tools for trading: • An Indicator Stack for assessing the “Market-State” <trending, trend-less, etc.> • A Strategy that provides chart based trend-line user controls • A complete set of “Trading Logic” under user control via strategy inputs • And specialized indicators that show calculated entry & exit points

This green trend-line tells the system to take Long Entries - during the “extent” of the trend-line, that is, the start and end of the trend-line.

Complete Tool-Set: • Configurable Indicators:

Extensive User Inputs Highlight specific market

"events" • "Trading Logic:"

Profit Targets, Stop Losses, Number of Trades or sequential losers

The Trader may have their own means to assess the market – or use the included indicators and ideas on how to interpret them – Price / Volume, Average True Range, Keltner Channels, Moving Averages and Moving Average Oscillators (MACD, MaOsc) are included. Once the Trader has decided to trade Long or Short and has set up the trend-lines as appropriate – the Strategy will find and execute trades until a specific Trade-Logic condition is met (e.g. the trend-line ends, a user defined max no. of trades and/or a user defined maximum number of consecutive losers occur, your defined trading session ends, etc.).

This red trend-line turns on ATR Short Entries during the “extent” of the red trend-line.

Assess your market: • With the built in indicators:

Extensive User Inputs Highlight specific market

"events" • Or - Use your own

Indicator choices can be very personal - the Strategy Component executes specific trade entries & exits - but can be extended - contact CubicTrader with specifics.

The Trader has full access to the strategy and indicator inputs, allowing adjustment of stop-losses, profit-targets, etc. so the Trader can adjust the system for their desired trading style, for a different time-frame, or to better match their risk tolerance.

The white trend-line turns on Profit Target exits. The length of the trend-line does not matter – it turns profit target exits on for all trades. The weight or width of this trend-line determines the exit type.

Extensive User Controls: • All Inputs fully documented:

For the complete manual - send an email request to [email protected]

• Additional Documentation: Trade Examples "Trading State Machine" logic

- e.g. examples of when to trade specific trade types..

• Match your trading style...

This approach combines the best of a Trader’s insight, or the human brain’s vastly superior and flexible pattern recognition abilities - and a computer’s ability to constantly monitor the market while flawlessly executing trades as directed by the Trader, freeing the Trader to focus on Market Analysis, allowing the Trader to more easily trade multiple markets, and providing freedom from being “chained” to a monitor.

This green trend-line – “extended right” – e.g. it keeps going past the right edge of the chart – turns on ATR Long Entries from the start of the trend-line and will continue indefinitely until a maximum number of trades or consecutive losers, as defined by the user in the strategy inputs.

Harness your innate talents: • Complete Manual Includes:

"Train Your Brain" - a study guide and training method that assists with learning to read the market - and in learning to set up trades with CubicTrader TrendLine Magic

Open ended Outline Approach with specific exercises and steps to maximize your learning experience...

Over my years of trading and studying – I’ve studied under some fairly amazing trading “Gurus” – who seemed to have the patience of Buddha – who could sit and stare at a chart for hours on end – waiting to pounce on a trade by pulling the trigger at precisely the correct moment for their entry. These Gurus <and they truly ARE Gurus> had all of the necessary experience and discipline, not to mention concentration – to enable them to withstand a period when their trades went against them while waiting for the trade to either hit their stop loss or turn profitable. Nerves of steel – able to leap tall buildings in a single bound – all that. That does NOT describe me. I’m a very busy single parent with lots of distractions. I struggled for years trying to learn the methodologies and the disciplines required – but – like quitting coffee – was never able to accomplish successful fully manual discretionary trading – and obtain a profit, on a consistent basis. I recently designed and programmed this Complete Trading System, originally only for my own use - to remove as many of the obstacles as possible to being able to trade like those trading gurus.

Who it’s for

Who it’s for This product is for active Discretionary Traders - folks who want to initiate their own trades. It's not a fully automated "black-box" trading system. It automates your discretionary trades: • If you are too busy to watch a chart on a monitor all day long… • If you don’t have the time OR the patience to wait for your precise entries… • If you find yourself second guessing your entries or your exits… • If you don’t have the discipline – while live trading – of honoring your stop losses

– e.g. you find yourself widening them and hoping a bad trade will turn good … <you CAN override your setup and move stops in this system – but if you aren’t watching the trade the temptation may be lower!>…

• If you still want to be able to successfully trade the markets with minimal time and effort…

• If you want to swing trade, day-trade, or “scalp” the markets… • If you accept the premise that your brain is terrific at learning to recognize

patterns and make decisions, but a computer is better at executing your decisions for any number of reasons…

• If you would like a simple system with a few simple entries – or a configurable system with a rich set of entries (to support trading in sideways markets, or trades with superior risk-reward ratios to facilitate “leveraging up”)

IF these characteristics describe you, THEN you may find this system attractive. You should find it easy to use, once you spend an adequate amount of time “modeling” trades and practicing.

4 Steps To Set Up Trades • CubicTrader Trend-Line Magic embodies 4 separate "Trading Systems" - plus a set of

integrated & flexible exits: ⁻ Traders can use just one, combine several - or can combine them all in one

single "integrated" solution - simply by turning switches on or off - or by only using specific trend-line color / weight combinations.

⁻ Associated Indicators can also be turned on and off - and adjusted to focus on a single entry or a combination - to match the settings within the strategy.

4 Steps Overview

The 4 Trading Systems: 1. ATR Entries / Exits <QuickStart> 2. Keltner Channel Entries / Exits 3. MACD Entries / Exits 4. Trend-Line Entries / Exits

Standard and ATR Based Exits Combining Systems

4 Steps To Set Up Trades 1. Adjust the Strategy Inputs – if necessary

If you need to change them from default values you’ve set up, for example to change stop loss / profit target & other exits…

2. Remove ALL old trend-lines You only need to do this if you've lost track of the trend-lines Press Drawing / Remove Drawing Objects / Check trend-lines / OK Why? This strategy monitors trend-lines numbered 1 – 4

3. Add 4 trend-lines (click Drawing / Trend-Line) – Place them where you want to trade – extend the line to the right as appropriate

» Note: you can create space to the right on a chart - format / window / general / enter the number of bars in "Space to the right"

– Set the trend-line Weight to indicate what trades to take – Color the trend-lines to tell the strategy what direction to trade

4. Reset the Strategy (Format Strategies, Status On/Off/On) – Optionally Reset the CubicTrader Trend-Line Magic “Show-Me” Indicator as

appropriate – this will show where entries are to take place graphically on the chart

Steps 1-4

Adjust the Strategy Inputs – if necessary

Below are the most frequently changed strategy inputs:

• Number of Contracts or Shares to Trade • Total Trades Allowed • Max Consecutive Losers Allowed • Stop Loss / Profit Target / Time of Day Exit

To access them: Format Strategies / Format Inputs. See “Inputs – Strategy & Indicators” for details. For convenience - the most frequently changed inputs are at the top of the list when you open them up in Format Strategies. Most Traders will set them up once and then leave them alone.

Step 1

Remove ALL old trend-lines

Click Drawing / Remove Drawing Objects Click the Trend-Line Checkbox / OK

You’ll do this a lot if you use this system – before setting up a trade or trade series.

Step 2

Add 4 trend-lines Step 3

Trend-Line Segments, Rays and Lines The Strategy Monitors the Start AND End of a Trend-Line for Entries and Exits. *

• Trend-Line Segment: (has a start and end)

• Trend-Line Ray – Extend Right:

(has a start, no end – used to keep on trading after the current last bar on the chart)

• Trend-Line Ray – Extend Left: (Rarely Used): (has no start, has an end)

• Trend-Line Line – Extend Right & Extend Left: (Rarely Used):

(has no start, no end)

This feature provides for precision control of entries – you can have the trend-line, and therefore trade entries - end at a specific hour for example.

* Note that this does not apply to the following exits: Stop_Loss / Profit_Target / Trailing_Stop / Break_Even Stop.

This dialog box will pop up when you Right-Click on a trend-line. It offers a number of options you will use to set up trend-lines for trades: • Color • Weight • Extend Right / (Extend

Left – rarely used) • New Parallel

Step 3

The combination of a specific Trend-Line Weight AND Color instructs the strategy to execute specific entries or exits.

Step 3

AND Weight Color - 0 - 1 - 2 - 3 - 4 - 5

The importance of "Neutral" • Since the system requires 4

trend-lines (numbered 1-4) to be on the chart in order to execute trades - if you aren't using a trend-line - you need to put it in "neutral" - e.g. set it to a color and weight that don't do anything.

• Weight = Any and Color = DarkGray are suggested for this purpose.

Step 3

AND Weight Color - 0 - 1 - 2 - 3 - 4 - 5

Step 3

AND Weight Color - 0 - 1 - 2 - 3 - 4 - 5

• Right-Click on a Trend-Line, then click Weight to access the weight dialog box.

• Right-Click on a Trend-Line, then click Color to access the color dialog box.

Reset the Strategy Click on Format / Strategy then Click Status 2 times to turn the Strategy OFF and back ON.

It’s always a good idea to do this, even in real-time live trading – because you will see if there are any open strategy trades.

Step 4

Step 4 Reset the Indicator

Click on Format / Analysis Technique, Highlight the CubicTrader Trend-Line Magic Indicator - then Click Status 2 times to turn the Indicator OFF and back ON. You can do this by clicking on the Analysis Techniques tab after resetting the Strategy.

This optional step – is useful for modeling and practice as well as for seeing your potential entry points visually.

Steps 1-4

1. Adjust the Strategy Inputs – if necessary If you need to change them from default values you’ve set up, for example to change stop loss / profit target & other exits…

2. Remove ALL old trend-lines You only need to do this if you've lost track of the trend-lines Press Drawing / Remove Drawing Objects / Check trend-lines / OK Why? This strategy monitors trend-lines numbered 1 – 4

3. Add 4 trend-lines (click Drawing / Trend-Line) – Place them where you want to trade – extend the line to the right as appropriate

» Note: you can create space to the right on a chart - format / window / general / enter the number of bars in "Space to the right"

– Set the trend-line Weight to indicate what trades to take – Color the trend-lines to tell the strategy what direction to trade

4. Reset the Strategy (Format Strategies, Status On/Off/On) – Optionally Reset the CubicTrader Trend-Line Magic “Show-Me” Indicator as

appropriate – this will show where entries are to take place graphically on the chart

4 Steps To Set Up Trades Review

ATR Entry / Exit QuickStart

Average True Range Trailing "Stops" - are used as potential entry and exit points. Entries and Exits can reference the ATR itself - or - can be "Bumped-Out" by 1 or 2 - which takes the ATR value - and "factors" or multiplies it by values available as user inputs (default values are provided). This provides for taking advantage of rapidly accelerating markets and for lowering the odds of "early" exits.

Trend-Line Weight = 3-5 AND Color =

• Green – Turn on ATR Long Entries

• Red – Turn on ATR Short Entries

• DarkGreen – Turn on ATR Short Exits

• DarkRed – Turn on ATR Long Exits

• The thicker the line the farther from the base reference point (the ATR line): – For Longs - "Bump-Out" moves UP. – For Shorts - "Bump-Out" moves DOWN.

First – set the trend-line Weight Second – set the trend-line Color

AND Weight Color

- 3 - 4 - 5

These entries and exits are

based on Average True Range (ATR)

ATR Trailing Stop

The ATR Trailing Stop offers 3 potential Long Entry or Short Exit reference points illustrated here. They are "centered" around the ATR Trailing Stop indicator - with a trend-line size of "3" as the starting point - or "Normal Entry." You can "bump-out" an ATR entry or exit by 1 or 2. Long Entries and Short Exits are logically the same - e.g. a Long Entry would also reverse an open Short trade. This convention is followed throughout the system.

(Format (or Right Click) Trend-Line / Weight - then select the desired weight).

- 0

- 1

- 2

- 3 - Normal

- 4 - Bumped-Out by 1


Long Entries Short Exits

5 - 4 - 3 -

Trend-Line Weight

The ATR Trailing Stop offers 3 potential Short Entry or Long Exit reference points illustrated here. They are "centered" around the ATR Trailing Stop - with a trend-line size of "3" as the starting point - or "Normal Entry." You can "bump-out" an ATR entry or exit by 1 or 2. Short Entries and Long Exits are logically the same - e.g. a Short Entry would also reverse an open Long trade. This convention is followed throughout the system.


- 0

- 1

- 2

- 3 - Normal



Short Entries Long Exits

3 - 4 - 5 -

ATR Trailing Stop

Trend-Line Weight

Being able to bump out the ATR entries and exits supports several trading opportunities. For example: • The ability to trade in fast moving more volatile

or energetic market conditions. If you observe that price - in recent history - is consistently not quite touching the "Normal" ATR you can adjust the entries accordingly.

• The ability to use the ATR Trailing stop as a natural exit - and lower the odds of being taken out too soon.

ATR Trailing Stop

Bumping the Long Exit (Darkred trend-line) out by two prevented an early exit here... This Trader arrived after the initial change in direction, and set up a long entry "bumped-out" by 1 with a long exit bumped out by 2. The dotted green line above the ATR trailing stop and the dotted red line below it - serve to illustrate where entries and exits will take place.

Note the dotted-lines (red and green) on, above or below the ATR indicator – they are “bumped-out” from the ATR indicator line:

• by 0 (Normal) – for the first red line, • by 1 for the second red line and the green line • by 2 for the 3rd red line

The CubicTrader Trend-Line Magic Indicator shows where entries will take place.

ATR Entries & Exits: Trend-Line Weight = 3-5 AND Color =

• Green – Turn on ATR Long Entries

• Red – Turn on ATR Short Entries

• DarkGreen – Turn on ATR Short Exits

• DarkRed – Turn on ATR Long Exits

ATR Entries & Exits can be “normal” – e.g. weight 3 – or “bumped-out” by 1 or 2 - - weights 4 & 5 respectively.


based on Average True Range (ATR)

The thicker the line - the farther from the base reference point - e.g. the ATR line. For Longs - "Bump-Out" moves UP. For Shorts - "Bump-Out" moves DOWN.

Note the dotted lines showing where trades take place.

3 4 5

Normal Bumped-Out 2

Steps 1-4 1. Adjust Strategy Inputs 2. Remove Old Trendlines 3. Add / Place Trendlines 4. Reset Strategy / Indicator

Set the trend-line Weight Set the trend-line Color Set the trend-line "Extent"

Bumped-Out 1

Trend-Line Segment / Trend-Line Ext. Right

Color AND Weight - 0 - 1 - 2 - 3 - 4 - 5

ATR Entries / Exits QuickStart ->

ATR Keltner MACD / MaOsc Trend-Line Std / ATR Exits Combinations

0 1 2

0 1 2

Keltner Entry / Exit QuickStart

Keltner Channels - "Base" - Top Chart with the Mid-Channel and Upper & Lower Bands - and with added reference points for trades on the Bottom Chart. Keltner Channels use a Moving Average as the "mid-channel" - and upper and lower bands, which are calculated based on Average True Range +/- the "mid-channel." Keltner Channels naturally adapt to the market based on the underlying volatility of the market.

Keltner Entries & Exits: Trend-Line Weight = 0 to 5 AND Color =

• Cyan – Turn on KLT “Break-Out” Long Entries

• DarkCyan – Turn on KLT “Break-Out” Short Exits

• Blue – Turn on KLT “Break-In” Long Entries

• DarkBlue – Turn on KLT “Break-In” Short Exits

• Magenta – Turn on KLT “Break-Out” Short Entries

• DarkMagenta – Turn on KLT “Break-Out” Long Exits

• LightGray – Turn on KLT “Break-In” Short Entries

• Black – Turn on KLT “Break-In” Long Exits

These entries and exits are based on “Keltner Channel”

levels or bands (Upper & Lower)

which are the reference point for

“bumping-in” or “bumping-out”

Weight Color

• Starting with a Trend-Line Weight of 3, - e.g. Normal or "bumped" by 0 - Thinner Lines "Bump-In" the trade entry from the Normal Upper or Lower Band - by 1 - 3.

• Starting with a Trend-Line Weight of 3, - e.g. normal or "bumped" by 0 - Thicker Lines "Bump-Out" the trade entry from the Normal Upper or Lower Band - by 1 - 2.

- 0 - 1 - 2 - 3 - 4 - 5

AND

“Bump-In” and “Bump-Out” are relative to levels on the Keltner Channel: Break-Out Long Entries / Short Exits reference the UPPER Keltner Band, Break-In Long Entries / Short Exits reference the LOWER Keltner Band. Break-Out Short Entries / Long Exits reference the LOWER Keltner Band, Break-In Short Entries r/ Long Exits reference the UPPER Keltner Band

Keltner "Bump-In" & "Bump-Out" Defined <Why Bump?>

Trades are referenced to, or centered on: • The UPPER Keltner Band • The LOWER Keltner Band

Trade Entries and Exits can be made at the UPPER or LOWER Band - or - they can be "Bumped-In" or "Bumped-Out" from those bands. • Thinner Trend-Lines "Bump-In" - • Thicker Trend-Lines "Bump-Out"

A Trend-Line Weight of 3 serves as the "O" or center point for "Bumping:" • A weight of 0 "Bumps-In" by 3 • A weight of 1 "Bumps-In" by 2 • A weight of 2 "Bumps-In" by 1 • A weight of 3 - IS NORMAL / Centered / 0 • A weight of 4 "Bumps-Out" by 1 • A weight of 5 "Bumps-Out" by 2 Note: This is just a convention, you could use 0 as the starting point and just Bump-Out from there. E.g. the reference point would be close to the Mid-Channel.

Weight

0 1 2 3 4 5

5 4 3 2 1 0

Out

In

In

Out

0

0

Keltner Channel

Mid-Channel Mvg Average

Keltner "Break-In" & "Break-Out" Defined

A "Break-In" trade Moves Towards the Mid-Channel • A break-in Long trade starts BELOW the Mid-channel, at any of the available reference points • A break-in Short trade starts ABOVE the Mid-channel, at any of the available reference points A "Break-Out" trade Moves Away From the Mid-Channel • A break-out Long trade starts ABOVE the Mid-Channel, at any of the available reference points • A break-out Short trade starts BELOW the Mid-Channel, at any of the available reference points

Long "Break-In" Trades

Long "Break-Out" Trades

Short "Break-In" Trades

Short "Break-Out" Trades

Keltner Long Entry / Short Exit Normal & Bumped-Out 1-2 / Break-In*

Keltner Channels offer 6 potential "Break-In" Long Entry or Short Exit reference points with the Normal and Bumped-Out by 1 or 2 illustrated here. The 6 entries and exits are "centered" around the Keltner Channel lower band - with a trend-line size of "3" as the starting point - or "Normal Entry." You can "bump-out" a Keltner Long Entry or Short Exit by 1 or 2. Long Entries and Short Exits are logically the same - e.g. a Long Entry would also reverse an open Short trade. This convention is followed throughout the system.


- 0

- 1

- 2

- 3 - Normal




3 - 4 - 5 -

Trend-Line Weight

* Break-In = to move towards the Keltner Mid-Channel.

Keltner Long Entry / Short Exit Normal & Bumped-In 1-3 / Break-In*

Keltner Channels offer 6 potential "Break-In" Long Entry or Short Exit reference points with the Normal and Bumped-in by 1, 2 or 3 illustrated here. The 6 entries and exits are "centered" around the Keltner Channel lower band - with a trend-line size of "3" as the starting point - or "Normal Entry." You can "bump-in" a Keltner Long Entry or Short Exit by 1, 2 or 3. Long Entries and Short Exits are logically the same - e.g. a Long Entry would also reverse (exit Short / enter Long) an open Short trade. This convention is followed throughout the system.


- 0 - Bumped-In by 3



- 3 - Normal


0 - 1 - 2 - 3 -

Trend-Line Weight


Keltner Long Entry / Short Exit Normal & Bumped-In 1-3 / Break-Out*

Keltner Channels offer 6 potential "Break-Out" Long Entry or Short Exit reference points with the Normal and Bumped-In by 1, 2 or 3 illustrated here. The 6 entries and exits are "centered" around the Keltner Channel upper band - with a trend-line size of "3" as the starting point - or "Normal Entry." You can "bump-in" a Keltner Long Entry or Short Exit by 1, 2 or 3. Long Entries and Short Exits are logically the same - e.g. a Long Entry would also reverse an open Short trade. This convention is followed throughout the system.



* Break-Out = to move away from the Keltner Mid-Channel.




- 3 - Normal

Trend-Line Weight

0 - 1 - 2 - 3 -

Keltner Long Entry / Short Exit Normal & Bumped-Out 1-3 / Break-Out*

Keltner Channels offer 6 potential "Break-Out" Long Entry or Short Exit reference points with the Normal and Bumped-Out by 1 or 2 illustrated here. The 6 entries and are "centered" around the Keltner Channel upper band - with a trend-line size of "3" as the starting point - or "Normal Entry." You can "bump-out" a Keltner Long Entry or Short Exit by 1 or 2. Long Entries and Short Exits are logically the same - e.g. a Long Entry would also reverse an open Short trade. This convention is followed throughout the system.


- 0

- 1

- 2

- 3 - Normal




3 - 4 - 5 -

Trend-Line Weight


Keltner Short Entry / Long Exit Normal & Bumped-Out 1-2 / Break-In*

Keltner Channels offer 6 potential "Break-In" Short Entry or Long Exit reference points with the Normal and Bumped-Out by 1 or 2 illustrated here. The 6 entries and exits are "centered" around the Keltner Channel lower band - with a trend-line size of "3" as the starting point - or "Normal Entry." You can "bump-out" a Keltner Short Entry or Long Exit by 1 or 2. Short Entries and Long Exits are logically the same - e.g. a Short Entry would also reverse an open Long trade. This convention is followed throughout the system.


- 0

- 1

- 2

- 3 - Normal




5 - 4 - 3 -

Trend-Line Weight


Keltner Short Entry / Long Exit Normal & Bumped-In 1-3 / Break-In*

Keltner Channels offer 6 potential "Break-In" Short Entry or Long Exit reference points with the Normal and Bumped-in by 1, 2 or 3 illustrated here. The 6 entries and exits are "centered" around the Keltner Channel lower band - with a trend-line size of "3" as the starting point - or "Normal Entry." You can "bump-in" a Keltner Short Entry or Long Exit by 1, 2 or 3. Short Entries and Long Exits are logically the same - e.g. a Short Entry would also reverse (exit long / enter short) an open long trade. This convention is followed throughout the system.





- 3 - Normal


0 - 1 - 2 - 3 -

Trend-Line Weight


Keltner Short Entry / Long Exit Normal & Bumped-In 1-3 / Break-Out*

Keltner Channels offer 6 potential "Break-Out" Short Entry or Long Exit reference points with the Normal and Bumped-In by 1, 2 or 3 illustrated here. The 6 entries and exits are "centered" around the Keltner Channel upper band - with a trend-line size of "3" as the starting point - or "Normal Entry." You can "bump-in" a Keltner Short Entry or Long Exit by 1, 2 or 3. Short Entries and Long Exits are logically the same - e.g. a Short Entry would also reverse an open Long trade. This convention is followed throughout the system.







- 3 - Normal

Trend-Line Weight

0 - 1 - 2 - 3 -

Keltner Short Entry / Long Exit Normal & Bump-Out 1-2 / Break-Out*

Keltner Channels offer 6 potential "Break-Out" Short Entry or Long Exit reference points with the Normal and Bumped-Out by 1 or 2 illustrated here. The 6 entries and exits are "centered" around the Keltner Channel upper band - with a trend-line size of "3" as the starting point - or "Normal Entry." You can "bump-out" a Keltner Short Entry or Long Exit by 1 or 2. Short Entries and Long Exits are logically the same - e.g. a Short Entry would also reverse an open Long trade. This convention is followed throughout the system.


- 0

- 1

- 2

- 3 - Normal




3 - 4 - 5 -

Trend-Line Weight




Keltner Entries & Exits: Trend-Line Weight = 0 to 5 AND Color =

• Cyan – Turn on KLT “Break-Out” Long Entries • DarkCyan – Turn on KLT “Break-Out” Short Exits • Blue – Turn on KLT “Break-In” Long Entries • DarkBlue – Turn on KLT “Break-In” Short Exits • Magenta – Turn on KLT “Break-Out” Short Entries • DarkMagenta – Turn on KLT “Break-Out” Long Exits • LightGray – Turn on KLT “Break-In” Short Entries • Black – Turn on KLT “Break-In” Long Exits

These entries and exits are based on “Keltner Channel”

levels or bands (Upper & Lower)

which are the reference point for

“bumping-in” or “bumping-out”

AND Weight Color

KLT / Keltner Entries and Exits can be “Normal” OR “bumped-in” by 1 -3 OR “bumped-out” by 1-2.

- 0 - 1 - 2 - 3 - 4 - 5

KLT Entries can be bumped-in or bumped-out. Thicker trend-lines bump-out, away from the mid-channel. Thinner lines bump-in, towards the mid-channel. In each case relative to the upper or lower band - as determined by the color of the trend-line.

3 4

5 2

1 0

Normal

Bumped-Out 1-2 Bumped-In 1-3

Keltner Channel Entries / Exits QuickStart ->



MACD Entry / Exit QuickStart MACD / Moving Average Oscillator are available Entries and Exits in CubicTrader Trend-Line Magic. As delivered, there are two different Entry and Exit Options: • A "Permissive" mode - where Entries or Exits

can take place any time the Histogram / Oscillator is ABOVE(Long) or BELOW (Short) the Smoothed Average of the Histogram.

• A less permissive option only takes entries or exits when the Histogram / Oscillator CROSSES over or under the Smoothed Average of the Histogram.

The MACD/MaOsc indicator shows* where the above entries will occur. When it TURNS Green - a CROSS entry or exit is allowed, when it IS green - a "Permissive" entry or exit is allowed. When the indicator TURNS Red - a CROSS entry or exit is allowed, when it IS red - a "Permissive" entry or exit is allowed. • Which Entry or Exit is enabled is determined by

the Color and Weight of a Trend-Line. * - if configured appropriately - as delivered.

MACD / OSC Entries & Exits: Trend-Line Weight = 1 or 2 AND Color =

• Green – MACD or MaOsc LONG Entries • Red – MACD or MaOsc SHORT Entries • DarkGreen - MACD or MaOsc SHORT Exits • DarkRed - MACD or MaOsc LONG Exits

• Trend-Line Weight: – 1 = MACD / Osc Crosses the Smoothed Line – 2 = MACD / Osc is Above (long) or Below (short) the

Smoothed Line

MACD / OSC – are entries and exits and are considered experimental at this time – – the trend-line weight and color plus the trend-line extent show where the entries or exits will take place. The MaOsc can be set to show where the entries and exits will take place.

MACD / OSC entries are NOT shown on

the CubicTrader Trend-Line Magic Indicator because they are not based on a level or band

AND Weight Color

MACD / OSC Settings should be matched to the associated included indicator for clarity – as delivered. E.g. if you change the strategy settings – it’s a good idea to change the appropriate indicator settings too.

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MACD / Awesome Oscillator Entry & Exit

The switchable MACD / "Awesome" Oscillator (AKA MaOsc) - provides for entries and exits that respond to changes in momentum instead of relying on levels as in the ATR and Keltner Channel - a useful alternative in some market conditions. Supported entries include a more permissive mode - where entries will happen for the entire time that the histogram (red / green on 2nd from bottom pane) is above (long) or below (short) - the smoothed average line (yellow). A less permissive mode takes entries ONLY at the time the histogram crosses the smoothed entry.


- 0

- 1 - Enter/Exit on Cross

- 2 - Enter/Exit - Above/Below

- 3 -

- 4 -

- 5 -

Entries Exits

1 - 2 - 2 - 1 -

Trend-Line Weight

MACD / MaOsc

2 3

These 3 examples show a few of the alternative ways that the MACD / MaOsc Entries and Exits can be used: 1. The restrictive CROSS entry - short in this case - with a profit target exit. A single trade is taken. 2. The permissive (Histogram ABOVE or BELOW the smoothed signal line shown in yellow) - with profit targets for exits - shows a series of trades taken. 3. The permissive short entry - with a permissive short exit - takes the move as one single larger trade. Note that in examples 1 and 2 - the profit target was turned on by the white trend-line with a weight of 3.

1

MACD / Moving Average Oscillator based entries and exits (configurable in both the strategy and the indicator) – are useful in situations where you might want confirmation of a change in momentum – such as the continuation after pull-back trades shown above – vs. simply using Keltner Channel levels.

The green vertical lines show how the Long Entries shown here line up with the Oscillator crossing the Smoothed or Averaged version of the Oscillator (configurable as standard MACD or a variation of the well known “Awesome Oscillator”). Profit Targets and Stop Losses are turned on in this example – and configured to use a multiple or “factor” of the underlying ATR value – creating a self-adjusting Profit-Target or Stop-Loss. The included Trailing-Stop and Break-Even stop have that option as well.

MACD / MaOSC Entries & Exits: Trend-Line Weight = 1 or 2 AND Color = • Green -Turn on MACD Long Entries

• Red -Turn on MACD Short Entries

• DarkGreen -Turn on MACD Short Exits

• DarkRed -Turn on MACD Long Exits

• Trend-Line Weight: – 1 = MACD / Osc Crosses the Smooth Line – 2 = MACD / Osc Above / Below Smooth Line


based on MACD / MaOsc

Weight Color AND



MACD / OSC Settings should be matched to the associated included indicator for clarity – as delivered. E.g. if you change the strategy settings – it’s a good idea to change the appropriate indicator settings too.

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MACD Entries / Exits QuickStart ->



Trend-Line Entries / Exits

The ability to use Trend-Line Entries and Exits adds an extra dimension of support to a Traders' ability to use their judgment in planning and executing trades... Trend-Line Entries and Exits can anticipate support and resistance, or be used to create a "trailing stop" based on market action around "pivot points."

Yellow Trend-Line Exit and tells the strategy to "Take Only 1 Trade"

White Trend-Line Exit

Trend-Line Weight = 0 AND Color =

• Green – Trend-Line Long Entry.

• Red – Trend-Line Short Entry.

• White – Trend-Line Exit.

• Yellow – Trend-Line Exit AND turns on “Require_Retrigger” and only allows the first trade then stops.

• Note: Trend-Line entries and exits are not shown by the CubicTrader Trend-Line Magic Indicator, it's not necessary as the trend-lines themselves are the entries.

AND Weight Color

First – set the trend-line Weight Second – set the trend-line Color

- 0

Trend-Line Long & Short Entry and Exits (Yellow = 1 trade only)

The addition of Trend-Line Entries and Exits - where the Trend-Lines themselves are used as entry and exit points adds additional flexibility in planning and executing trades. Trader insight can support decisions to use a trend-line to take an exit just before support or resistance for example. Trend-Lines can be horizontal or slanted - to follow trend-line based support and resistance. • Green Trend-Lines are used for Long Entries, • Red Trend-Lines are used for Short Entries. • White and Yellow Trend-Lines are used for Exits - in addition to setting up an exit -

a Yellow Trend-Line instructs the system to only take the first trade it finds on the chart - providing the Trader an opportunity to reassess the markets between trades..

Format (or Right Click) Trend-Line / Weight - then select the desired weight.

- 0 - Trend-Line Entries & Exits

- 1

- 2

- 3

- 4

- 5

Entries / Exits

0 - 0 - 0 - 0 -

Trend-Line Weight

Trend-Line

This example shows a Red Trend-Line (with a weight of 0) - used as a "break-out" entry - taking a short trade just below support - as price breaks through that support level after having tested it several times earlier. • Trend-Line Entries AND Exits are based on the "extent" - or

beginning and end of the trend-line. If you want a trend-line exit to be in force for a specific level into the future - set the trend-line to "extend right" (Format or Click the trendline - click the "extend right" button).

• Trend-Lines entries in CubicTrader Trend-Line Magic are designed to behave appropriately depending on where price is relative to the trend-line. That is to say that if the price is below a trend-line used for a Long Entry (or Short Exit) - the entry will be a "Stop Market" entry - it will execute a market order if touched by price - and is therefore potentially subject to slippage. Conversely - if the price is below a trend-line used for a Short Entry - the entry will be a limit entry - and there should be no slippage.

This example just adds a couple of Trend-Line entries (thin green and red lines) – to the trades shown in the prior example for MACD entries. The thin red line represents an unlikely trade (unless you like trying to pick tops that is!) – and is shown for illustration purposes only.

Trend-Line Weight = 0 AND Color =

• Green – Trend-Line Long Entry

• Red – Trend-Line Short Entry

• White – Trend-Line Exits

• Yellow – Trend-Line Exits and turns on "Require_Retrigger" and only allows the first trade then stops.

These entries and exits are based on the level of the trend-lines

themselves.

Weight Color AND

Note: Trend-Line entries are not shown by the CubicTrader Trend-Line Magic Indicator, as the trend-lines themselves are the entries.



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Trend-Line Entries / Exits QuickStart ->



Standard and ATR Based Exits • CubicTrader Trend-Line Magic supports and uses TradeStation "Standard" exit

functions (SetStopLoss, SetProfitTarget, etc.). Alternatively, the Trader can turn on ATR based exits - and - input a value to multiply the ATR by to set up an exit:

⁻ To use "Fixed" stops - enter the amount of the stop, per contract or share, in the appropriate input in the strategy. See "Inputs" for details.

⁻ To use ATR "natural" stops instead - input a value in the AtrFactor input for the specific stop you want to adjust. Please see the inputs for each stop - which discusses how they are used in the specific stop - e.g. Stop_Loss, Profit_Target, etc.

• The Trader can turn the various stops ON or OFF in the Strategy Inputs - OR - turn them ON or OFF by setting a Trend-Line to a specific Color & Weight.

⁻ This provides the ability to use Profit_Targets in some trades and "Natural" trailing stops in other trades (for example) - without needing to change the strategy inputs.

⁻ Normally - except for Stop_Losses, Traders will likely leave the stops under Trend-Line control. If they want to "free-up" a trend-line - or have a policy of always using a fixed Stop_Loss, for example, they will "FORCE_ON" the specific Exit in the Strategy Inputs. The system is delivered with Stop_Losses turned ON.

Trend-Line Weight = 2 to 5 AND Color = (White OR Yellow) =

• White – Standard Exit / ATR Option

• Yellow – Standard Exit / ATR Option AND turns on “Require_Retrigger” and only allows the first trade set up - then stops.

Trend-Line Weight: 2 = Stop_Loss 3 = Profit_Target 4 = Trailing_Stop 5 = BreakEven_Stop

First – set the trend-line Weight

Second – set the trend-line Color

AND Weight Color - 0 - 1 - 2 - 3 - 4 - 5

Standard / ATR Based Exits are turned on with

Trend-Lines that are White

or Yellow – Weight 2-5

Note that the “Extent” of a trend-line set up for these Exits is ignored. If the trend-line is white or yellow and the appropriate weight – the exits are in-force for the entire chart.

Additional Exits Standard / ATR Factored

- 0

- 1

- 2 - Turn Stop_Losses On

- 3 - Turn Profit_Targets On

- 4 - Turn Trailing_Stop On

- 5 - Turn BreakEven_Stop On

Trend-Lines that are White or Yellow - and of a specific weight (shown below) - will turn on the selected exit. Exits include: • Stop Loss • Profit Target • Trailing Stop • BreakEven Stop The exits are based on one of two options: • Standard TradeStation Exits - with FIXED values for the

parameters - e.g. the stop loss, profit target, trailing stop floor, breakeven floor.

• ATR times (*) a user input value - see "Inputs" for a description.

Exits

Time of Day Exit

Exit The Time of Day Exit is provided to support DAY TRADERS - specifically those Traders who want to exit all trades prior to the last bar of the regular session. This accommodates Traders who want to trade "heavily leveraged" using the lower margins required for Futures Contracts - by Tradestation during normal market hours as defined by the specific exchange associated with a futures contract. The Time of Day exit is under INPUT control only. It is in the "Trade Controls" group of inputs in the strategy. The inputs are: • FORCE_TIMEOFDAYEXIT_1 - a "1" turns a time of day exit on. • RegSess2_Exit_OneBarBEFORE - enter the time of the last bar for the

"regular" session here. The system will exit ONE BAR before the time entered in this field. Entries are input in "military time" - e.g. 0000 to 2400. Be sure to enter a time that is aligned with the time-frame on your chart - e.g. if you have a 5 minute chart - there is no "12:54" on the chart - and the exit won't occur because 12:54 never happens.

The system includes RegSess1 and RegSess2 Start and End Times - providing for a morning and an afternoon session - and a "lunch break" between them. The system will only allow entries during the defined sessions - these hours are not used to filter exits - which are always allowed. IF YOU DON'T WANT TO USE TIME OF DAY FEATURES such as RegSess - you should set the values for start and end at 0000 and 2400. The RegSess2_Exit_OneBarBEFORE should be set to a value OUTSIDE of these - e.g. - "2430."

Trend-Line Weight = 2 to 5 AND Color = (White OR Yellow) =

• White – Standard Exit / ATR Option • Yellow – Standard Exit / ATR Option AND turns

on “Require_Retrigger” and only allows the first trade set up - then stops.

Trend-Line Weight: 2 = Stop_Loss 3 = Profit_Target 4 = Trailing_Stop 5 = BreakEven_Stop

Standard / ATR Exits are turned on with Strategy Inputs OR with

Trend-Lines that are White or

Yellow & Weight 2-5

Weight Color AND

Note that the “Extent” of a trend-line set up for Standard / ATR Exits is ignored. If the trend-line is white or yellow and the appropriate weight – the exits are in-force for the entire chart.



- 0 - 1 - 2 - 3 - 4 - 5

Standard and ATR Based Exits QuickStart ->



Combining Systems

As delivered - ALL Strategy Entries and Exits are turned on. • However - The Trader "implements" or uses a specific system by only using the

specific Weight and Color combinations - of trend-lines - for the specific trades they want the system to execute.

• The CubicTrader Trend-Line Magic Indicator has easily understood and accessed settings that allow the Trader to turn the following ON or OFF:

⁻ ATR Trailing Stop Indicator & "Color Trend" Setting ⁻ Keltner Channel & "Color Trend" Setting

⁻ Mid-Channel / Upper & Lower Bands / Added Inner & Outer Bands ⁻ Ability to set the weight and color of all of the above individually

• The Moving Average Pair and the MACD / Moving Average Oscillator both provide inputs for the Trader to customize their usage.

• The inputs for the indicators and strategy are relatively self explanatory - a quick perusal of the inputs section and some experimentation is likely all you will need to understand and use the various options.



Strategy - Above Left: • The most commonly accessed settings are organized on the top - and

include section dividers for easy and quick access. Inputs with "_1" at the end are turned ON by inputting a 1. Other inputs are quantities or amounts - and some are specific to the symbol being traded.

CubicTrader Trend-Line Magic Indicator - Right: • "ON_OFF_CONTROLS" - are the various indicator or indicator

components that can be turned ON. Input a 1 for those indicators you want to have on in your chart.

Infrequently accessed inputs - not shown here, are documented in the "Inputs" section.

Combining Systems QuickStart ->


• Email a request to [email protected] if you would like additional information on our products.

• For a copy of the CubicTrader Trend-Line Magic Strategy Component - please send a request to [email protected] and include your Customer Number. Your Customer Number can be found in the Tradestation Menu Bar - "Help / About Tradestation."

Contact CubicTrader Trend-Line Magic

U.S. Government Required Disclaimer All trading <futures, commodities, stocks, options, currencies, horses and baseball cards> has large potential rewards, but also large potential risks. You must be aware of the risks and be willing to accept them in order to invest in the markets. Don’t trade with money you can’t afford to lose. This manual is neither a solicitation nor an offer to Buy/Sell any financial instrument. No representation is being made that any information you receive will or is likely to achieve profits or losses similar to those discussed or shown in this manual. The past performance of any trading system or methodology is not necessarily indicative of future results. Please use common sense. Losses can and will occur. No system or methodology has ever been developed that can ensure returns or prevent losses. No representation or implication is being made that using the system described in this document will generate returns or ensure against losses. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

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