STS - The STS Quick Learning Manual

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Jul. 11, 2014THE STO QUICK LEARNING MANUAL

DISCLAIMER:Online trading involves substantial risk of loss and is not suitable for everyone. The valuation of the contracts does uctuate, and, as a result, you may lose more than youroriginal investment. The impact of seasonal and geopolitical events is already factored intomarket prices. The highly leveraged nature of online trading means that small marketmovements will have a great impact on your trading account and this can work against you,

leading to large losses or can work for you, leading to large gains. If the market moves againstyou, you may sustain a total loss greater than the amount you deposited into your account.

You are responsible for all the risks and nancial resources you use and for the tradingsystems you are using.You should not engage in live trading unless you fully understand thenature of the transactions you are entering into and the extent of your exposure to loss. If youdo not fully understand these risks you must seek independent advice from your nancialadvisor. All trading strategies are used at your own risk. This mentoring should not e reliedupon as advice or construed as providing recommendations of any kind. It is yourresponsiility to conrm and decide which trades to make. Trade only with risk capital; thatis, trade with money that, if lost, will not adversely impact your lifestyle and your ability tomeet your nancial obligations.

!ast results are no indication of future performance.

In no event should the content of this correspondence and coaching e construed as anexpress or implied promise, guarantee or implication from "hildren of the #ourney that youwill prot or that losses can or will e limited in any manner whatsoever. "hildren of the#ourney is not responsile for any losses incurred as a result of using any of our tradingstrategies and mentoring. The Trading software should never e left unattended due to thepossiility of events out of your control, such as computer or data failure, power outages,position mismatches, and$or network prolems. %oss&limiting strategies such as stop lossorders may not e e'ective ecause market conditions or technological issues may make itimpossile to execute such orders. %ikewise, strategies using cominations of trading positions

such as (spread) or (straddle) trades may e *ust as risky as simple long and short positions.Information provided in this correspondence and coaching is intended solely for informationalpurposes and is otained from sources elieved to e reliale. Information is in no wayguaranteed. No guarantee of any kind is implied or possible where proections of futureconditions are attempted.

1 of 26 The STO Qu!" Le#$%%& M#%u#lAll R&h'( Re(e$)e*+

The Chl*$e% of 'he Jou$%e S#%&h# of 'he E#(' Co#('. Co-$&h', 20112014


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+evision %og-/01//./2 3 A.!e4alo5a 3 Total +evision to use the Awesome %ayout and Trading !lan.-/2//6./-22 3 A.!e4alo5a 3 added the 7T8 3 +osa"han %ayout and Trading !lan.-/202.- 3 A.!e4alo5a 3 added practice replay from the middle of a sustained downtrend.

-/20-9./- 3 A.!e4alo5a 3 ma*or revision to the 7T7 8:cial Trading !lan.-/209./22 3 A.!e4alo5a 3 added the 7T7 8:cial Trading !lan.-/202./; 3 A.!e4alo5a 3 added running marathons and market prole.-/202./- 3 A.!e4alo5a 3 revised the Trading s Trading !lan.-/22/0./02 3 A.!e4alo5a 3 added the !laygrounds and sprint vs marathons.-/22/./0 3 A.!e4alo5a 3 added mention of (The !erfect !icture ?ook).-/2--1./92 3 A.!e4alo5a 3 created the 7angha @old & Ama5ing %ayout and 2&ay BI7"I!%ICD Trading


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"ontents


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Purpose

This is the collective isdom our 7piritual "ommunity of Traders had een made privy toy the Hniversal Intelligence of %ove.

This manual is a compendium of knowledge we as individuals and as a community continue to learn with appreciationand gratitude.

Mission Statement

e elieve in the Bivine and the Hniverse. e are eternally @rateful and ever Thankful for the @ift given.

e are continually given the most ama5ing insights aout this @iftN which allowed us to create a usiness that takes little of ourtime to run during the day. This @ift enales us to spend Kuality time helping others as the Bivine wishes. This is the reason we

teach this @ift to others. e depend on the Bivine and the %ove of the Hniverse to lead others to us.

!astery

It is what LisL, you are seeing what you (see).It is A%% in the techniKue and your e:ciencies.

You can>t predict the future trends of the market,you are ut a mere follower, so act like itO

You must only develop the aility to see what is efore your eyes.The Hniverse is asking for little more in this endeavor.

!ractice eing e:cientO!oints per trade, get it up.

%ike Birk Cowit5ki in the C?A at -.9 points per hoop.PThe est average near him is /.2Q.

Cot like t get credit for one.

Hsing the least time and e'ort, a skilled performance R DJJI"IDCTOe will ecome (


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"#$%N #$N&'$&( )%*+#$%!(-

/. The 7angha will never ask you for money.-. The info I7 !+8SIBDB J+DD%Y with Lno strings attachedL.2. The 7angha will provided answers and guidance pertinent only to (The 7angha Trading 8scillators P7T8Q).0. The 7angha I%% C8T provide proof of e'ectiveness nor ACY guarantee of JITCD77 of use. !rove it to yourselfO9. You are J+DD to prot from (The 7angha Trading 8scillators) in any way you choose, with only 8CD +D7T+I"TI8C 3

@ive credit to (The "hildren of the #ourney 7angha) as the original creator.

T( *$N&$ "%N+%"#(*-

/. Those that have the passion and perseverance, on their own volition, will prove the merits of LThe @iftL forthemselves and acKuire the necessary skills y their 8C e'ort.

-. As LThe @iftL was freely given to the 7angha, we J+DD%Y give the gift from our heart to those who ask us. The7angha will freely answer Kuestions and provide the foundational knowledge to those who seek to use LThe 7angha

Trading 8scillators) e'ectively.2. The @ift of LThe 7angha Trading 8scillatorsL is 8pen 7ource and will adhere to the L1 @uiding !rinciplesL of 8pen

7ource.


http://www.academia.edu/1234243/The_7_principles_of_successful_open_source_communitieshttp://www.academia.edu/1234243/The_7_principles_of_successful_open_source_communities


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The STO Quick Learning Manual

"urpose-

This document is the 7angha Trading 8scillator Teams latest understanding on how to use LThe 7angha Trading 8scillators)protaly using (The Awesome %ayout and Trading !lan). e include all the Tactics and 7trategy, we currently know of, for 7afeand 7ure 3 protaility.

hen you have your rst&look at the 7T8 tools used in the Awesome %ayout Pon the 7ierra"hart Trading !latformQ, please do C8Te overwhelmed y all the lines. You will learn their function as you execute (The Awesome Trading plan). !lease learn aout theCA++87, which is foundationalN we need CA++87 to clearly see the rhythm of the market dance and to alert us when the 7T8lines are ready for the next market cycle.

*$/(TY-Protect our tra!ing account, we employ the following tactics...

/. Hse a 7top and move it to the last (ounce) of the price&action Pwhere the price&action created a peak or valleyQ.

-. ?D 8?DBIDCT to the trading plan.

2. Hse only 8CD contract and =eep your max daily loss to less than U/9 P%oss %imitQ.

0. =eep your max daily lled trades to less than /- P8ver Trading %imitQ.

"AR#I#$: Doing %usiness &ith the Market is 0inherently0 )$N&(O'*' Market price(

action ma sharpl go up or !o&n) PRE*E#TI#$ our Stop +rom acti,ating in a timelmanner- Please reali.e ou "ILL LOSE mone &hen this happens an! this is a /normal/%eha,ior o+ the market-

As a ne& STO practitioner) ou are encourage! to use O#L0 one contract at a time) tominimi.e this possi%le loss-

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*'(TY-

%ook for and wait for (The Trade 7etup).

"O/%T$1%#%TY-

/. E1ITyour position when you have (The Trade Dxit).

-. 2E"ARE 3 STA0 A"A0 when the market is sideways and 7T8 lines *ust stay in the BAC@D+ V8CD.

STO allo&s us to kno& the t&o tpes o+ Market Dance 2eha,ior:

/. Sustaine! Tren!s 45o6trot73 ?egins when !+I


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Conuer the 5ear:

1. 5ear o+ Missing an Entr& when entering a position, 7T8 does


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The Awesome Layout




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*TO 2 O3cial Trading "lan...

Pre(Plan:

+eKuirements /. Hnderstand the +I7= of 8nline Bay&Trading P+isks, Bay&TradingQ -. ?e Jamiliar with the 7ierra"hart Trading !latform P7ierra"hart InstructionQ 2. "alirate the 7T8 CA++8s to the nancial instrument traded P"alirating the CarrowsQ 0. Hnderstand the CA++8s and the concept of "ycles with Dxpansion phase and "ontraction phase P"alirating theCarrowsQ

The $wesome Trading "lan-

!re&reKuisites /. 7erene, Fealthy and Alert -. "omputer, Internet and Trading !latform are well 2. @oals, %imits and


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Post(Plan:

Hpdate Trade #ournal log site /. +ecord goals reached

-. +ecord limits and mantras roken 2. +ecord Kuality of 8?DBIDC"D to the Trading !lan 0. +ecord things learned 9. +ecord prot or loss and numer of lls

Bo re&capN Sideo or 7creenshot the charts and add to log site

*T* O3cial &oals, #imits and !antras...

$OALS:

You are an D

You trade only one contract at a time

You A%AY7 AIT for (The Trade 7etup)

You A%AY7 execute (The Trade Dxit)

LIMITS:


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!$NT$*-

/Q The market pays you to ?D 8?DBIDCT to The Trading !lan. -Q Bon>t claim to e oedient, if that is not the case /W.

2Q Falve the numer of contracts you trade when trading poorly. 0Q Cever turn a winner into a loser. 9Q Your iggest loser can>t exceed your iggest winner. 6Q 7tick with the plan, do not change it. 1Q ?e yourself, do not try to e someone else. ;Q You always want to e ale to come ack the next day. EQ Darn the right to trade more contracts at one time./Q @et out of your losers.//Q The rst loss is the est loss./-Q Bon>t hope and pray. hen you do, you will lose./2Q Bon>t worry aout news its history.

/0Q Bon>t speculate$predict. hen you do, you will lose./9Q %ove to lose money./6Q If your trade is not going anywhere in a given timeframe, then exit./1Q Cever take a ig loss. 8nly a ig loss can hurt you./;Q


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The 4uick #earning Training program-

/. Bo your Fistorical "hart studies.a. %ook for The Trade 7etups, where !+I


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Teachings

This is the BEART o+ /The A&esome Tra!ing Plan/---#ust study this section and practice, practice, practice, always practiceG




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Quick PRIMER on the STO lines an! &hat the are:

/. The ero Line 4ero7& is foundational to 7T8. ithout the LVeroL, we will not know the various cycles themarket goes through. 7T8 essentially places a Vero line on the price&action & this is the source of power for

7T8.-. The I# 4I#73 is the fastest speed 7T8 line, predicts where the !+I


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"hat are the #ARRO"S---

Darly in our development of 7T8,

the HCISD+7D taught us the importance of !+I


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The area marked&out y the Hpper and %ower


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The Ccle concept:

As any of the 7T8 lines cycle up and down through the Vero line, they create two phases.

The Phases o+ a CcleF The EXPANSION Phase #( 'he STO l%e !$o((e( e$o #%* -ull( #3# f$o 'he e$o.

The CONTRACTION Phase7 #( 'he STO l%e $e#!he( # -e#"8)#lle #%* he#*( 9#!" 'o 'he e$o.

Use the Cycle phase to your advantage

ONL !a"e a trade#henALL'he STO l%e( e%'e$ $CONTRACTION % &EA'S (AC)*'o3#$* 'he e$o.

+a"e a SURE trade#hen'he :RIME !$o((e( e$o #%* ALL 'he STO l%e( #$e % $EXPANSION , PULLIN- A.A* /ro! the 0ero.

STA A.A #hen the 1ER) ( NOT 2n phase #2th the other STO l2nes3

1ut keep in mind that strong trends 8%## 1(&%N at "eaks9:alleys when the *TO lines :ees9'pside2down

:ees< from outside the !%)s as $## the *TO lines enter their +ontraction "hase together.

Fere is a picture to make the "ycle concept clear...




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The PRIME ( 8ER; ( DELTA lines:

The Hniverse let us know, with utmost certainty, that The !+I


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The Three Market Ccles:

A%% the 7T8 tools are lines that represent the inherent cycles in the market.7o far, we know of Three


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The I# an! SPI# lines:

The I# an! SPI# lines are---

I#R !+I


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The ALPBAALL line an! ALPBABOT %ars:

The ALPBAALL an! ALPBABOT are---

ALPBAALLR "8


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En! o+ Teachings---

"onclusion

There is no Foly @rail of technical indicators. The est an 7T8 practitioner can do is to LBanceL with the market.

The STO Tools gi,en to us % the ni,erse is a !%$+#('

"hen &e are #OT Pro9ta%le---it is %ecause o+ our LAC; o+ Trust in the tools an! our LAC; o+ O%e!ience to the tra!ing plan-

2lessings Al&asF

Arnul+o PeGalo.a an! ;urt Duero! o+ the STO De,elopment Team



Documents

STS - The STS Quick Learning Manual