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Using indicators to back up and manage trades

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Traders can use various methods to get into trades, but John Person’s indicators show whether momentum from volume supports a move and where the key points are to place stops or entry orders.

Video Transcript

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Tim:

My guest today is John Person. He's been trading for 35 years, has a lot of experience in these markets. John, let's talk about the TradeShark platform. When you're trading your exclusive indicators on that does it give me some directions about what types of markets to trade or do I make that decision on my own and then your indicators will tell me levels to look at?

John:

My indicators help us to determine price levels. It's up to the individual with TradeShark's own unique algorithmic buy and sell signals. What my indicators bring to the table is they help us to determine if there's momentum behind the move with the volume, John Person volume indicator. It also has the support and reverse component, so that helps us to manage the trade, once we're in it, which seems to be something a lot of traders need to do.

Tim:

Is there anything you're doing a lot differently now John, 35 years later from when you started? If you had to go back and talk to yourself back then, what would you tell yourself?

John:

I really cut my teeth understanding directional market techniques and that was through my experience and the fortunate aspect of working for George Lang. Being able to identify directional technique, seasonality, volume, for example open interests, those were major components of looking at a markets directional move as well as strength. Pivot analysis help me to uncover both two concepts, time and price. Where could a market go in a specific period of time and that's what we utilized way the day when I was first introduced to bond futures and trading bonds back in the early 80's.

In 1984 they introduced this little derivative product called options, and the very first commodity the introduced it to was on the treasury bond futures at the Chicago Board of Trade, in those days. I learned how to leverage my leverage, so to speak, by managing risk and being a directional trader with specific tools and those technical tools that I use back then I'm using right now and one of them we developed for TradeShark exclusively and that's the volume histogram component, by the way.

Tim:

If you had TradeShark back then how would that have helped you?

John:

I think first of, back then we did pivots by hand. Can you imagine taken a Texas instrument handheld calculator and figuring out high low close divided by three, imputing the formula for R1, R2, S1, S2, doing all of that by hand, and then if you did a fat finger mistake on the calculator you did the formula twice. Because you didn't want to have the ... And if the numbers didn't come out you had to do them a third time, so it was a little time consuming.

Now we have tools that almost tell us immediate of market changes of both price and volume and that's what TradeShark, really if I had it back then, boy, what a beauty.

Jim:

Just by listening to you talk we can tell you are a real trader, which I think sets you apart from a lot of people who write indicators who maybe have only back-tested them, never traded them with real money in real markets. You have.

John:

Yes, absolutely. That's why I actually use these indicators for my own trading. The volume trend indicator I created has been you know, keeping us on the right side of the market. If you just take a look at the way the stock markets traded over, from a period of 2000, since the low of 2009, we have some mini-corrections along the way, but coming into 2014 and 15, everyone was trying to predict the top, and yet, but here the market trends higher. You look at my volume indicators, and it all points to supporting that new high. Individual stocks, we’ve seen amazing moves in before, during, and even after earnings for the last, since say 2012. It's been spectacular surprise earnings, and we’ve actually had some really stellar trades based on that one single volume indicator.

Jim:

How would you use all the great indicators that are available in TradeShark or specifically your two indicators that are available only in TradeShark together, the support and reversal and the volume indicator?

John:

Yeah, I use them both in conjunction for two reasons. Number 1, whatever you’re using to trigger an entry for a trade, whether you are using maybe seasonality, specific TradeShark algorithmic buy and sell signals, the volume will help give us an idea whether there's momentum and that trend can continue, and then my support and reverse indicator teaches us where to place our stops, how to trail our stops, and ride the trend. If we combine the two, as the market moves up for example for a person that would be long a particular instrument, if the volume is starting to show signs that the trend's weakening, we can utilize that reversal component part and maybe get out of our trade ahead of maybe a sell signal. As we can define when to get out of the trade, I find a lot of traders have a hard time of when to get out. Everyone gets in, but a lot of people really struggle with when to get out of a trade.

Tim:

Let's talk about TradeShark in general as the platform you decided to work with. What is it about TradeShark that caught your attention and said, "This is where I want my exclusive indicators."

John:

Reliability on quotes. Visibility. In fact, it's very clear to see the charts. Again, simplicity in the fact that I can drag and drop indicators, prices, stocks and different markets in a snap of a finger.

Tim:

What if I have questions about your indicators? Is there somewhere I can go to find out more?

John:

Absolutely. That's one of the top reasons of working with TradeShark is their incredible customer service, the amount of people that they have there that can handle the questions to help out my clients.

Tim:

John, thanks for your time.

John:

Thank you.

Tim:

We've been talking to John Person about his indicators exclusively on TradeSharks and how he trades those in his real accounts.

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