Here’s a video of the most recent live ATO 2 signal published by DayTradeToWin.com. The signal was generated at the end of a live webinar, so spectators were able to see the signal plot in real-time. The ATR is used to determine the profit target and stop loss. The ATR was volatile enough to allow a profit target of 2.25 points. We know if the trade does not work because the catastrophic stop or time-based stop is hit. The fast-forward editing on the video shows how the trade played out. You won’t be holding trades longer than 20 minutes. This trade was taken on a Friday, which is usually the slowest day. Therefore, it’s good to close out the trade once the profit target is touched, even if you don’t get the exact target you want. Having a little profit is better than none at all.
On June 13, John Paul from DayTradeToWin.com recorded real-time trading signals for the ATO 2 software. The entry price of 2432 and the target price of 2430.25 means the profit target is 7 ticks, or 1.75 points. When trading one contract, this trade is worth $87.50, excluding commissions, slippage, and other potential trading costs. If you were trading 10 contracts, multiple the $87.50 by 10 to get a profit of $875. Not bad for a few minutes work. With the ATO 2 strategy, in most cases, you will be going for traders greater than one point. The profit target is based on the ATR (Average True Range). Generally, the more volatile the market, the greater the profit potential. If the market is too fast, then it’s best to stay out.
The ATO 2 provides multiple signals daily, depending on price action. The main idea is to find breakouts during the initial market open period when the market is usually most active. Additional trades are provided by the Trade Chaser technique. This is explained in the course and in the included live training. The signal software was recently updated for NinjaTrader 8. The live training will show you how to use the software and where to place your profit targets and stop losses. Two bonuses are included: the ABC signal software and a “How to Trail a Stop” video. Both improve the ATO 2 method.
Day Trade to Win’s At the Open 2, or ATO 2 as it’s often called, is somewhat of an enigma. The course was offered as the flagship DayTradeToWin.com product for several years, then made exclusive to the eight-week Mentorship coaching program. Those who saw the explosive rate at which day trading business popped up from 2008 to 2011 probably came across the ATO at one point or another or knew someone who used it. With such popularity and dozens of videos showing profitable trades, why was it pulled from the shelves?
I’ve posed this question to John Paul, founder of DayTradeToWin.com and the creator of the ATO 2 method. His answer was that the ATO 2 dominated his product space too much. He wanted to diversify his trading solutions to meet the needs of every trader. Not every person needed a strategy that worked for the first two or so hours of the trading day. Other traders wanted to scalp, and leaving the ATO 2 in the spotlight meant no room for diversity. His answer made sense. Any business that promotes one product will eventually find itself in a difficult position. Making the ATO 2 exclusive to Mentorship also made sense because traders become more interested in the full coaching experience.
What is Trading at the Open?
When the market first opens, there are often specific patterns to capitalize on.
Once again, the ATO 2 has been made available as a standalone product. This is great news for traders who want to get their feet wet without a full commitment to eight weeks of live training. The approach starts with watching the market’s movement (or price action) right after it opens. What markets is it compatible with? Mainly, it was designed for the E-mini S&P. John Paul has stated that other fast-moving futures are compatible. As you’re probably aware, the open time for each market may differ. For the E-mini, market open time is considered to be 9:30 a.m. US/Eastern. That’s because it’s the traditional time traders began trading open outcry-style in the pit. Today’s market movers and trading algorithms uphold the tradition. Trading at the open is important because there are suddenly more trades. Often times, this means a direction can be established, even if only a few bars. These bars, or candles, is where the ATO 2 magic happens. You’re taught a specific technique to find trades based on objective rules.
What constitutes an ATO 2 trade? Telling you would give away the course. Trust us – you’re far better off purchasing it and learning directly from the source. I can say that the strategy has you looking for spikes when price behaves a bit out of the norm. The entry rules, profit target, stop loss, etc. are all taught. In fact, they are based on adaptive rules. If the market is too slow, there is no trade. If it’s too fast, again, no trade. Overall, you will go for a couple of trades a day on average. If a particular day is difficult, the additional Trade Chaser technique can assist in regaining lost ground. Yes, there are limits on what to expect daily. You do not want to over-trade. Reasonable expectations are taught. Remember that the strategy is fully disclosed. Technically, you could trade it on any platform that provides real-time five-minute futures charts.
Is the included ATO 2 software any good?
In short, yes. I use it as part of my daily trading setup. I can’t live without it. However, the new ATO 2 indicator is only available for NinjaTrader 8. If you’re using any other platform, you will have to ask DayTradeToWin.com for a copy of NinjaTrader 8 or download it yourself from NinjaTrader’s website. NinjaTrader 8 is fairly easy to use once you get the hang of it. If you want to continue using a different platform, that’s fine, too. Simply get the signals in NinjaTrader and trade them in your other software. Having multiple screens may help here. Back to the ATO 2 software – what does it do? Well, it tells you exactly when to enter the market. That means it tells you the entry price and draws a dashed line, so you can see exactly where you should enter. It also says the anticipated direction, so you know if you should place a Long or Short trade. You can expect to see these signals within the first few minutes after market open up all the way until noon, US/Eastern. If you’re in another time zone, that’s no problem. The indicator has a MarketOpen parameter, where you can customize the time the market opens relative to your time zone. This same parameter is used if you want to trade a different market was a different market open time (“930” is the default value). All of the other settings are straightforward. This new ATO 2 indicator has better customization options than its predecessor. Overall, the software feels more responsive on the NinjaTrader 8 platform.
In terms of performance, it’s easy to see why this is one of my favorite strategies from DayTradeToWin.com. Just look at the two videos above for multiple days of winning trades. This strategy is all about consistency. Yes, there will be losing trades. Trading is risky. If you cannot afford significant losses, then you should not be trading. Trading is meant for those with income set aside for risky investments and potential loss. That said, the overall strategy of the ATO 2 is still similar to its roots from nearly a decade ago. You can probably count on one hand how many trading systems have been around for a decade and still show such consistency.
Two bonuses are included: the ABC signal software for NinjaTrader as well as a “How to Trail Stops” video. Both items compliment the course nicely. You can use the ABC signals on the same five-minute chart as the ATO 2 software. The ABC can help you find afternoon trades with the ATO 2 is essentially turned off. Also, trailing stops are often a difficult concept for traders. Knowing how to properly apply them can decrease risk and lock in profits. Of course, you can expect a live training class and the award-winning support DayTradeToWin.com is known for. Amazingly, ATO 2 is the least expensive product they offer, currently at $497 for everything. It’s an amazing deal. Please, do yourself a favor and check out the official At the Open 2 page.