Introduction
AIMS Stress Free Trading has been a great journey. Together with AIMSters we have used the following strategies over the years.
We started with AIMS Stress Free Trading - The Setup
We traded it for a very good period of time. And we kept learning and refining our technique.
We learned that Setup 1 and Setup 2 has a fractal geometric sister setup on Higher Time Frames.
So we added and excelled towards the fractal geometric sister setup of "The Setup" we called it
AIMS The Seed. [Link to AIMS The Seed Original Topic]
While trading Setup 1 and Seeds we kept learning that there are spots where the market turns around. We started to notice those patterns
and started testing the ideas. This was supposed to be the next "turning point" for our trading methods.
So we went ahead and started trading higher probability reversals.
We learned that trends end at a certain time-space and we know how to spot it.
Next it was time we created a method to benefit from this pattern. Hence we crafted another "clever" strategy.
This strategy has been my personal favorite. However, its the one that is the hardest to master. Not everyone is
made for reversals. So some like it others don't. For us, its been a great strategy to trade Forex, Stocks and Commodities
on the Daily and Weekly time frames.
Before A trend starts, price is often stuck within some "shite" of sideways,zigzag, "chaotic" period. Nothing seems to make sense.
Then it forms a tight range. Its as if there were seeds inside the pot of clay and compost. Inside its dirt and dark. But within the "mud" and "dirt" of Sideways and Range bound periods, there is a SEED "a very small microcosm" of a tree/plant, can start to grow under the right conditions.
That little object may seem small but it has "potential" energy that would soon become larger than itself many many times over.
That is the definition of Chaos Theory. The Sum total of output is far more than the sum total of input. 2+2=4 or 40 or 4 million.
The Seed soon breaks ground and starts to grow. That is where we trade the Setup 1 "breakout". When it starts to grow it goes through periods of sporadic growth and then some consolidation period.
Did you know even human/children growth patterns are wave like. I've been monitoring my children's heights/growth and I have evidence that for a period of time they don't grow or grow at a very small pace and then there is this one or two months where they would put a centimeter or more of growth. The whole universe seems to be in WAVE function. There are periods of power and period of consolidation. During consolidation, its time to accumulate energy to be used during the growth periods.
Now because the markets are waves within waves within waves, We can see periods of consolidation on one time frame, yet, its within periods of growth within a higher time frame. Which is why we see SEEDS within the growth period.
We Learned that The HIGHEST probability Breakouts happen during TRENDS.
Eventually, the plant grows and its time for it stop or end its journey. It runs out of energy. It reaches its limits, in away its done its "thing" and now
it wants to reverse the process. We called this pattern, this reversal pattern AIMS The Fruit. Because when a plan blossoms and then creates its
fruit its purpose has been achieved.
The Ripen FRUIT WILL DROP and hit the ground.
The Fruit, Seed and The Setup taught us some valuable lessons. There were good and bad times and market kept changing while we kept
adapting.
Cutting the long story short, we then came up with an idea to strip our charts off everything else and something unique was born AIMS The Hunt.
We stripped the chart because we learned that THE SETUP and The Fruit could be traded in a different way.
That is when AIMS The Hunt was created.
The HUNT strategy is the final advanced and coherent fusion of AIMS Stress Free Trading Strategies.
The Hunt is an elegant creation based on The Science of Fractal Geometry.
This Strategy is predominantly a trend following strategy but also with a mechanism to pick the highest probability spots where
some waves turn around.
- Yes its more powerful than ever before!
Yes its extremely simplified and mostly automated!!
Yes its a Set and Forget strategy!!!
Yes its for all time frames and markets!!!!
Yes its indicators automatically adjust to every time frame!!!!
requirements of Stage 1 is to creating a written trading plan and apply the T20 Principle.
Stage 2 is created as a result of the review and end of Stage 1. Also, you now chose to add two more entry methods.
Stage 3 then is the pinnacle where you have a fair idea of what type of trader are you and what type of entries and trade management
works best for you.
You are with the Skype group during the entire process. A VERY IMPORTANT aspect of The Hunt is being part of Skype group.
AIMS The Hunt has 4 entry methods which covers all the strategies. We have picked The Highest Probability Trading Setups and
Combined it to form our Ultimate Strategy AIMS The HUNT
What is the Hunt Strategy and The Hunt Setup:
The Hunt Setup is Based on a certain pattern created on AISM The WAVE oscillato. Its the pattern a " Peak and Pullback".
Hunt is a Trend Flowing System. Hunt takes advantage of breakouts and pullbacks and gives entry signals in the direction of
Current and Five Times Higher Time frame.
AIMS The Hunt makes use of Setup 1, Apples, Cherries and Seeds entry mechanisms.
This is the foundation stone of AIMS Trading concepts. You will trade in the direction of current and five times higher time frame trend.“Higher Probability Setups are Breakouts in the Direction of Higher Time Frame Trends”.
What is Hunt Trading Setup?
The setup is created using Grants Flow chart which is a very objective way of identifying the Setup that is ideal for Seeds and
Cherries Entries.
The HUNT Setup: is created by a pattern of 100-140 Candles/Bars on AIMS Wave or eWave, within that pattern we look for entry signals.
Look for Structure on Current and Higher Time Frame then look for Entry Setup and Entry Signals on Current Time Frame.
The Structure of current and higher time frame should both point in the same direction.
It might appear to many that The Hunt may be a different strategy but the fact remains, its really not something new.
Its basically the addition of two more entry signals. And its based on Fractal Geometric Correctness or connection of the patterns.
Explanation of Seed and Cherry Signals
A seed is a consolidation pattern created by a single candle. Underneath the seed you may find a tight range bound market on 1 or 2 significant lower time frames.
A cherry is a reversal pattern created by a single candle. A cherry is based on the fruit concept but in the direction of the trend on the
current and 5 x higher time frame.
A Cherry is used as a mechanism to trade the peak of a corrective wave. A method to make entries on the top of retracements within
trending markets.
A Seed is used as a mechanism to trade breakout of a consolidation with a trending market.
An Apple is a mechanism to pick the end of Wave 4 and get into wave 5 right at the start of it that is the end of wave 4. The end of
one trend is the start of another.
A seed on M5 Dax is often a Setup 1 on M1.
These two entries are in line with eWave and Grants Flowchart. [Link to Grants Flow Chart and Explanation] They are based on corrective wave of a lower time frame
within the current impulse wave. The flat pancake type wave 4’s turn into Setup 1 and Seeds and the zig zag pullbacks turn into
Cherries and Apples.
Wave 4 that has nice clean abc will often create a cherry on CTF And an apple of LTF.
There is great fractal geometry in these entry signals and setups.
Explanation: If you identify a Setup 1 on M1, look at m5 and you’ll find a pattern on eWave and possibly a seed candle that would beA SEED on M5 is a Setup 1 on M1.
A Setup 1 on M1 is a Seed on M5
ideal to trade as a Seed setup on m5 on its own. But we won’t trade it as we want to remain concentrated in one time frame only for
entries.
Explanation: If you identify an apple setup on m1, look at m5 and you’ll find a pattern on eWave and possibly a cherry candle that would be ideal to trade as a cherry setup on m5 on its own. But we won’t trade it as we want to remain concentrated in one time frame only for entries.A CHERRY on M5 is an Apple on M1.
An Apple on M1 is a Cherry on M5.
The objective of the Hunt Signals both the Seed and The Cherry is
1. Trade Wave 5 within Wave 3 or Wave 5 of Current Time Frame starting within the Dark Bars on eWave (which would mean, starting off the Wave 4 of the 5XLTF)
2. Working towards Target Zone 1 because Wave 5 ends between TZ1 and TZ2 (Fib Expansion)
3. Trade within Open Gator on Current Time Frame.
The objective of Classic Breakout and Apple is
1. Trade Wave 5 of The Current Time Frame starting from Wave 4 of the Current Time Frame.
2. Work Towards Target Zone 1 of the Current Time Frame.
Here are the 4 Entry Methods we have for AIMS The Hunt.
1. AIMS The Setup - Setup 1/2 [Stage 1]
2. AIMS The Hunt - The Seed [Stage 2]
3. AIMS The Hunt - The Cherry [Stage 2]
4. AIMS The Fruit - The Apple [Optional Stage 3]
The following video should cover the Concept of
"The Fractal Geometric Science of AIMS The Hunt Trading Strategy"
[bbvideo=1280,720]https://vimeo.com/178356674/[/bbvideo]
The Fractal Geometry of AIMS The Hunt Setup and Entry Signals
The Cherry on Current Time Frame (CTF) = Apple Setup on 5XLTF (5 times lower time frame)
e.g. a Cherry on H1 would be an Apple Signal or just The Apple Setup on the M15 time frame.
The Seed on Current Time Frame (CTF) = Setup 1/2 [Classic Breakout] on 5XLTF so
e.g. a Seed (a hunt qualified inside bar) on H1, the hourly time frame, would be a Setup 1 [or classic breakout setup] on 5XLTF (5 times lower time frme)
An Apple on CTF = A Cherry on 5XHTF (5 times higher time frame)
e.g. an apple signal with correct apple setup would be a Cherry Setup and Signal on 5XHTF
A Setup 1 or Classic Breakout Setup on CTF = A Seed on 5xHTF
e.g. a good qualified setup 1 or classic breakout on m15 would be a possible Seed signal on h1 or at least a setup where we look for The Seed signal.
How will I find my Entry Setup?
- 1. Wait for price to breakout of Channel
2. Wait for New Peak on eWave
3. Wait for Dark Bar on Ewave
4. For those with ATM 2.0 Click on Auto or Wait for signal and Click Buy/Sell Bar after there is a signal.
How to Validate an AIMS The Hunt Entry Signal?.
In order to validate a signal we apply Grants 4 Rules Flow Chart.
Rule 1: Is there a new higher/lower peak on eWave?
Explanation: This ensures that there is an impulse wave that breaks out of a tight range. If Gator is sleeping and price is inside box, price breaks out and then retests the range. That’s where you’d see eWave cross of ZL and create a small peak. The monarchs happen here.
This rule is not encoded into the entry signal indicators. You will have to use the Mark I Eyeball Indicator to validate this rule.
Rule 2: Are there dark bars on eWave?
Explanation: The signal must be created within the darker bars on eWave. This shows there is a correction after an impulse. This is often near the fresh cross of ZL on eWave creating the monarch setup. The best signals are bounce of green line, red line, and/or bounce of previous Box Level that it broke recently. It may bounce off other important S/R levels.
This rule is encoded into the entry signal indicators.
Rule 3. Is the seed on the correct side of purple and gator?
Explanation: The Seed/Cherry must be close to gators with an open mouth, the green and red line must be separated, and the Seed/Cherry must not be above it for shorts and below it for longs. Seed/Cherryare only taken when going away from purple line.
This rule is encoded into the entry signal indicators.
Rule 4. Is the seed within the limit of 10 pips (for M1 and within the limit of 1 or 1.5ATR for all other time frames) ?
Explanation: This rules ensures that we take hunt signals that provide the highest potential for higher Risk Reward. The smaller the seed the more potential profit. There is a higher probability of price hitting a 20 pip target than there is to hit 40 pips. Agreed. This rule is encoded into the entry signal indicators.
What are the Rules that will Filter a VALID Signal?
Rules that Filter Valid Trading Signals
We will only look for Signals if the following rules have been satisfied.
Filter Rule 1: Is Target Zone 1 already hit? If yes, you may filter the trade.
If Target Zone 1 has been hit then chances are wave 5 has happened. Wave 5 means there will be either a larger degree correction, a larger abc, i.e a wave 4, or a complete reversal. Now we don’t know what will happen but the odds are not in our favour so we better not trade.
Filter Rule 2: Is Target Zone too close. ie. is it less than 2:1 , If yes, no trade.
If TZ1 has not been reached yet but it's so close to entry signal that it won’t reach at least a 2:1 profit then it's not worth it.
The following filter is optional. The above two are enough.
Filter Rule X: Is there divergence on eWave or Wave5? If yes, you may filter the signal.
If there is divergence before cross of zero line and if there is wave 5 indicated by eWave then chances are the wave might either pullback or reverse. Best to stay safe.
What is the role of Elliott Wave in my trading?
We can utilise this great, tried and tested and very reliable indicator to our advantage.
This indicator is not our entry technique.
However it's a great mechanism to boost confidence about our trading setup and the subsequent trading signals.
When there is a trading signal that is also inline with this analysis, we will be more confident in taking the trade.
In Trading Chaos page 185, there is a question.
Hence,“Where are we and what are the potentials of Elliott Wave, on both the current time frame and one significantly higher time frame?”
Entries are taken when the market is clearly moving and in line with eWave on both time frames.
We want to Trade Hunt Signals within Wave 3 and Wave 5 of Current Time Frames
The HUNT Exit Strategy
The Exit Strategies will depend on the Stages.
Hunt Stage 1: Exit Strategy
Since the objective of Stage 1 is Discipline we will make sure we automate our exits to make sure we don't mess up our trades.
Exits will be mechanical and predefined. In stage 1 you will utilize 2:1 exit strategy until end of Stage 1 or even Stage 2.
1. Entry: Put SL on the other side of the signal bar.
2. Risk: 1% per trade
3. Move SL to BE at 1:1 and
4. Exit at 2R (2%)
Exits will be based on TZ1 because we trade into Target Zone 1.
Keep Working Towards Target Zone 1