 Welcom traders. Just going to give another 30 seconds before we get going here. Okay, by my clock that's 1pm UK time. Welcome to today's introduction to the EMEAN Micro S&P contracts. In today's session I'll be introducing you to the instrument structure and advantages along with highlighting some unique market mechanics that enhance the trading information for this product. I'll also introduce you to my core strategy for trading EMEANs and demonstrate how you can consistently use my market analysis to read consistent returns. Before we get going I just want to do a quick audio and visual check. If you can see the welcome screen and you can hear me loud and clear if you could just type a Y in the chat box and I'll know that we're good to get going. So, my name is Patrick Munley. After I graduated from King's College London, I joined a city PLC consulting firm. I left with some colleagues and went on to successfully co-found and exits a consulting startup, which was focused predominantly on C-suite executive search for tech startups. So I had a front row seat to the dotcom bubble, witnessing people making news of fortune in the markets quite literally overnight at times. I decided to explore my passion for markets with some capital to play with and some time in my hands I started day trading the S&P 500 or more appropriately day gambling after some early beginners luck. I racked up some pretty solid gains. However, as is often the case, my beginner's luck ran out and as the market phase changed, I began to average down into positions, eventually giving back all my gains and ultimately experiencing a significant six figure hit on my personal capital. So this was a gut wrenching and sobering experiences and understatement. I really had to stand back and figure out if it was feasible for me to make a living from the markets. So I decided to get serious about trading and sought out a mentor with an excellent trading track record. Working with my mentor for 18 months to two years, it was a period during which I up to not just my technical game in terms of developing a strategy that suited my personality, researching and extensively back and forward testing strategies, all of which were underpinned by a rigorous risk management approach. But most importantly, during the period of mentorship, I significantly developed my mental game and probably the most important watershed shift came from me being a highly goal orientated individual focused on financial gains to becoming purely process orientated. So what does that actually mean? Well, it means I had to stop focusing on what I could make from the markets and start focusing solely on managing my mindset to basically allow me to consistently execute my trading strategy oftentimes in the face of negative feedback from the markets in the form of losing trades. But once you become process orientated and have a professional trading mindset and you understand the true nature of trading being a numbers game in which you are simply playing the probabilities, you lose the emotional investment and that hellish emotional rollercoaster of living and dying by the outcome of individual trades. So I'm no longer concerned with the outcome of individual trades or even a string of trades. My focus is on the next hundred trades because I know if I focus on excellence in execution, my edge will demonstrate itself over an extended series of outcomes. My multi strategy approach has delivered profitable annual return since 2008 since 2013. I've also been managing investor capital through a managed accounts service delivering annual positive returns. I'm currently responsible for managing a multimillion dollar portfolio from 2010 I've mentored hundreds of private traders of all experience levels from complete novices to former CME floor traders in developing the technical mental skills to reach consistent returns from the markets. In addition to my fund management and mentoring, I'm also a resident market expert exclusively providing market and trade analysis to Tick Mill. My other passion project is leading trader education for a premier trading education brand called FX career swap. At FX career swap, we offer development and funding to retail trading talents. We don't just develop retail traders market and trading strategy knowledge. We work on mindset development through a structured program that culminates in managing the firms capital at zero personal financial risk on a profit share basis. So that gives you a flavor of where I'm coming from. So let's jump into today's material. So the mini or E minis is a futures contract that tracks the S&P 500 stock market index. It's traded on the Chicago mercantile exchange, the CME via their global electronic trading platform trading is 23 and a half hours a day five days a week using the contract symbol ES. E-mini contracts are available in a wide range of US stock market indices commodities and currencies. However, when traders refer to the E-mini or the E-minis or the spools, they are generally referring to the most important one, the futures contract that tracks the S&P 500 stock market index. E-mini futures were originally launched in September 1997 to attract non professional investors into trading index futures. Previously, the only game in town had been the large S&P contract, but it had become too expensive for the little guides trade. So the CME created the E-mini contract, which was a fifth of the size of the large S&P futures contract and required, most importantly, only a fifth of the margin to trade in. The E-mini became such a huge success that not only with non professional traders, but with professional trainers too. Most recently, the micro E-mini futures contract, which is the same as the regular S&P 500 E-mini contract in every respect, except it's the one tenth of the size. That is, each one point move in the S&P 500 index is worth $5 per micro E-mini contract compared to $50 for the E-mini or the ES. And the margin to trade the micro E-mini contract is also a tenth of the size. So what are the benefits? Well, it's equally easy to go long or short, you either buy or sell the current E-mini contract and there's no uptick rule. 24-hour trading makes the E-mini attractive to traders around the world. Overnight moves in related equity markets like the DAX or the FTSE can be played from one trading vehicle. The electronic trading platform means your orders are entered instantaneously and when executed, you're notified instantaneously. Changing and cancelling orders is trivial. No more phone calls to the backroom brokers. It's a level playing field. The Globex electronic trading platform means that large and small traders have equal access to the market and trades are executed in the order they're received unlike pit-traded futures or equities. Again, no more backroom games can be played. The tight bid and ask spreads because there's so much volume is trading through the E-mini. The difference between the bid and the ask price is only ever one tick or 0.25 index points, which is the minimum price movement. There's a huge depth of market game because the E-mini market is so liquid, there's plenty of volume either side of the last traded price for large orders to be filled with minimum slippage. It's volatile, yes, but it's not unmanageable. The E-mini is active every day, which gives the day trader plenty of opportunities to trade. Remember, a sleepy market is impossible today trade, but the E-mini volatility is manageable, except maybe around high profile tier one data announcements like the FOMC or the payrolls, numfarm payrolls. Low brokerage rates also make the E-mini and E-micro very attractive trading products. This excludes exchange clearing and regulatory fees, and when you factor this in, your round trip or the in out brokerage commission is very attractive. It's got a low margin requirement, as I stated, to open a day trading position with tick mill, you only require $1,000 to open a micro account. Remember, these are absolute minimums you should be trading with much more capital behind your positions. There's a lower effective tax rate than trading forex or stocks income from trading the E-mini futures is taxed as a capital gain. No trade by trade accounting, which is also attractive for the professional trader. The tax treatment of the E-mini futures is that the tax reporting requirements are minimal. In particular, no trade by trade accounting is required, only the net profit for the full year is needed. OK, so now we understand the instrument and the trading venue. I want to demonstrate some of the unique aspects about the E-mini or E-micro products. The fact that the E-mini is a derivative of the S&P 500 allows us to access some unique information commonly referred to as market internals. Market internals are often compared to the instrument dashboard on a car giving indication of performance and alerting the driver to any issues occurring under the hood. So let's take a look a bit more closely at what market internals are and how we can incorporate them into a consistent trading strategy. First volume is a unique feature of trading the exchange trading derivative as opposed to a CFD or forex. Volume data for forex is notoriously incomplete. No central forex exchange and the banks who dominate forex trading have a tendency not to share volume data in real time. However, we get a true reflection of actual volume which is shared directly by the CME available to all market participants in real time. I use volume as a tool to confirm breakouts and opportunities to fade the market. Spikes in volume will often be accompanied by intraday profit taking. The next market internal is the NYSE tick index. This gives us the relationship of stocks up ticking versus down ticking. Tick is an extremely useful tool for intraday traders. For example, if there are 3,000 stocks trading on the New York Stock Exchange and 1,500 of those trade higher from their previous price and 500 trade lower from their last price, the tick will read plus 1,000. But wait, what about the other 1,000 stocks you say? Well, they could be unchanged from their prior price. When using the tick, we are looking for extremes to enter or exit a trade. Tick readings of plus 1,000 plus 1,500 or minus 1,000 or minus 1,500 are considered very strong as we typically trade between 6 to 800 ranges on most days. One of the great tips for the tick is that we can use the information to help identify when the market is just chopping around and heavily rotating. These are tick readings between plus and minus 400 and we want to ignore those. But on range days you can look to fade tick extremes. I apply a moving average to make it easier to see the trend of the tick and easier to highlight tick extremes. Because one of the great tools and applications of the tick is that when we get a high tick and a high in price at the exact same time, this can often indicate the higher day. When a high tick prints without a simultaneous high price, we can continue to make new highs until a new high tick is reached. And the reverse is obviously true for a low tick followed by new lows. The next market internal that I use is the advanced decline line or a D line for short. It's the second most important of the internals and this indicator tells us the net sum of advancing stocks minus declining stocks. There are roughly 3000 stocks listed on the NYSE and 3000 on the NASDA. An AD line reading of 1500 plus is very bullish and a reading of over 2000 is extremely bullish. On the flip side, readings of negative 1500 and below are bearish and below negative 2000 are considered extremely bearish. These extreme readings are indicative of trending days where once the market continues to just trend all the way into the clothes, we look to the AD line in conjunction with the breath ratio to confirm these trend days. So, for example, a day with 2500 advancing stocks and only 500 declining stocks would yield a net of plus 2000 and extremely bullish reading. It would take a large catalyst to shift the market direction with a reading this bullish. So if on the open, we continue to see the AD line moving plus 500 plus 700 plus 900, this is a sign of internal market strength. If, however, the market is moving higher but the AD line is moving lower, a divergence has occurred and it could be a sign that the market is about to turn. Last but not least, the breath volume ratio composed of volume flowing into up stocks versus volume flowing into down stocks. The breath ratio is expressed as up volume minus down volume. This reading is important in relation to where it has been, especially where we are now at any point during the trading day versus where the ratio opens. For example, if at 10 am we have 10 million shares moving up and 5 million shares moving down, the resulting breath ratio is 2 to 1 positive. Twice as much volume is flowing into up stocks as down stocks. At 10.30, the market has sold off but we have a breath ratio of 3 to 1 positive. This is a signal that the markets are actually becoming stronger and it's time to buy pullbacks. So now we understand what market internals are and the unique insight they provide. I want to briefly walk you through my trading strategy. By understanding the market context, which I cover each day here. You can see the market context in this box where I look at the overnight tone of the market, whether it's bullish, bearish or neutral. Then I have a look back period of 1 to 3 days, 1 to 3 weeks and 1 to 3 months to give me the overriding trends in the market. What I'm actually looking to do is execute two types of trades. Either a mean reversion trade in ranging environments or a momentum trade in trending environments always underpinned by the market internals. Every day I plot pivotal support and resistance action areas that are derived from multi-time frame volume profile analysis. This allows me to avoid engaging in the market in areas of heavy rotational chart. Support and resistance action areas have three purposes. They can act as entry levels in mean reversion setups, which is the majority of the time. In directional trend environments, the action areas act to confirm a mentimentary, and then lastly I use them as targets for trades. I also note additional key data from the prior days price action. These levels are often important to define the bias for the day ahead. Previous volume point of control, the highest volume price from the previous day, which indicates where buyers and sellers perceive the price to be at fair value for the day. I confirm current market context, giving the dominant side for the trading session ahead. I also highlight quantitative probability plays based on where the cash or the regular trading hours session opens in relation to the prior day, either above, below or within the range. I give key levels and the probability of price testing these key levels over an extended data set. This can prove useful for trade entry, exit and management. Lastly, I note volatility or range analysis as this helps to inform the current market context is the market imbalance in relation to the current volatility. Equally, we can confirm a market balance and this can inform bias for the day ahead as well. It also helps to inform trade execution and trade management. Now, what I want to do is walk you through a few examples of my pre-market analysis. Like I say, the pre-market analysis is delivered every day before the cash session opens, so before 2.15 UK time. I highlight the key action areas that I'm looking to trade in the session ahead. I give the market context and then what I'm looking for is the internals to confirm the setup. On this day, for example, we came into the day and the overnight session was bearish and my bias for the one to three days was neutral, which meant that I could take trade. I'd be looking to short the market as we traded into resistance. The market open up traded into our resistance zone that was predefined ahead of the market open. Once we got into this area, we could clearly see there was a negative tick distribution. The tick was below the zero line. The breadth and AD lines were both bearish and declining. That was a signal to short the market. Once we get into the market on the short side, our initial target is going to be the next support zone. When we're fading the primary resistance, what we're looking to do is target the primary support. If we get an exhaustion signal there, then we look to cover the trade. On that one, we had 18.5 points of profit fading the primary resistance zone there. On this day, we came in, we were bearish again, neutral to bearish on the one to three day time frame, but we were bullish on the medium term and we were bullish on the long term. As the market opened up, I highlighted that we saw very strong buying volume straight out of the open and we had positive internals, very positive AD line, very positive breadth and a positive tick distribution. The trade trigger there was to go long through the primary resistance zone. What do we do? We target the next resistance zone above. Again, that gave a 10 point trade to the upside. On this day, we came in the primary high probability trade that I was looking for in the pre-market analysis was for a breakdown, continuation trade through primary support with broad market weakness confirmed by the internals, opening a test of the secondary support where we didn't get an exhaustion signal, so we hold the trade for the test of the third support area, which offered at 28 points of profit on a risk of only 7.5 points. I provide volatility based stops here, so when we're trading a reversion trade, it's a five point stop, and when we're trading a continuation trade in this current volatility, we use a 7.5 point stop. On this day, we came in looking for the high probability play in the pre-market analysis was to fade primary resistance as long as we have those weak internals and negative tick distribution. The market opened up, came into the primary resistance. You can see we had a negative AD line, breath rolling over, and a negative tick distribution. Our trade there was to go short the market, and what we're looking for in terms of the target was a test of the primary support, which was down at 16 points away from our entry on the short side. Again, in this instance, we were using a 6.75 point stop based on the current market volatility. Primary high probability play in this one was to fade resistance again on broad market weakness. The initial target was down at 41.30 to 41.21. We didn't get an exhaustion signal there, so we hold the trade open to trade down into the next support zone. That trade actually offered between 30 or 40 pips depending upon where you took your profit. What I'd like to do now is just actually open up the real-time charts. This was yesterday's analysis, for example. What we were looking for when we came into the open yesterday was I was actually looking for us to break primary resistance to the upside, and I'm looking to test the target of 42.51. We didn't actually get that trade, but we then got a reversal trade. The second thesis I had was that we test primary support, and I was looking for a volume spike, which you can see here quite clearly, but a nice big volume spike. We had a tick extreme reading, and we had positive internals, so I got in on the long side there yesterday and managed to secure 10 points of profit to the upside. Sorry, there was no trade the day before. On Monday we had primary high probability trade was to go long on a breach of primary resistance supported by broad market strength. I suggest, sorry, this was last Friday, watching the 10am time pivot with no exhaustion signal, trade to be held to secondary resistance providing 10 points of profit. Again, you can see how we're using these internals on a daily basis to confirm the pre-market analysis which I provide. So, what we'll quickly do here is we'll actually look real time as we head into today's session, and what I'm looking for again is I'm looking for a break here of 42.40. A break of 42.40, as long as we have positive internals, so a positive tick distribution, positive AD line and positive breath, and my target still remains at the moment, the primary upside objective is 42.51. Equally, if we break down, I'm looking again, I'll be looking at a retest of primary support 42.08 to 42.05, and what I'd be looking for would be a similar signal to the one that we had yesterday as we came into that area, a volume spike, tick extreme reading and some positive divergence in terms of the internals, and that would be an opportunity again for me to go in on the long side. The reason why I'm focused on long setups at the moment is because the globex turret at the moment is bullish. The near-term bias is bullish, the medium-term bias is bullish, and the long-term bias is bullish. So what we're looking to do with this strategy is really align ourselves with the trend and trade with the trend. So at the moment I'm not looking for short trades, I'm looking for this break at 42.40 to give us an opportunity to trade for 42.51. If we don't get an exhaustion signal when we get into that area, there's no need to put profits there, we can trail our stops up and target the 42.58, which is the next pivotal resistance area. If we got through there without an exhaustion signal, then we'd be looking for 42.71. The primary trade for me today will be a break of 42.40 to play for 42.51, and again we can see on a continuation trade we'd be using a 7.5 point stop versus the current market volatility. So finally for everyone who's here today, I want to offer you the opportunity to join me in the Tick Mill Futures and Options E-Mini Strategy Group, whereby this is where I place my pre-market analysis. I record a video, you can see some of the recordings here. I record a video, I provide a trade sheet for the session ahead. This was yesterday's trading action where I highlighted the trade I was taking in real time with that test into the primary support zone. Just remind you of that, there we go. So that's this move here into that primary support zone, and I alerted the traders in the strategy group that I was going long there and looking for a move up into 42.20, and I eventually checked out there with 10 points of profit on a 5 point risk. The reason why I'm risking 5 points is because this was a reversion trade, and currently the reversion volatility stop is 5 points, so that gave me the set up there for the 5 points. So what we're offering basically to everyone who's attended today is the opportunity to trial, get a trial entry to the Futures and Options Group, it's a Facebook closed group. I'm going to put the link into the chat now, and so anyone who wants to take advantage of the trial, what we do ask is that you register an account with Tick Mill. You don't need to fund the account, you just need to register an account, and that gives you access to two weeks of my pre-market trade analysis and intraday updates, and then what you can do is you get to see how this strategy works on a day-to-day basis, whereby I'm providing pre-market analysis and then I do a post-market review prior to the next day's open. So it's completely transparent, so you can see every day how the analysis is functioning versus my pre-market analysis and how the market ultimately played out. Like I say, you get a short recording video which gives you this trade, the primary set-ups that I'm looking for. I'm generally only looking to take one or at a maximum two trades a day, and on average I'm looking for about 10 points of profit. So I'm not scalping the market by any means, I'm looking to play a position, I'm looking to align with the trends and play for these bigger targets. So that's the offer that I would like to make to you all today. Join me in the futures group whereby you can access my analysis, you can see how the strategy functions in real time. Are there any questions at this point? I also post some institutional updates as well, so you can see what the bigger players are doing in the market, which again helps us to align with the broader trends and dominant narratives within the market. So it's a bunch of high quality information, institutional insights, and my market analysis. So once again, are there any questions? How do you sign up? Steph, can you see the Facebook link above that I've just posted in the chat? If you click on that link. Okay, one second, let me see. That's the issue, one second. Thanks for that, Steph. There we go. Can you see the link now, Steph? Can everybody see that the link I posted? Great. Okay, so if you access that link, can you just make a request to join? And then like I said, we'll set you up with a two week trial to monitor how my strategy works and how it functions. Okay, if there aren't any other questions, I'll wrap this session up here. Thank you all for your time and I hope to see you all in the strategy group. Thanks very much, everyone. Have a great week. Q&A, one second. What is the margin? The margin is you need a $1,000 account to trade one contract. I hope that's great. Okay, everyone. That should, I think that's covered everything. So again, I'm going to wrap this up here and have a great week. Thanks very much.