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Delta Trading Strategy - the official Delta Training program
The strategy described below is known as the Delta Phenomenon, which was discovered in the early 1980's. It has since been dubbed "The Hidden Order in all Markets". I know it is a big leap to buy a strategy from someone you know nothing about. However, if you will read this document to the end, I promise you wont be disappointed. READ ABOUT THE 4-7™ technique here!! The Delta Trading Strategy The Delta Trading CD is a unique program which brings the Delta Phenomenon work together with position sizing and money management. It is the brainchild of Steve Copan, who has worked with and traded using the Delta Phenomenon approach to the markets. It was his use with Delta that led to the discovery of what is today coined as the Market Matrix. The Matrix Newsletter is based upon his work. Let me just quickly describe what the Market Matrix is. The Matrix CD’s consist of 3 discs with instructions on how to trade using the Matrix method. The first of the 3 discs is an introduction to the Delta Phenomenon, upon which the Market Matrix is built. The Delta Society in the US decided to use Steve Copan’s 1st disc as its “Official Delta Training CD” for anyone who wished to learn about the Delta secret. The “Official Delta Training CD” is sold separately to the Market Matrix. If you purchase the whole Market Matrix CD, you will automatically get the Delta Training CD. If you wish to purchase the Delta Training CD first and then subsequently buys the full Market Matrix set, you can do so at a discounted price. This section is a review of what the first disc is about. If you wish to read a review of the Market Matrix, then please press here. I wrote this review of the Market Matrix on my own site originally. Review of the Delta Phenomenon – the “Official Delta Training CD” The Delta Training CD by Steve Copan consists of 11 chapters. I have included a screen shot of the 11 chapters below. This review will go through each chapter and explain what is being taught and what you can expect.
1/ Introduction This is a quick 2-min demonstration on how to use the CD from a navigational point of view. 2/ Beginners (chapter lasts 9 minutes) In this 9-min section you will learn some simple facts on bar charts and its use when you trade the Delta phenomenon. It is simple and straight forward chapter with no complicated topics. 3/ What is Delta? (chapter lasts 14 minutes) This 14-min chapter is a first look into the world of the Delta Phenomenon. It is aimed at gently introducing you to the concept of the Delta time frames. There are several different time frames from which you can approach the financial markets using Delta. As you can see from the screen shot below, there are 5 time frames. The vast majority of traders using the Delta approach will use the ITD solution. I have blanked out the interval of the time cycle as this is classified information, which will be revealed on the CD. It is interesting to hear Steve Copan explain that the Delta Phenomenon is a tool to pick highs and lows in any financial market. As a guide it is invaluable, but it is important to remember that the Delta Phenomenon does not focus on price. It focuses on time. In other words you will learn how to calculate when a high or a low is due in any financial instrument, including stocks, currencies, indices and commodities. Delta is a tool for calculating highs and lows in any market If you wish to learn how to calculate time and price signals, you should consider the Market Matrix. There you will find detailed instructions on how to combine both time and price in your trading.
4/ Intermediate Term Delta (Chapter lasts 29 minutes) This is where the real impact is beginning. Steve goes through an index, the SP500, and carefully teaches you how to solve the Intermediate Term Delta. It is using as its foundation the ITD time cycle. I have attached a chart below (without the time cycle points, as this is the secret to Delta), which shows you the parameters of the ITD. It is within the coloured lines that you will learn how many points, highs and lows, there are between each line.
There are specific rules that have to be adhered to when solving the ITD for any market. Steve goes through the rules slowly and shows you examples of them. He also discusses the use of “family” groups. This principle basically states that if two instruments are in the same family, say two indices, they will have the same solution. In other words they will have the same amount of points in between the time frames. The trading edge to Delta is the acquisition of knowledge; knowledge of when a market is due to turn and this is what chapter 4 and onwards specifically deals with. You can purchase both the Delta trading CD with the 4-7™ technique and the Market Matrix It is really important to keep in mind that Steve Copan is an expert user of Delta and he has come up with solutions that stand out from the original book and even the Delta Software. What you are getting in this training CD is the traders approach to Delta. Delta is outstanding for understanding trend analysis You may be somewhat confused as to the meaning of the word “solution”. Every market will have a certain amount of points, turning points or change in direction of the market trend. The Delta Phenomenon is the tool to calculate these turns. A solution is another word for how many turns there are in between each Delta time frame. The chapter is packed with tricks as to the use of the ITD, which is probably the most popular trading time frame amongst Delta users. 5/ Medium Term Delta (Chapter lasts 26 minutes) This is one amazing piece of tuition. The Medium Term Delta (MTD) carefully explains the MTD timeframe just as had been done in the previous chapter with the ITD. However, what makes this even better than the previous chapter is when you discover the synergy between the two timeframes, the ITD and MTD. If you have just a rudimentary knowledge of trend analysis, you will be blown away by the power of knowing the rules for ITD and MTD. It is the best tool I have ever seen for developing a sense of trend retracements and what makes it even more powerful is that this was not discussed in the original Delta Phenomenon book. Delta produces 50 SP500 points of profits in one trade The chapter is quite simply a thorough instruction in the use of the MTD time frame and its synergistic relationship with the lower time frame already discussed, called the ITD. It is amazing to see with the benefit of hindsight how Steve’s “buy” recommendation pans out. On the 4th January 2007 when the CD is recorded you hear Steve talk about how using the logic of the Delta turning points you should buy this market over the next 3 days, because the market has no choice but to move higher after that, according to the rules of the Delta Phenomenon. It is a true testament to the power of Delta method to see how the market turns 3-4 days later and rallies 50 SP500 points over the next month, as it is meant to do. The chart below is a screen shot on how the Delta approach works. Obviously the real secrets have been removed but it gives you an idea of the approach to the market. Every market has a sequence of highs and lows. The Delta trading strategy CD teaches you how to use this sequence from research to trading implementation.
There is no doubt that this is a complicated chapter technically. It is as Steve says himself the key to the Delta approach and it is worthwhile. You don’t get anything for free in this world, but it is on the other hand not an approach that requires a science degree either. It is purely logical steps that need to be applied using what Steve is teaching you. Another important thing to bear in mind is that Steve clearly posses a knowledge which far surpasses the original work done on Delta. He shows you his own solution in the SP500 on the work CD and anyone with a Delta book will see that his solution is different to the original work.
6/ Long Term Delta (Chapter lasts 18 minutes) This chapter deals with the longer time frames. This is of use when planning the big turns in the market and is clearly of use to longer-term traders. It is however also important when planning shorter-term trades. Steve is talking about a big turn coming up towards the end of February. The date on the chart is 4th January, so he is pointing this out some 2 months before the turn. This is nothing unusual and in there lies the power of Delta and the Market Matrix. The turn came on the 27th February and produced a drop of some 90 SP500 points or about 800 Dow Jones Index points. 7/ Super-Long Term Delta (Chapter lasts 16 mintues) The final chapter on the Delta time frames is the Super-Long Term Delta. It shows how even in the very big scheme of things the market follows a sequential rhythm. This rhythm is prevailing in whichever time frame you are looking at. In the final chapter Steve explains how he can take a completely new market, and solve it from scratch in about 90 minutes. Obviously this will take practise on your side, but the advantage of solving a market, as it has been described in the 4 chapters on Delta time frames, is the fact that you have a rock solid trading strategy, which allows you to anticipate rather than react to the market. Delta teaches you how to anticipate rather than react 8/ Recap so far (Chapter lasts 9 minutes) This chapter is a recap of everything that has been taught up until now, and it is perfectly placed just before the lengthy chapter on how to trade the Delta points. 9/ Trading the Delta points (Chapter lasts 64 minutes) This is where the real fun begins. The chapters on the Delta time frames were detailed and concise without any wasteful fillings. The final chapter is dedicated to Steve Copan’s powerful 4-7 ™ trading technique. It is specifically coined for Delta trading and is designed to trade both for higher or lower prices, long or short. Steve goes into great detail in explaining the use of the technique, how to add to your winning position, how to place your stop-loss and when to take your profits. If you don’t have a trading strategy yourself, you will be amazed at the power of using the 4-7™ technique. The 4-7™ technique will keep you in the trading game There will be many people reading this who will be in jobs that do not allow them to trade intra-day. The trading technique discussed here is specifically designed for longer-term trades. It aims at follow the ITD from one MTD to the next. Therefore you do not need to watch the market intra-day. All you have to do is to do your homework at night and log onto one of the many on-line trading providers and submit your limit order in the market. You can purchase both the Delta trading CD with the 4-7™ technique and the Market Matrix These on-line providers, for example spread betting companies, allow you to input OCO orders. This is effectively an order where you input for example an order to sell short the market. If the price level is hit where your order is triggered, the system automatically creates a stop-loss for your position at a price level you have specified. It is that simple. City Index is one company that allows you to do that. You can open an account on www.cityindex.co.uk. The chapter follows the SP500 using the strategy for 7 months going from May 2006 into January 2007 and it produces a profit of £70,300 on a £10 per point bet. It is an effective strategy for combining Delta trading times with money management and trend following. The 4-7™ technique made £70,300 at £10 per point in 7 months.
10/ Charts of pre-made solutions There are pre-made Delta solutions for SP500, Gold, Oil, and Sterling Dollar for different time frames. This is not a chapter where Steve Copan narrates. This is purely the solutions provided for the above markets in the ITD, MTD and LTD. It saves you some of the work yourself and provides you with a helpful support for use on other charts and markets. The screenshot below shows you exactly what you will be getting in chapter 10.
If you wish to ask any questions, please do not hesitate to contact us here. You can purchase both the Delta trading CD with the 4-7™ technique and the Market Matrix |
