What Is TrendTraderPRO And Is It Worth It?

A while ago I wrote a post on the tools I use for my trading. For some reason, it seems Google liked that article because I’ve been getting a lot of visitors who are finding through the search engine.

I have also been getting a lot of private messages from readers who are curious about a particular tool I mentioned in that article as my main trading strategy. I’m talking, of course, about TrendTraderPRO.

It seems that many people have discovered that indicator through my blog and they have been asking me for a long time how exactly I use it. I was confused at first because I think it is pretty obvious but I thought I’d write a post to answer some questions and hopefully help some people.

Trend Trader PRO (TTP for short) is a suite of indicators for the thinkorswim platform and strategy developed by a trader called James Ryan. I was introduced to James through a friend who was once coached by him. At that point, I was trading, rather successfully (mostly commodities) for a little over 4 years so I didn’t think I needed to pay for any fancy tools. I was doing just fine on my own.

I attended a seminar that James was hosting called “Simplicity in Trading”. I was intrigued because while my trading was profitable it was anything but simple or easy.

In the webinar, I was introduced to the TrendTraderPRO system of trading. It is, essentially, a trend following strategy of buying when price starts going higher and selling when it starts going lower. What was most impressive was the set of tools that James had devised to make trading this way as simple and profitable as possible.

He had essentially condensed a pro trader’s years of hard-learned trading techniques into a simple tool that any newbie could follow and trade like a pro. A PRO Trend Trader. You get it?

How Does It Work?

The indicator is fairly easy to understand. Basically what it does is it calculates the average open, high, low, and close prices of each bar over a certain period. For example, if you are looking at a 5 min chart you can set up Trend Trader Pro to a period of 20 and it will calculate the average of the 20 previous bars.

Based on the calculation it will determine whether the price is generally going up or down and it will show it graphically on your chart as a serious of smooth hollow uptrending bars or filled downtrending bars.

That’s all nice but the real power of it lies in its ability to detect a shift in direction. Take a look at the 1 hour chart of Boeing (BA) below.

You see the actual price as the thin, jumpy line and TrendTraderPRO as the smooth green and red bars.

The idea is that you buy when the color of TTP changes from red to green and an up arrow appears and you sell only when the color changes to red and a down arrow appears.

As the price is generally moving upwards, TTP remains green, despite the ups and downs of the actual price. So following TTP, you would go long and stay long until you get an opposite arrow (pointing down) and the change in color (red).

So in essence, it helps you trade with the trend. It handles the actual analysis of whether the price is generally going up or down and gives you a heads up if it is starting to head the other way.

Is It Worth It?

I became of fan of TrendTraderPRO since I was first introduced to it. I was drawn to it because of its simplicity but I continued using it over the years because of its profitability.

Lots of indicators and tools look simple enough in hindsight and in theory but perform miserably in real market conditions.

But no TrendTraderPRO. Because it has been designed as an actual trading strategy and because it follows the basic law of every market (buy low, sell high and always go with the trend) I use it to trade profitably with it almost daily.

Is it worth it for me? Absolutely.

Is it worth it for you? It depends.

I find that TrendTraderPRO is fantastic at allowing beginners to start making money trading right from the start. As opposed to other systems and strategies that take years to learn and get good at, TrendTraderPRO offers a working system that even someone brand new to trading can start using and profiting from right away.

It is ideal for beginners, struggling traders, or just people who don’t really want to spend years and years learning to trade before they can make money.

However, if you are already a profitable trader and you can already trend trade on your own then perhaps you don’t really need TrendTraderPRO to hold your hand and tell you when to buy and when to sell.

You might say, hold on Jacob, I thought you are a professional trader. Why are you using it then?

Because I’m lazy! I’ve been a trader all my life and I paid my dues to the market. Yes, I love the thrill of solving the puzzle but doing it daily for 30 years takes its toll.

I have a playbook of strategies that I use and work for me but most of them require a lot of work, analysis, and planning before each trade. With TrendTraderPRO I just slap it onto my chart and wait for an entry signal to enter a trader and an exit signal to exit. I take my money and call it a day.

Some days I like to trade my own strategies and can spend hours in front of my charts without even noticing the time. Other days I like to focus on other things so I have TrendTraderPRO running in the background and only trade when I get a sound alert.

What it allows me to do, in essence, is make money even on my lazy days so why wouldn’t I use it? Would you say no to making money while being lazy? I don’t think so.

So this is my “review” although I don’t think I did a very good job at actually reviewing it. This was just a brief overview of how I use it.

I know that James has added more tools to the arsenal now like the TimeHeatmap which does multiframe analysis and other ones but I haven’t really gotten around to try them yet. I will update this post when I do.

In conclusion: it’s simple, it works, it’s perfect if you’re lazy but you like money.

– Jacob

UPDATE OCT. 2, 2020 —

I tried out the TimeHeatmap tool that James released and I’m impressed. It does boost my win rate by a lot. What this tool does is it adds the color of TrendTraderPRO on higher time frames as a sort of heatmap under the chart.

When all the lower TimeHeatmaps are green we ignore the short (sell) signals and only take the buy signals. A brilliant way to filter out a lot of losing trades.

So in essence, you only want to be buying when all the different timeframes have an uptrending TTP. On the screenshot above you see why. Almost all long TrendTraderPRO signals were profitable but most short signals were breakeven and small loss trades.

By trading in the direction of the higher timeframe trend, you are stacking the odds in your favor.

You could do this multi-timeframe analysis on your own by switching back and forth between timeframes but TimeHeatmap neatly displays all of them much better on the lower part of your chart.

5 replies on “What Is TrendTraderPRO And Is It Worth It?”

Jacob, it’s been a while since your last post, it’s good to see you’re back in blogging, hopefully I’ll see more from you. This indicator seems very interesting, I’ll check it out.

Thanks for sharing this tool. I started using it a few days ago and I can’t begin to tell you what a difference it has made in my trading… Just phenomenal. One question, have you found the same level of success in trading futures with it than you did with stocks? I’ve been using it to trade Gold futures and big caps and while it is profitable with both I’m noticing that stocks tend to trend better or more “cleanly”. What’s your experience with futures?

I’m trading stocks and index futures with it. Haven’t really tried it with Gold. I’ve found that it performs equally well with futures as it does with stocks. It catches the big trends early and I ride them all the way to the end. I will typically stop trading after a big trend because I know there might be some sideways action coming so I will skip the next 3-4 entry signals after a big move.

Rick win rate is pretty meaningless by itself, it’s really the risk to reward ratio that you need to know. For example, when I take a trade with an entry signal if it ends up not working out the system gives me an exit signal fairly quickly so I can get out for a small loss or breakeven. However, if the trade does work out I can be in it for a very long time and make back 10-20 times what I lost in a losing trade. So I could lose 1 and make 10-20. That’s primarily what TrendTraderPro is good at. Having said that, the win rate is pretty high as well, around 70% for me personally. But again, it’s the ability to make much more than you lose that’s the biggest value here.

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