FAQ

 

We trade and teach our students the Legacy Day Trading System for day trading e-mini Futures.

Your Focus Should Be on Learning How to Read and Understand the Market!

Learning to understand how the market works is hard enough as it is, it gets even harder when traders are using day trading software and rules-based systems that aren’t able to adapt to low & high volume situations.

Many companies try to sell their day trading indicators as “proprietary indicators”. We would like to formally tell you that all of these “proprietary indicators” can be found online for free.

This is one of the reasons we tell people that indicators aren’t a magic solution to winning trades; it is about reading and understanding the market. Anyone can take indicators and make them look fancy with bright colors to show winning results using revamped indicators that have been around for years.

 

We perfected our winning strategies by keeping a few things in mind: K.I.S.S – Keep it Simply Simple:

  • Trade strictly futures (E-mini S&P 500)
  • Win more than you lose (Ensure winners are bigger than losers)
  • Simplicity (One Chart & 3 Simple Indicators)
  • Stay disciplined and follow the plan (Goal: To be profitable every day)

Make a Living Trading Using Our “Legacy Day Trading System”

There are tons of day trading systems out there with lots of promises about what is possible and isn’t possible. The Legacy Trading System is all about adapting to market conditions, being conservative when the market isn’t moving well, and aggressive when the market is moving well.

This concept is what we call “Congressive”; we are conservative when the market is not moving well and aggressive when the market is trending.

Sometimes we make exceptions to our profit target by reading underlying behavior; this is a skill we teach our traders to understand and take advantage of market momentum. When we can read the market environment and understand its structure, we can make money consistently. In all honesty, markets today are easy to trade. Anyone can make money when the market is flying in one direction and trending beautifully. The market changes its behavior often and we want to quickly adapt to make sure we can capitalize on the opportunities the market is giving us. It doesn’t matter if you are trading one contract or ten; it’s all about making the right decision to consistently extract a profit from the market daily.

 

You can LOSE most of the trades and still make money with The Legacy Trading System

How in the world is this possible? We know it sounds completely counterintuitive, but it has to do with a very important element of trading: RISK vs. REWARD.

This refers to the amount of money you are risking on a trade (if you lose) compared to the amount of money you set as a profit target (if you win). With The Legacy Trading System, we win twice as much as we lose on any given trade. That means on average we’re risking $1 to make $2, or more.

This is critical to your trading success. If you do the math, even if you lose 60% of the time (lose 6 out of 10 trades), you will STILL be profitable because of the risk management and money management techniques we teach.

 

Understanding Risk vs Reward with The Legacy Trading System

Most of us get involved in day trading because we want to make money. By focusing on the money, we lose sight of what is important, which is making a consistent income and making the right decisions. Even if we only make a few dollars a day in the beginning, that can later be magnified with extra shares of stock or contracts. A few dollars can turn into a few hundred dollars, which then leads to a few thousand dollars per day. Trading full-time is all about being able to generate consistent returns. With a 2:1 Risk vs. Reward, our students can be successful while occasionally taking losing trades. One aspect we focus on is identifying which trades appear valid, but are not compelling. This ensures that we are only increasing the number of profitable trades.