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16, 2017 THE GTO QUICK LEARNING MANUAL

DISCLAIMER: Online trading involves substantial risk of loss and is not suitable for everyone.
The valuation of the contracts does fluctuate, and, as a result, you may lose more than your
original investment. The impact of seasonal and geopolitical events is already factored into
market prices. The highly leveraged nature of online trading means that small market
movements will have a great impact on your trading account and this can work against you,
leading to large losses or can work for you, leading to large gains. If the market moves against
you, you may sustain a total loss greater than the amount you deposited into your account.

You are responsible for all the risks and financial resources you use and for the trading
systems you are using. You should not engage in live trading unless you fully understand the
nature of the transactions you are entering into and the extent of your exposure to loss. If you
do not fully understand these risks you must seek independent advice from your financial
advisor. All trading strategies are used at your own risk. This mentoring should not be relied
upon as advice or construed as providing recommendations of any kind. It is your
responsibility to confirm and decide which trades to make. Trade only with risk capital; that
is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to
meet your financial obligations.

Past results are no indication of future performance.

In no event should the content of this correspondence and coaching be construed as an


express or implied promise, guarantee or implication from Children of the Journey that you
will profit or that losses can or will be limited in any manner whatsoever. Children of the
Journey is not responsible for any losses incurred as a result of using any of our trading
strategies and mentoring. The Trading software should never be left unattended due to the
possibility of events out of your control, such as computer or data failure, power outages,
position mismatches, and/or network problems. Loss-limiting strategies such as GTOp loss
orders may not be effective because market conditions or technological issues may make it
impossible to execute such orders. Likewise, strategies using combinations of trading positions
such as spread or straddle trades may be just as risky as simple long and short positions.
Information provided in this correspondence and coaching is intended solely for informational
purposes and is obtained from sources believed to be reliable. Information is in no way
guaranteed. No guarantee of any kind is implied or possible where projections of future
conditions are attempted.

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Revision Log:
20161101.1300 A.Pealoza initial revision.
20161123.1000 A.Pealoza added why the Bollinger_Band is so useful.
20170101.0000 A.Pealoza updated pictures, added Trap Rules and renamed TRUST
line as FAITH Line.
20170316.0800 A.Pealoza The Trinity Lines explanation in depth.

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Contents

Mission Statement...........................................................................................................5

PLAIN LANGUAGE DISCLAIMER: 6

THE SANGHA PRINCIPLES: 6

The GTO Quick Learning Manual.........................................................................................7

Purpose: 7

SAFETY: 7

SURETY: 8

PROFITABILITY: 8

GTO allows us to know the two types of Market Dance Behavior:.......................................8

The GTO Mindset:.......................................................................................................8

GTO Benefits..............................................................................................................8

Conquer the Fear:.......................................................................................................9

Known Facts about GTO:..............................................................................................9

The GRACE Trading Operation Layout 10

GTO Grace Trading Operation... 11

Grace Trading Operation (GTO) Ver: 7.7 12

GTO Official Goals, Limits and Mantras... 13

MANTRAS: 14

Quick PRIMER on the Trinity Lines and what they are: 16

Please understand the following important aspects of the Trinity lines.....................................17

The Bollinger_Band is needed: 18

What is DOUBT and GRACE... 20

The Phase Cycle concept: 21

End of Teachings.......................................................................................................22

Conclusion: 22
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Purpose

This is the collective Wisdom our Spiritual Community of Traders


were made privy to
by the Universal Intelligence of Love.

This manual is a compendium of knowledge, we as individuals and


as a community continue to learn with appreciation and gratitude.

Mission Statement
We believe in the Divine and the Universe. We are eternally
Grateful and ever Thankful for the Gift of the Trinity Lines (FAITH,
LOVE and MERCY).

We are continually given the most amazing insights about this Gift;
which allows us to create a business that takes little of our time to
run during the day. This Gift enables us to spend quality time
helping others as the Divine wishes. This is the reason we teach
this Gift to others for free.

We depend on the Divine and the Love of the Universe to lead


others to us.

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PLAIN LANGUAGE DISCLAIMER:

1. The Sangha will never ask you for money.


2. The info IS PROVIDED FREELY with "no strings attached".
3. The Sangha will provided answers and guidance pertinent only to the Trinity lines
and the Grace Trading Operations (GTO).
4. The Sangha WILL NOT provide proof of effectiveness nor ANY guarantee of FITNESS of
use. Prove it to yourself!
5. You are FREE to profit from The Grace Trading Operations in any way you choose,
with only ONE RESTRICTION Give credit to The Children of the Journey Sangha as
the original creators.

THE SANGHA PRINCIPLES:

1. Those that have the passion and perseverance, on their own volition, will prove the
merits of "The Gift" for themselves and acquire the necessary skills by their OWN
effort.
2. As "The Gift" was freely given to the Sangha, we FREELY give The Gift, from our
heart, to those who ask us. The Sangha will freely answer questions and provide the
foundational knowledge to those who seek to use the Grace Trading Operations and
Trinity Lines effectively.
3. The Gifts of the Trinity lines and GTO are Open Source and will adhere to the "7
Guiding Principles" of Open Source.

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The GTO Quick Learning Manual


Purpose:
This document is the sanghas latest understanding on how to use GTO and Trinity
Lines profitably. We include all the Tactics and Strategy, we currently know of, for Safe
and Sure profitability.

When you have your first-look at the Trinity Lines used in the Layout (works only on the
SierraChart Trading Platform), please do NOT be overwhelmed by all the lines. You will
learn their function as you execute the trading plan described in this manual. Please
learn about the DOUBT, which is foundational; we need DOUBT to clearly see the rhythm
of the market dance and to alert us when the Trinity Lines are ready for the next
market cycle.

SAFETY:
Protect your trading account, we employ the following tactics...

1. Use a Stop and move it to the last bounce of the price-action (where the price-
action created a peak or valley).
2. BE OBEDIENT to the trading operations.
3. Use only ONE contract and Keep your max daily loss to less than $200 (Daily
Loss Limit).
4. Keep your max daily filled trades to less than 8 (Over Trading Limit).
5. Met your Daily Profit Goal, END your Trading Day.

WARNING: Doing business with the Market is "inherently"


DANGEROUS! Market price-action may sharply go up or down,
PREVENTING your Stop from activating in a timely manner. Please
realize you WILL LOSE money when this happens and this is a
"normal" behavior of the market.

As a new GTO practitioner, you are encouraged to use ONLY one


contract at a time, to minimize this possible loss.

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SURETY:
Look for and wait for The Trade Setup.

PROFITABILITY:
1. EXIT your position when you have The Trade Exit.
2. BEWARE KEEP AWAY when the price-action is sideways, Trinity Lines
stay in DOUBT or on opposite sides of Zero or FAITH is FLAT or outside
GRACE.
3. WAIT for LOVE and MERCY to Leave DOUBT as the horizontal gap of the
LOVE and MERCY Zero cross are close together.

GTO allows us to know the two types of Market Dance Behavior:


1. Sustained Trends (SPRINT) Begins when LOVE and MERCY cross Zero
together and goes BEYOND DOUBT. Ends when MERCY Zero-cross against
you.
2. Sideways and Pivoting (MARATHON) is also a sign of continuation of a
current trend. LOVE or MERCY and FAITH are on OPPOSITE sides of ZERO, as
LOVE is in DOUBT or FAITH is FLAT.

The GTO Mindset:


1. "DANCE" with the market; DO NOT PREDICT where it is going.
2. HOPE will not move the price-action, LOVE crossing Zero moves the
price-action !
3. Market direction is always known through the Trinity Lines. LOVE is joined
by MERCY going BEYOND DOUBT. We DO NOT pay attention to the NEWS!
We DANCE with the market.

GTO Benefits...
1. FREEDOM of sight and awareness.
2. ENERGY to trade for a long time (if we want to) - due to Less Frustrations.
3. FREE for everyone to use (except for the monthly cost of a Sierra Chart
subscription - $27 per month).

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Conquer the Fear:


1. Fear of Missing an Entry - when entering a position, LOVE and MERCY goes
BEYOND DOUBT, then enter.
2. Fear of the Retrace taking you out - MERCY Zero-cross against you is the MUST
EXIT.
3. Fear of the Sideways - going in and out of positions - STAY AWAY when LOVE and
MERCY are in DOUBT or are on OPPOSITE sides of Zero.
4. Fear of Not Knowing where the market is The Trinity lines shows where the
market is in its cycle and where the market will go. The LOVE, MERCY and FAITH
lines tell us direction.
5. Fear of Losing because with GTO, we ALWAYS know when to take a position on
the correct side, how long to hold and when to exit.

Known Facts about GTO:


1. All Trinity Lines cycle through Zero. When a line goes above the Zero, it will go
below the Zero and vice-versa.
2. When LOVE and MERCY are ABOVE Zero, market dance is UP.
3. When LOVE and MERCY are BELOW Zero, market dance is DOWN.
4. Price-action will not move until LOVE and MERCY goes BEYOND (outside) DOUBT.
5. When FAITH is sideways ABOVE the UPPER GRACE, the market will continue to
MARATHON UP.
6. When FAITH is sideways BELOW the LOWER GRACE, the market will continue to
MARATHON DOWN.
7. When The LOVE and MERCY lines are in DOUBT, the market continues its current
trend or is SIDEWAYs.
8. When MERCY moves too far AWAY from LOVE the market will go sideways.
9. Any LEAP of the Trinity Lines will cause price-action to go sideways.
10. A LOVE Zero Bounce is strong. Any Trinity Line bouncing off the Zero
completes their cycle.
11. LOVE and MERCY together during Zero crossing is strong, but may be short-
lived.
12. When LOVE, does not match price-action direction, you have DIVERGENCE.
13. Do not chase a trend once LOVE creates the HIGHEST/LOWEST
PEAK/VALLEY. The trend is changing.
14. Any Trinity Line crossing Zero or each other; has significance.
15. Price-action will move when LOVE and MERCY are helping each other
on the same side of Zero.

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The GRACE Trading Operation Layout

FAITH, LOVE and MERCY are know as the TRINITY Lines.

1. The Trinity Lines of FAITH, LOVE and MERCY


2. The MARKET Cycle
a. Slowest cycle is FAITH
b. Medium cycle is LOVE
c. Fastest cycle is MERCY
3. The Bollinger Bands
a. The Bollinger_Band with a Standard Deviation = 2
b. The Harvester_Band within the Bollinger_Band with a Standard Deviation = 1
4. The Areas around Zero
a. GRACE the FAITH line is calibrated to GRACE
b. DOUBT within GRACE the LOVE and MERCY lines are calibrated to DOUBT
c. Calibration is done by changing the MACD_Scaler for the product being traded
5. The TRADE and TRAP Setup
6. The TRADE Exit

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GTO Grace Trading Operation...

Pre-Plan:

Requirements:

1. Understand the RISK of Online Day-Trading (Risks, Day-Trading)


2. Be Familiar with the SierraChart Trading Platform (SierraChart Instruction)
3. Calibrate LOVE, MERCY, FAITH, GRACE and DOUBT to the financial instrument
traded
(Calibrating the Narrows)
4. Understand DOUBT and the concept of Cycles
5. Use the CL (Light Sweet Crude) and GC (Gold) for your financial instrument, with
the MAIN chart LOT (Low-Order-Timeframe) at 2584 ticks, MOT (Medium-Order-
Timeframe) chart at 4181 ticks and HOT (High-Order-Timeframe) chart at 6765
ticks.

Pre-requisites:

1. Serene, Healthy and Alert


2. Computer, Internet and Trading Platform are well
3. Goals, Limits and Mantras reviewed (Goals, Limits, Mantras)
4. In isolation - no distractions

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Production Routine: Make this a habit (practice diligently for 30+ days).

1. Opening Prayer
2. Find and draw horizontal (GRACE) lines, marking Support and Resistance
Levels using the FLATs
of the upper and lower Bollinger_Band (see section: The Bollinger Band is
needed)
3. Review the Trade Setup:
a. STAY AWAY from a FLAT FAITH or when LOVE or MERCY are in DOUBT or
opposite sides of Zero
b. ENTER when FAITH is in GRACE and BOTH LOVE & MERCY are on the SAME
side of Zero
as LOVE goes BEYOND DOUBT
4. Review the Trade Exit:
a. EXIT when MERCY Zero-cross against you
5. Summarize and note Production Performance
a. PL and Total number of fills
b. What went wrong
c. What was learned
6. Closing Prayer

Grace Trading Operation (GTO) Ver: 7.7


TRADE SETUP:
1. ALL "Trinity Lines" are in the same phase of their cycle.
2. MERCY and LOVE are on the SAME side of Zero.
3. FAITH has an angle of 15 degrees or more.
4. LOVE has no MAX_Z (has NOT yet created the Lowest Valley/Highest Peak)!

ENTER UP: FAITH is doing UP cycle within GRACE, LOVE is beyond UPPER
DOUBT,
doing UP cycle and MERCY is doing UP cycle ABOVE Zero.
ENTER DN: FAITH is doing DN cycle within GRACE, LOVE is beyond LOWER
DOUBT,
doing DN cycle and MERCY is doing DN cycle BELOW Zero.

TRADE EXIT:
when MERCY Zero-cross against you.

DO NOT Enter when LOVE and MERCY are on OPPOSITE sides of Zero.

When MERCY is on the OPPOSITE side of Zero from LOVE, the market WILL be
SIDEWAYS, because MERCY is NOT helping (not in phase with) LOVE.
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Post-Plan:

Update your Trade Journal blog site


1. Record goals reached
2. Record limits and mantras broken
3. Record quality of OBEDIENCE to the Trading Plan
4. Record things learned
5. Record profit or loss and number of fills

Do re-cap; Video and/or Screenshot the charts and add to your blog site.

GTO Official Goals, Limits and Mantras...


GOALS:
You are an EMPLOYEE of the Market and MUST BE OBEDIENT to the "The
GRACE Trading Operations"
You trade only one contract at a time and end your trading day when the
daily profit goal is MET.
You ALWAYS WAIT for The Trade Setup
You ALWAYS execute The Trade Exit

LIMITS:
Use ONLY 1 contract
MEET a DAILY PROFIT GOAL, then STOP trading
Maximum daily fills: 8
Maximum daily LOSS: $200
PROFIT Limit per trade: $100 or 10 ticks
Trailing STOP: 10 ticks

RISK MANAGEMENT: - Best to Skype and trade with a Trading Buddy.


Your Trading Buddy will manage your risk and you will manage theirs.

When you have no Trading Buddy


STOP after two losses in a row
you have reached your daily loss limit
you have reached your daily profit limit.

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MANTRAS:

1) The market pays you to BE OBEDIENT to The GRACE Trading Operations.


2) Do not claim to be obedient, if that is not the case 100%.
3) Halve the number of contracts you trade when trading poorly.
4) Never turn a winner into a loser.
5) Your biggest loser cannot exceed your biggest winner.
6) Stick with the plan and same layout, do not change it.
7) Be yourself, do not try to be someone else. (I am personally a SPRINT Trader, not a
MARATHON Trader)
8) You always want to be able to come back the next day.
9) Earn the right to trade more contracts at one time.
10) Get out of your losers.
11) The first loss is the best loss.
12) Do not hope and pray. When you do, you will lose.
13) Do not worry about news, its history. We DANCE with the market.
14) Do not speculate/predict. When you do, you will lose.
15) Love to lose money.
16) If your trade is not going anywhere in a given timeframe, exit.
17) Never take a big loss. Only a big loss can hurt you.
18) Make a little bit each day. Dig your ditches. Do not fill them.
19) Hit singles not home runs. Set a Daily Profit Limit you can easily meet.
20) Consistency builds confidence and control.
21) Learn to sweat out (Scale out) your winners (when using multiple contracts).
22) Make the same type of trades, repeatedly. Be a bricklayer.
23) Do not over analyze. Do not procrastinate. Do not hesitate.
When you do, you will lose. Be Alert!
Train to Trade instinctively!
24) All traders are created equal in the eyes of the market.
25) It is the market itself that wields the ultimate scale of justice.

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The Quick Learning Training program:


1. Do your Historical Chart studies.
a. Look for The Trade Setups, where LOVE and MERCY starts at or from
outside DOUBT
b. Look for The Trade Exits, where MERCY Zero-cross against you.
2. Do LIVE-Demo (real-time datafeed in simulation mode) of the Market, if you have
no brokerage account, then use market replay. Please realize market replay IS NOT
the same as LIVE-Demo data.
3. Be ALWAYS OBEDIENT to the GRACE Trading Operations.
4. Let the Universe teach you the details, as you do your 30 Days countdown to LIVE.

Begin your 30 Day Countdown to Live:

(Split the 30 days into Three Combines, where a Combine is 10 trading days each, with
differing goals and limits you wish to attain. For example, the Third Combine may use 2
contracts at a time per trade.)

1. Be ALWAYS OBEDIENT to the GRACE Trading Operation


2. Use only 1 contract for the first and second combines. (The first 20 Trading days.)
3. Maintain a trade journal and video recap your daily countdown.
Why video? Because you need to record your thinking on why you did that action.
4. After taking a Break, do your Historical Studies of recognizing when the best Trade
Setups happen and when was the best Trade Exit.
5. Do Market Replay. Keep replaying the scene until you maximize your profit.

Share your insights with other GTO practitioners. In freely sharing our discoveries, we have made
such wonderful progress!

OBEDIENCE to the GRACE Trading Operation is paramount and staying within your
Loss and Fill Trade Limits!

1. Trade TICKS NOT MONEY!


2. TRAIN, TRAIN, TRAIN You have to act on The Trade Setups and Exits
Instinctually!
3. PROVE everything to yourself!
4. Trade WITHOUT emotion!

You are READY to go LIVE

1. You are 100% OBEDIENT to the GRACE Trading Operation.


2. You MOSTLY (90%) go in on the correct side of the trade
(the Market does not go against your position).

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Quick PRIMER on the Trinity Lines and what they are:

1. The Zero Line (orange line) - is fundamental to GTO. Without the "Zero", we
will not know the various cycles the market goes through. GTO essentially
places a Zero line on the price-action - this is the source of power for GTO.
2. MERCY (dotted line) is the fastest speed GTO line. MERCY is the slope of
LOVE. MERCY predicts where LOVE will go next, tells us the markets shortest
term cycle. MERCY Zero-cross and going beyond opposite DOUBT is an EXIT
that MUST be taken.
3. LOVE (dashed line) is the medium speed GTO line. LOVE is the slope of FAITH.
LOVE tells us the market's medium term cycle. When LOVE crosses the Zero
line, it will move the price. LOVE going beyond DOUBT with MERCY on the
same side of zero, is an ENTRY signal, provided FAITH is NOT flat and is in
GRACE. LOVE re-entering DOUBT against you is also an EXIT signal.
4. FAITH (solid line) this is the slowest speed GTO line, tells us the market's long
term cycle. FAITH is essentially the price-action with a Zero line.

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Please understand the following important aspects of the Trinity lines.

FAITH is the price_action.


LOVE is the slope of FAITH.
1. When LOVE Zero-cross UP, FAITH has created a VALLEY and price-action WILL go
UP.
2. When LOVE Zero-cross DOWN, FAITH has created a PEAK and price-action WILL go
DOWN.
MERCY is the Slope of LOVE.
1. When MERCY Zero-cross UP, LOVE has created a VALLEY and the DOWN trend has
ended.
2. When MERCY Zero-cross DOWN, LOVE has created a PEAK and the UP trend has
ended.

Therefore
1. ENTER for a LONG, when LOVE and MERCY Zero-cross UP and goes BEYOND upper
DOUBT.
2. ENTER for a SHORT, when LOVE and MERCY Zero-cross DOWN and goes BEYOND
lower DOUBT.
3. ALWAYS EXIT, when MERCY Zero-cross against you.

The above is TRUE for ANY product you wish to trade.

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The Bollinger_Band is needed:


WHY?
1. As a guide for setting traps
a. BUY traps are set outside and above the upper Bollinger_Band when price-
action crosses up thru the MIDs and goes BEYOND the UPPER HARVESTER_Band
(The HARVESTER_Band has a Standard Deviation of 1 and is within the
Bollinger_Band)
b. SELL traps are set outside and below the lower Bollinger_Band when price-
action crosses down thru the MIDs and goes BEYOND the LOWER
HARVESTER_Band
2. As a guide for Support and Resistance levels (we call GRACE lines)
a. Draw horizontal lines (Resistance) from FLATs of the upper Bollinger_Band
b. Draw horizontal lines (Support) from FLATs of the lower Bollinger_Band

Here is a drawing for illustration

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.
Bollinger_Band is a tool invented in the 1980s, The Bollinger_Band is used to measure
the "highness" or "lowness" of the price relative to previous trades.

Bollinger_Bands consist of:

an N-period moving average (MA)


an upper band at K times an N-period standard deviation above the moving average
(MA + K)
a lower band at K times an N-period standard deviation below the moving average
(MA K)

Typical values for N and K are 20 and 2 (for standard deviation), respectively.

The HARVESTER_Band is within the Bollinger_Band we use.


The HARVESTER_Band has a standard deviation of 1.
The Bollinger_Band has a standard deviation of 2.

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What is DOUBT and GRACE...

Early in our development of GTO, the UNIVERSE taught us the importance of LOVE and the
significance of GRACE and DOUBT. The use of GRACE is very important in allowing us to know
the cycles of the market dance. GRACE allowed us to have an area around the Zero line, called
DOUBT, where the most exciting part of the market dance happens.

With GRACE, we know


1. Continuation as the price-action and Trinity Lines go sideways or we are in Jitterbug (a
pivoting market). The LOVE stays in DOUBT.
2. Reliable Trade Setups and Trade Exits as LOVE and MERCY cross the Zero, together.
3. Sustained trends, as FAITH (TRUST is re-named FAITH) is outside GRACE or just FLAT.

GRACE and DOUBT define areas above and below the very important Zero line.

We MUST "calibrate" GRACE and DOUBT to a specific financial product or instrument.

Calibrating GRACE and DOUBT to a financial instrument:


1. Find a True Trend Change for UP.
2. Find a True Trend Change for DOWN.
3. Set the Upper GRACE (Upper is above the Zero line) about where FAITH starts a
Downtrend.
4. Set the Lower GRACE (Lower is below the Zero line) about where the FAITH starts an
Uptrend.
5. Since we want the GRACE and DOUBT symmetric around the Zero line the values for
the Upper and Lower GRACE are the same.

We then set the value for DOUBT


Find a trend start where the price-action bounces off the edge of the Bollinger_Band.
As, price-action crosses the Mid_Band of the Bollinger, DOUBT is set as LOVE leaves
DOUBT.

Please see the calibration video on youtube or email childrenofthejourney@gmail.com


for help:

https://www.youtube.com/watch?
v=NcANVj6BQY8&index=10&list=PL8Ugz426o2EJoEBop9yFTGEB0kRtfqRQL

and

https://www.youtube.com/watch?
v=nUW3JA0MuDc&list=PL8Ugz426o2EJoEBop9yFTGEB0kRtfqRQL&index=1

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The Phase Cycle concept:


As any of the Trinity Lines (LOVE, MERCY and FAITH) cycle up and down through the Zero line,
they create two phases.

The Phases of a Cycle

The EXPANSION phase LOVE moves AWAY from Zero BEST time to ENTER a position.
MERCY is on SAME SIDE of ZERO with LOVE.
The CONTRACTION phase - LOVE moves TOWARDS Zero BEST time to EXIT a position.
MERCY is on OPPOSITE SIDE of ZERO separated from LOVE.
When LOVE or FAITH do NOT follow price-action we have what is called DIVERGENCE.

Use the Phase Cycle to your advantage


ONLY make a LONG trade when LOVE & MERCY are TOGETHER ABOVE and moving
AWAY from Zero.
ONLY make a SHORT trade when LOVE & MERCY are TOGETHER BELOW and
moving AWAY from Zero.
STAY AWAY when LOVE or FAITH is FLAT or LOVE & MERCY are separated by Zero.
This will SAVE YOU from an unprofitable sideways market and a re-trace against you.

NOTE: It is BEST to WAIT for LOVE & MERCY to be together and for LOVE to go
BEYOND DOUBT before making an ENTRY.

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End of Teachings...

Conclusion:

There is no Holy Grail of technical indicators.


The best a GTO practitioner can do is to "Dance" with the market.

The GTO Tools are a MIRACLE!

We thank the UNIVERSE for giving us the WISDOM to use GTO safely and
profitably.
When we are NOT Profitable...

it is because of our LACK of Trust in the tools and


our LACK of OBEDIENCE to the GRACE Trading Operations.

Blessings Always
Arnulfo Pealoza and Bruce MacWilliams of the GTO Development
Team

23 of 23 The GTO Quick Learning Manual


All Rights Reserved;
The Children of the Journey Sangha of the East Coast. Copyright, 2011-2017

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