MEJT

SOFTWARE
USER GUIDE

21 May 2014

MINIMUM REQUIREMENTS
TradeStation 9.1
Version 9.1 (Update 12451)
FORMAT SYMBOL
Symbol $SPX.X
Symbol=@ES.D
Interval=5 minutes
DATA RANGE
Bars Back = 170 (5 minute bars, 2 days)
50 days data recommended but the system will work back to 1/1/2009
PRICE
Please check the listing at TradeStation's AppStore for the current price.
$99 per month at the time of printing.
DETAILED USER GUIDE
A detailed 31 page Installation and User Guide will be sent to new Users.

Introduction
Congratulations on your purchase of the MEJT software. The program was written by a professional
programmer who is also an experienced options trader.
It is typical for software aficionados to skim through installation instructions, load the software and get
right to work. We would encourage you not to do that here. The MEJT system is not a single indicator but
is, as its name states, a trading system. It is quite different from other systems on the market. As with any
system, one should be quite familiar with it and preferably trade it on paper before risking any real money.
That is especially true with MEJT.
This manual gives a brief overview of the MEJT system rules, but focuses on the MEJT software and shows
how to install it and then explains how to use it. While it does not give the system's trading rules, those are
available in either of two books by Jeffrey Tennant: The MEJT System and Day Trading Using the MEJT
System. The books are available electronically either from the publisher, Harriman House, or from various
online booksellers. The MEJT System is also available in paperback. It is not necessary to read the books to
use the software, but we strongly advise users to do so as it will clarify how the system is making its calls.
Overview
The MEJT system was devised by Dr. Jeffrey Tennant in the summer of 2002. He has been making calls
based on the system in various online forums nearly every trading day since then. Unlike other systems,
which rely on back testing to get their results, these calls (as well as the method for determining them)
were made in real time.
What the MEJT system does:
The MEJT system is based on the principle that price action during specific times during the day has
predictive value. The rules enable it to:

Attempt to predict which moves have staying power and which are destined to retrace,
Give specific price targets,
Define areas of support (just under lower targets) and resistance (just over higher ones)
And forecast when these targets are most likely to print.

What the MEJT system does not do:

The MEJT system is designed for use by experienced day traders as a supplement to, rather than as a
replacement of, other forms of technical analysis. As such, it does not:

Give specific entry and exit prices,

Define stop loss parameters or
Forecast the direction of the next move.

This latter point is quite important to note. Unlike other systems, a buy (or sell) signal in the MEJT system
means that higher (or lower) prices are predicted to print. It does not preclude a move, and perhaps a
sizable move, in the opposite direction first.

Quick Setup Guide

If and only if you are familiar with Windows and you want a quick guide to loading the system then follow
these instructions. Otherwise use the Installation and Setup section that follows.
Using Windows File Explorer

Create a folder called MEJT in My Documents

Extract the MEJT.zip file into the MEJT folder (list of files given in the installation section)
Start Tradestation and load the MEJT workspace
In the MEJT workspace, right click and select Format Analysis Techniques, then Format
In Inputs, enter into the fields:

NYSE_Open_Local_time - the opening time of the NYSE in local time (1430)

Username This will be the path to the MEJT folder in My Documents for Users.
Usually the UserName at logon. This is used to create the full pathname to the
MEJT folder. The name is enclosed in
Auth_Code Enter the auth_code sent in the email in , ie 123456
Press OK and Close and the MEJT software should be working. If it is not, read the
Installation and Setup Section.

Quick Guide to Understanding the MEJT System Software.

Information about the MEJT system is provided in two places.
1) There is a status window. This appears separately from the Trade Station window and lists, in various
columns, the date, the time the signal was posted, a target value the system predicts will print (or a code
used by the programmer to identify the signal) and MEJT alert text.
The MEJT alert text column should be quite helpful to the novice user of the system. From experience, we
know that many people who have read the books on the system do not use it as intended. This column
gives the reason for each prediction and talks one through the rules. More experienced users may
choose to concentrate on the targets listed in the value column.
2) Color coded signals are placed on the chart itself. When a new signal appears here, it would pay to look
at the status window for additional information.
Reading the chart:
The first picture is that of a MEJT chart:

MEJT1

The second picture shows three five minute bars drawn in yellow. These bars are called AM mejt (or AM),
AM mejt+1 (or AM + 1) and AM mejt+2 (or AM + 2). One of these bars is called the reference bar. During
the day dotted lines, color coded in yellow, delineate it. If one of these lines becomes a target the line turns
thick. If the target fails to print within its preferred time frame the color changes to orange.

MEJT2
The third picture shows three five minute bars drawn in blue. These bars are called mejt, mejt + 1 and mejt
+ 2. The same conventions are used to show which of these three is the reference bar. Note that the times
of the bars (12:10 to 12:25) indicate that the system is being used in the Central time zone.
The cyan F indicates the move over the upper line is False; prices should retrace. The red F below the line
indicates the move under the lower line is False; prices should retrace. The thick blue line indicates the
target of the retracement.
The Fs are an important part of the system. While a false move can go far before retracing, many of
them don't. Traders who reduce their frequency of following a trend when an F is present should find
their percentage of losing trades declines significantly.

MEJT3

If prices print over the reference bar and a cyan F is printing, or if prices print under the reference bar
and a red F is printing, prices are forecast to return to or through the reference bar. Once the vertical
white lines print (see MEJT1) any F in place remains there. Prices are free to escape the range of the
reference bar once the price target (listed in the status window) prints. The line representing the target
thickens. When the target is hit a white dot appears. (If a failed target from a prior day's pattern prints,
the dot is red.)
The MEJT system chart can also print text abbreviations. The full text is all spelled out in the status window.
The system itself features a variety of signals with somewhat arcane names. These are all explained in the
books about the system, and it is not necessary to know how they are defined because the status window
explains what to do.
It now should be easier to make sense of the chart (MEJT1).
This chart is taken from trading on May 15 - 16, 2014.
The GD at the left of the screen (May 15) prompts one to go to the status window, which prints that there
is a gap down. The red dot indicates that a failed target from a prior day has printed. The yellow color tells
us the target was from a morning pattern. The status window provides this information as well as the price
of the target.
The UBUY signal refers us to the status window. We see that an ultimate buy signal has printed. The green
dot under one of the yellow bars tells us which bar identifies the signal. The green line indicates the target
of the signal, which is also listed in the status window.
At the end of the day, any unfilled targets are listed in white numerals. The chart of the following day
shows that both targets from May 15 printed on May 16. White dots indicate that they printed within the
time frame preferred by the system. The orange line at the bottom of the screen indicates the next lower
failed target from a prior day.

DISCLAIMER

Futures trading is not appropriate for all traders. There is a substantial risk of loss associated with trading
these markets. Losses can and will occur. No system or methodology has ever been developed that can
ensure returns or prevent losses. No representation or implication is being made that using the system
described in this document will generate returns or ensure against losses. We do not give individual
investment advice. We do not manage funds.

All information in this document is for educational purposes only. It is not to encourage you to follow
our lead. Futures trading is not appropriate for all traders. There is a substantial risk of loss associated
with trading these markets. Losses can and will occur. No system or methodology has ever been
developed that can ensure returns or prevent losses. No representation or implication is being made
that using the systems described in this document will generate returns or ensure against losses. We
do not and cannot give individual investment advice. We do not and cannot manage funds. Please
note that we trade for a living and may have open trades in any one of our systems.
U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options
trading has large potential rewards, but also large potential risk. You must be aware of the risks and be
willing to accept them in order to invest in the futures and options markets. Don't trade with money
you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No
representation is being made that any account will or is likely to achieve profits or losses similar to
those discussed on this web site. The past performance of any trading system or methodology is not
necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN
LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT
ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE
UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS
LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT
THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE
THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.