Firststrike Trading System

August 26, 2013 5:00 am6 comments

Every once in a while you run accross a free trading system while surfing the web. Often I don’t spend much time with these systems since, more often than not, most turn out to be worthless. I decided to look into this system because it was a breakout method that was designed for the FOREX market. Breakout methods can have some validity and the rule base for the system was simple. In short, this system was very simple and to me, it just might be worth looking into. If this system does not do well, perhaps a few simple tweaks may make it worthwhile. If all else fails, it will be an exercise in properly modifying and testing a trading system. The system is called Firststrike and […]

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Rotational Trading: A Simple And Powerful Concept

May 13, 2013 5:00 am11 comments

This time I want to cover a topic that hasn’t been covered here before: rotational trading.  First I’ll give you some background as to why you should look into rotational trading and later I will introduce a simple yet powerful rotational system. The basic idea behind rotational trading is simple: you rank a list of stocks or ETFs by any kind of measure.  Then you decide to buy or sell the worst or best number of stocks from this list. You can do this as soon as new stocks come in/go out of the top/worst five holdings or on a predefined schedule, e.g. every week or month. Here are some of the reasons why you should look into rotational trading: Diversification: […]

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Using Fear to Time the Market

April 15, 2013 5:00 am9 comments

Would you to see a timing method that is 75% correct and consistently pulls money from the S&P 500 market since 1997? Well todays video takes a look at the volatility index as a timing tool to enter the S&P 500 futures market and the results are impressive.

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A Semi-automated Trend Line Trading Strategy

March 25, 2013 5:00 am6 comments

The chart below illustrates user drawn trend lines controlling a semi-automated strategy to execute the desired trades: (1) a sell stop order entry (dotted red TL), (2) a profit target (solid green TL), and (3) a buy stop order as a stop loss (dotted green TL): Defining User-Friendly Trend Lines Classically drawn trend lines provide one of the best indicators for identifying a change or break in a trend. For this reason, their use in directing semi-automated trading strategies is becoming more popular. Various methods have been proposed to trigger orders by using trend lines manually drawn on the chart. For example, the trend line number or its color can be used to identify the desired order type (Buy Limit, Buy Stop, Sell Limit, […]

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Connors 2-Period RSI Update For 2013

March 18, 2013 5:00 am88 comments

It’s been about a year since I’ve taken a look at the very popular 2-period RSI trading method by Larry Connors and Cesar Alvarez. We all know there are no magic indicators but there is an indicator that certainly acted like magic over several decades. What indicator is it? Our reliable RSI indicator. Over the past few years the standard 2-period trading system as defined in the book, “Short Term Trading Strategies That Work”, has been in a drawdown. During 2011 the market experienced a sudden and sustained drop which put the system into loss. It has been slowly recovering since. Below is an equity graph depicting the trading system’s equity curve trading the SPX index from 1983. You can easily see the […]

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The Perfect Portfolio?

January 7, 2013 5:00 am28 comments

In this post I highlight Market Club’s Trade Triangles and create a free trading system suitable for trading ETFs in a retirement account. I think you will be impressed with the results!

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The Ivy Portfolio

December 10, 2012 5:00 am39 comments

Several months ago I finished reading a very interesting book called, “The Ivy Portfolio.” This book was written by two money managers, Mebane Faber and Eric Richardson, who work at Cambria Investment Management. The authors wanted to answer the question of why money managers who manage some of the world’s best Ivy League schools produce such consistent results. Routinely Harvard and Yale endowments produce double digit annual returns. Since 1985 Yale University has returned around 16% annual returns and Harvard over 15% annual returns. Not only did they produce outstanding returns, but they did it by also reducing volatility and drawdown. Wouldn’t it be nice to mimic the investing strategy utilized by these endowments? Well, the authors do just that. […]

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Better Breakout Trading Model

October 8, 2012 5:00 am22 comments

In this article I will demonstrate a simple breakout strategy for the S&P that utilizes a breakout trading method that has produced consistent results on the S&P E-mini futures market since 1987. In a recent article entitled, “Better Breakouts In The Electronic Age“, from the October issue of Futures Magazine, author Murray A. Ruggiero, Jr. describes how breakout strategies on the S&P market do not perform so well. It’s been my experience that breakout strategies, such as the common open-range breakout, on the E-mini futures market do not work that great. These types of strategies make use of the market’s 0830 Central open as a key price level to base long and short trades from. An offset value from the […]

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The Improved MAC-System

September 17, 2012 5:00 am1 comment

By Georg Vrba, P.E. of Advisor Perspectives In an earlier article, Beyond the Ultimate Death Cross, I showed how an investment strategy for the stock market based on signals from a simple moving-average crossover system – the MAC-system – can produce significantly better returns than buy-and-hold. This system’s returns can be further improved by linking it to my bond market model. The Improved Investment and Asset Allocation Strategy My improved MAC-system works as follows, with a buy signal and a sell signal triggering shifts from investment in the stock market to the bond market, and vice versa. Buy signal for the S&P 500 A buy signal occurs when the 34-day exponential moving average (EMA) of the S&P 500 becomes greater than […]

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RSI And How To Profit From It

March 26, 2012 5:00 am18 comments

Not a single losing year since 1998! I’m talking about another excellent free strategy to time the S&P 500 market. It has an amazing performance history and it’s deadly simple.

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