Trading Methods

The trading methods are suggestions based upon the experience from many of our customers. You have to find your own rhythm in trading using TrendCatch, and most importantly, forget the 'old' way of trading. Remember TrendCatch differs from other systems in that it does not attempt to predict a future price. Instead, TrendCatch attempts to determine when the current trend changes and if that should lead to a change in position.

It is NOT a great idea to stay in a position until it changes. It is not a fault by TrendCatch that the price development by the end of a position is going against the original position. Contrary, it is in the nature of the way the TrendCatch algorithm is developed, to find a good entry point that is trustworthy, the trend has to be confirmed, and that is why TrendCatch very often end up with a loss if you stayed in the original position. TrendCatch computes almost every time a new trading signal where there is a huge possibility for a profit, because TrendCatch finds a profitable entry point into the market, either long or short. It is then up to the trader to take advantage of that during the originally position to take home a profit. When to close the position is up to you as the trader.

Instead of using market orders use limit orders.
Because you have to wait until the trend is confirmed, you will sometimes experience that the market goes away from you. The problem lies in the nature of the Internet, the speed of your Computer and how and when TrendCatch is able to compute the advice. Even if you have the fastest connection money can buy, you still have to wait for the Signal from TrendCatch, which is being computed at the time where the price pattern is recognized as a trend change. The result will normally be within 1-3 seconds after the price pattern is recognized.
Put in a limit order on or close to the Price TrendCatch shows you, and wait for it to get filled. If it is not filled within a few minutes, delete the order and wait for another signal, there are always a new trade coming up later.

Another trade strategy is to trade more than one contract, the first as close as possible to the price TrendCatch has traded on. If the market still goes against the original position, trade the next contract on a price close to the 'Alert' price. As you will see from experience, that price very often in the early state of the position (only in the early state) acts as a heavy resistance point.

Trailing Stop Profit protects a profit, but let a winner run as long as possible. The most basic technique for establishing an appropriate exit point is the trailing-stop technique. Very simply, the trailing stop maintains a stop-Profit order at a precise percentage or number of points below the market price (or above, in the case of a Short position).

If you do not want to wait for the confirmation and do not mind to take the risk of being in a 'wrong' unconfirmed position, you can use the 'Alert Price' as a stop limit order (has to be a Stop Order, otherwise you will get filled immediately to the current price).

When trading the Scalp LS, Calculus, Hybrid and Delta Strategies use of trailing stops are most of the time very profitable, as these strategies normally stays in the Trend for a longer time, and by using trailing stops the profit then tends to get higher than if using a fixed stops.

Use a combination of the different strategies - using one strategy as the main strategy and the other as a kind of safety-net. A simple example using Scalp MX and Scalp LS:
Going Long or Short using Scalp MX Strategy. If Profit goal happens close position as normal. If on the other hand the market goes against the position and the Scalp MX strategy change to Short, DO NOT follow as long as Scalp LS is Long. Stay in position until profit is reached or both Scalp LS or and Scalp MX are Short.