TrendCatch Trading Philosophy
Strength of the Algorithms
Proprietary Pattern Recognition Technology
Analyzes the E-Mini Index Futures Market and the International Currency Spot Market.
Our Programs strength is in the ability to most of the time correctly compute the signals and inform investors when the market trend changes, based on overall and specific market behavior.
However, it does not predict the market's behavior. The Program tells investors
that when "x" happens, then they need to take action.
If investors follow the Trend Trading Change Information given, they will be following
the correct market trend almost all of the time.
The Trend in combination with the current price pattern is used to constantly predict
changes to the trend. This generates Buy, Sell and eventual a new Trend Trading
signal that are reported by the program.
The trader must wait until the program has confirmed the trading signal and not
attempt to react only on the price development in the market before the Trend Change
has been confirmed.
Only ticks important for the programs algorithm to compute the Trend Changes are
shown.
The program only uses a tick if/when it is a part of a price / trading pattern recognized
by the program to be important. That is why there can be anything from several ticks
in a minute to sometimes no ticks at all during a minute.
All Graphs shows the prices and time where TrendCatch SP or TrendProphecy FX has
been Long or Short (Blue/Red) during the day and the week.
As
soon as a Trend Change is called follow the call as long as your Trade Management
will allow (Fixed Stops, Trailing Stops ...).
As soon as the Trend turns back again enter that Trend Trade again. To be able to
evaluate which Trend to use we have developed the Statistics function, where it's
possible to evaluate which trading strategy to use, based upon the individual traders
trade management.
Be aware to check the statistics often as the info changes during the trading
day.
TrendCatch Trading Philosophyy
The TrendCatch trading method developed especially for the professional Day trader
computes a confirmed entry signal, using our proprietary algorithms - and first
then eventually during the Trend a warning (Alert) is shown if/when the Trend becomes
unstable, which is not the same as a change of the Trend.
The fundamental rule for the trader is to take profit if possible while the Trend is Stable; it’s up to the trader to decide an exit strategy as the program is not an automated system giving you both an entry and an exit point during the same position, as that simply is not possible to calculate in advance unless you are in possession of the magic crystal ball.
The Trend has to be constantly monitored and computed in real time while the market prices fluctuate. To help the trader keeping track of when the trend eventually change the trader use info from the Trade Info Window, the detailed Trade Window and the called Alerts.
When the Trend Unstable label is shown the trader will be able to see an eventual new trend changing trading price! Users have complete information about the current Trend that is computed using our proprietary algorithms.
We have researched the market for many years and have now finally been able to develop
an algorithm (developed especially for TrendCatch SP - Trend Day Trading)
using a two or three step approach to trading the Trend in the Futures market.
We have - based upon our proprietary algorithms - developed a unique Trading
Model which is based upon six different strategies.
All Strategies are updated live at the same time. The color illustrate the
current position (Long or Short - Cyan/Red) The general trading method is to follow
one strategy at a time. A very experienced trader will be able to mix or combine
the different trading strategies. It is not advisable to try that unless the Trader
has used TrendCatch for some time.
The Trading Strategies for TrendCatch SP:
SCALP MX & SCALP LS - developed for active Scalp Traders.
With the Scalp MX Strategy the trades are normally very fast and furious, and there
are very short time to consider the trade, as well as the Trader should decide during
the individual position when to take profit, and NOT stay in the trade until it
changes. It is important to trade very close to the Trade Price TrendCatch shows.
If that is not possible within a few minutes from receiving the signal, wait to
a new signal is computed. This strategy creates many trades during volatile market
conditions. This is a very stressful trading strategy, you have to be as good as
a professional trader and have your exit strategies ready, as there is normally
no time to think and reconsider, just trade using your strategies!
SIGMA - HYBRID - CALCULUS & DELTA
Read about all the strategies in the Help File and understand their differencies.
Regardless of the chosen strategy, the warning Alerts about Trend changes will always
be shown on the Alert Panel. When you change Strategy the Trade Info Grid shows
the result based upon the new strategy. It is very important NOT to react before
the trading is confirmed by TrendCatch. Just because the market price move above
or below the current Price/Trend line should not lead to a premature reaction. Wait
for the trade confirmation.
A more advanced use of TrendCatch SP is to Combine two or more strategies during the trading in combination with trailing Stops. You should only try this if you are an experienced trader and have used TrendCatch SP for some time.
Alert Signs From either TrendCatch SP or TrendProphecy FX..
The trader should try to take profit if possible while the Trend is Stable. Normally
the Trader should not stay in a position until it changes!
It's up to the trader to decide an exit strategy as TrendProphecy is not an automated
system giving you both an entry and an exit point during the same trading cycle
because it's not possible to calculate a trustworthy exit point far in advance.
