MARKET REACTIVITY SYSTEM 2.1
After some months of development and testing, the new version 2.1 is now available. It applies the same basic analytical techniques, and generates the automated trade signals as described below. Most notable changes from version 2.0:
- It has been made "universal" so it can be applied to the price series of your choice.
- It also has simplified the trading rules by eliminating the trade signals that occasionally occurred back from the current day.
- Simplified application of spreadsheet version by eliminating the need running a Macro with each data addition.
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The Market Reactivity System is a powerful tool for trading commodity futures, or stocks. It goes beyond the typical use of price behavior alone. Market Reactivity incorporates changes in trading volume and volatility to give a more complete indication of market behavior in the short term; and it is used in conjunction with the underlying intermediate and longer-term trends of the price. Key features include:
- Computer Generated Trade Signals
- Automatic Stop-Loss Calculations
Taking the trades indicated by the software for ten commodities, using data beginning in 2007, results is what can only be called phenomenal profits. However; recognizing that 2007 an 2008 included atypically large trends, they are likely not representative. Those results are not shown here, but demonstrating the ability of the automatic trading system to successfully handle those conditions is certainly a strong testimonial.
Instead, what is shown above are profits from trading 12 different commodities for the 12-month period ending July 31, 2010. This period includes both very choppy and sideways markets, as well as a few strong trends. Check out the details of the trades for each the individual commodities. Extensive back testing, as well as actual trading for the past 2 years, has shown that the computer generated trades, coupled with the systems unique risk protection, can provide outstanding trading profits.*
Version 2.0!
The original version proved to be a very robust system that has worked well for years. However; with much of the trading shifting to the electronic sessions, around-the-clock trading, and greater participation by the large funds; the market character has changed. That change has indicated the need for a shift in the analysis to have less dependence on the regularity of cycles, and more dependence on the underlying trends. Version 2.0 grows from the same roots, but achieves those goals. And, perhaps more importantly for most traders, incorporates the logic to compute specific trade points. Utilizing a short cycle trigger, it uses a unique method of determining intermediate and longer term trends to filter trades to points of least risk and highest probability of success.
To learn more, explore the links on the left.
*This data results from applying the trade system to past data, and trading each trade signal for each commodity at the midpoint price on the days indicated by the software. It assumes 1 contract per trade for all commodities; except ED are traded in blocks of 10, and ES, LH, BO and W_ are traded 2 contracts each. Stop-loss trades were applied as in actual trading where indicated.
