TrendProphecy Trading Philosophy
Strength of the Algorithms
Proprietary Pattern Recognition Technology
Analyzes the E-Mini Index Futures Market and the International Currency Spot Market.
TrendProphecy's strength is in its 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. TrendProphecy 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 has the possibility to set Stop Profit and or Stop Loss signals,
which will influence the trading activity to become more active.
Only ticks important for TrendProphecy's algorithm to compute the Trend Changes
are shown.
TrendProphecy only uses a tick if/when it is a part of a price / trading pattern
recognized by TrendProphecy 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.
The Graph for the Index trading shows the prices and time where TrendProphecy has
been Long or Short (Blue/Red) in combination with the "Trend Change Points"
- a band with an upper and lower value (Green / Yellow Lines).
The Graph for FX trading also shows the price and time for the positions (Blue/Red)
and the Trend Change points which are a single line of points.
How to use the Trade Modes in both Index and FX systems:
The Trade Modes/Strategies in the FX program is different
from the Index Furure strategies.
The FX system has five different trading strategies, which show when to change
Trend and while the Trend is stable - how strong the Stable signal is.
The Trade Modes in both systems can be used either in combination (default for
Day Trading / Scalping) or by using only one of them by itself, which is a more
traditional way of trading. Typically during the early part of the trading day and
week the trading advices are called more often, as the Algorithm 'only'
have old (former days data) to work on.
As the day and week progress and the TrendProphecy algorithm 'learn' about
the current day and week's trading Trends, the trades normally becomes fewer
over the day which shows how well the Algorithm adapts to the new conditions.
See the Help File topics 'Trading Method' and 'Basic
Trading Strategies' for a more detailed explanation.
TrendProphecy Trading Philosophyy
The TrendProphecy 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 TrendProphecy 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 Trend Day Trading) using a two or three
step approach to trading the Trend in the Futures market.
The Main Trend, either for Aggressive trade strategy, Moderate trade
strategy or Conservative trade strategy shows the direction of the markets
underlying Trend based upon the chosen trade strategy.
These Trend Calls are very efficient used by themselves, the Trend Calls will produce a possibility for profitable trades - close to be 100% correct .
We have - based upon our proprietary algorithms - developed a unique Combined Trading Model where a Contrarian position can be taken when the price is close to a Trend Change Point. - - check the statistics or even better try it for free one week.
Combination (Combined Trading Model) with the chosen Main Trend for the Index
futures (SP - DJ or NQ):
Trading Aggressive Mode
This Trade Pattern is either in sync with the Moderate Mode, or shows from time
to time a possible outbreak in the market from Moderate Mode.
It's when those outbreak occurs, that a possibility for a temporary contrarian
position from the Moderate Mode opens up. p.
Trading Moderate Mode
The Trend based upon this Trade Strategy is also either in sync with the Conservative Mode, or shows possible outbreak in the market from the underlying Conservative Mode from time to time.
The difference between the Trade Modes is the intensity of the outbreaks.
Moderate mode is less volatile than Conservative mode and Aggressive mode has
more trades than Moderate and Conservative.
Trading Conservative Mode
This Trend Call is very efficient used by itself, and normally have very few new Trend Calls during the trading week. As soon as a Trend Change is called and Change is in sync with both the Aggressive and Moderate Mode, follow the call. Follow it as long as your Trade Management will allow (Fixed Stops, Trailing Stops ...).
As soon as the Aggressive and/or Moderate Trend turns back either take profit or if that is not possible stay in the trend and eventual re-enter when all three modes once again are in sync.
This trading technique developed especially for active Index Futures day trading is very awarding and is the fundamental trade method developed for TrendProphecy Ultimate day Trend Trading. See history and check the statistics which shows that in most cases the calls for Trend Change in the "Main Basic Trend" leads to a possibility to get a positive result in more than 95 % of the total Calls, and Calls using Trade Pattern #1 or #2 in about 85-90 % of all trades also leads to a possibility to get a positive result.
