Trading Methodology
SPI • NIKKEI • TAIWAN •
HANG SENG • DAX • FTSE • NASDAQ
If you are considering subscribing to my daily advisory newsletter its important (in my opinion) that you have an understanding of the overall methodology I use. Understandably I’m unable to make a full disclosure however it’s important for you to be comfortable about how and from what direction IndexALERT finds its trade levels.
It will be this small understanding that will assist you in determining with, or without the assistance of a licensed financial adviser, whether the general trading suggestions will be appropriate for your particular needs, financial situation and investment objectives.
I hope here that I’ll be able to give you a little insight into how IndexALERT works. I should also say at this point that if you have spent some time reviewing my web site and trading models that you’ll already be aware that I have a strong preference in using simple short-term pattern based methodologies that shy away from indicators. Well it won’t come as a surprise to you that IndexALERT operates along the same line.
In a nutshell IndexALERT operates a simple mechanical pattern-trading model that does not employ any indicators with adjustable parameters.
The way it works is this. IndexALERT’s™ trading model merely scans the SPI, NIKKEI, TAIWAN, HANG SENG, DAX, FTSE, NASDAQ and S&P500 index contracts looking to identify recurring high probability trading patterns. It operates the same simple yet robust model across a global portfolio of index contracts that all futures brokers can service.
IndexALERT’s™ short-term pattern-trading model is straightforward and operates on a very simple premise to achieve its edge, and it is this. It simply searches for patterns that identify possible points in market structure that could either be a significant;
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Support Level, or
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Resistance Level.
Once these areas are identified the model will produce either a BUY or SELL signal.
A buy signal will be produced if either;
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The identified support level holds, suggesting higher prices ahead, or
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The identified resistance level fails, suggesting higher prices ahead.
A sell signal will be produce if either;
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The identified resistance level holds, suggesting lower prices ahead, or
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The identified support level fails, suggesting lower prices ahead.
All signals are accompanied by stop levels and IndexALERT provides continual trade management until positions are exited. IndexALERT cuts losing trades quickly while letting winning trades run.
Well I hope this gives you a little insight into IndexALERT’s™ trading methodology and if something is a little unclear please do not hesitate to contact me at bpenfold@tpg.com.au and I’ll try to clear it up for you. Thanks for taking the time to review this overview of IndexALERT’s™ trading methodology and if you do decide to become a subscriber I’ll look forward to welcoming you to IndexALERT and adding you to my IndexALERT group.
Brent Penfold