System Trader – Reports

-Research/Education

8 Trend-Following Indicators – Impulse/In-State Signals -Thresholds – Combining with Momentum (Premium)

This report/video covers eight trend-following indicators: BBands, Keltner Channels, Donchian Channels, StochClose, %Difference betw SMAs, ROC of SMA, CCI-Close and eSlope. We show how to reduce whipsaws with smoothing and signal thresholds. Each indicator is explained with chart examples. These samples include good trades and bad trades because whipsaws are guaranteed.

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-Research/Education

Breadth Charts and ChartList – Get an Edge with Inside Information

Breadth indicators are also referred to as market internals. As the “vital signs” for an index or sector, breadth indicators reflect aggregate performance for the individual components. As such, breadth indicators can provide leading signals by strengthening before a bottom or weakening ahead of a top. After all, the whole is only as good as the sum of the parts

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-Research/Education

Market Timing Models Improve Long-term Performance

The Composite Breadth Model (CBM) turned negative on Monday (-1) and the weight of the evidence is now bearish for stocks. This development means risk in stocks is above average. Strategies that trade stocks and stock-based ETFs perform poorly when risk is above average

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-Research/Education

Why Use Market Filters?, Indicator Settings Are Double-Edged Swords, the Best Performing Market Filter

Today’s report will dive into the market filter, which is used to define bull and bear markets. Market filters are an important part of trend-following and momentum strategies that trade stocks and stock-based ETFs. The Composite Breadth Model has not worked well over the last 15 months, but this is a relatively short timeframe in the grand scheme

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-Research/Education

Trading Strategy – Timeframes, Trend Composite, Momentum Composite, StochRSI, Setups and Signals

A charting strategy is essential because it increases objectivity and improves the odds of success. A basic chart strategy is similar to basic black jack strategy. In his classic book, Beat the Dealer, Edward Thorp, lays out a basic black jack strategy with a set of rules to improve the odds. Once players master basic strategy, they can move on to card counting and such to further improve performance.

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-Research/Education

Separating Consistent Trends from the Inconsistent Trends

In an ideal world, trends would be consistent and persist for months. An ideal uptrend would march higher by consistently recording higher highs and higher lows. Once reversed, a downtrend would take over and work its way lower with lower lows and lower highs. There are plenty of chart examples for these consistence and persistent trends.

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-Research/Education

Introduction to Trend-Following (revised) – Assumptions, Expectations, Indicators, Backtests and Conclusions (w/video)

This article will dive into trend following. We will start by going over some key assumptions and expectations to consider when implementing a trend-following strategy. What are realistic Win Rates and Profit/Loss ratios? Attention then turns to selecting a timeframe suitable to trend-following. I will then explain 10 trend-following indicators

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