The ultimate trend signals

Following trading signals is the easiest system to profit in the markets, provided you have a good source. Trend trading can lead to the most robust trading systems. Put both together and you arrive at trend signals.

The best trading system is most likely based on trend trading. But how to get good trend signals? I am discussing various trading signal based systems on the other blog of this site, but that's only the more theoretical part. Reality is what counts:

The most practical trend signal trading approach is twofold:

  • Select the right trading candidates. Interesting is a new fundamental reason that will probably propel the price in the near future. Technically indicative is a swingy chart.

    The promising chart should be volatile, unbound, not trading in a narrow range, but also not zigzagging randomly around. At its best our trading candidate fulfils both criteria and has wide and smooth swings combined with a promising news situation.

    Finding high probability trading chances could also be done by using a machine, e.g., this . The principles behind this scanner differ strongly from the Trend Trader system, but this machine works universally for stocks, Forex, and futures and yields interesting results.

  • The actual trading gets done by something that emotionlessly decides where exactly a signal lies. Right, we are trying to cut out human psychology at this point. More below.

The RSS icon at the right will guide you to the current trend signal trading alerts from the Trend Trader site.

The trend trading machine

For the trading we can use a completely automated system. The typical trader has a problem. On numerous occasions a trade gets botched, simply because either the entry or the exit was hindered by a lack of trading discipline. This is truly sad, as applying discipline seems to be so easy, but...

Many traders are not ready to admit or even think about this. It's an ego problem.

You have it, too!

Everyone has it, because it doesn't need to be the drastic lack of trading discipline. Giving up a predetermined stop or not being able to pull the trigger on a good chance are only severe forms of trading inability.

The sad story of the human mind and its flightiness starts much deeper. It is the precision that is missing. To say it provokingly, when the sun shines, traders tend to take a trade easier or earlier. This is true and it has been proven statistically! If the mood is bad, trigger-happiness slows down. If greed, fear, or even panic is involved, judgements are distorted even more.

It is this imprecision that led to the idea to mimic the pattern matching algorithms of the human mind with a computer program, but leave out all the distorting elements. And the result is a neural net trading system that beats human traders even when their trading mind is not psychologically destabilized.

This machine is still more precise and reliable. It is able to detect hidden patterns that are complex and invisible or easily overlooked by human traders. The pattern matching neural net adapts itself automatically to the investigated chart. All found patterns then get weighted and condensed into single and simple to follow signals. Finally, the machine doesn't feel stress and it likes to work.

The site above demonstrates the power of this self-adapting pattern matcher. Imagine how you can boost those AI swing trend trading results by preselecting chances with a news-driven or fundamental approach. The teamwork of a human trader and the actual trading done by a machine is more than worth a try.

Good luck,

TS