TrendCatch DayTrade  SP500 Futures or Forex Spot Market Anywhere in 3/10/2010 12:23:49 PM the  World  

 Danish




SP 500 Trend Trading Method Examples

To get a better understanding of the potential and how to use TrendCatch SP we show a part of an actual trading day, November 27th. 2008 - a short trading day (Thanksgiving 2008) - using Trend Trading based upon the Scalp MX Strategy and Scalp LS Strategy. The Profit is without deduction of Trading fee. The shown trading Methods are only meant as examples, and can be used on all Trading Strategies.

After that we furthermore demonstrate the Combination possibilities when using two or more strategies at the same time.

These examples illustrates that everything is not lost even if you get caught in a position and start loosing money. Just follow the signal and change position with it, and you will find that almost all the time you will return into a positive trading profit.

By following the Trend Signal closely a very experienced trader should be able to execute the optimal exit trade almost every time. As the examples shows, TrendCatch has Tremendous Upside Potential with a Limited Downside.

SCALP MX STRATEGY example:
Fixed Stop Profit / Loss = 1 point

Position at:

2:38:22 loss  1 point
2:47:46 profit 1 point
3:21:45 loss  1 point
3:27:11 profit 1 point
3:53:55 loss  1 point
4:01:18 profit 1 point
4:20:46 profit 1.point
4:42:01 profit 1 point
5:01:23 profit 1 point
5:07:49 profit 1 point
5:30:45 profit 1 point
6:04:29 loss  1 point
6:48:41 profit 1 point
8:17:22 profit  1 point
9:52:34 loss  1 point
9:58:56 profit 1 point
10:50:40 profit  1 point
11:17:23 profit  1 point

Total + 8 points profit		 Trend Trading Emini Futures Strategy

SCALP LS Strategy example:

Fixed Stop Profit = 3 points / Loss = 1 point

Position at:

2:38:22 loss 1 point
2:48:26 profit 3 points
4:22:05 profit 3 points
4:50:25 loss 1 point
5:01:46 loss 1 point
5:14:14 loss 1 point
5:31:05 profit 3 points
8:45:20 profit 3 points

 Total + 8 points profit		 Daytrade Futures positions

Using Trailing Stops instead of using fixed profit goals and thereby taking advantage of the long Trends would make the profit rate much higher depending on the individual use of stops. How you will use Trailing stops depend of your Risk Aversion, the number of contracts you want to trade and so on.
A more advanced use of TrendCatch is to Combine two or more strategies during the trading in combination with trailing Stops.
The idea is to use one strategy as the 'Main' strategy (here Scalp MX) and the other (Scalp LS) as a kind of 'Safety net' if the market goes against the original position.
In the example below we use the two above Strategies, but the concept can be used by using any of the strategies, the choice has to be determined by your risk aversion and your ability to trade several contracts at the same time.
There are a few very simple RULES based upon experience to follow. They are not a must but they show you what to look out for:
1. Normally NO Stop Loss is used with this trading method as the changing in Trend using the 'Safety Net' strategy works as a natural stop.
2. If there is more than about 30 minutes between the change in Trend from the 'Securuty Net' to the Main Strategys Trend - do not enter the trade, wait for a new trend where the two strategies are closer in time.
3. Use trailing Stops for profit and re-enter as much as possible when there is a good opportunity to re-enter a Trend.
Scalp MX short @ 2:38:22  - 875.50 New Trend: 2:47:46 Wait to change in Scalp LS Change 2:48:26 Loss 3.5 points
Scalp LS confirmed MX long @ 2:48:26 - 879.00 Take profit - do not go short until after 4:22:05
where signals for MX & LS are the same.
Possible to go long again 3:27:11 & 4:01:18
 Max profit 7.75 points for original position
Max Profit 2 new long positions: 4.75 points
Scalp LS confirmed MX short @ 4:22:05 - 883.25 Take profit - do not go long until after 4:50:25
where signals for MX & LS are the same.
 Max profit 3 points
Scalp LS confirmed MX long @ 4:50:25 - 884.50 New Trend: 5:01:23 Wait to change in Scalp LS
 Change 5:01:46 Loss 2.75 points
Scalp LS confirmed MX short @ 5:01:46 - 881.75 Take profit - do not go short until after 5:14:14
where signals for MX & LS are the same.
 Max profit 1.25 points
Scalp LS confirmed MX long @ 5:14:14 - 883.75 New Trend: 5:30:45 Wait to change Scalp LS
 Change 5:31:05 Max profit 0.50 point
Scalp LS confirmed MX short @ 5:31:05 - 881.00 Take profit - do not go long until after 8:45:20
where signals for MX & LS are the same.
Possible to go short again @ 6:48:41
 Max profit 4.25 points for original position
Max profit 1 new short position 3.25 points
Scalp LS confirmed MX long @ 8:45:20 - 880.50 Take profit - stay long until day close 11:30 AM
Possible to go long again 9:58:56 & 11:17:23
 Max profit 9 points
Max profit 2 new long position 6.75 points

These examples are just meant as a very brief illustration of the endless possibilities TrendCatch offer the active Day Trader who are Trend Trading.

Almost every time TrendCatch computes a shift of the TREND there is a huge possibility for a profit, because TrendCatch finds a profitable entry point into the market, either long or short.

A very experienced trader will be able to mix the different trading strategies and Trading Methods. It is however not advisable to try that unless the Trader has used TrendCatch for some time.