Combination of Strategies

Combination of Strategies: Trading Day: November 27th. - 2008 - Short trading day (Thanksgiving 2008)

A more advanced use of TrendCatch is to Combine two or more strategies during the trading in combination with trailing Stops.

You should only try this if you are an experienced trader and have used TrendCatch for some time.

The idea is to use one strategy as the 'Main' strategy and the other strategy as a kind of 'Safety net' if the market goes against the original position.

There are a few very simple RULES based upon experience to follow. They are not a must, but they show 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 'Security Net' to the Main Strategy's 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.

In this example we use Scalp MX as the Main strategy and Scalp LS as the 'Safety Net', but the trading method can be used by using any of the strategies in any combination, the choice has to be determined by the traders individual risk aversion.

Other fine combinations are Scalp MX / Hybrid and Scalp MX / Calculus.

A very active combination would be Sigma / Scalp MX.

This example is meant as a very brief illustration of the endless possibilities TrendCatch offer the active Day Trader.

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.

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

$ 175.50 per contract

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

Total $ 625.00 per contract

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.

More than 30 minutes since Scalp MX Signal!

Max profit 3 points

$ 150.00 per contract

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

$ 137.50 per contract

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

$ 62.50 per contract

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

$ 25.00 per contract

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

Total $ 375.00 per contract

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 for original position

Max profit 2 new long position 6.75 points

$ 787.50 per contract

Remember! The trend has to be confirmed, that is why TrendCatch can end up with a loss if you stay in the original position until it changes. It is not a fault by TrendCatch if the price development by the end of a position is going against the original position. Contrary, it is in the nature of the way the TrendCatch algorithm is developed, to find an entry point that is trustworthy.