Trading Philosophy

One of the most important things to understand when using TrendCatch is its trading philosophy.

It is not a fault by TrendCatch that 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 a good entry point that is trustworthy, the trend has to be confirmed, and that is why TrendCatch very often end up with a loss if you stayed in the original position.

TrendCatch differs from other systems in that it does not attempt to predict a future price. Instead, TrendCatch attempts to determine when the current trend changes and if that should lead to a change in position. Users have information about the current Trend that are computed using our proprietary algorithms. The Trend in combination with the current price are used to predict changes to the trend. This generates Buy or Sell signals that are reported by the program and must be acted upon immediately as they occur. Before a Trend change occur the user get a warning that a possible change is coming up. The user must, however, wait until has confirmed the trading signal and not attempt to interpret the resistance lines themselves as these lines are computed in real time and can change in the instance of a second.

TrendCatch SP give the User 6 trading strategies. The Scalp MX strategy, the Scalp LS strategy, the Hybrid Strategy, the Sigma Strategy, and the latest development the Calculus and Delta Strategies. The best way to understand the strategies will be to look at the historical data to decide which strategy will be the best to follow for the individual user.

An educated investor with knowledge of an instrument's trend will experience the most investment rewards. Helping investors understand their long and short positions will help them to get the most out of a bull or a bear market. In this regard, being successful on every trade is not the most important thing. Rather, the concept of net profitability over the course of a series of trades is what yields the most success in a market

TrendCatch is a system that requires investors to eliminate any preconceived biases or emotions and accept Trend Change Information that have shown, using TrendCatch greater profit earning potential through identified trends. TrendCatch was developed to provide investors with information on changing of the short-term trend that has the potential to yield a higher return on investment.

Never enter a new trade before the signal changes again.

Do not try to beat TrendCatch by staying in a trend that is not confirmed.

To illustrate TrendCatch potential and to help the trader to decide when to take profit/loss, TrendCatch shows the Maximum Profit for each position. It is also possible to follow the Draw Down before a Stop Profit goal is reached for each position. The Default setting is 0 (zero) Stop Profit setting which does not show any Draw Down.

After TrendCatch has entered into the first trade of the day, it stays in the market either long or short during the entire trading day. There is no Stop Profit or Stop Loss signals as the change of the signals during the day fulfill that function. The trader should however consider when to take profit or loss during each trading cycle (position).

TrendCatch's strength is in its ability to correctly compute the signals and inform investors when the market trend changes, based on overall and specific market behavior. However, it does not predict the market's behavior. TrendCatch tells investors that if "x" happens, then they need to take action. If investors follow the Trend Change Information given, they will be following the correct market trend almost all of the time.

Important trading info for TrendCatch SP:

If you are trading before RTH (Regular Trading Hours) be aware that the market normally is very illiquid. Also trading before 10 AM can be very frustrating because new economic numbers are normally released before 10 AM and can affect the market in a very volatile way. Furthermore, all trading that has happened overnight has to be reported to the Exchanges before 10 AM, and that also can have a very volatile influence on the markets behavior.