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The Swing Strength Indicator and Trading Systems
Includes 2 Systematic Trading Systems
Available for TradeStation 8.4 and above
The swing strength TradeStation indicator is designed to measure price swings between oversold and overbought and to rank them from 1-5 based on the probability and potential of a market reversal. A swing strength of 5 indicates a very overbought market with a high probability of moving lower over the next few days while a swing strength of -5 indicates a very oversold market with a high probability of moving higher over the next few days.
In addition to the TradeStation swing strength indicators we have also included 2 swing strength strategies for TradeStation. Both swing strength strategies are simple rule based swing trading systems based on daily price action. These systems are both 100% systematic in nature and follow a clear set of rules for identifying when to enter and exit every trade without discretion.
The swing strength systems are best applied to end of day data and uses a combination of the swing strength indicator along with a couple of standard indicators to identify high probability trading signals. Take a look at the performance figures below and you will see the system has been correct over 80% of the time predicting the short term direction of the S&P 500.
As this system performs best with end of day data, trading signals can be quickly and easily identified after the market has closed and the system does not require any monitoring during the trading day, leaving you free to do other things.
We are confident this system will benefit your trading which is why we offer a 100% money back guarantee so you can try out our systems for yourself and if they are not right for you just let us know within 30 days for a full refund.
The Swing Strength Trading Systems
The swing strength 1 TradeStation strategy is the first of the 2 trading systems. In addition to the standard version of the swing strength 1 trading system we will also show you how you can easily adjust the sensitivity of this strategy to become more aggressive with the system if you wish to increase the potential overall returns of the system and we will also show you how to adjust the system to find trading opportunities with an even higher probability of being profitable.
The swing strength 1 trading system can be used with indices, stocks, ETF's, E-minis and futures. Below you will find some examples of the system being applied to the S&P 500 index. The results you see are for all trades, long and short, taken by the system between 01/01/00 and 05/01/10.
S&P 500 Performance Report 01/01/00 - 05/01/10 Swing Strength 1 Standard Trading System
Results are for index points captured.
S&P 500 Equity Curve 01/01/00 - 05/01/10 Swing Strength 1 Standard Trading System
These results from applying the swing strength 1 trading system to the S&P 500 index demonstrate the consistent performance this system has had since 2000. And this sort of performance is not limited to the S&P 500. We can find a similarly strong performance from the system when applied to many other indices and ETFs, for example check out the performance report below of the swing strength 1 strategy when applied to the NASDAQ 100 index.
NASDAQ 100 Performance Report 01/01/00 - 05/01/10 Swing Strength 1 Standard Trading System
In addition to the standard version of the swing strength 1 trading system we will also show you how you can easily adjust the sensitivity of the strategy to become more aggressive with the system if you wish to increase the potential returns of the system and we will also show you how to adjust the system to find trading opportunities with an even higher probability of being profitable.
Below you can find the TradeStation performance reports for the aggressive and high probability versions of the swing strength 1 strategy when it is applied to the S&P 500 index.
S&P 500 Performance Report 01/01/00 - 05/01/10 Swing Strength 1 Aggressive Trading System
S&P 500 Performance Report 01/01/00 - 05/01/10 Swing Strength 1 High Probability Trading System
Trading Individual Stocks
Both of the swing strength trading systems can be used with markets like the SPY or QQQQ ETFs or the E-minis to take advantage of the strong performance the systems have demonstrated when applied to the S&P 500, but these systems are not limited to index trading. The swing strength systems can be applied to other markets like stocks.
Below you will find some highlights taken from some of the performance figures achieved when applying the swing strength 2 trading system to individual stocks. And just like the performance reports for the S&P 500 and NASDAQ 100 the figures shown here are for all trades, long and short. These results are for every trade taken by the system for each stock between 01/01/00 (where the stock was available to trade on that date) and 05/01/10.
The Swing Strength TradeStation Indicators
The swing strength TradeStation indicators are designed to measure price swings between oversold and overbought and to rank them from 1-5 based on the probability and potential of a market reversal. A swing strength of 5 indicates a very overbought market with a high probability of moving lower over the next few days while a swing strength of -5 indicates a very oversold market with a high probability of moving higher over the next few days.
Below are three TradeStation charts with the swing strength indicator applied. As you can see the indicator can color code (optional) each bar or candlestick on the chart to make it quick and easy for you to identify the oversold/overbought condition and the potential market reversal. In addition to color coding each bar the swing strength indicator includes the option to display the actual swing strength value on each bar, also color coded for easy identification. If you prefer to keep your price charts clean then the swing strength indicator is also inserted into a chart as a regular indicator that can be plotted on a sub-graph. The third chart includes both the color bar/text indicator and the regular indicator for comparison.
TradeStation chart of IBM with swing strength indicator applied.
Swing strength indicator applied to a daily chart of MSFT.
Both the swing strength bar indicator and the regular indicator applied to a chart of AAPL.
The swing strength TradeStation indicator can also be applied to the TradeStation scanner so you can scan all markets simultaneously to find established overbought/oversold markets, and also includes a dedicated TradeStation RadarScreen indicator that provides additional information on the swing strength indicator.
The swing strength TradeStation indicator is also supplied as a function enabling you to incorporate the swing strength function into your own indicators and trading strategies.
TradeStation
In addition to a complete PDF manual explaining the swing strength indicator and both trading systems in detail we will also include open source TradeStation strategy files for you to apply in TradeStation so you can test the validity of the systems yourself. Each TradeStation strategy has been designed so that you can easily see how the system code works and has various inputs so you can adjust the system, and also optimize the system if you wish. Both strategies are also provided as TradeStation showme indicators which can be used with TradeStation to scan and sort multiple markets to identify swing strength trading signals.
We offer a 30 day money back guarantee with this trading system. During the guarantee period you are free to use this TradeStation strategy as much as you like so you can fully evaluate its performance and benefits. If after testing out your new strategy you don't feel it is right for you just let us know within 30 days and we will refund your money in full.
Continued Support and Updates for a Minimum of 12 Months
All our products come with full support so if you have any problems or require any additional information you can contact us for assistance. We also offer updates for a minimum of 12 months so if any new features are added to these indicators during this time then they can be sent to you for free.
If you have any questions about this, or any other product we offer, please contact us at infotechnicaltradingindicators.com
Disclaimer The term “company” or “us” or “we” refers to TechnicalTradingIndicators.com and owners or employees or affiliates of TechnicalTradingIndicators.com. The term “you” refers to the user or customer of TechnicalTradingIndicators.com. The term "information" refers to indicators, strategies, manuals, data, communications and any other associated products and material of TechnicalTradingIndicators.com.
Licence: You are purchasing a single user licence which may not be transferred or resold. The product and/or information shall not be copied, distributed, disclosed, disseminated or communicated in any way or form to a third party.
Disclaimer: All information provided is for educational purposes only. The company is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The company may hold positions in the stocks, currencies or industries discussed here.
You understand and acknowledge that there is a high degree of risk involved in trading securities and/or currencies. The Company assume no responsibility or liability for your trading and investment results and you agree not to hold the company liable for any monetary loss and/or damages of any kind. There is a high degree of risk in trading and you should always consult a qualified advisor about the suitability of any investment.
It should not be assumed that the information presented will be profitable or that it will not result in losses. All information including performance reports and charts are based upon simulated trading and do not include slippage or commission unless otherwise stated. Care has been taken in the preparation of the information. However, we do not make any representations or warranties as to the accuracy of the information provided. Information and products provided by the Company rely on data from third party sources which may or may not be accurate and no guarantee is given to the accuracy or completeness of the data used or information provided.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN
Please note that there are additional limitations when attempting to simulate the performance of a trading system which includes short trades due to various short trading regulations and hard/impossible to borrow stocks which cannot be incorporated into the simulated performance. There is a high degree of risk in trading, and short trading can carry additional risk, so you should always consult a qualified advisor about the suitability of any investment.
Tradestation Disclaimer: “Neither TradeStation Technologies nor any of its affiliates has reviewed, certified, endorsed, approved, disapproved or recommended, and neither does or will review, certify, endorse, approve, disapprove or recommend, any trading software tool that is designed to be compatible with the TradeStation Open Platform.”
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