You are on the right track for the big run with these two systems:
The laws of probability will eventually get both of the above on a true trend that gives them all small losses back and much more.
Markets like to change and others are also clever. There are robust trading systems and we all want something that is "forever". Probably one of the best examples for the eternal trading method is Nicolas Darvas (left), an old school trader who had a system that was very well defined and did also very well in the markets. Darvas is the grandfather of all systematic momentum trading! But trading is a never ending story. What worked backed then in the fifties and sixties wouldn't work as good nowadays. Darvas' system is a bit too mechanic for today's computerized world. While it still works, it could be flexibilized. It pays off to accept the dynamic nature of the markets and finetune or adapt what you have or use with some new elements of other systems.
That's why we have a large collection of alternative systems. They range from well known ones to the outright weird space of funny methods, which are nonetheless interesting and have at least a grain of truth in them. Perhaps the middle is where the gold lies. But this whole section is not meant to be taken as is. Instead, try to cross-pollinate ideas whith each other. In case you don't know the trader we chose to stand for modern trading in heavily computerized markets, it is Maria from Metropolis!
Here are some of our "think out the box" systems:
Our standard method, the trend trading system, is all about trends. It even concentrates on the best of them. Trading like a Zen master is almost the opposite of trend riding. Essentially the Zen trader is going to bottom fish for the momentum stock. Sounds really like Zen… The fishing grounds are the small cap […]
Sounds like a contradiction, but it can become reality. You just have to know where and how to search the high flying bottom bouncers. Of course, this “value momentum” trading system works only probabilistically. But that is the nature of trading anyway. So, where to look for these mysterious bottom momentum stocks? In the small […]
Combining different trading systems may lead to astonishing results. We always wanted to marry the investor with the trader and put together the advantages from both market philosophies, right? Promising as a starting point looks the modern version of value investing, which is of course growth trend investing. The selection of growth stocks that are […]
This is a special form of entry technique to get onto a trend – that isn't there?! Yet! Normally one would wait for a sharp trend to show up, then establish the position only to see the trend vanishing in the next moment. The idea behind the “there is no trend” trading system is of […]
Penny stocks and trend trading, will that work? The problem for small cap stocks is the lack of continuous interest. Under such circumstances clear trends are rare. The reason is that money pours in with single thrusts and the gaps between them may be filled with terrific pullbacks. This trading pattern is not even inviting […]
Trend investing into ETFs may be the most convenient way for many to do the best with their money. ETF trend trading is the more safe and relaxed version of swing trend trading stocks. It is reasonably safe to put money into ETFs, because they are funds and as such diversified. There is a vast […]
Trend trading is fine when there is a trend. But what to do when there is only volatility in the short run and the price always comes back? This is the heaven for swing traders, but is doesn't need to be hell for trend traders. For one, there are always independently moving investment targets. We […]
Trend investing doesn't sound much different from trend trading. Both work with trends, but the trend investor is the relaxed one. While there may be different entry methods for trend investing, one thing should be clear. If the price is up from your entry, the relaxed investing phase has begun. From there on the trend […]
Trend trading could be the easiest and most lucrative trading style. There is just one caveat and that is the entry. If you manage to enter trends safely, you have turned on your private money printing press. The real problem is of course that only a fraction of all spotted trends go ahead after you […]
The natural way to trade is to cut losses short. If you don't keep them in check, you are an investor. Otherwise you are trading. Swing trading inherently makes use of the stop loss method. If after the entry the price swings into the wrong direction, any sort of swing trading should interpret that as […]
Growth stocks are at the core of the stock market. They are the final legitimation of the stock markets and they are or should be central to wise investor's operations. But are they also for traders so important? From day trading to arbitrage, there are all sorts of trading styles possible, so why just concentrate […]
One thing that the chartist loves most is waiting for his favorite pattern to occur. If he is more flexible, he watches the market detecting various patterns. Human beings are pattern detection machines. Looking at a chart will almost always find some trading chance, which, of course, isn't real in most cases. A simple chartist […]
The swing traders consider themselves often as the happiest of all traders. Prices go up and prices go down and they make money all the time. But this is an illusion. One that could become quickly expensive. In a market that produces smooth swings, swing trading works exceptionally well. Unfortunately this is the wrong criterion. […]
Constructing one of the best trend trading systems may be achieved by combining what is good on its own for trend following. If the technical side, the trend in a chart, is aligned with the fundamental part, an uptrend of earnings and revenues, the odds increase for the trend trader. Either the trend price pattern […]
Momentum trading is the never ending hunt for high velocity moves of huge volatility stocks. It could be conducted as trend following or breakout trading. Reading the news and hammer in the next buy order before everyone also does it may also work. But combined with value investing? This sort of boring thing that relentlessly […]
How to get early on board of a trend? This could be one cardinal question for trend trading, of course depending on the view point, meaning the trading system. The short and simple answer could be just to wait for breaking news that has price appreciation potential and jump in. There are more advantages than […]
There are two reasons why the trend is the best chart pattern. First, the probabilities that any other chart pattern just occurred by random is much greater than with a trend. This is of course dependant on the clarity of the pattern, the sharpness of the trend and the time or number of bars that […]
The smoother a trend the better is it. This is especially true for very rough or swingy trends. If a trend has since a month no single day a pullback, it may be more or less equal to one with a one or two day dip. But if the pullbacks are stronger, we need a […]
And finally for those who like to dig for a gem systematically...
Alternative trading systems (categories)
Long living market sync for you,