The following information gives details on
Swing Catcher Trading & Operating Procedures
Trading methodology is 100% mechanical, with no guessing,
judgment or interpretation needed
The Auto-Run Program, accessed from Main Analysis Menu will automatically analyze all the originally supplied date files located in the TRENDX directory, both Daily and Harmonic Files. It will automatically select suggested parameters and print out back-testing P&L Reports. and current open trades and open equity, plus new signals, for all markets
To analyze one individual market at a time, you will use the Manual (Semi-Automatic) Mode. That way they can quickly review one or more specific markets, without having to analyze all markets in the directory.
You can also do automatic graphing and charting. Trading output can be generated three ways (Screen - Printer - Graphics).
Also, a great deal of optional varying of entry and frequency methods and alternate parameters can be tested, if desired, in lieu of automatic parameters, as pre-selected by the Program.
TRADING MODE SELECTION
Trading Mode selection will present you with two different Trading Modes. This allows you to customize the Trading System based on your own trading style, account size, or amount of risk.
- REDUCE DRAWDOWN - CONSERVATIVE MODE for lower risk or small traders will concentrate on reducing overall drawdown, with secondary emphasis on profit potential. Normally this mode will reflect the lowest drawdowns. Conservative Mode will never have more than one contract open at any one time.
- MAXIMIZE PROFITS - AGGRESSIVE MODE is for higher risk or large traders who are willing to incur larger drawdowns and greater risk, but possibly will benefit from much greater profits, especially during strong trending periods. Aggressive Mode trades only one contract per individual entry signal, but has a limit of three or no limit on the maximum number of open contracts at any one time.
DYNAMIC AUTOMATICALLY CHANGEABLE STOP-LOSS
A powerful feature incorporated within Swing Catcher System is the ability of the program to automatically alter the stop-loss. The main purpose of doing this is to 'lock-in' some profits once a trade becomes significantly profitable. Without this feature, a sudden unexpected large move contrary to your position can not only wipe out any profits, it can also result in the profit becoming a loss.
The feat here is not to move the stop prematurely or else a potential highly successful trade will usually get stopped out early in the move. Therefore, the System has to wait until significant open trade profits are built up BEFORE the dynamic stop-loss can be triggered.
The next technique is to place the new stop-loss far enough away from the price to stay in the trade, yet close enough to price to "lock-in" some respectable profit if the market truly does reverse direction.
Swing Catcher will fry to keep the new stop far enough away to allow for keeping the trade and staying with the move, until the target is hit or a position reversal signal occurs.
When running program, you'll sometimes receive a message on open trade report screen to move the stop-loss. If it doesn't appear, the dynamic changeable stop-loss has not been activated yet.
PROFIT & LOSS SUMMARY REPORT
Upon completion of analysis, the Profit & Loss Summary will automatically appear, listing detailed trading results, including total profits, and percentage of winning trades, drawdown, drawdown ratio statistics, trade durations and other important information. NOTE: In the example below, note how Swing Catcher manages to hang on to the winners but disposes of the losers quickly!
This report will allow you to see how the System would have performed during the entire period analyzed. Keep in mind the two important adjustable parameters should be reviewed every 30-days. Therefore, since back-testing uses same fixed parameters for entire period, results by varying the 5% of indicators which are adjustable, likely would be even better!
HARDWARE OUTPUT OPTIONS
Swing Catcher allows you to select from a wide array of Hardware Output options. You can send the trade output and reports to either the Screen, Printer of Disk (RSLTFILE), or to any combination of these selections.
SWING CATCHER TRADES ALL MARKETS
Many other systems trade only specific markets or market groups because they are 'curve-fitted' for past price history of the markets. This is not the case with Swing Catcher due to the algorithm being valid in all markets.
The free data base is in either CSI or CompuTrac Format (your choice). It can read either popular data format directly without conversion. Data files can be updated either manually or by modem. If you do not wish to update so many files, you can as an option specific markets your interested in to another directory.
Swing Catcher uses the same fixed pattern recognition and price relationship technical indicators for all time periods and for all markets! The reason for the fixed indicators, is that it is preferable for a methodology to work without much technical indicator optimization. Only three major parameters are adjustable, representing just 5% of the total number.
That's because if too many indicators are optimized, a system will become heavily curve-fitted to the back-data it was tested with, and likely will not work in real-time trading. One area where adjustment is beneficial is Target and Stop adjustments via the automatically adjustable Sensitivity Band, which is tied to volatility.
In variety of trading options, and ability to optimize Money Management and Trade Frequency, and optional smoothing capacity.
NO MARKET WATCHING
Monitoring the market during the day is not required. The entire trade, including trade entry order, specific target price and stop-loss, can be given to your broker at one time, and before the I market opens. Each trade entry signal is at market-on-opening, and can be placed as one complete order. You do not even need to know the entry days opening price.
Create and maintain CSI or CompuTrac compatible continuous data files. Continulink Contractor Program included with system, is original program and was the first program of its type. A Continulink Data Base is the best way to solve the problem of constantly expiring futures contracts. With this method you can use the same data for both real-time trading and back testing purposes. You'll never have to obtain back data in new contracts when the old contract rolls over. Continuous Contracts can be used on a year-round basis.
OVERVIEW OF SYSTEM'S OPERATION
Swing Catcher is a powerful and sophisticated complete Trading System with many features, uses and capabilities not usually found in systems. The system has many extras and custom features.
Operations and functions are originated and activated at the main Analysis Menu Options.
You have several varied methods of analyzing data and viewing the signals. The signals can be displayed on the high resolution bar chart and viewed using live cursor controls. In addition, you can study the data and signals both on the screen, text or on your printer for hard copies.
Swing Catcher has the best Editor and utility Programs available. You can update, edit, delete, move and create files. manual data updating is semi-automatic and easy. CSI Daily Files are easily transformed into unique longer term rhythmic files and saved to the computer for analysis.
Many extra features, in addition to the ones mentioned, are also included in the program.