Spot and Trade Institutional Money Moves

Algorithmic Trading with Human Interaction for:

Day Traders, Swing Traders, Long-Term Investors

Thursday, November 22, 2012

1 New Volume Differential Indicator for Stock and Futures Trading



Institutions try to hide their market actions by using robotic traders, placing orders in small increments, however, by the sheer volume of their investments you can spot their actions on the volume graph our software puts on your screen. In our latest project, we developed an indicator, which takes the volume differential as basis for trade entry. 

The way our new indicator works: 

When the gradient (slope) of the Indicator changes direction, the high and low of the referring candle is marked and a directional trade proposal is generated: 

Buy-Target; and Sell-Target; signals occur, spelling out a minimum calculated price threshold. 

The trade entry will only occur, when the price threshold is surpassed by the candle following the candles associated with the volume gradient price move. 

The target for the trade is 1/2-SPU  (SPU is the calculated price-movement per observed time unit). 

To integrate power users in the development and test of our new indicator, we posted It at the Linkedin group: "Algorithmic Trading for Real Traders", and ran the indicator on SPY (ETF of the S&P 500 Index) between November 7th  to November 21st , 2012. A 1-hour chart was chosen as key reference time-frame for SPY.  

SPY 1-Hour Chart NLT Volume-Differential-Indicator (click the chart to magnify)
Summary:
The new NLT Volume Differential Indicator produced between November 7th and 21st

  • 10 trades with the expected gain of ½-SPU.
  • 1 failure.
  • 2 trades, which did not get initiated by not fulfilling the minimum threshold.

By the trading method, we teach to trade SPY, you will learn to pick specific options suited for day trading. The goal is to achieve an return of about 10 cents on a 50 cent investment per share controlled. 

When approved by positive forward and back testing, this indicator will be integrated into the NLF HF-Trading Concept. http://www.neverlosstrading.com/HF_Trading.html

Let us know your input or schedule for a private demonstration. 


Find a 25 minute introduction to NeverLossTrading at: 

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