The following information gives details on Swing Catcher Methodology
Trading methodology is 100% mechanical, with no guessing,
judgment or interpretation needed
Fully automatic analysis of over 50 indicators takes place daily during program operation. Most of the indicators are patterns based on recent price relationships. Each indicator has been assigned a point weighting factor based on the indicators historical validity. The cumulative total of all the indicators is known as the Trend Index and is used as a set-up for the signals, based on the cumulative sum of all the daily point values.
Actual buy/sell signals are generated based on the magnitude of the indicators total point value in combination with several important pattern recognition parameters and a secret 'drawdown minimizer' technique. Don't worry about this sounding complex, it is all done effortlessly and automatically by the computer.
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.