Search Precision Trading Systems 

 
site search by freefind advanced
 

 The new Member FORUM is completed and you can earn up to $200 in credits by posting and leaving feedback

Platforms

          Indicator + function                       Precision Mach-Trend

Designed to reduce whipsaw trades in trending periods and help the user reduce costly F expenses.

Mach-Trend is superbly simple to use, and is suitable for all ranges of traders. Calculated using advanced mathematics, this indicator will reduce your F and improve your overall performance. Mach-Trend Platinum PRO has adjustable price, length, trend skew and delay features available, enabling advanced optimisations for the sophisticated user.

 

Price $995 (Pay-Pal) Buy this item (DEMO available $197)  

 

Stocks, Futures, Bonds, Forex, Indices

 

Author: Precision Trading Systems. (Protected EL code)

     

 

 Precision Mach-Trend indicator and user function for Tradestation and Multicharts.

  • Precision Mach-Trend is your new trend friend

  • Specially designed to lock onto the trend

  • Reduces F cost by huge amounts

  • Intelligent algorithms reduce whipsaw trades

  • Simple to use

  • Suitable for professionals and novices alike

  • Adjustable formula for fitting to your trading style

 

 

The Precision Mach-Trend indicator knows when the trend has really changed, the work is done for you.

                                                                          The concepts behind it all

 

I am sure most of you will agree with this comment, but please correct me if I am wrong.

 

The single most annoying factor about trend following is the scenario below...

 

Our trend system signals a buy, so we buy, up she goes and we move up our stops to lock in the big gains and we feel happy that the trend will go much higher, then the uptrend makes a sudden larger than usual deflection and takes out the stop making us short.

The trend then begins up again and our short stop gets hit with a small but highly annoying loser, and we go long again making another nice profit. The "pig in the middle short trade" may have reduced the profit overall taken out of this difficult up trend by as much as 50%.

 

How many times does this happen to people? Very often I am certain.  I don't know about you, but with me it becomes my mission in life to figure of different ways to remove the "pig in the middle" short trade from an otherwise "nice trend".

 

We have all doubtless experienced this situation many times and this is known as a "whipsaw trade". The usual response by the trader is to use slower systems and wider stops to give trades more space to breath. Or sometimes the trader will speed up his model to try and catch every little twist and turn, which results in a commission eating demon system which just over trades and makes the brokers richer.

 

A conversation with Ed Seykota about this dilemma spawned his memorable comment, "To prevent whipsaws, stop trading"

Reading between the lines of this comment, what he meant to say was he has had this problem many times, and nothing can be done about other than to stop trading altogether.

 

Whilst this statement is very valid, in the sense that killing off whipsaw completely is virtually impossible, there are many things we can do to reduce whipsaws. Mach-Trend is designed with this task in mind, often it reduces whipsaws as much as 30% and in certain nice trending markets it can achieve a 100% whipsaw reduction..

 

The whipsaw song by Ed Seykota was one of the inspirations for developing the Precision Mach trend. You can watch it here

 

Rather than just slowing down a system, today's super fast computing speed enables us to make millions of calculations in the background, so putting this new found technology to good use Mach-Trend has reduced the problem considerably.

 

How does it work?

 

Mach-Trend first of all is monitoring a special trend algorithm and monitoring the urgency of the price action within the trend. In simple terms it is constantly buzzing away asking "Is this reversal going anywhere, is it serious".  Its job is to follow instructions to stay on board the trend unless something really gives it hard evidence to reverse its position.

The key is to use intelligence in the code, instead of just making it desensitized to small movements. It has some real difference to the usual filters and is very robust in all market conditions.

 

How does it affect F?

 

F = Trading frequency, and F can kill a good system stone dead if it is too high. The larger profit we get relative to commissions and spreads the better off we are. Over trading for a few ticks, will mean profit to cost ratios fall away so far that even if we trade well we don't make anything. To clarify this point please view the table below which is from a fast day trading model which generates around 1500 trades per month.

 

 

                   The Precision Mach-Trend indicator did not have any whipsaws in these trading ranges....

 

 

                              

 

 

Black holes in trading

Stephen Hawking IQ 160+

 

Stephen Hawking has long been warning us of the dangers of black holes, and who am I to disagree with him? 

He talked of their existence long before anyone had ever seen one, and when the first one appeared on the hubble telescope the whole world realised he was a genius and not a madman as most critics had assumed.

 

Hawking apparently bet a years subscription of Penthouse magazine with his friend Kip Thorne, that a black hole would be not found. Hawking's bet was lost and Penrose collected the magazines.

 

Hawking got the black hole guru status, so it was win-win for him.

 

(F) consumes your profits just as the black hole consumes a star

A black hole consuming a star

 

It now become obvious how important it is to reduce F ( frequency ) as we can see the number of trades has drastically fallen, and therefore the money we give to the black hole is reduced.

 

What I refer to as the black hole are dealing costs, time, data costs etc.  Yes time, as high frequency models require much more time and attention.

 

The less money that gets poured into the greedy all consuming black hole, then better it will be for us.

 

I hope this has illustrated the point about (F) Frequency killing trading profits.

 

 

 

 

 Mach trend is coded to follow the 5% rule. While this scenario is quite a rare thing, it was seen many times during the recent crash of 2008.

It is best to have the system on and ready, than to scramble around working out what to do.

 

 Mach trend comes with a paint bar study which provides an easy visual at a glance opinion of the market

 

 

The above plot shows a 60 period Precision Mach trend. You can see during October 2008, there was a violent rally from 48p to 121p and not many systems would have stayed short through that kind of short covering bull trap move. The 5% rule closed the short at 52p which would have been 64p and almost a year later if the 5% rule was set to FALSE.

With the 5% rule setting set to TRUE your exit would be lower and earlier than with the 5% rule FALSE setting ( read more about the 5% rule below)

The final long entry occurred at 64p.

Mach trend has been developed to suit all levels of trader from novice to expert to professionals.

It can be adjusted to suit any timeframe right down to tick and minute data, right up to weekly and monthly data.

It works on real-time data in the shortest interval and works on static data for the longer term systems shown below.

Please scroll down slowly and try to guess the exit prices of the trades shown.

 

Mach trend running through 8 years data, try to guess the exit prices of each trade   (2003-2004)

Mach trend Long entry at 15p, guess where the exit price is?  (2003-2005)

 

Still long right up to 160 and going well ..............the exit price is?  (2004-2005)

 

The exit price was at lofty 261p from a tiny 15p entry price turning £10,000 into £174,000 in a single trade.

Consider that equation for a moment, staying in one trade for a 3 years and making £164,000.

Your broker certainly doesn't get much in the way of costs from one entry and one exit in 3 years.

Now it has turned short at 261p, guess the exit?  (2004-2006)

 

 

The short exit price is 310p, yes Mach trend does have some losing trades.

Long again at 310p   (2006-2008)

 

The long exit from 310p closed at 376p and now short again ....

The Short entry at 376p closed at 233.5 and now long again ....still long in April 2010

Designed to reduce whipsaw trades in all time frames and periods.

The above example was period 60.

Below is a period 30 Mach trend for some more frequent trading. The are still some whipsaw trades in 2007 and  2008 but if compared to regular trend following systems these are greatly reduced.

It caught two very large trends from 320p down to 162p and from 116p up to present price 223p in April 2010

 

 

That Black hole in your trading account is your brokerage commissions

 

 By reducing F by such a huge amount, traders can now enjoy the luxury of making money for    themselves instead of just making their brokers richer with commissions from over frequent trading systems. This statement is particularly true of day traders of futures markets.

 

It is a horrible fact that brokers grab roughly half the value of your account each year in costs.

 

 Mach trend will be able to save your account going the same way as 90% of traders.

 

It is widely know that 90% of traders lose money

 

Mach trend is here to help you change that horrific statistic.

 

 

Precision Mach-Trend on high volatility data during the 2007- 2008 crash  See if you can guess the exit price

A rather ordinary looking sell signal on a rather ordinary look stock chart....

Precision Mach-Trend knows what to do, is it time to cover the short now is 525p?

 

Well maybe not.... 38p is better.

Mach-Trend is coded to follow the 5% rule, and in this scenario it will wait for the next long before acting again.

This rule is popular with option writers (short sellers of options) and simply means if you have shorted £10,000 (100%) worth of options you can exit it if its value becomes less than £500 (5%) as it is not a good bet on a risk-reward basis.

(Mach trend eventually went long at 88p)

The 5% percent rule code is an optional extra which can be altered by typing TRUE or FALSE into the settings.

 

 

Mach-Trend deals quite well with unfavourable volatile noisy price action that is becoming familiar these days

 

 

When a small stock gets upgraded to a larger index, the price action often changes to become much more

noisy and volatile, Mach-Trend handles the transition in price action (below) without getting whipsawed (August 2008)

 

 

Mach-Trend rides through the violent fluctuations ( October and November 2008 )

 Such movements would have caused most systems to suffer terrible whipsawing and of course lots of black hole damage to put more money in your brokers account....

Brokers get rich in such periods, and they will hate you if you buy Mach-Trend

 

 

Mach-Trend (with 30 period)  only generated 6 trades during the 3 year sample below

You can ask yourself now, who will be the one to get rich?

You or your broker?

 

 

If you like a higher (F) system you can shorten the period input.

 Mach-Trend can be used at shorter periods trades (Below is period 4 Mach-Trend)

6 trades in 9 months with period 4 on daily data

 

Time is running out... Credit availability is drying up...The cost of borrowing is gradually rising....US National debt to be equal to 35% of the entire worlds GDP in 3 years....33% of all USA tax revenues will be required just to make the INTEREST PAYMENTS on the collosal national debt...... Eventually the US will have no option other than to print money or default on their debt repayments...... US Dollars will likely cease to be the reserve currency of the world........Stimulus is running out, the Federal reserve has fired all its bullets and the only options left are to print more money or to default on the debt payments.....The problem is infinitely worse than in 1929 due to the added problem of this huge government debt...... In 1929 the USA still had a positive trade surplus and a manufacturing based economy..... In 2011 the USA will have no such resources to fall back on........The two most likely scenarios are both likely to lead to disaster......Hyper-Inflation at 40%+ or Deflationary implosion....... Either of the two possibilities will lead to huge moves in the worlds financial markets........Trading of these massive moves could be the only way out..........Wise proffessional traders have already started building huge dollar short posistions in anticipation of the debacles to come.....Many people will suffer as a result of the irresponsible un-elected Federal reserve operatives..........Many more people will lose their homes......Millions of jobs will be lost......Those who are unprepared will become impoverished in ways that they could never imagine.....What is your strategy to trade these violent market trends?.........ARE YOU  READY?

 

 

 

 

Choose your Mach-Trend package

 If you choose to upgrade at a later point then the cost of the previous version purchased will be refunded to you

 

What Functions are included? Paint bar Variable period Indicator plot Mach-System

Advanced signal

with Skew and Delay adjust

5% rule exit signal Price

Mach trend paint bar (DEMO)

Hard coded to 50 period

YES NO NO NO NO NO $197
Mach Trend System Platinum PRO YES YES YES YES YES YES $995

 

 

 

Explanation of different  Mach-Trend package features

 If you choose to upgrade at a later point then the cost of the previous version purchased will be refunded to you

 

Paint bar DEMO

After the Mach-Trend paint bar is added to a chart in Tradestation or Multicharts, the chart bars or candles will highlight to indicate changes in trend, basis of the Mach-Trend algorithm. The user can configure the colours required to suit their preferences.

The DEMO version is pre-programmed to (period 50) and this cannot be altered.

 

Paint bar Mach Trend System Platinum PRO only

After the Mach-Trend paint bar is added to a chart in Tradestation or Multicharts, the chart bars or candles will highlight to indicate changes in trend, basis of the Mach-Trend algorithm. The user can configure the colours, periods, skew and delay required to suit their preferences.

Variable period Mach Trend System Platinum PRO only

After the Mach-Trend paint bar, indicator or Mach system is added a chart in Tradestation or Multicharts, then the user can configure the period required to suit their preferences. Shorter periods will produce more trend changes than longer periods.

When this feature is used in Mach Trend system platinum PRO, the user can optimise performance of Mach trend to make greatest profits.

Indicator plot Mach Trend System Platinum PRO only

After the Mach-Trend indicator plot is added to a chart in Tradestation or Multicharts, the plot will display over the chart similar in appearance to a moving average, when the trend changes direction the indicator will move up or down and the plot colour will change to indicate trend direction basis of the Mach-Trend algorithm. The user can configure the periods and colours required to suit their preferences.

Mach - System  Mach Trend System Platinum PRO only

After the Mach-Trend system (Strategy)  is added to a chart in Tradestation or Multicharts, there will be arrows showing where the trend has changed direction,  the system can be optimised for period, lag, and skew for optimal performance. The 5% rule function for short trade exits will be included as a TRUE or FALSE input which is an option for the user to configure if required.

 

Advanced signal trend skew feature  Mach Trend System Platinum PRO only

After the Mach-Trend system (Strategy)  is added to a chart in Tradestation or Multicharts, the user can alter the skew function which is one of the optimizable inputs provided. This adds a "Trend skew" feature to the Mach-system which enables the user to make the system biased in the chosen direction.

For example, if there is a strong bull market in progress, then engaging in short selling is generally a losing game. Henceforth if the skew feature is a higher number than zero, then the system will enter long much easier than it would enter a short trade. This feature is also reversible for use in bear markets. This feature appears as an INPUT value within the strategy and can be optimised for best performance.

 

Advanced signal delay feature Mach Trend System Platinum PRO only

After the Mach-Trend system (Strategy)  is added to a chart in Tradestation or Multicharts, the user can alter the delay function which is one of the optimizable inputs provided. This adds a "Trend lag" feature to the Mach-system which enables the user to make the system faster or slower without changing the actual period input. In simple terms, creating a dead-zone in a trading system where it the trend is neither quantified as up or down, allows breathing space for your position. The system will stay in its mode of long or short while inside this dead-zone and will not change direction until the opposite edge of the zone is breached. The user can further reduce commissions and trading F by increasing delay, or speed up the system if the price action is reasonable clean without fake signals. 

 

5% rule short exit feature  Mach Trend System Platinum PRO only

After the Mach-Trend system (Strategy)  is added to a chart in Tradestation or Multicharts, the user can engage the 5% rule input feature which will close out a short trade once it has fallen by 95% after which the system will stay "flat" until the next long signal is observed. This feature would not often be activated in actual trading apart from cases such as the 2008 decline or in stocks such as Enron. This input has a TRUE of FALSE field in the strategy.

 

 

Choose your Mach-Trend package

 If you choose to upgrade at a later point then the cost of the previous version purchased will be refunded to you

 

What Functions are included? Paint bar Variable period Indicator plot Mach system

Advanced signal

with Skew and Delay adjust

5% rule exit signal Price

Mach trend paint bar (DEMO)

Hard coded to 50 period

YES NO NO NO NO NO $197
Mach Trend System Platinum PRO YES YES YES YES YES YES $995
 

 

Purchase Mach-Trend

Customer comments

User guidelines

How clever are you? Try the Trading IQ game and earn 10% off Mach Trend

 

 

 

 

 

Mach-Trend dynamics 

 

 

 

List of Easy Language trading systems

 

 

 

 

Search Precision Trading Systems 

 

site search by freefind advanced

 

 

 

 

Home    Site map   Contact