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NEW CGTS SHORT-TERM TRADING SYSTEM

FRIDAY 20 FEBRUARY 2014

We're very excited about a new trading indicator that we have been able to use effectively in testing as a short-term trading system, and as a longer-term trading system. We are not going to get into the formula or the mechanics of the trade tonight -- but we do want to introduce it.

After trading Friday we ran a report and found that this new Bounce Trade System gave a buy signal on, among other issues, AXAS, Abraxas Petroleum. We're not necessarily believers that oil has found a bottom. But we are intrigued by this trade.

Here's the report:

Symbol

Close

Position

New Trade

Company

         

BBD

12.88

Short

 

Banco Brandesco SA

CAAS

6.78

Short

Enter Short

Chinese Auto Daily

CTIC

2.28

Short

 

Cell Therapeutics

DWTI

110.39

Short

Enter Short

* Crude Oil Bearish ETF 3x

EDU

20.01

Short

 

New Oriental Educations and Technology

EWZ

34.87

Short

 

Brazil ETF

GAZ

1.55

Short

Enter Short

Natural Gas ETF

MDRX

12.83

Short

 

ALLSCRIPTS HEALTH SOLUTIONS

MXWL

6.87

Short

Enter Short

Maxwell Technologies

NOV

54.46

Short

 

National Oilwell Varco

RS

57.76

Short

 

Reliance Steel

SAN

7.41

Short

 

Banco Santander

THC

44.85

Short

 

Tenet Healthcare

RUBCAD=X

0.02

Flat

Exit Long

Russian Ruble/Canadian Dollar

RXD

13.42

Flat

Exit Short

Short Healthcare ETF Daily

AXAS

3.16

Long

Enter Long

Abraxis Petro

COCO

0.027

Long

 

Corinthian Colleges

NANO

17.39

Long

 

Nanometrics Inc

UWTI

3.2

Long

Enter Long

* Crude Oil Bullish ETF 3x

Gains seem small. Trades are short. Can this be an effective vehicle for trading -- are the gains large enough?

The system seems quite accurate. 231 trades; 225 winning, 6 losing. 97.4% accuracy.

Average gain: .35 points per trade.

This system trades equally effectively, long and short. Small losses: 5.4% being the largest.

       

Test Range: 5/15/91 to 2/20/15

   
       

Net P&L: 80.51

   

Percent Net P&L: 2,300.14%

   
       

Number of Trades: 231

   

Average P&L per Trade: 0.35

 

Percent Winning Trades: 97.40%

 
       

Total Days in Test: 5986

   

Percent Days in Market: 16.04%

 

Average P&L per Day: 0.01

   
       

Max Drawdown: 1.00

   

Reward/Risk Ratio: 80.505

   
       

Buy & Hold P&L: -0.34

   

vs. B&H P&L: 80.85

   

vs. B&H Percent P&L: 2,309.86%

 

vs. B&H Reward/Risk Ratio: 80.523

 
       

Current Position: Long

   

Open Trade P&L: 0.00

   

Traded Last Day: Enter Long

   

Look at the record of the trades: 8 trading days, 25 trading days, 9, 13, 3, 7 20, 21.... Gains of nearly 8% for each of these first six trades.

Entry Exit

     

# Type Bars Date Date P&L Pts P&L % Reason for Exit

 

____ _____ ____ ________ ________ ___________ ________ _______________

         

1 Short 8 05/28/91 06/07/91 +0.25 +7.69 Exit Short Rule

 

2 Short 25 06/26/91 08/01/91 +0.25 +8.33 Exit Short Rule

 

3 Long 9 09/29/92 10/12/92 +0.50 +7.69 Exit Long Rule

 

4 Long 13 12/01/92 12/18/92 +0.50 +6.67 Exit Long Rule

 

5 Long 3 12/28/92 12/31/92 +0.50 +6.67 Exit Long Rule

 

6 Long 7 01/08/93 01/19/93 +0.50 +6.67 Exit Long Rule

 

7 Long 20 02/23/93 03/23/93 +0.50 +7.14 Exit Long Rule

 

8 Long 21 04/21/93 05/20/93 +0.63 +8.27 Exit Long Rule

 

9 Long 6 06/15/93 06/23/93 +0.50 +6.06 Exit Long Rule

 

10 Long 4 12/01/93 12/07/93 +0.38 +4.17 Exit Long Rule

 

11 Long 3 12/17/93 12/22/93 +0.75 +7.69 Exit Long Rule

 

12 Long 4 01/04/94 01/10/94 +0.38 +4.17 Exit Long Rule

 

13 Long 4 04/25/94 05/02/94 +1.25 +11.90 Exit Long Rule

 

14 Short 4 05/06/94 05/12/94 +0.12 +0.96 Exit Short Rule

 

15 Short 4 05/17/94 05/23/94 +1.00 +7.55 Exit Short Rule

 

16 Short 4 06/16/94 06/22/94 +0.62 +4.77 Exit Short Rule

 

17 Short 14 01/10/95 01/30/95 +0.25 +2.56 Exit Short Rule

 

18 Short 4 03/07/95 03/13/95 +0.62 +6.13 Exit Short Rule

 

19 Short 4 05/02/95 05/08/95 -0.25 -2.86 Exit Short Rule

 

20 Short 8 05/09/95 05/19/95 +0.56 +6.05 Exit Short Rule

 

21 Short 5 06/30/95 07/10/95 +0.63 +7.20 Exit Short Rule

 

22 Short 4 10/03/95 10/09/95 +1.25 +14.38 Exit Short Rule

 

23 Short 11 11/06/95 11/21/95 +1.00 +13.79 Exit Short Rule

 

24 Short 5 12/22/95 01/02/96 +0.38 +5.52 Exit Short Rule

 

25 Long 3 04/04/96 04/10/96 -0.12 -2.34 Exit Long Rule

 

26 Long 3 05/08/96 05/13/96 +0.50 +9.09 Exit Long Rule

 

27 Long 1 06/11/96 06/12/96 +0.63 +9.52 Exit Long Rule

 

28 Short 5 06/14/96 06/21/96 +0.38 +5.43 Exit Short Rule

 

29 Short 4 07/03/96 07/10/96 +1.12 +15.73 Exit Short Rule

 

30 Long 8 08/23/96 09/05/96 +0.50 +9.77 Exit Long Rule

 

31 Long 4 09/18/96 09/24/96 +0.50 +9.77 Exit Long Rule

 

32 Long 18 11/20/96 12/17/96 +0.50 +6.67 Exit Long Rule

 

33 Long 4 01/02/97 01/08/97 +1.26 +13.10 Exit Long Rule

 

34 Long 3 02/20/97 02/25/97 +1.13 +10.64 Exit Long Rule

 

35 Long 8 06/10/97 06/20/97 +0.63 +4.94 Exit Long Rule

 

36 Long 5 06/26/97 07/03/97 +0.75 +6.00 Exit Long Rule

 

37 Long 9 08/12/97 08/25/97 +0.75 +5.45 Exit Long Rule

 

38 Long 5 09/11/97 09/18/97 +1.32 +9.73 Exit Long Rule

 

39 Long 9 09/25/97 10/08/97 +2.12 +15.14 Exit Long Rule

 

40 Short 3 11/19/97 11/24/97 +1.19 +6.90 Exit Short Rule

 

41 Short 2 12/09/97 12/11/97 +1.00 +6.35 Exit Short Rule

 

42 Short 5 12/31/97 01/08/98 +1.00 +6.78 Exit Short Rule

 

43 Short 2 01/20/98 01/22/98 +1.91 +14.98 Exit Short Rule

 

44 Long 3 01/29/98 02/03/98 +0.50 +4.88 Exit Long Rule

 

45 Short 4 02/09/98 02/13/98 +0.69 +5.84 Exit Short Rule

 

46 Long 3 03/18/98 03/23/98 +0.86 +11.86 Exit Long Rule

 

47 Long 3 05/13/98 05/18/98 +0.62 +6.61 Exit Long Rule

 

48 Short 2 05/19/98 05/21/98 +0.50 +5.10 Exit Short Rule

 

49 Long 6 07/30/98 08/07/98 +1.06 +18.43 Exit Long Rule

 

50 Long 2 08/14/98 08/18/98 0.00 0.00 Exit Long Rule

 

51 Long 4 09/01/98 09/08/98 +0.44 +7.91 Exit Long Rule

 

52 Long 4 10/12/98 10/16/98 +0.19 +4.00 Exit Long Rule

 

53 Short 3 11/13/98 11/18/98 +1.25 +17.86 Exit Short Rule

 

54 Short 3 12/16/98 12/21/98 +0.25 +5.56 Exit Short Rule

 

55 Short 1 12/31/98 01/04/99 +1.13 +25.80 Exit Short Rule

 

56 Short 3 01/28/99 02/02/99 +0.60 +20.62 Exit Short Rule

 

57 Short 1 03/26/99 03/29/99 +0.31 +15.05 Exit Short Rule

 

58 Short 1 04/06/99 04/07/99 +0.19 +10.11 Exit Short Rule

 

59 Long 3 05/05/99 05/10/99 +0.25 +12.50 Exit Long Rule

 

60 Short 3 05/19/99 05/24/99 +0.16 +6.56 Exit Short Rule

 

61 Long 4 07/02/99 07/09/99 +0.75 +70.75 Exit Long Rule

 

62 Short 3 07/14/99 07/19/99 -0.12 -6.38 Exit Short Rule

 

63 Long 3 08/12/99 08/17/99 +0.12 +6.38 Exit Long Rule

 

64 Long 3 10/29/99 11/03/99 +0.12 +8.33 Exit Long Rule

 

65 Short 1 12/21/99 12/22/99 +0.12 +10.71 Exit Short Rule

 

66 Long 4 01/28/00 02/03/00 +0.07 +5.34 Exit Long Rule

 

67 Long 2 02/16/00 02/18/00 +0.16 +11.94 Exit Long Rule

 

68 Long 4 02/25/00 03/02/00 +0.24 +17.39 Exit Long Rule

 

69 Short 2 03/08/00 03/10/00 +0.06 +2.29 Exit Short Rule

 

70 Short 2 04/05/00 04/07/00 +0.44 +18.49 Exit Short Rule

 

71 Short 18 04/20/00 05/17/00 +0.22 +12.57 Exit Short Rule

 

72 Short 2 06/02/00 06/06/00 +0.12 +8.00 Exit Short Rule

 

73 Long 2 06/09/00 06/13/00 +0.09 +6.52 Exit Long Rule

 

74 Long 3 07/10/00 07/13/00 +0.15 +10.64 Exit Long Rule

 

75 Long 1 08/04/00 08/07/00 +0.44 +25.14 Exit Long Rule

 

76 Long 2 09/13/00 09/15/00 +0.75 +23.08 Exit Long Rule

 

77 Long 4 11/01/00 11/07/00 +0.19 +6.09 Exit Long Rule

 

78 Long 3 12/01/00 12/06/00 +0.50 +16.67 Exit Long Rule

 

79 Long 4 01/11/01 01/18/01 +0.19 +5.07 Exit Long Rule

 

80 Short 3 03/19/01 03/22/01 +0.50 +9.52 Exit Short Rule

 

81 Short 4 03/28/01 04/03/01 +0.74 +14.12 Exit Short Rule

 

82 Short 3 04/30/01 05/03/01 +0.38 +8.35 Exit Short Rule

 

83 Short 4 05/22/01 05/29/01 +0.20 +4.09 Exit Short Rule

 

84 Short 1 07/18/01 07/19/01 +0.21 +5.83 Exit Short Rule

 

85 Short 5 08/15/01 08/22/01 +0.29 +8.55 Exit Short Rule

 

86 Short 5 10/12/01 10/19/01 +0.11 +6.43 Exit Short Rule

 

87 Long 4 11/23/01 11/29/01 +0.28 +26.17 Exit Long Rule

 

88 Long 1 12/17/01 12/18/01 +0.19 +18.63 Exit Long Rule

 

89 Short 3 01/08/02 01/11/02 +0.21 +14.00 Exit Short Rule

 

90 Short 1 01/29/02 01/30/02 +0.13 +10.48 Exit Short Rule

 

91 Long 2 03/06/02 03/08/02 +0.08 +8.00 Exit Long Rule

 

92 Short 3 03/21/02 03/26/02 +0.15 +9.87 Exit Short Rule

 

93 Short 5 04/15/02 04/22/02 +0.06 +5.08 Exit Short Rule

 

94 Long 4 05/07/02 05/13/02 +0.02 +2.86 Exit Long Rule

 

95 Short 8 05/17/02 05/30/02 +0.20 +22.73 Exit Short Rule

 

96 Short 4 07/01/02 07/08/02 -0.03 -4.62 Exit Short Rule

 

97 Long 2 08/08/02 08/12/02 +0.09 +19.15 Exit Long Rule

 

98 Short 2 08/26/02 08/28/02 +0.31 +34.44 Exit Short Rule

 

99 Long 2 08/30/02 09/04/02 +0.04 +5.48 Exit Long Rule

 

100 Short 1 09/05/02 09/06/02 -0.04 -5.48 Exit Short Rule

 

101 Short 1 10/17/02 10/18/02 +0.05 +7.14 Exit Short Rule

 

102 Long 2 11/19/02 11/21/02 +0.06 +10.53 Exit Long Rule

 

103 Short 4 11/27/02 12/04/02 +0.11 +13.92 Exit Short Rule

 

104 Long 2 01/22/03 01/24/03 +0.10 +15.38 Exit Long Rule

 

105 Long 1 02/14/03 02/18/03 +0.13 +17.57 Exit Long Rule

 

106 Short 4 02/26/03 03/04/03 +0.06 +6.59 Exit Short Rule

 

107 Long 3 04/29/03 05/02/03 +0.08 +12.90 Exit Long Rule

 

108 Long 2 05/09/03 05/13/03 +0.10 +15.38 Exit Long Rule

 

109 Short 3 06/04/03 06/09/03 +0.14 +10.85 Exit Short Rule

 

110 Long 4 07/28/03 08/01/03 +0.07 +8.33 Exit Long Rule

 

111 Long 3 09/30/03 10/03/03 +0.13 +14.44 Exit Long Rule

 

112 Long 4 10/21/03 10/27/03 +0.05 +5.56 Exit Long Rule

 

113 Long 8 11/21/03 12/04/03 +0.16 +17.20 Exit Long Rule

 

114 Long 3 01/12/04 01/15/04 +0.15 +9.74 Exit Long Rule

 

115 Short 2 02/03/04 02/05/04 +0.69 +23.39 Exit Short Rule

 

116 Long 3 02/06/04 02/11/04 +0.15 +5.51 Exit Long Rule

 

117 Long 4 02/24/04 03/01/04 +0.19 +7.17 Exit Long Rule

 

118 Short 4 06/18/04 06/24/04 +0.08 +4.73 Exit Short Rule

 

119 Long 3 08/26/04 08/31/04 +0.02 +1.25 Exit Long Rule

 

120 Long 2 10/05/04 10/07/04 +0.23 +10.60 Exit Long Rule

 

121 Long 4 10/14/04 10/20/04 +0.16 +7.31 Exit Long Rule

 

122 Short 2 11/09/04 11/11/04 +0.03 +1.09 Exit Short Rule

 

123 Short 7 12/17/04 12/29/04 +0.11 +4.44 Exit Short Rule

 

124 Short 7 01/10/05 01/20/05 +0.13 +5.51 Exit Short Rule

 

125 Long 4 01/26/05 02/01/05 +0.23 +11.17 Exit Long Rule

 

126 Long 2 02/17/05 02/22/05 +0.24 +11.54 Exit Long Rule

 

127 Long 10 03/14/05 03/29/05 +0.13 +5.04 Exit Long Rule

 

128 Short 4 04/05/05 04/11/05 +0.25 +8.06 Exit Short Rule

 

129 Short 4 05/05/05 05/11/05 +0.16 +6.30 Exit Short Rule

 

130 Long 2 07/20/05 07/22/05 +0.41 +11.68 Exit Long Rule

 

131 Long 3 08/19/05 08/24/05 +0.51 +12.59 Exit Long Rule

 

132 Short 1 10/05/05 10/06/05 +1.64 +19.88 Exit Short Rule

 

133 Short 4 11/04/05 11/10/05 +0.81 +11.39 Exit Short Rule

 

134 Long 2 01/03/06 01/05/06 +0.26 +4.68 Exit Long Rule

 

135 Long 2 01/12/06 01/17/06 +0.72 +13.19 Exit Long Rule

 

136 Short 5 03/14/06 03/21/06 +0.30 +5.12 Exit Short Rule

 

137 Short 5 03/28/06 04/04/06 +0.55 +9.18 Exit Short Rule

 

138 Short 4 04/24/06 04/28/06 0.00 0.00 Exit Short Rule

 

139 Short 4 07/06/06 07/12/06 +0.27 +5.79 Exit Short Rule

 

140 Short 6 07/31/06 08/08/06 +0.34 +7.59 Exit Short Rule

 

141 Short 15 08/21/06 09/12/06 +0.42 +9.98 Exit Short Rule

 

142 Long 3 11/22/06 11/28/06 +0.33 +9.30 Exit Long Rule

 

143 Short 4 12/01/06 12/07/06 +0.08 +1.96 Exit Short Rule

 

144 Short 8 01/31/07 02/12/07 +0.24 +7.10 Exit Short Rule

 

145 Long 5 04/09/07 04/16/07 +0.18 +6.04 Exit Long Rule

 

146 Long 4 05/21/07 05/25/07 +0.57 +15.49 Exit Long Rule

 

147 Long 11 06/04/07 06/19/07 +0.43 +10.97 Exit Long Rule

 

148 Short 4 07/03/07 07/10/07 +0.14 +3.06 Exit Short Rule

 

149 Short 5 08/14/07 08/21/07 +0.20 +5.06 Exit Short Rule

 

150 Long 4 12/17/07 12/21/07 +0.25 +7.69 Exit Long Rule

 

151 Long 4 03/20/08 03/27/08 +0.08 +2.50 Exit Long Rule

 

152 Long 7 04/29/08 05/08/08 +0.23 +5.58 Exit Long Rule

 

153 Long 1 05/19/08 05/20/08 +0.15 +3.46 Exit Long Rule

 

154 Long 2 06/16/08 06/18/08 +0.40 +8.16 Exit Long Rule

 

155 Long 4 06/25/08 07/01/08 +0.36 +7.27 Exit Long Rule

 

156 Short 3 07/15/08 07/18/08 +0.24 +5.39 Exit Short Rule

 

157 Short 6 08/12/08 08/20/08 +0.24 +6.82 Exit Short Rule

 

158 Short 3 08/29/08 09/04/08 +0.52 +14.40 Exit Short Rule

 

159 Short 4 09/22/08 09/26/08 +0.20 +6.31 Exit Short Rule

 

160 Long 2 10/10/08 10/14/08 +0.17 +10.97 Exit Long Rule

 

161 Short 3 11/03/08 11/06/08 +0.19 +9.45 Exit Short Rule

 

162 Long 3 11/21/08 11/26/08 +0.08 +7.14 Exit Long Rule

 

163 Short 2 12/02/08 12/04/08 +0.11 +9.32 Exit Short Rule

 

164 Long 4 12/29/08 01/05/09 +0.27 +39.13 Exit Long Rule

 

165 Short 4 01/07/09 01/13/09 +0.05 +4.00 Exit Short Rule

 

166 Short 4 02/04/09 02/10/09 +0.12 +9.60 Exit Short Rule

 

167 Short 1 03/04/09 03/05/09 +0.12 +13.79 Exit Short Rule

 

168 Long 1 03/06/09 03/09/09 +0.05 +6.25 Exit Long Rule

 

169 Long 1 03/17/09 03/18/09 +0.06 +6.06 Exit Long Rule

 

170 Short 1 03/27/09 03/30/09 +0.12 +10.53 Exit Short Rule

 

171 Short 2 04/16/09 04/20/09 +0.11 +11.11 Exit Short Rule

 

172 Long 6 04/24/09 05/04/09 +0.11 +11.83 Exit Long Rule

 

173 Short 3 06/03/09 06/08/09 +0.06 +5.17 Exit Short Rule

 

174 Long 4 08/17/09 08/21/09 +0.12 +11.88 Exit Long Rule

 

175 Long 3 09/03/09 09/09/09 +0.08 +7.41 Exit Long Rule

 

176 Short 4 10/14/09 10/20/09 +0.08 +3.52 Exit Short Rule

 

177 Short 2 11/06/09 11/10/09 +0.09 +5.06 Exit Short Rule

 

178 Long 4 11/12/09 11/18/09 +0.36 +21.95 Exit Long Rule

 

179 Long 2 12/14/09 12/16/09 +0.15 +8.57 Exit Long Rule

 

180 Long 2 12/23/09 12/28/09 +0.14 +7.78 Exit Long Rule

 

181 Long 3 02/09/10 02/12/10 +0.15 +7.94 Exit Long Rule

 

182 Long 5 02/26/10 03/05/10 +0.11 +5.73 Exit Long Rule

 

183 Long 3 05/10/10 05/13/10 +0.08 +2.87 Exit Long Rule

 

184 Long 4 05/21/10 05/27/10 +0.18 +7.50 Exit Long Rule

 

185 Long 2 07/02/10 07/07/10 +0.24 +8.82 Exit Long Rule

 

186 Long 2 09/22/10 09/24/10 +0.13 +4.81 Exit Long Rule

 

187 Long 18 12/06/10 12/31/10 +0.50 +12.29 Exit Long Rule

 

188 Long 2 01/24/11 01/26/11 +0.37 +8.62 Exit Long Rule

 

189 Long 6 02/08/11 02/16/11 +0.29 +6.33 Exit Long Rule

 

190 Short 3 03/01/11 03/04/11 +0.08 +1.42 Exit Short Rule

 

191 Short 4 04/01/11 04/07/11 +0.16 +2.82 Exit Short Rule

 

192 Short 6 04/26/11 05/04/11 +0.66 +13.61 Exit Short Rule

 

193 Short 2 05/12/11 05/16/11 +0.38 +8.72 Exit Short Rule

 

194 Long 1 06/28/11 06/29/11 +0.46 +14.79 Exit Long Rule

 

195 Long 3 07/14/11 07/19/11 +0.89 +21.81 Exit Long Rule

 

196 Short 2 07/25/11 07/27/11 +0.25 +5.04 Exit Short Rule

 

197 Short 1 08/17/11 08/18/11 +0.18 +5.29 Exit Short Rule

 

198 Short 2 09/01/11 09/06/11 +0.19 +5.34 Exit Short Rule

 

199 Long 4 10/04/11 10/10/11 +0.92 +38.82 Exit Long Rule

 

200 Long 1 10/25/11 10/26/11 +0.25 +6.85 Exit Long Rule

 

201 Short 3 10/28/11 11/02/11 +0.49 +11.64 Exit Short Rule

 

202 Short 1 11/16/11 11/17/11 +0.24 +6.40 Exit Short Rule

 

203 Long 2 11/28/11 11/30/11 +0.40 +12.46 Exit Long Rule

 

204 Long 3 01/18/12 01/23/12 +0.28 +8.64 Exit Long Rule

 

205 Long 2 02/15/12 02/17/12 +0.20 +5.31 Exit Long Rule

 

206 Short 4 02/27/12 03/02/12 +0.42 +9.79 Exit Short Rule

 

207 Short 2 03/13/12 03/15/12 +0.31 +8.09 Exit Short Rule

 

208 Short 3 03/27/12 03/30/12 +0.13 +4.00 Exit Short Rule

 

209 Short 2 04/17/12 04/19/12 +0.13 +4.32 Exit Short Rule

 

210 Short 2 05/01/12 05/03/12 +0.24 +7.87 Exit Short Rule

 

211 Long 3 06/05/12 06/08/12 +0.34 +12.59 Exit Long Rule

 

212 Long 4 06/25/12 06/29/12 +0.27 +9.25 Exit Long Rule

 

213 Short 4 07/05/12 07/11/12 +0.22 +6.65 Exit Short Rule

 

214 Short 3 09/24/12 09/27/12 +0.05 +2.10 Exit Short Rule

 

215 Long 3 11/19/12 11/23/12 +0.08 +4.62 Exit Long Rule

 

216 Long 6 12/10/12 12/18/12 +0.18 +9.47 Exit Long Rule

 

217 Long 3 12/27/12 01/02/13 +0.24 +11.71 Exit Long Rule

 

218 Long 6 09/05/13 09/13/13 +0.16 +6.45 Exit Long Rule

 

219 Long 3 11/01/13 11/06/13 +0.24 +8.19 Exit Long Rule

 

220 Long 8 12/12/13 12/24/13 +0.20 +6.04 Exit Long Rule

 

221 Long 4 03/11/14 03/17/14 +0.51 +16.19 Exit Long Rule

 

222 Long 7 03/28/14 04/08/14 +0.32 +8.27 Exit Long Rule

 

223 Short 2 07/02/14 07/07/14 +0.37 +5.94 Exit Short Rule

 

224 Short 4 07/24/14 07/30/14 +0.44 +7.38 Exit Short Rule

 

225 Short 3 09/18/14 09/23/14 +0.35 +6.11 Exit Short Rule

 

226 Long 3 10/15/14 10/20/14 +0.40 +11.05 Exit Long Rule

 

227 Long 4 10/28/14 11/03/14 +0.04 +1.01 Exit Long Rule

 

228 Long 4 11/14/14 11/20/14 +0.15 +3.69 Exit Long Rule

 

229 Short 3 11/24/14 11/28/14 +0.85 +20.45 Exit Short Rule

 

230 Long 4 12/09/14 12/15/14 -0.09 -3.40 Exit Long Rule

 

231 Long 4 02/11/15 02/18/15 +0.10 +3.12 Exit Long Rule

 

232 Long 1 02/20/15 02/20/15 0.00 0.00 Open

 
         

My thesis is that a trader can use an accurate trading system in very short-term trading making consistent gains and turn a huge investment profit doing this. Let me show you what I mean: taking the first 30 trades of Abraxas Petroleum that I showed above, running from 6/91 to 7/96 on the calendar.

We want to be in the market all the time; and since signals on any stock, such as AXAS, are not constant, we will have to use a full database of issues to generate enough buy signals to stay fully invested. We want to use the same amount of money to invest, and re-invest all profits. For example, let's say we begin with an IRA fund of $30,000. We dedicate these funds to this system. The attached file shows that this system, through the 30 trades shown above, returns a rather astounding 637% in 218 trading days, 83% of a full year of trading. $30,000 can be turned into almost $192,000 in 3/4 of a year.

Let me repeat, we stay full invested. For example, we trade AXAS as a first trade. Then we switch to another new trade when AXAS gives us a sell signal. We keep rolling our profits into each new trade.

This spreadsheet shows the dynamics of this system's potential.

Column1

Column2

Column3

Column4

Column5

Column6

Column7

 

Start trade

% Gain

$Gain

New Total

Trading Days

 
             

1

$30,000

7.69%

$2,307.00

$32,307.00

8

 

2

$32,307.00

8.33%

$2,691.17

$34,998.17

25

 

3

$34,998.17

7.69%

$2,691.36

$37,689.53

9

 

4

$37,689.53

6.67%

$2,513.89

$40,203.42

13

 

5

$40,203.42

6.67%

$2,680.36

$42,883.79

3

 

6

$42,883.79

6.67%

$2,860.35

$45,744.14

7

 

7

$45,744.14

7.14%

$3,266.13

$49,010.27

20

 

8

$49,010.27

8.27%

$4,053.15

$53,063.42

21

 

9

$53,063.42

6.06%

$3,215.64

$56,279.06

6

 

10

$56,279.06

4.17%

$2,346.84

$58,625.90

4

 

11

$58,625.90

7.69%

$4,508.33

$63,134.23

3

 

12

$63,134.23

4.17%

$2,632.70

$65,766.92

4

 

13

$65,766.92

11.90%

$7,826.26

$73,593.19

4

 

14

$73,593.19

0.96%

$706.49

$74,299.68

4

 

15

$74,299.68

7.55%

$5,609.63

$79,909.31

4

 

16

$79,909.31

4.77%

$3,811.67

$83,720.98

4

 

17

$83,720.98

2.56%

$2,143.26

$85,864.24

14

 

18

$85,864.24

6.13%

$5,263.48

$91,127.72

4

 

19

$91,127.72

-2.86%

-$2,606.25

$88,521.46

4

 

20

$88,521.46

6.05%

$5,355.55

$93,877.01

8

 

21

$93,877.01

7.20%

$6,759.14

$100,636.16

5

 

22

$100,636.16

14.38%

$14,471.48

$115,107.64

4

 

23

$115,107.64

13.79%

$15,873.34

$130,980.98

11

 

24

$130,980.98

5.52%

$7,230.15

$138,211.13

5

 

25

$138,211.13

0.02%

$32.34

$138,243.47

3

 

26

$138,243.47

9.09%

$12,566.33

$150,809.80

3

Trading Days

27

$150,809.80

9.52%

$14,357.09

$165,166.90

1

In a Year

28

$165,166.90

5.43%

$8,968.56

$174,135.46

5

260

29

$174,135.46

15.73%

$27,391.51

$201,526.97

4

 

30

$201,526.97

9.77%

$19,689.18

$221,216.15

8

218

             
     

Gain

$191,216.15

 

83.85%

     

% Gain

637.39%

 

of a year

             

This new Trading System can also be used effectively in variously lengths of trading in the currency markets as well. We will integrate this system into our daily newsletter over the next few days.

Column1

Column2

Column3

Column4

Column5

PORTFOLIOS

     

% Gain

First Trade

 

SYSTEM

Trading Focus

         

3.09%

2/13/15

 

T5D REVERSAL

Int-term

21.05%

11/10/14

 

CGTS STOCKS#1

Int-term

22.10%

10/24/14

 

CGTS STOCKS #2

Int-term

12.02% 1/6/15

CGTS STOCKS #3

Lont-Term

Currency Trading (30-1 leverage)

       

523.09%

8/20/14

 

CGTS CURRENCY

int-term

Column1

Column2

Column3

Column4

Column5

Column6

2/20/15

         

CLOSED TRADES

       
           

AUDJPY

Short

93.35

CGTS CURRENCY

4.40%

132.00%

           

NEW TRADES

         

New trades today

         
           

None

   

CGTS STOCKS #1

   
           

COCO

LONG

0.03

CGTS STOCKS #2

Corinthian Colleges

 

AXPW

LONG

0.03

CGTS STOCKS #2

Axion

 

We closed a short currency trade AUDJPY with a gain of 4.4% or 132% (30-1 leverage).

We have a lot of charts today:

We continue to gain on our long DUST, short Gold Stocks position.

One of our readers wants to know how CAT looks here. Not good. If you own it sell it; if you don't own it and want to start a short position, this is a good candidate.

Another reader wanted to know if it was time to sell his BEAV put options? In a word, no. More room to the downside.

Another reader wants to know if there is any inflation on the horizon -- is the FED really going to raise rates? We don't see it. Unless they do it for one reason, to support the Dollar in its war against Russia and other countries in their rebellion against the US Dollar. The thing is, higher rates are deflationary to America; and a stronger Dollar is also deflationary, globally. The strong Dollar path deflates the world first, and more slowly; and the FED cannot let Russia defeat the US Dollar in this currency war that is raging.

The TIP chart shows there is no inflation on the horizon.

TLH, 10 Year+, Lehman TBond ETF is still bullish.

A reader wants to see a picture of TSLA, Tesla. Tesla is currently a sell. We want to watch to see if it is a short.

BLK is a buy signal here. Note how the recent downturn in the CGTS112 (orange line) generated NO SELLERS. Note also how our T.5 Simple indicator (brown line, middle pane) is trying to snap back up, which is very bullish.

A lot of South American stocks seem to be faltering. Look at CCU for instance.

We should make it clear that we are largely bullish. We are bullish against our own judgment, and wishes. The vast majority of stocks we follow are showing no signs of breaking down. Oil stocks, gold and silver stocks, are breaking down. But most mainstream American stocks are steaming ahead. ZIRP ensures that company buy-backs are still going, full blast.

Greece blinked. But war fever is getting even stronger. The FED can fix stocks in an uptrend; it cannot, however, fix the economy. So we have stocks that don't relate to the economy. It is a kind of disease. But it's the only game in town at the moment.

Happy trading.

Michael J. Clark, CGTS

cgts @mindspring.com

home.mindspring.com/~mclark7/CGTS142.htm