Systematic Trading System

In this video we go over how to read the indicators found in the systematic indicator bundle


Systematic Trading Package

-Indicator overview

-Indicator examples

-Using indicators together to analyze charts

VPS

  • A VPS (Virutal Private Server) can host your platform and charts 247 without interference. You would log in to the VPS remotely to see your charts and markups from the higher time-frames.
  • This aids with continuity in market analysis.
  • This also allows real-time order-flow indicators to record data continuously.
  • Swing traders that travel can access there main analysis from anywhere and not be affected by moving to new locations.
  • Additional data-feeds may be obtained from your broker if needed.

Indicators Included:

  • Distance from Mean
  • Price Action Gaps
  • Institutional Price Magnets
  • Trendbreak Pullback
  • Mean Reversion Buy Setup (no short signals)
  • Dynamic Support and Resistance Zones
  • Volume Delta
  • Footprint
  • Trend Status


Distance from Mean Indicator

  • How far price is trading from the average price.
  • An extreme move at an increasing rate results in two scenarios:
    • Price reverses
    • Price stalls, loses momentum and sideways overlap.

Price Action Gaps

  • 3D Volume Profile
  • Shows what’s hidden in the lower time-frames
  • Shows hidden levels of low liquidity (vacuums/blackholes)
  • Indicates vertical trending activity on lower time-frame (no sideways overlap or consolidation).
  • No need to use a traditional volume profile to see LVN’s.
  • Cleans up chart, more focus on price action.

Institutional Price Magnets

  • Areas of Unfinished Business in the market.
  • Price leaves an area very quickly and traps many traders.
  • Open pending orders create a draw on the market.
  • An overbought extension to the upside combined with a decline in momentum results in price targeting these open liquidity levels after a technical swing trendbreak.
  • Use breaks in the basic swing structure to identify turns in the market that will lead to an immediate push right into the levels.
  • Price can trade through a level and not fulfil level.
  • Price must close below level for orders to be fulfilled.
  • Support at the level can reverse the trend – must break prior rejection levels to be sustained.

Trendbreak Pullback Indicator

  • Identifies when price is challenging the current trend.
  • Shows exactly where the trend was technically violated.
  • Indicates the stop and reverse marker location.
  • Stop and reverse market shows where to put the stop-loss. If stop is taken out, the position is reversed.

Mean Reversion Buy Setup

  • Shows buy only opportunities.
  • Recommended for higher time-frames, or intra-day charts when trading is not noisy.
  • Triggered based on price action and trend.
  • Put stop below swing low, or signal candle low.
  • Enter on next bar open.

Support Resistance Zone Indicator

  • Blue = Support
  • Red = Resistance
  • Price needs to trade away from the level for a sufficient distance, and sufficient amount of time for the area to become valid.
  • Not every swing high or swing low is valid support-resistance, this misconception is perpetuated by non-trading analysts.

Recommended standard Indicators

  • The regression channel is recommended because it is objective, it is also used by quantitative traders.
  • The regression channel removes the trend and shows a best-fit straight line.
  • The 2, 3 and 4 standard deviations encompasses the majority of the trading range.
  • This setup is highly recommended over using Bollinger Bands ™

Volume Delta Footprint

  • Number below price is the delta (cumulative difference between buyers and sellers for the current bar).
  • Rectangle at bottom right of chart shows bid X ask footprint.
  • Sellers X Buyers (orders that have been executed for current bar).

Institutional Block Orders

  • Plots large block trades executed above the threshold.
  • Audible alerts indicate when Block Trade is executed.
  • Saves space, no need to have full-blown order-flow charts.
  • Shift + Mouseroll up/down to change layer of candles if you cannot see indicator.
  • If the block order is larger than the best bid/ask it will uptick/downtick.
  • Better than watching time and sales, orders plotted on chart so you can see when and where large traders want to trade. You can learn from them how they trade just by watching them enter and exit.
  • Block Trades can also be found on the exchange website at end of next day.