THE KICKER
What is The "Kicker"?
The "Kicker" is moving average, momentum oscillator, trend following, mechanical system. Buy and sell signals are automatically generated by a mechanical trading system which is triggered by a moving average momentum oscillator moving to extremes...but, in the direction of the trend. The "Kicker" was designed to take advantage of temporary setbacks in directional moves. In otherwords, the "Kicker" likes to buy small setbacks in up trends and sell spikes in markets that are trending down.
How does your mechanical trading system work?
The mechanical trading system has predefined trade entry and exit rules. At various hourly, intraday, market closes, trend and oscillator are evaluated to identify whether entry or exit conditions have been met. The system uses market-on-open orders for the next trading hour, to close open positions and enter new orders. All trade signals are generated by the trading system and no part of the system is subjective.
Entry conditions are signaled when a moving average oscillator moves above or below trigger levels (and the trade triggers in the direction of the trend). A buy or sell signal is generated when price causes the moving average oscillator to fall below or rise above assigned trigger levels. Exit conditions are triggered when the moving average oscillator traverses to it's trigger or is stopped out. Trades are initiated only with the trend.
What are the advantages of mechanical system trading?
The primary advantage of system trading is that it provides investors with an unemotional, rules-based, decision-making process. The benefit is that a rule based decision making process can be tested against historical price data to determine profitability. Subjective approaches cannot be tested; and, therefore, cannot be proved or disproved profitable. Another major benefit of a mechanical approach which uses technical indicators, is that investment decisions are not influenced by rumor, poor fundamental analysis, news, or questionable accounting practices. Human emotion, consistently cited as a major contributing factor to poor investment performance, is eliminated.
What indicators do you use?
The "Kicker" system indicators are NOT proprietary. It's a simple moving average subtracted from a simple moving average and this is modified by a simple moving average. Something like: sma(sma-sma)
How should the average investor use the trade data?
Our goal is to help average investors trade high-probability opportunities in the equity markets and to help manage existing positions by providing short-term market signals to improve on exits and entries. We have found that the "flipper" data has been used by our clients in many ways. Most importantly, we ALWAYS recommend that traders should only trade in the direction of the trend. The "flipper" can be used as a filter for other mechanical systems.
Do you employ stops or money management techniques?
Yes, we use both stops and money management techniques. With the grains, interest rates and indices, we do use stops (of course, points and risk vary). Average investors are encouraged to use the system in conjunction with their own risk management requirements.
What universe of futures do you cover?
The "Kicker" is being traded, "live"...in the Hotcomm room: "Teach-talk-trade", with the grains, indices and interest rate futures.
Click here for a sample chart....
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