Part
2. How the Trader-Alert Stock Market Trading System Works
Asynchronous Timeframe
Analysis
A fundamental problem that
most traders have is taking risks on the same timeframe as their reward
potential -- It’s why mechanical trading systems and why most trading
approaches don’t work well. Closely examine the risk-reward propositions
implicit in most trading systems or advisory services and you'll find
this to be an inherent shortcoming.
The TAP model acknowledges
and addreseses this obstacle by pairing the lower risks in the intraday
timeframe (L-Model risks) with the higher (G-Model) reward potentials
to identify trades that offer compelling risk-reward ratios. They call
this asynchronous timeframe analysis.
The
Trade Probability Matrix
Another unique component
of the TAP model is that it calculates a probability matrix which defines
a compelling trade as a function of both risk/reward ratio and probability.
Here’s why:
A given trade may have a
high potential reward, a sufficiently low risk and an acceptable probability
(defined by it's win-ratio, the ratio of wins to losses); and thus,
qualify as a compelling trade. Meanwhile, another trade with the same
risk may have a lower reward potential, yet be equal or more compelling
if it's win-ratio is higher than the first trade. TAP weighs trades
in this light.
How Trader-Alert
Fits Into Your Trading Day
Trader-Alert is to a trader
what an Air Traffic Controller is to a jet pilot negotiating a landing
at a busy airport in foul weather at night. You’re busy flying your
aircraft at 250 miles an hour -- watching your stock or futures charts,
placing orders -- in the heat of the price action. The Air Traffic Controller
has access to tools and information you don't have access to.
He can see other aircraft
in your vicinity on his radar, he knows their flight patterns, their
elevations, he has access to an information flow from other aircraft
he’s in contact with that you do not have, he has access to changes
in weather patterns you may not have... In short, that Air Traffic Controller
sees in the sky what Trader-Alert sees in the price action: better information
flow, the big picture, the context of the situation as well as all the
detail.
That's
the Service That Trader-Alert Provides
When a key stock market reversal
up or down shows up on the radar during the trading day, Trader-Alert
immediately sends you an e-mail alert. You never have to worry about
missing an alert, because we can also send alerts to your digital cell
phone or pager.
Clear alerts, decisive action based on the price action of the
now.
Continue
to Part 3 Next
|
