RT - Real Time Trading for Day Traders & Swing Traders
Automated Trading Signals
For the Day Trader, RT PRO provides two different kinds of signals. The first are automated trading systems. You select the FNO stock, then RT PRO will give you buy and sell signals during trading hours.
Do thes arrows make money ? The answer is: Yes, and RT PRO provides a profit test to display what profits may have come if these trades were taken in the past. While past performance is no assurance for future profits, it is certainlty a better method than trading on tips or calls where no past history of success is available.
A text report is also available. Therefore, it is not neccessary to look at the chart to determine the current signals and any new entry. The report will give all of this information, for as many stocks as you like. Thus, the report can act as a controller for your trading.
Trading Strategies
RT Pro provides easy to understand signals that identify the current intra day trend of the stock. In Trend Energy, the chart is colored with bars of two different colrs. A blue bar denotes that advantage is with sellers, while a brown bar denotes the buyers advantage. Trend Energy must be used in context of the overall trend of the market. If the market is in an uptrend, then the blue bars tell us that we should close our long positions and keep away from the market. (No short selling since the market is in an uptrend!). Once the blue color ends, buying should begin. In a down trend, the blue bar denotes that weakness has come in, with lower levels likely. This is a signal to go short. The trade is covered when the blue bars end. All signals / colors come automatically, but the trader still has to make his judgement on the broad trend of the market.
System Testing with Trend Energy
Trend Energy can be used for Day Trading. Assuming that all signals are taken, the system performs well as a day trading method.
Here are performance statistics on Nifty Futures (excluding brokerage):
These statistics tell us that trend energy has positive expectations. The number of trades is fairly large. Many methods can be used to reduce the number of trades. 1. Traders can use a trend filter to take trades only in the direction of the trend. Suggested filters are: MACD with default, Keltner channels with 10 and 1, and CCI with 50. (For the CCI, above zero, the trend is up, below zero it is down). 2. Traders can avoid trading in gap opens, in the first 20 minutes of trading. This will avoid many whipsaws. 3. Traders can wait if buying is suggested at resistance. They should buy if resistance is broken. often, this will prevent whipsaws. Sometimes, they will enter at a higher price but the savings on whipsaws will be substantial. (reverse is true for selling at support).
The advantage of using Trend Energy is that the system makes profits as it is. Now, it is for the trader to improve the performance by making attempts to reduce whipsaws.