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Category Archives for "Trader Education"

Creating the Ultimate Indicator Connors RSI

Creating the “Ultimate” Indicator. The new Connors RSI Strategy Suite is based around the concept of “blending” indicators together as published by analyst Larry Connors in his book Connors RSI 2nd Edition. In this book, Connors shows how he used the average of three different indicators, including the Relative Strength Index (RSI), in order to create a “score”. This blended indicator score has been shown to outperform the base RSI. Here’s how it works:

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Personality of Markets Theory

Personality of Markets Theory. The Personality of Markets Theory basically states that individual securities exhibit individual personalities. If you can pinpoint a security’s personality, and apply the right trading system for that personality, you can more accurately predict its next move and make more money.

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Why I’ll Never Be Your Average Trader

Why   I’ll Never Be Your Average Trader Have you ever felt like you are always entering the trading game too early or too late?  I can assure you that as a trader you are not alone.  Fortunately for both of us, the market isn’t going anywhere (and is probably more important now than it’s ever been).  I should mention now that I have been an active trader for the last eight years (you likely knew this already as you wouldn’t be reading this blog if I were completely new to this).  One thing is for sure, I am looking at the market in a whole new light.

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5 Pro Tips to Swing Trade the Current Market

5 Pro Tips to Swing Trade the Current Market One great thing about swing trades is that they normally only last 1-3 days.  This in itself helps limit the amount of risk you are exposed to with any given trade. Let’s take a look at a few conditional tips that will help improve YOUR odds for Swing Trading success. Before you swing trade, you really need to have an overall idea of how the market is behaving. Are you seeing fear or greed coming into the indexes? Broad market analysis is not an exact science. We just want a feel for trend and whether fear or greed is prevailing. Volatility is a Red Flag. Generally volatility is a sign of fear and bearish sentiment. You should take caution if you are entering a long position where there are signs of increased volatility.  To help protect yourself you can reduce share size or tighten up your protective stops. Trade stocks that have a short-term move against them. When you are looking at the overall trend you want to find small pullback or lower high that provides you with good short-term upside potential. USE Chart Pattern Confirmation. Even if you are not a pattern master, using some of the most basic chart patterns can help confirm your potential position. Stocks that have recently reacted to support or trend-lines generally have good potential.  Using the Fibonacci tool in your trading platform may also provide some very opportunistic entry levels. Don’t trade near earnings. Nothing can ruin a great trade like earnings. Always be mindful of when earnings are going to be released on your potential trade.  You will often see unpredictable behavior in stocks as they approach earnings. Not every swing trade is going to be “perfect”, but using the above steps will swing that trade into your favor!

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How Artificial Intelligence Revolutionized Trading

  We are in an incredible time in trading history. Personal computers have become more powerful allowing advanced algorithms to process and analyze massive amounts of data. The inclusion of Artificial Intelligence (A.I.) into trading has exploded – allowing traders and trading companies to create systems and strategies that many only dreamed about just a few years ago. The availability of new computer technology provided us the ability to scan and analyze chart patterns and conditions in charts that would have been nearly impossible for traders to recognize. At Nirvana Systems we are making progress in the effort to build trading strategies that employ Artificial Intelligence.  In our 15 year journey towards the UTM (Ultimate Trading Machine) goal, we have made major strides our A.I.  The results we have achieved have surpassed what many people who have devoted their lives to in trading would have thought possible. Now we have the opportunity to help our club members use these breakthroughs to achieve their goals. Nirvana is proud to announce an all NEW release of our ARM (Adaptive Reasoning Model) technology to our Nirvana Club members.  ARM5 allows traders to tackle some of the most challenging trading problems they face. This new ARM5 technology has already been used to create some exciting new strategies showing 85% accuracy with 3% profit per trade with out-of-sample data.  This means we have seen 85% accuracy on blind data, not back test. Imagine what life would look like if you were trading any market with 85% accuracy… I am including this 30 minute video to show how we use A.I. to advance our trading strategies. After the video take a few minutes to check out what the Nirvana Club has to offer and how we can help improve your trading success. Click Here to Watch.

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Why WaveTrader 3 is the Perfect Upgrade

Waves, Waves, and More Waves. Yes, if you are a fan of any WaveTrader or the Elliott Waves then you are in for a treat! I have personally been a big fan of the Elliott Wave theory for years and when Nirvana Systems developed WaveTrader I was giddy!  I know that sounds nerdy but I was very excited on this new addition to the Nirvana Systems product line.  The best part of this was the plugin delivered exactly what it stated. Great wave identification and powerful strategies.  A few years later I was delighted to see we had developed a new and improved WaveTrader 2 that built off the already powerful infrastructure to give enhanced performance which was more than welcomed.  It however, didn’t have the same WoW factor for me.  Don’t get me wrong.  Any improvements are HUGE, especially when it comes to your personal finances. Then yesterday the new WaveTrader 3 install was left on my desk for review… And… you guessed it… giddy again. The newest addition to the WaveTrader family is… Well… INCREDIBLE! WaveTrader 3 has now added in a new feature using Fractal Waves.  If you are not familiar with this term, a fractal wave is a “wave within a wave”.  What this means is that WT3 can now take advantage of the precision of the smaller waves while benefiting from the smooth, stabilizing, effect of the larger waves.  This is a huge advancement because the smaller repeating waves that are self-similar to the larger waves offer up highly confirmed wave candidates across the market. Now, lets take a look at what comes with the WT3 package. WT3 comes with all prior versions of the plugin which adds a great deal of value, however, the newly designed strategies that come with WaveTrader 3  are just short of amazing.  The new WT3 Long Term strategies uses Fractal Confirmation and has been generating some really great trades. Here is an example of a few trades that were found on ABBV. Here are some of the results I have seen so far when running a comparision between the WT3 Long Term Strategy with and without the Fractal Confirmation. In early test the HitRate exploded to a staggering 68.14% from an already impressive 54.58%.   Again using the Short Term strategy which looks to take profits once a trade has posted gains in the next few days. It’s no suprise that you see a great increase in Hit Rate on the WT3 ST(Short Term) versus the standard WaveTrader without the Fractal Confirmation. Although the strategies performance is great there are a few more features that really add some pow to this package. New Chart Templates New Indicators, Systems and Stops! The new set of chart templates are very helpful in that they visually identify the broad market direction compared to you current positions.  This has taken trade confirmation to a whole new level!  Along with the chart templates you will also get a new set of stops that use the fractal confirmation.  This is a big deal as it has drastically improved stop managment. So, it’s pretty clear that the updates in WaveTrader 3 have improved the overall trading experience, allowing you to fully leverage the fractal waves to improve the entire trading experience. If you have thoughts or comments let us know!

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