Trading Strategies

OT Signals gives users the ability to apply several different trading strategies depending on market conditions.

Those interested in seasonality trades should refer to the Seasonality page.

For Swing traders, those why try to capitalize on short-term market moves, lasting from several days to several weeks, the most simple and straightforward strategy boils down to Buying at the Pivot line when the Swing indicator changes direction from down to up and Selling at the Pivot line when it changes direction from up to down.

Let's take a look at weekly IWM, for example:

with the relevant trade dates, entry/exit levels and results:

Please note that no stop/loss levels (provided by the S/L Indicator) were ever triggered.

Another option is to use the Swing Angle Indicator instead of the Pivot Line. Stay with the trade as long as the close remains above/below the 1 x 1 angle.

Swing traders can manage their risk exposure by selling half (or part) of their position once it reaches a Swing % Target level.

For Trend traders, those trying to stay with the trend as long as possible, the simplest strategy is to wait for Hurst channels to change direction, and use the Pivot line for entry/exit points:

This would have resulted in only one trade, lasting 1 1/2 years, from the week of November 26, 2012, to the week of April 28, 2014.

Hurst channels also do a great job at accurately defining price targets where a change in trend is likely to be triggered.

Test results can be found here.

Swing and Trend traders alike can benefit from the use of the LTF indicators. For swing traders the simplest strategy is to take swing trades only in the direction of the LTF indicator or when the regular and LTF indicator point in the same direction. Trend traders can increase their odds of staying with the trend until the LTF indicator changes direction.

Trend Bars™ offer users a novel way to visualize the trend of a security, provide an early warning system for impending trend changes, and help discover hidden support/resistance levels. Users can combine that insight with any other indicator.

While the basic strategy of following the Moon cycle may give you a slight statistical advantage, filtering Moon phase triggers with the Swing Indicator or with Swing Angles, will improve your results dramatically.

It has been observed that 80% of stocks follow the trend of the major indices. The Market Breadth Indicators will help you stay on the right side of that trend. Plan your bullish strategies when market breadth is oversold, and avoid chasing the market when breadth is overbought.

And last but not least, the BSH and Power indicators should always be considered when initiating a trade.

Disclaimer:

Please note that these results are hypothetical, and are provided for educational and informational purposes only. They do not constitute trading advice, nor an invitation to buy or sell securities. Trading can result in substantial losses, and users bear sole responsibility for their actions.