Introduction to Swing-Trading – Why Swing Trade?
Swing trading is an active form of trading lying in the middle between day trading and trend trading. Trend following or long-term trading seeks to hold positions for many weeks or months for every trade. As the name implies, trend following requires a trend. The challenge is finding a trend. Most markets DON’T trend but a fraction of the time. It is said that markets are in congestion, the opposite of trending, as much as 75 to 85% of the time. This does not leave many opportunities to trade. CONTINUE READING
Is Universal 2.1 a “TYPICAL” trading system?
Not really? It fills a void in publicly offered trading systems. Most systems are either long-term or day-trade. Long-term systems require large moves which only happen about 15% of the time. (Most) Day-trading requires constant intraday monitoring (NOT our daytrade system!). Universal is a swing-trading sytem which focuses on 2 to 5 day moves which can happen all the time.
Universal 2.1 is now available with 2 NEW features to increase profitability.
The first is a TREND FILTER. Trading with the Trend has never been easier. Our new trend filter tries to identify the long-term trend and capture short-term profits in that direction. The second new feature is a “PULL BACK INDICATOR.” How many times have you entered a trade on a big breakout only to see that big breakout pullback for several days. Sometimes, even knocking you out of the trade only to see the market then continue to move in the direction of the breakout. The new filter in Universal 2.1 makes the market pull back from the big move extreme before it enters a trade. Never buy the top of a move again. Never sell the low of the move again.
It can be easy to make money in trending markets. The key is to NOT give back the profits when the congestion invariably starts. Most long term systems get clobbered in congestions. Too bad. Because let’s face it, markets can b in congestion 50 to 80% of the time. They aren’t designed for short term swing trading. Universal was. My father, John R. Hill, believes the best money is made by trading the 2 to 5 day moves. That’s the way he designed Universal in 1991. That’s the way this current version works. It’s average trade last only 3 or 4 days.
In HYPOTHETICAL testing, Universal 2.1 works across many market groups. It shows good profits with low drawdowns. It averages about 33 trades per year per market and is only in the market 37 to 40% of the time in these markets Of course PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
This is one possible portfolio for a medium to large account. It consist of what we consider to be the top two markets in each sector.
