The Systems trader, trades Apple stock. However, before it actually makes a trade, the system displays a signal that a trade is likely to occur at the open of the next bar. This is called the Forward Signal indicator. And with this being a 240 minute system; that is, each bar represents 240 minutes of price movement, you get as much as 4 hours advance warning before the system actually makes the trade.
This is a great feature, because it gives you plenty of time to get prepared. It’s particularly great for people that can’t sit in front of stock chart all day waiting for a setup. So, if you have a full-time job, or other obligations that restrict your ability to join a trade room, this is the perfect solution.
The way the Forward Signal works is quite simple. The indicator itself, looks like the heart beat monitor you’d see at the hospital or in a doctors office. It’s a horizontal line with beats that go up and down. They go up when the system wants to do a buy, and down when it wants to sell.
Each Forward signal has two parts to it. The first part is when it moves away from the horizontal, and either goes up or down, depending on the type of trade; this is the forward signal. And that signal tells the trader the system is going to make a trade at the open of the next bar.
This gives you a potential of 4 hours warning. Of course the signal could come at anytime during that bar, and what we found was the average lead time is actually between 2 to 3 hours, which is still plenty of time to prepare.
When a forward signal appears, it’s almost a certainty that the trade will happen on the next bar, we’ve found that a trade actually occurs about 80-90 percent of the time. The reason the trade isn’t imminent is because conditions could change, and that might cause the trader to back off and do nothing.
Now, 240 minute bars start when the cash market opens at 9:30 AM EST. So that means the Apple Trader trades at 9:30 Am, 1:30 PM and 4:30 PM. It’s possible a trade could be closed at other times due to special conditions like trailing stops and profit protect situations.
As I mentioned before, the Forward signal has two parts to it. The first part is the signal, and that’s where the line moves away from the horizontal; the second part is when the line returns to the horizontal, and this happens when the trade is actually executed.
When a trade is executed, subscribers are automatically alerted with a text message sent to their mobile device, they can also get the signal by monitoring a private Twitter feed. The forward signal, is also sent via text, however this is sent manually, to ensure the signal is solid, and to follow up with any special notes or guidance for subscribers to prepare for the trade.
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