The swing trader's style stands between trend and contra-trend biases. The swing trader will typically catch most of major trends but will get in the trend later than regular trend followers. The strength of the swing trader remains in his ability to switch from trending to non-trending biases.
When does this system do well and when will it not?
The swing trader will typically catch most major intermediate movements but will get in the trend later than a standard breakout model. The strength of the medium term swing trader remains in its ability to switch from trending to non-trending. This allows the swing trader to do well in range bound markets. However, if the portfolio logic fails to shift from range bound to trending at the right time, periods of consistent losses are to be expected. Volatility needs to stay relatively stable intra-day for this portfolio to do well.
How are signals generated?
The close from the previous period minus the current closing price will be divided by the difference between the highest high for a number of periods minus the lowest low for a number of periods. The higher the result, the stronger the trend. If the indicator is above a specific value the system will trade the trend, otherwise the system will trade the range using the trend/range rationale. The portfolio automatically assesses market conditions every hour.
Is the M-T swing trader portfolio for me?
The M-T swing trader is an extremely active trader that wants to switch from trend to range according to market conditions. The M-T swing trader is comfortable with a high level of risk, as swing trading can be wrong for extensive periods of time if the trend /range situation is not assessed properly.
| 8 Model Portfolios to choose from Trend, Range-Bound, Volatility, and Swing Traders! |
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Risk Disclosure: Trading in foreign exchange and futures is speculative and may involve the loss of principal; therefore, funds placed under management should be risk capital funds that if lost will not significantly affect one’s personal financial well being. This is not a solicitation to invest and you should carefully consider your financial situation as to the suitability to your situation prior to making any investment or entering into any transaction.
The trading systems herein described have been developed for sophisticated traders who fully understand the nature and the scope of the risks that are associated with forex trading. Should you decide to trade any or all of these systems' signals, it is your decision.
No representation is being made that following a system's suggested signals will necessarily lead to profit. Investors may incur into a series of consecutive losses and substantial equity-draw-downs that can deplete their funds before the occurrence of any meaningful profit accumulation. |
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