Trading in the Direction of the Major Trend

When I am considering taking a short position, I will only will take a short position in a stock or ETF if the Major Trend System for that stock or ETF is on a ‘sell’ signal. Taking short positions in the direction of the major trend helps prevent ‘whipsaw’ trades when counter-trend rallies occur. Preventing whipsaw trades can increase profits, reduce losses and increase the percentage of winning trades.

Trading in the Direction of the Major Trend

• The 1-Month/20-Month EMA Major Trend System can be used as a filter that only allows trades in the direction of the major trend
• This helps prevent ‘whipsaw’ trades when counter-trend rallies occur
• Preventing whipsaw trades can increase profits, reduce losses and increase the percentage of winning trades

FUTURES. STOCKS, FOREX AND OPTIONS TRADING INVOLVES HIGH RISKS WITH THE POTENTIAL FOR SUBSTANTIAL LOSSES.

PLEASE READ. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE IS A SUBSTANTIAL RISK OF LOSS TRADING STOCKS AND OPTIONS WITH OR WITHOUT THIS OR ANY OTHER ADVERTISED PRODUCT, SERVICE OR SYSTEM. ALSO, HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.