Trading Systems

Our Trading Systems are the core of our work in financial markets. Without a trading system, we can’t survive in any market even for a week. In fact, there can be no clear starting point without a Trading System.

“To invent you have to experiment, and if you know in advance that it’s going to work, it’s not an experiment.” — Jeff Bezos

We are constantly developing and testing new Trading Systems that can navigate a particular market better. Not all experiments give results, but even if one experiment gives good result, then it can be very profitable.

“Cornerstone” is the name of our Foundation Trading System that has been developed based on our study of last 20-50 years of market data, on various timeframes from hourly to yearly, in each market/index that we cover. This system keeps evolving as it learns from new market data every month, and we make ongoing effort to improve and test the system with both new and old market data.

Following are the key design goals of this system:

  1. Give Buy signal when market starts meaningful uptrend.
  2. Give Buy signal when a market correction has completed/exhausted,
    to enable lower level buying.
  3. Give Sell signal when market starts meaningful downtrend.
  4. Give Sell signal when a market rally has completed/exhausted, 
    to enable near-peak selling, and exit of existing positions.
  5. Give near term, medium term, and long term Price Targets 
    in all the markets we track.
  6. Give Warning about upcoming volatility.
  7. Give Warning about significant divergence in 
    usually correlated assets/markets.
  8. Give Alert regarding unusual investor behavior 
    in any of the markets we track.
  9. Give Alert regarding any rare price action 
    in any of the markets we track.
  10. Give Shutdown signal to close all open trades 
    in case of rare negative event of likely high impact.

The above design goals have been achieved to a good extent, and they were fully tested during the market rally from Oct 2019 to Feb 2020, and during the sharp correction in Feb 2020 and March 2020. Of course, there is always enough scope for improvement, because no Trading System can be perfect. We will keep improving!

Cornerstone foundation system includes 4 Trading Systems, each operating with a different methodology, in different time frames (hourly, daily, weekly, monthly).

  • For example, each market (S&P500, Nasdaq100, Crude Oil, etc) has all 4 Trading Systems analyzing that market in their respective ways.
  • For example, we are not yet offering signals on Agri Commodity Futures (like Corn, Wheat, Soybean) or Hang Seng index of Hong Kong market. But it’s on our product roadmap, and whenever we do it, all 4 Trading Systems will be trained and activated for Hang Seng index, to create a unique Hang Seng Trading System, which will evolve on its own path.

The output of these Trading Systems is Buy/Sell signals on various time frames.

  1. Short Term (Alpha) signals are based on Hourly charts, and they can help traders who are trading on timeframes of 1 to 5 days, including Intraday Traders. A vast majority of traders will come in this category, and these signal can be very profitable if the market is moving in a trend.
  2. Near Term (Delta) signals are based on Daily charts, and they can help traders who are trading on timeframes of 1 to 30 days. Many positional traders will come in this category, and such signals can capture a good part of a market move.
  3. Medium Term (Gamma) signals are based on Weekly charts, and they can help both traders and investors who are working with timeframes of 1 to 12 months. Many traders and investors will come in this category, and such signals can capture a good part of a market move and a market cycle itself.
  4. Long Term (Omega) signals are based on Monthly charts, and they can help traders and investors who are working with timeframes of 1 to 3 years. Many investors will come in this category, and such signals can capture a significant part of an entire market cycle, including the major market trends that create big gains.
    • For example, we have been asking all investors in our network to invest in the Nasdaq ETF (QQQ) since year 2010, when it was $50 per share, and now its $220 per share in Jan 2020. Such large moves can been seen with long term analysis. We are in the “Tech Century” and the Nasdaq ETF (QQQ) has much higher targets, and all investors can continue to accumulate it ongoing basis, and even more so during 5-10% corrections.

The Trading Systems use a combination of linear and non-linear analysis.
And they are currently being used in real-money accounts of various sizes.

Because we focus on limited number of markets/indices, we can study them in detail, and try to do better analysis with each passing quarter, and enable our Trading Systems to give better trading signals to our customers. Please see this page to learn more: https://jupiterfutures.com/subscribe/