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Two Indicators and a Trading System You Can Add on to eSignal for Better Trading Decision Support

These three sets of technical analysis can be added to your eSignal application to extend your decision support capabilities. The cyclePack indicators help you make projections about your issue's likely future performance based on the hidden cycles it extracts from its past performance. EZ2Trade automates several popular charting tools, including Fibonacci levels and candlestick patterns, among others, and provides entry, stop loss and profit targets.

The Krutsinger Trading System provides entry and exit points for trading the NASDAQ 100 (as an index or individual stocks), as well as strategies for a trade gone wrong.

1. Chris Kryza's cyclePack
This unique collection of cycle analysis tools and indicators is brought to you by Divergence Software, Inc. cyclePack uses state-of-the-art digital signal processing (DSP) techniques to extract the cycles that exist in your financial data and gauge their significance. This information is then used to make projections as to how the security you are currently charting is likely to behave in the future.

What Does cyclePack Do?
The information cyclePack extracts from your financial data is used to make forecasts as to how the security you are charting is likely to behave over the next several bars (or longer).

While we would agree that there is no way to predict the future, the value provided by the cycle analysis process is that it can highlight likely short-term turning points, as well as provide an indication of future market direction. Think of cycle analysis as an enhancement to traditional technical analysis techniques.

Why Cycle Analysis?
First of all, we are not talking about lunar cycles, planetary cycles, solar cycles or anything like that. We are talking about digital signal processing techniques and the science of time series analysis.

Cycles are present in all time series and in all time frames. Whether you know it or not, you make decisions based on cycles every trading day. Each time you add an indicator to your chart and set the length of that indicator, you are making a decision based on cycles.

Each time you make a determination that a particular security will either start turning up in price or begin heading down, you are making a decision based (at least in part) on cycles. Cycles are everywhere in our price data. Yet, for most traders, the concept of cycles is a poorly understood one, and the cycles themselves are generally hidden from view.

Cycle analysis is the process of cleaning and filtering a time series (in our case, a series of security price data) and applying spectrum analysis techniques to extract the cyclical content. Once the cyclical components have been revealed, we can examine them and isolate the strongest and / or best-behaved cycles. With that information in hand, we can then make educated projections in terms of how the security being analyzed will behave in the future. Cycle analysis can be a powerful tool when used in conjunction with existing technical analysis indicators and methods.

Descriptions of the cyclePack © Indicators
cyclePack consists of four indicators that perform slightly different tasks.

  • cycleAnalyzer -- The cornerstone of the cyclePack c ollection, it displays the individual cycles extracted from your price data in a graphical format.
  • cycleProjector -- The cycleProjector takes the individual cycles and combines them into a synthetic time series and projects this time series into the future. It is useful for highlighting significant near-term turning points and can also provide a good estimate of overall direction.
  • cycleProjectorXT -- This indicator is identical in function to the cycleProjector , except that it uses a more detailed approach to extract the cycles and create the synthetic time series.
  • cycleMABands -- This indicator uses Linear Prediction algorithms to assist in the creation of Hurst-type price channels.

Visit our Specialty Scripts group in the eSignal File Share forum: Specialty Scripts http://share.esignal.com/groupcontents.jsp?folder=&groupid=114

And, for more information about the cyclePack, visit the eSignal page on our website: www.sr-analyst.com <http://www.sr-analyst.com>

2. Raghee Horner's EZ2Trade
EZ2Trade uses Fibonacci levels in its analysis to provide entry levels, stop loss levels and profit targets.

The EZ2 Trade Charting Collection is a set of tools that allow traders to automate:

  • Trendlines
  • Support and resistance
  • Fibonacci levels
  • Minor highs and minor lows
  • The wave
  • Candlestick patterns

Each of these charting tools is used in the EZ2 Trade Three-Step Trading Plan, which is sent to each subscriber. Effective for trading intraday and end-of-day Forex, futures and stocks, these tools bring together the best of classic charting with the automation of eSignal EFS.

The EZ2 Trade Charting Collection, along with the Three-Step Trading Plan, was developed to take the guesswork out of entries, stop-loss levels and trading targets. Each of these charting tools automatically adjusts with price and can also be used as a training tool with eSignal's Replay feature.

3. JoeKrut.com
The Krutsinger Trading System trades the NASDAQ 100 as an index or stocks within the NASDAQ 100.

This new trading system, engineered by Joe Krutsinger, CTA, is the result of 27 years of full-time research. It is an innovative strategy for trading the NASDAQ 100 Index or any of the 100 stocks within that index.

Joe has found an elegant entry technique designed to capture the short-term market turning points in the NASDAQ stocks. His system takes the guesswork out of where to enter, where to exit, and what to do if you are wrong! The entry is so robust that it yields extraordinary profits on the 100 component basket of stocks without added filters or stop logic. This system has been evaluated and received a top rating by Futures Truth!

This strategy is also an always in reversal system. It has no variables. It is never optimized. It can be used as a market-directional indicator or on stocks to indicate the direction for trading options! Let the developer back test it on your favorite NASDAQ stock. Simply email Joe Krutsinger, CTA directly with the symbol of your stock at dsachs@windstream.net and Joe will personally get your report right out to you.

Total Trade Analysis  
6 Months, 1,000 shares all trades, always in JoeKrut.com, 60 min. bars, 64.19% Profitable

April 15, 2004-Sept.1, 2004  4 ½ months All Trades Long Trades Short Trades
Total # of Trades 81 41 40
Total # of Outlier Trades 20 4 16
Total # of Open Trades 0 0 0
Number Winning Trades 52 28 24
Number Losing Trades 29 13 16
Max Trade Run-up $1,920.00 $890.00 $1,920.00
Max Trade Drawdown ($1,430.00) ($1,430.00) ($1,268.99)
Max Trade Run-up (%) 3.85% 1.61% 3.85%
Max Trade Drawdown (%) (2.47%) (2.47%) (2.33%)
Avg Trade Run-up $332.88 $274.05 $393.17
Avg Trade Drawdown ($310.44) ($307.99) ($312.95)
Percent Profitable 64.19% 68.29% 60.00%
Avg Trade (win & loss) $62.23 $36.87 $88.22
Average Winning Trade $283.32 $185.39 $397.58
Average Losing Trade ($334.20) ($283.00) ($375.81)
Ratio Avg Win / Avg Loss 0.84 0.65 1.05
Largest Winning Trade $1,889.00 $601.99 $1,889.00
Largest Losing Trade ($944.00) ($944.00) ($902.99)
Max Consec. Winners 12 7 7
Max Consec. Losers 3 3 3
Largest Consec. Profit $4,650.00 $1,440.00 $3,396.00
Largest Consec. Loss ($1,102.00) ($1,318.00) ($1,321.00)
Largest Consec. Profit (%) 8.62% 2.80% 6.55%
Largest Consec. Loss (%) (1.90%) (2.54%) (2.44%)

Disclaimer Regarding the Many Illustrations of Systems and Performance Results in This Article:

THERE IS A SIGNIFICANT RISK OF LOSS IN FUTURES AND STOCK TRADING. THE USE OF STOP ORDERS DOES NOT GUARANTEE LIMITED LOSS. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING.ALSO, 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.