20 Years of Research and Development Finally Accessible by Retail TradersBy on 2016 Oct 7 Fri 13:09
This week is very important to me. More than 20 years ago, I successfully created the first real-time custom market breadth index across the S&P100 components on a Windows computer. There were many failed attempts due to many technological obstacles before I overcame them one by one. Over the years my custom market breadth engine was mainly licensed to trading firms for their proprietary trading needs. This week, I finally released a beta version of custom market breadth chart for Emini S&P which is accessible by my premium members. No need of higher-end computers or installation of sophisticated application to gain access to the information in real-time. A browser is all they need. This is one accomplishment that brings me lots of satisfaction.
Start of a Revolution Against Established Concepts in Trading
In the simple chart delivered, it packs much critical information that are not available anywhere else since it is computed in real-time across the 500 components of S&P500 based on my proprietary research. In trading or investing in general, rare but critical information always gives one hard edge way beyond data that is available to anyone. Alpha is generated more easily as one can take on the opposite side of the consensus opinions thanks to having information the counter-parties wish they have.
But this is just the start of a revolution in trading decision making process for retail traders. For one, I need to write many articles on how to utilize the information provided. I will also need to integrate the mechanical trading signals generated from my custom breadth data with the Real-Time Trading Assistant so that the standard interpretation of the information can be used immediately for better trading performance.
Maintaining Scarcity a Priority
I know that the availability of the custom market breadth chart will alter the market behaviour going forward as my premium members gaining unfair advantage over other traders. Once I deem that we are getting close to affecting the market, I will impose limitation on the number of premium members by either increase in membership fees (existing members will not be affected) or through a waiting list approach. I have been keeping the premium membership fees extremely low relative to the services offered. Going forward, however, I need to strike a balance between servicing the trading community and keeping a reasonable bottom line taken care of.
I don’t think I will increase the premium membership fees this year. By the end of December I will decide what I am going to do and let everyone know well in advance so that there is no surprises.
Advanced Trading Techniques and Mechanical Models
My little remaining time is mostly spent on writing the advanced trading materials that I promised. I still need to keep a bit of time for sleeping and other basic human needs. The goal with the advanced materials is not so much teaching the various ways to make money from the markets. Instead, they are written to satisfy the need of committed traders who need better foundation to build their own trading methods on.
Hence every trading method I disclose would be completely different from each other because they only work if you follow them consistently. Depending on your personality and temperament, you can stick to the method that suits you best. And that is usually the best way to develop consistent trading results.
Have a nice weekend everyone and Happy Thanksgiving to my fellow Canadians!