Introduction to the Power Trend System Software

The Power Trend System Provides a Statistical Edge.

That’s a profound statement based on my years of experience in the Futures market. The “edge” comes from a combination of the software logic itself and the strategy we developed for trading the alerts.

It makes sense that a trading system with a statistical edge can be traded purely mechanically. Over the years I’ve talked to and corresponded by email with over a thousand traders, from all walks of life and with all different levels of experience, and the one thing everyone seems to be searching for is a trading system that they can trade “purely mechanically”.

We developed the Power Trend System with that exact goal in mind.

Profitable traders are specialists. They pick one setup, one market, one strategy, and are laser-focused on them. The Power Trend System trades trend reversals in ES using a specific strategy based on current ATR’s and ranges in the market. The edge comes from a combination of the trade setup, the Entry Trigger and the combination of using Targets and Trailing Stops. In addition, the strategy of “getting to breakeven quickly” puts the odds in our favor even more.

All these parts fit together and are what gives the Power Trend System a “statistical edge”.

However, there are lots of considerations that come along with trading this (or any other) system mechanically. It sounds easy but you have to make sure you have the right mindset and take the correct approach.

This is an overview of how you should think about trading the system:

The desire to win and the aversion to losing will hinder your trading success.
Focusing on the immediate wins and losses are not consistent with trading a system that has a statistical edge.
If you think in terms of probabilities, it doesn’t matter whether the next trade is a win or a loss or a breakeven.
Focus on the long-term statistical advantage rather than individual results.
Short-term results are random.

Confidence is having conviction in the statistical edge of the system.

What matters is not deviating from the tested system’s signals and rules, and having a sufficient sample size.

Losses that occur while following the rules indicate that the edge is being utilized and the system is functioning correctly.

Think carefully about the idea that the edge is working even when there are drawdowns.

Drawdowns are inevitable and are often the result of sub-optimal market conditions.

Let the law of probabilities work on a large sample size to bring out the system’s edge.

All wins and losses that occur while following the rules are necessary.

Think in probabilities. You don’t know the outcome of 1 trade. You’ll know the outcome of 100 trades.

Successful trading is probability + execution + confidence in the system + infinite repetition.

The hardest parts of trading the Power Trend System:

1. Patiently waiting for the Alerts.
2. Pulling the trigger when an alert triggers-in without hesitation.
3. Calmly accepting the final outcome of each trade. There will be stop outs. There will be lots of breakeven trades.

Trading is a waiting game. Waiting games are the hardest games you’ll ever play. They go against our natural tendency to want things fast. Trading the system is knowing that you have a statistical edge and staying focused on that. The rest is just waiting for the system alerts.

Be content with inactivity. The perfect setups don’t come right after the market opens and they don’t come every day. If you desperately seek action, you put yourself at a disadvantage. Good traders are patient. They know when to stay out of the market. Don’t be short-sighted and impulsive. Don’t desperately seek action even when the conditions aren’t right.

Important Points for Trading the Power Trend System:

1. Focus on long-term statistical advantage rather than individual results
2. Wins and losses are mere data points and there’s no need to be overjoyed or disappointed
3. A 70% win rate doesn’t mean wins and losses come alternately
4. Collect a large sample size to maximize the edge of the system.
5. Maintain consistency and follow the rules no matter what.
6. Have a long-term perspective looking ahead to months or a year later
7. Trade on Sim for a while to build confidence in the Alerts.

Probability works slower than you think.

It’s important not to be swayed by short-term results, have a long-term perspective, pass the test of losing streaks and drawdowns, and continue doing what you should by following the system.

Trade on Sim mode For a Period of Time to Start Off:

It’s imperative that you have confidence in the system before trading live with real money. It’s also extremely important that you understand the mechanics of trading the Alerts so you don’t make mistakes with order entries and exits.

The way to do this is to trade along with the system on Sim (paper trade) for a period of time.

The longer you trade on Sim and the more patient you are, the better understanding of the “edge” you will have. Intraday market behavior varies from session to session and the market experiences different phases. You will want to experience how the system reacts over all sorts of different market sessions to get a good feel for things – and build confidence.

We highly recommend that you spend the first week just observing the system in action – while going over the Help / Documentation. Then begin trading on Sim and take a slow methodical approach. There are certain parts of the Help that won’t likely “sink in” the first time you read them as you first start out.

The more time you invest in working with the system before trading live, the better it’s likely to work out over the long-term.

Make it a point to reserve judgement until you have experienced at least a couple weeks with the system.

The reason for this is because one of two things is likely to happen when you first get started. Either the system is going to perform exceptionally well right from the start and you will feel overconfident. Or the system will experience a rough patch with stop-outs and breakeven trades and you will assume it doesn’t work.

Conclusion:
Letting everything I mentioned above soak-in should help get you in the right frame of mind and start you off on the right foot. There’s no rush at all so take your time.

Ready to Dive-In and See how Everything works? Start by clicking Below and Go Through Each Section In Order.