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Old 10-09-2008, 10:23 AM   #1 (permalink)
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Marketclub Review


MarketClub Review and Trading Diary




Sign Up For Marketclub Full Access

Get access to the trade triangles and smartscan score for all 230,000 symbols they cover for $150 a quarter. Cancel within 30 days and you will not be charged.

***
I am pleased to introduce my new Marketclub Trading Diary, where I am going to be outlining a method for trading the stock, futures, and forex markets, and keeping a trading diary of the trades I generate using the Marketclub analytics software. I am interested in reviewing the marketclub software because it is meant to help traders determine the trend in the market and allows people who would prefer to add some discretion to the signals the ability to do so. In today's video we will review the instructions for using the marketclub software so we can begin placing some trades using the signals it produces.

Ok so I have my Marketclub login and have reviewed the main tutorials on the site to learn how to use the product. There are lots of features including realtime market news and charts with all the standard indicators and timeframes. The main part of the software which is designed to help me identify and trade these trends, is the "Trade Triangles" section of the platform which I have included a screenshot of here. You can see here a few of the over 230,000 stocks, indexes, forex, and futures instruments that the software analyzes.

From this page you can click to bring up a chart of the instrument, which you can then place your indicators and trendlines on. Once you have done this, you can also click to place the Marketclub trade triangles on the chart, which are designed to show you where the trend is and potential points for entering and exiting the market.

So, what exactly are are Trade Triangles?


The Trade Triangles are signals produced by triggers of Marketclub's proprietary algorithm. These red and green triangles signify changes in trend on a quarterly, monthly, weekly and daily levels.

Green triangles suggest positive trend
Red triangles suggest negative trends.

The Trade Triangle algorithm is comprised of weighted factors that include, but are not limited to price change, percentage change, moving averages, and new highs/lows.

The Trade Triangle algorithm is not intended to catch tops and bottoms, but instead identify the majority of a swing trend. MarketClub suggests a filtering approach when following the trade triangle signals so the first thing it is important to understand here is that the triangles by themselves are simply meant to identify the trend, and are not designed to be used as stand alone trade signals. In order to try and avoid triangles that occur in rangebound conditions, they offer filtering techniques depending on the market that you are trading which are the following:

When Trading Equities:

Monthly Triangles determine trend and possible entry points.
Weekly Triangles determine timing : exits, entries and re-entries.

The last triangle issued on the monthly chart should always be used to identify the overall trend. You can also use the monthly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the weekly triangles for possibly exit and reentry points, or entry points if your monthly is in a steady trend.

When Trading Futures & Forex


Weekly Triangles determine trend and possible entry points.
Daily Triangles determine timing : exits, entries and re-entries.

The last triangle issued on the weekly chart should always be used to identify the overall trend. You can also use the weekly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the daily triangles for possibly exit and reentry points, or entry points if your weekly is in a steady trend.

In addition to the trade triangles, each of the over 230,000 instruments that Marketclub analyzes comes with a chart analysis score, called the Smartscan Score. This score ranges from +100 (strong uptrend) to -100 (strong downtrend). In addition to the score the package also gives me access to see the components which make up the score which looks like what you see on your screen.

As a part of the trade filtering process for intermediate term traders such as myself, the site recommends focusing on the 4th and 5th "go lights". If both are green, then this suggests that the market favors the upside, and if both are red then this suggests that the market favors the downside. As this combined with the triangle analysis technique outlined in my last post is the filtering technique recommended by the site, this is what I will start with to pick out trades.

One last thing that it is important to point out here is that while the software gives you the entry and exit signals it does not provide stoploss levels or position sizing guidelines. For position sizing I am going to follow the % Risk Method and set my maximum risk to 2% per trade.

For my stoploss I will base this initially on my reading of support and resistance levels in the market. Initially I will use only a hard stop and then rely on Marketclub's exit signals to get me out of the trade if my stop is not hit. As I learn more about how the system performs in the market I will most likely add in a trailing stop as well.

Ok so that should be pretty much everything that we need to get started analyzing and reviewing some trades which we will do in my next video, so I hope to see you then. For those of you who would like to try out some of the features of Marketclub free of charge, I have included links below this video where you can do so.

As always if there are any questions or comments please leave them in the comments section below, and good luck with your trading!



Links to Help You Learn About MarketClub

MarketClub (MarketClub) on Twitter
Marketclub Review
Market Club Review | How to Use Market Club and Trade Triangles
Market Club - A Review of MarketClub



Overall, the MarketClub experiment yielded mediocre results. For other similar services reviewed on InformedTrades, see Top Dog Trading, Tradestalker, or INO TV.


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Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.
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Old 10-09-2008, 10:38 AM   #2 (permalink)
 
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market diary


Thanks Dave.....will be tagging along on this...will be a great exercise...Thanks...Jerry
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Old 10-09-2008, 07:21 PM   #3 (permalink)
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I subscribed as well and am looking forward to seeing your results.

Tek
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Old 10-14-2008, 11:15 AM   #4 (permalink)
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As part of my Marketclub review process I signed up to receive their free videos which cover different markets as well as general trading education to use along with their product. Below is the latest video where the founder of marketclub talks about the Crude Oil, Gold, and US Dollar:

MarketClub - Market Data, Quotes, Charts, and Trade Triangles For Smart Traders

If you would like to receive future videos you can sign up for them in the upper right hand corner of the above page free of charge.

Best Regards,
Dave
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Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.
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Old 10-17-2008, 10:59 AM   #5 (permalink)
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Markclub Review of Gold


The folks over at Marketclub just put out another video on the gold market where they are recommending a short position. While I can see the argument for a move to the shortside, for me the position is not setting up as I like so I am going to stay on the sidelines and wait as I outlined in my last post. For others who are considering getting short gold here you may want to check out the below videos. Getting on the video analysis list is free so if you would like an email each time they put out a new video like I get, just put your email in the upper right hand corner of the below link.

Gold, it's a game changer

Best Regards,
Dave
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Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.
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Old 10-22-2008, 02:23 PM   #6 (permalink)
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Analyzing the S&P 500 with Marketclub




Free Marketclub Trend Analysis
Enter any ticker symbol you would like and have it analyzed daily by Marketclub's Trade Triangle Technology free of charge.

Sign Up For Marketclub Full Access

Get access to the trade triangles and smartscan score for all 230,000 symbols they cover for $150 a quarter. Cancel within 30 days and you will not be charged.

David's Marketclub Diary Introduction Video
If you are new to my Marketclub Diary visit this link for an overview of how the Marketclub software works, and how I am using it to place trades.

***
Ok so far we have analyzed both the gold and oil etf's using the Marketclub analytical package. In today's post we are going to look at the S&P 500.

As always, we start with the weekly chart to identify the long term trend in the market. As you can see from the below chart we are in a downtrend as indicated by the red trade triangle issued on the 4th of September at 125.35. While the fact that the trade triangle was issued about a month and a half ago and at a price that is significantly higher than today's price is not going to necessarily keep me out of a trade, it is something that I am going to keep in mind as I go through the rest of my analysis.

SPY Weekly Trade Triangles


Next we look at the daily chart and we can see that there was also a red trade triangle issued today at 91.65. Another thing that is clear on this chart however, is that I need to be careful about ranging market conditions. As you can see from the first half of the chart and the last 10 days or so, when the market is not trending the daily trade triangles are going to chop me up quite a bit.

SPY Daily Trade Triangles


Next I am going to look at the Smartscan score which as you can see in the image below is at -100 indicating a strong downtrend. This also of course means that my 4th and 5th triangles are red which meets my requirement for a short trade.

Smartscan Score


The last step here is going to be to take a look at the charts and see what my discretionary analysis tells me which will be the topic of my next post so I hope to see you then. As always if there are any questions or comments please leave them in the comments section below, and good luck with your trading!

Best Regards,
Dave
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Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.
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Old 10-22-2008, 04:07 PM   #7 (permalink)
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**In addition to my review below, Marketclub also offers several free services to help you familiarize yourself with their products. You can find a list of Marketclub's services here.

***

Now that we have looked at the SPY using Marketclub's filtering technique, the next step is to take a look at the charts and outline what can be seeon from a long term support/resistance standpoint, as well as anything else worthy of note on the chart.

The first step here is to take a look at the monthly chart, which since there has been such a large move lower in the SPY, is going to take on increased significance from a support/resistance standpoint.

As you can see from the chart below, I have outlined severl levels of support and resistance on the chart, the closest of which from a support standpoint are 85 and 75. As you can also see on the chart we have already traded through the 85 level once and recovered and with this in mind I think that the 75 area would potentially be reasonable profit target on a short trade.

SPY Monthly



Next I took a look at the weekly chart and did not see anything additionally worth noting there that I have not noted on the monthly and daily charts. As you can see from the daily chart below, there is a fairly large triangle on the chart, and during the recent bounce in the market we have declining volume. Although we have declining volume on the recent bounce from the lows which is not something that is normally indicative of a healthy uptrend, we still have a series of higher lows on the chart which is something to keep in mind.

In addition to the pattern implications of the triangle, the top of the triangle also offers us a nice area to potentially place a stop which I would see somewhere in the area of the 97.50 level. With the current close of 90.33 and a target of at least the 75 area that would give us almost exactly a 2 to 1 reward to risk on the trade, which is the minimum I would require. Lastly if we trade down to the 75 level and break it, then there is a long ways to go before we hit another level of support so there is a chance that this trade could be a nice runner.

SPY Daily


As you can probably tell from the above commentary, I like this chart better than the first two we looked at and if the sellers return tommorow will look to get short here as my first paper trade using the Marketclub software.

Next we will take a look at the USD/JPY so I hope to see you then. As always if there are any questions or comments please leave them in the comments section below, and good luck with your trading!

Best Regards,
Dave
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Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.
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Old 10-24-2008, 03:43 PM   #8 (permalink)
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**In addition to my review below, Marketclub also offers several free services to help you familiarize yourself with their products. You can find a list of Marketclub's services here.

***
Ok so the SPY traded up and touched the bottom of the triangle that we were watching and looked like it was going to potentially close strong above that line however it held as resistance and the market sold off into the close finishing up at 87.04 which is the price that I am going to take for my first trade using the Marketclub analytics package.

For my paper trading I am going to say that I have a $30,000 account balance. For this trade I am willing to risk 1.5% of that which gives me a total risk of $450. I am setting my stop at 92.55 which gives me $5.51 worth of risk per trade. if I divide 450 by 5.51 I get 81.66 shares which I am going to round down to the nearest whole number of 81. So I will be trading 81 shares here short at 87.04 with a profit target of 75 and a stop of 92.55.

For the purpuses of my papertrading I am going to exclude slippage and commissions.

Here is today's chart which shows the 87.04 close in the market.

SPY Daily



As always if there are any questions or comments please feel free to leave them in the comments section below, and good luck with your trading!

Best Regards,
Dave
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Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.
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Old 10-28-2008, 10:49 PM   #9 (permalink)
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Review Update - Stopped out of SPY Trade


Just a quick note to let everyone know that I was stopped out of my SPY trade on today's rally. I also wanted to let everyone know that to keep things a bit cleaner, I am only going to be posting trades that I am taking and I will be doing video with this as well. For the full SPY video including the chart showing where I was stopped out, visit the post below:

Marketclub SPY Trade

Best Regards,
Dave
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Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.
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Old 10-30-2008, 04:54 PM   #10 (permalink)
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Marketclub Portfolio Review Update




Free Marketclub Trend Analysis
Enter any ticker symbol you would like and have it analyzed daily by Marketclub's Trade Triangle Technology free of charge.

Sign Up For Marketclub Full Access

Get access to the trade triangles and smartscan score for all 230,000 symbols they cover for $150 a quarter. Cancel within 30 days and you will not be charged.

David's Marketclub Diary Introduction Video
If you are new to my Marketclub Diary visit this link for an overview of how the Marketclub software works, and how I am using it to place trades.
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Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.
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