Automated Trade Signals

Auto Channels released Automated Trade Signals on April 8th, 2013. All trade signals generated are based on the fact that we need to maximize our profits, minimizing losses on the way.

Entry Signals:
After a Channel break, the Trade Entry Signals are only generated after a small consolidation within or beyond the Entry Range. This avoids false breakouts and whipsaws. The Entry Signals ensure a balance between good momentum and decent entry levels. But it is advised to enter trade within the Entry Range for better Risk / Reward Ratio.

Multiple Entries:
After a trend is setup, multiple trade signals may be generated even before targets are achieved. This helps us to scale our trades instead of entering all at one go. Suppose our trading capital allows us to trade in 3 lots, its better to enter only 1 lot at the first entry signal and subsequent lots at the next entry signals. This scales out our risk with the profits accrued in the earlier lots. However, we do advise to enter subsequent lots only after the previous lot generates some profits. This can easily be done by ensuring the Caution Level has moved beyond our previous Entry Range.

Profit targets:
Just as we scale our Entry, we should scale our profits too. Just by booking profits of each trade individually, we automatically scale out our profits.

Caution Exits:
The moment Caution level is breached, denotes that the momentum in trend is lost. As such it is advised to exit the trade. However, we do not exit the trade immediately but wait to exit near the Entry Range keeping Stop Loss at breach of Channel.

Case Study:
In this case study of Nifty on 11/01/2013, we see Nifty opened gap-up and then formed a clear downtrend. The Automated Trade signals gave 5 Sell signals. We short at the first trade signal, then again at the second trade signal. Then we book profits on the first trade at its Target. We short again at the third trade signal. But we do not short at the fourth trade signal as the golden line failed to cross beyond the Entry Range of our previous entry. Then we book profits in our second trade. Now again we short at the Fifth signal and we book profits in our third trade. But then we see a sharp pullback and Caution is Triggered. We wait for exit near Entry Range and manage to exit our last trade also with decent profits. In total, we traded 4 of the 5 signals and booked full profits 3 in of them and decent profits in the fourth as well.

Please do read the Disclaimer and Usage Terms before using Automated Trade Signals.