Trendseeker

Commodity Futures Trading System

 Trendseeker is a commodity futures trend following system analysing markets from diverse areas including:

Share Price Index	Financials	Grains	Metals
Currencies	Softs	Meats

WHAT IS TREND FOLLOWING AND DOES IT WORK?

Trend following is in a nut shell defined as cutting your losses short and letting your winners ride.

To come up with a trading system made up of rules based on the above principle is known as “systematic trend following”. Just as there are many opponents to trend following there are also many proponents of it. The main question is “WILL IT WORK FOR ME?”

In coming up with a profitable strategy, it’s important to understand why trend following works. Instead of getting into a discussion about leptokurtis (big word!) or “fat tails” we refer to one observable fact, TRENDS EXIST. Just look at any long term chart and you will see markets in one of three phases: up trend, down trend, sideways trend. To put it simplistically, trend following makes the assumption that trends DO exist and based on certain defined rules attempts to capture as much of any given trend as possible.

Rather than predict the beginning of any trend, Trendseeker reacts to what is pre-defined as an ongoing trend and “hops” on so to speak. Some of the time, there is no trend or it is too short-lived and hence either we do not enter the trade or exit it early (cutting our losses). But at other times we do capture a good part of a trend and a good system will enable the trader to stay in the game for as long as the trend exists (riding our profits).

Trendseeker, the strategy

Trendseeker is a long-term strategy that analyses several different markets where the markets are scanned for various criteria for the entry levels. The entry filters for buy or sell signals are based on market percentage penetration of previous twenty-day lows and highs, pattern set-ups and the underlying long term trend. Exit stop levels are based on historical volatility and are adjusted to market movements.

 After a sell or buy strategy is initiated from the previous night the market is bought or sold at market opening of the next main session. The initial stop is based from the opening price and the adjustment of stop levels is determined on the magnitude of the movement on the profitable position

The Trendseeker trading application has been designed by CK Locke’s Research Division, hence is used exclusively by our clients. It has been designed to suit clients who find that they are too busy to continuously monitor the markets. It also offers prudent investors a means of diversifying into alternative asset classes, as commodity trading is not dependent on the ongoing performance of the property or the stock market.

Trading this way is easy; your authorised representative will call you when a new trading signal is generated with a recommendation to enter the trade/s. He will also call you with advice as to when and where to make stop loss adjustments. 

Please examine the results so far and call us on 1800 354 418 if you wish to open an account with us or address further questions.

This application and signals therein have been back tested from a diversified range of international futures contracts using seven years historical price data comprising of thirteen contracts.