There are many ingredients to successful trading. But the first, most important thing to get right is entering trades that have the least risk. Draw downs are painful and lead to losses. What if you only entered trades that had strong market momentum in their favor – trades that are positioned at the most powerful reversal points of the market?
There is a technical method that embodies this concept.It’s called Higher Lows & Lower Highs. It works because markets naturally sell into weakness on a Lower High,and buy into strength on a Higher Low. In classic Swing Trading, we buy on pull-backs at a Higher Low. In corrections, we want to Short the first Lower High.
This picture illustrates the concept. The difficulty, of course, is identifying the Pivots! It’s not an easy task, but our programming team found a way to actually predict pivots so you see them form on the right edge. They’re called Wave Pivots and no other product has them. Our WaveTrader plug-in is designed specifically to find these Higher Lows and Lower Highs, the key to Profitable SwingTrading!
Perhaps the best feature of Wave Trading is how well it controls risk. When WaveTrader Strategies enter a trade at a Higher Low or Lower High pivot, they place a Stop just below (or above) the turn. These Stops will be very tight relative to the distance the chart can cover – making the Reward:Risk ratios extremely high.
WaveTrader 3 uses Fractal Wave Theory to find the most highly confirmed Wave Trading candidates in the market. A fractal is a repeating pattern that is self-similar across different scales. By applying Fractal Wave Theory, we can find “waves within waves”, taking advantage of the precision of smaller waves while benefiting from the smoothing, or stabilizing, effect of larger waves.
In WaveTrader 3, we are including two great new Strategies that take advantage of Wave Fractal Theory. Our testing shows that these new Strategies are generating more trades with higher accuracy over time and in the current market environment.
Virtually all trading styles can benefit from the Wave Trading method. In addition to all the Strategies shown here, you get a special WaveTrader System that you can add as a confirmer to other Strategies, advanced Color Charts and Trade Plans to further improve results.
Several Mechanical Systems are provided with WaveTrader3, which can be used as-is. But many users will want to apply WaveTrader as a tool to super-charge their trading, and we include training for that purpose.
A seminar series by Jeff Drake takes you step by step through a Lab Mode session to show you how to identify and trade the best setups WaveTrader 3.0 has to offer. This approach not only proves the profit-making potential of these Strategies, it’s the most instructive way of showing how to use it.
Of course, all our software products are 100% guaranteed.I am very proud of this new WaveTrader release, and am certain it is going to help you in your trading.
Least Risk Entry Points
Yield the Greatest Profits!
Markets move in waves. They rally, pull back, rally, and pullback again within the primary trend. In declines, the opposite happens—a stock or futures contract will drop, rally back,and drop again.
If you take a look at the chart to the right, you can quickly see the power of the new WaveTrader 3.0 plug-in for OmniTrader and VisualTrader.
It’s like a roller coaster with higher valleys and lower peaks. These valleys and peaks form our Higher Lows and Lower Highs—the least risk entry point for any trade.
WaveTrader 3 includes many great features; here is a quick summary.
The Best Signals at the Least Risk Entry Points
Fire up WaveTrader and run it on any list of stocks you are watching. You are going to be amazed at how well the Strategies pinpoint new strength or weakness.
Systems and Indicators
The specialized Trading Systems that identify Higher Highs and Lower Lows are included as components. This means you can add them to any Strategy you have been using to automatically confirm that a Signal is occurring near a probable Lower High or Higher Low—a powerful tool for enhancing existing Strategies or for new Strategy development.
The Wave Trading Method Seminar
We typically create seminars to go with our plug-ins to help users grasp the concepts. For WaveTrader, we took the next big step to define, test, and demonstrate a Trading Method that exploits the WaveTrader concept.
As the name implies, a Trading Method is a complete approach to trading—discussing the kind of list to use, howto find the best setups and how to manage your trades. Jeff Drake uses Lab Mode to show you, step-by-step how to successfully engage the market with this incredible tool. I can tell you one thing—this seminar is worth way more than we are charging for it.
When we introduced WaveTrader, we developed some great Strategies that identify Higher Low and Lower High entry points with Market Reversal exits. For the next release of WaveTrader, we wanted to kick things up a notch by creating Mechanical Strategies using the WaveTrader concept—Strategies that have demonstrated profitability in 100% automatic trading.
The WT Long Term and WT ShortTerm Strategies generate phenomenal Signals like the ones you see on this page for DOW.
The WaveTrader Pivot Stop uses the lows or highs identified by the WaveTrader Indicators as actual Stops in the Strategies. This keeps losses to a smaller value while taking maximum advantage of the wave principle.
Keep in mind, this is using real exits on the WaveTrader Signals.These strategies are just one of the components that makes WaveTrader 3.0 one of our highest performing plug-ins. We’ve done the hard work! All you do is run the Strategies on the right list and select the best candidates-as described later.
Long and Short entry points on ACXM. Note the low risk Stop placement
(indicated by the red lines)
New in WaveTrader 3
From Investopedia: “Fractals essentially break down larger trends into extremely simple and predictable reversal patterns.”
The example below shows the concept. At the top level, you have the basic larger trends identified by “Pivots” – a concept we heavily use in WaveTrader.
In the 2nd drawing, the larger Pivots are divided into smaller Pivots, and again the the 3rd drawing. The idea is to trade at the Pivot Reversals when the higher Fractals are in the right direction.
In our Classic WaveTrader Strategies,Trend is defined using standard technical indicators, like the Trend Intensity Index. For these new WaveTrader Strategies, we use Fractals instead –a more reliable way to establish the larger trend.
Pivot Reversals are difficult to identify on the right edge of our charts.The WaveTrader Plug-in has a Wave Pivot Indicator that identifies likely cycle lows and highs to establish probable reversal points.
This means the Pivots you see in the charts were actually available on the day they formed. The profitable implication of this is clear.
...the Pivots you see in the charts were
actually available on the day they formed!
The chart above shows the Fractal Pivots that demonstrate the power of the concept. The larger timeframe Pivots last about six weeks,while the shorter timeframe Pivots last about six days.
The new Strategies in WaveTrader 3 seek to identify pivot reversals in the lower timeframe after a pivot is formed in the higher timeframe.
We used the Fractal Pivots to create two powerful new Strategies presented on the following pages. In our testing, we are seeing higher accuracy and profits using this approach.
The WaveTrader 3 Strategies use multiple sized Wave analysis in order to find the best Wave trading opportunities available.
The WaveTrader 3 Long Term Strategy employs the WT3 Long Term Trade Plan which uses a Trailing Stop in order to maximize gains, while a Break even Stop helps to lock in a small profit if the trade doesn’t trend as expected.
The chart to the left shows a few examples of the WT3 Long Term Strategy. These trades typically last about two months.
The most important thing to note is the amazing performance advantage. These new Strategies are showing that using multiple sized waves increases both accuracy AND profitability!
WT3 Long Term
Profit / Trade
WaveTrader 3 includes special Color Charts that identify Fractal Zones in which Higher or Lower Fractal Pivots are identified – a GREAT Confirmer! Two Templates are included – one to identify Fractal Zones in the Market, and a 2nd to identify Fractals in the charts you are trading.
The WaveTrader 3 Short Term Strategy trades both long and short, and looks to take profits once a trade has posted a gain in the upcoming days.
The example to the left shows the kinds of trades WaveTrader 3 Short Term finds. Taking quick profits on highly confirmed moves can be a very profitable exercise! The great news is, WT3 Short Term is a MECHANICAL Strategy that includes a special Trade Plan to take profits onthese trades.
The stats shown below the chart comparethe WT3 Short Term Strategy with the same strategy without fractal confirmation. We see about double the
WT3 Short Term
Profit / Trade
Two New Strategies Included with WaveTrader 3:
WaveTrader 3 comes with the original MECHANICAL WaveTrader Strategies PLUS the new Fractal Strategies.The Power of Fractals has dramatically extended the profitability of the WaveTrader concept. At the low cost of WaveTrader 3, it’s an amazing value.
Incredible Trading Power with WaveTrader 3
WT3 Short Term
Profit / Trade