stan heller jamin heller host -vectorvest canada moderator · 2018. 4. 12. · neither vectorvest...
TRANSCRIPT
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Stan HellerHost - VectorVest Canada
Jamin HellerModerator
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Purpose for these monthly Forums:
• Further your knowledge of the VectorVest System.
• To share current ideas and strategies for making money and protecting wealth.
• To create opportunities to interact and share ideas with other members of our VectorVest community.
• To promote the meetings and activities of our VectorVest User Groups.
• To provide a forum for VectorVest Investors who do not live near a User Group Community.
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11:00 Welcome and Purpose of Meeting (5 min.)
11:05 The 15-Minute Market Forecast (15 min.)
• Colour Guard Review – VectorVest markets around the Globe
• Strategy and Market Climate Highlights – Canada and US
11:15 User Group News (5 min)
• Meetings This Month - (Friday Views Tab/User Groups)• How to Access Recordings of Past Online Forums – www.vectorvest.ca/blog (Category - Online Forums)
11:20 Special Presentation (40 min.)
• 30 Minute Trading System, presented by Tony Jackson, Atlanta, Georgia User Group.
12:00 Special Presentation (25 min.)
• Trading The ADX, Tips and Techniques, presented by Stan Heller, Consultant, VectorVest Canada.
ADJOURN – 12:30 Eastern / 09:30 Pacific
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DISCLAIMERNeither VectorVest nor any of its employees or subscribers are licensed to offer specific investment advice. You should be aware of the risks involved in stock investing, and you use the material contained herein at your own risk. This material is believed to be reliable, but neither VectorVest, Inc., nor any of its suppliers guarantee its accuracy or validity, nor are they responsible for any errors or omissions which may have occurred. The analysis, ratings, and/or recommendations made by VectorVest, and/or any of its suppliers do not provide, imply, or otherwise constitute a guarantee of performance.
Everything you will see and hear today is provided for educational purposes only and should not be considered investment advice. The information is designed to empower you to make your own investment decisions, and these decisions are yours, and yours alone to make.
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11:05 The 15-Minute Market Forecast (15 min.)
• Colour Guard Review – VectorVest markets around the Globe
• Strategy and Market Climate Highlights – Canada and US
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VVC/CA – -4.34% YTD VVC/US – -1.90% YTD VVC/AU – -2.11% YTD VVC/UK – -4.93% YTD
SingaporeVVC – 1.47% YTD
EuropeVVC – -0.84% YTD
Hong KongVVC – 1.37% YTD
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Performance of Global Markets Tracking ETFs2018 YTD Performance
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Instructors: Steve Chappell, Director of Trading Systems;
Ray Clark, Director of Educational Services; Cathy O’Nan,
Senior Instructor; and Stan Heller, VectorVest Canada.
Horizons ETFs representatives will be attending and lunch
sponsors.
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Wicked Wedge
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11:20 User Group News (5 min.)
Meetings This Month (Friday Views Tab/User Groups)How to Access Recordings of Past Online Forums –www.vectorvest.ca/blog (Category - Online Forums)
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User Group
Meeting
NoticesFor more information including agendas, maps and driving directions, go to:
1. VectorVest Views2. Any Friday3. User Group Section
For webcast recordings and to register for upcoming Forums and Webinars, please go to:
www.vectorvest.ca Click on Live Events.
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How to Access Articles and Recordings from Past Online Forums
March
February
January
December
November
October
September
August
July
June
May
April
March
February
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11:20 Special Presentation (40 min.)
• 30 Minute Trading System, presented by Tony Jackson, Atlanta, Georgia User Group.
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30 Minute Trading System
Presented by Tony Jackson to the VectorVest International Online Forum
on April 7, 2018
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Disclaimer
There is no guarantee that these theoretical results could be reproduced in real life trading.
There is no guarantee that future trades will perform in a similar fashion to these theoretical trades.
I am not a Licensed Professional Broker, but a trader like you.
I offer this information for your use but do not guarantee the accuracy of this information.
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30 Minute Trading System
Would you be interested in?
• A simple trading system that uses a few ETFs
• Can be used in retirement accounts
• Requires less than 30 minutes a day to manage
• Has been back-tested over many years with over 80%
winning trades
• Requires no timing system but avoids trading in deep
bear markets
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30 Minute Trading System
“How To Trade Like The Pros” webinar Nov 2 & 9
RSI 25 Trading System
• Developed by Larry Conners
• Focuses on ETFs in long term up trends, but are
experiencing short term corrections
• Uses 200 day SMA and 4 period RSI
• Trades only near the close of the day
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RSI 25 Trading System
Entry Rules:
Buy Only When ETF is Above 200-SMA, With 4 period
RSI Below 25
*Enter near the current day’s close
Profit Exit Criteria:
EXIT when 4 period RSI goes Above 55.
*Exit near the current day’s close
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Focuses on ETFs in long term up trends, but are experiencing
short term corrections
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BUY when ETF is Above 200-SMA, With 4 period RSI Below 25
*Buy near the current day’s close
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EXIT when 4 period RSI goes Above 55.
*Exit near the current day’s close
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RSI 25 Chart Settings
200 Day Simple Moving Average
Right Click on Price | Add Moving Average / Simple
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RSI 25 Chart Settings
RSI – Add Parameter | Technical Analysis | RSI
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RSI 25 Chart Settings
RSI(4) Pane - 25 / 55 Horizontal Lines
Select Horizontal Line | Click in RSI Pane | Drag to 25 / 55
Right click on Lines to Adjust Color / Thickness / Style
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BUY when ETF is Above 200-SMA, With 4 period RSI Below 25
EXIT when 4 period RSI goes Above 55.
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Use Graph Control Panel To Get Exact RSI(4) Value
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RSI 25 Unisearch
Unisearch can be used to search for Entry and Exit conditions
ProTrader needed to search for RSI condition
Realtime or Intraday data for search in last 30 minutes of day
Entry Rules:
Buy Only When ETF is Above 200-SMA, With 4 period RSI
Below 25
Profit Exit Criteria:
EXIT when 4 period RSI goes Above 55
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RSI 25 Buy Search
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RSI 25 Buy Search – 11/07/2017
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RSI 25 Sell Search
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RSI 25 Sell Search – 11/16/2017
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RSI Operator
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RSI(4) Below 25
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RSI 25 System Using The ETFs For The 4 Major Indices
*Claim made during VV webinar
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RSI 25 System – 4 Major Index ETFs
SPY is the ETF for the S&P 500
DIA is the ETF for the Dow 30
QQQ is the ETF for the Nasdaq 100
IWM is the ETF for the Russell 2000
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RSI 25 System Using The ETFs For The 4 Major Indices
71 Set Ups in 2017 include each time RSI(4) < 25
This means you could purchase the same ETFs multiple times
before reaching the RSI(4) > 55 sell criteria.
For example, IWM had setups on 11/07, 11/09, 11/10, 11/13,
11/14, and 11/15 before the RSI(4) > 55 exit on 11/16.
Cannot automate back test in VV – No Stop based on RSI
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How to Back-Test the RSI 25 System
AmiBroker
*OmniTrader (what I used)
TradeStation
Fidelity Wealth-Lab Pro
https://quantpedia.com/Links/Backtesters
NOTE: The RSI calculation needs to use “Wilders Smoothing”
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Back-Test of the RSI 25 System
Portfolio: $50,000
Watchlist: SPY, DIA, QQQ, IWM
Allocation: 25% of portfolio, no margin
Test Period: 11/01/2016 to 11/01/2017
Commissions: None
Execution: Buy/Sell using Closing Price
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Back-Test of the RSI 25 System 11/01/2016 to 11/01/2017
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2017 RSI 25 System - Equity Analysis
Starting_Equity $50,000.00
Ending_Equity $54,158.15
Equity_High $54,158.15
Equity_Low $49,639.49
Net_Profit $4,158.15
Avg_Ann_ROI% 8.32%
Max_Drawdown $396.15
Max_Drawdown% 0.74%
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2017 RSI 25 System - Trade Analysis
Number_Of_Trades 30
Profitable_Trades% 96.67%
Largest_Win% 2.91%
Largest_Loss% 2.67%
Avg_Profit% 1.08%
Avg_Invested% 8.74%
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RSI 25 System Using The ETFs For The 4 Major Indices
*Claim made during VV webinar
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Back-Test of the RSI 25 System
Portfolio: $50,000
Watchlist: SPY, DIA, QQQ, IWM
Allocation: 25% of portfolio, no margin
Test Period: 01/01/2015 to 12/31/2015
Commissions: None
Execution: Buy/Sell using Closing Price
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Back-Test of the RSI 25 System 01/01/2015 to 12/31/2015
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2015 RSI 25 System – Equity Analysis
Starting_Equity $50,000.00
Ending_Equity $55,699.93
Equity_High $55,699.93
Equity_Low $50,000.00
Net_Profit $5,699.93
Avg_Ann_ROI% 11.40%
Max_Drawdown $1,159.71
Max_Drawdown% 2.10%
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2015 RSI 25 System – Trade Analysis
Number_Of_Trades 31
Profitable_Trades% 90.32%
Largest_Win% 2.93%
Largest_Loss% 1.34%
Avg_Profit% 1.41%
Avg_Invested% 9.55%
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Back-Test of the RSI 25 System Starting 2007
Portfolio: $50,000
Watchlist: SPY, DIA, QQQ, IWM
Allocation: 25% of portfolio, no margin
Test Period: 01/01/2007 to 12/31/2017
Commissions: None
Execution: Buy/Sell using Closing Price
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Back-Test of the RSI 25 System 01/01/2007 to 12/31/2017
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2007-2017 RSI 25 System – Equity Analysis
Starting_Equity $50,000.00
Ending_Equity $92,822.84
Equity_High $92,822.84
Equity_Low $49,344.41
Net_Profit $42,822.84
Avg_Ann_ROI% 5.9%
Max_Drawdown $9,484.57
Max_Drawdown% 14.27%
Avg_Ann_MDD% 4.7%
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2007-2017 RSI 25 System – Trade Analysis
Number_Of_Trades 274
Profitable_Trades% 83.94%
Average_Trade_Length 5 days
Longest_Trade 20 days
Largest_Win% 6.42%
Largest_Loss% 10.55%
Avg_Profit% 0.92%
Avg_Invested% 10.39%
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RSI 25 System – 3x Leverage ETFs
What about using 3x Leverage ETFs?
SPXL is the 3x leverage ETF for SPY (S&P 500)
UDOW is the 3x leverage ETF DIA (Dow 30)
TQQQ is the 3x leverage ETF for QQQ (Nasdaq 100)
TNA is the 3x leverage ETF for IWM (Russell 2000)
SPXL and TNA began trading on 11/12/2008
UDOW and TQQQ began trading on 3/31/2010
First RSI 25 signal on 9/1/2009
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Back-Test of the RSI 25 System Using 3x ETFs
Portfolio: $50,000
Watchlist: SPXL, UDOW, TQQQ, TNA
Allocation: 25% of portfolio, no margin
Test Period: 09/01/2009 to 12/31/2017
Commissions: None
Execution: Buy/Sell using Closing Price
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Back-Test of the RSI 25 System 09/01/2009 to 12/31/2017
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2009-2017 RSI 25 System – Equity Analysis
Starting_Equity $50,000.00
Ending_Equity $225,595.47
Equity_High $225,595.47
Equity_Low $50,000.00
Net_Profit $175,595.47
Avg_Ann_ROI% 18.5%
Max_Drawdown $17,707.55
Max_Drawdown% 22.57%
Avg_Ann_MDD% 8.8%
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2009-2017 RSI 25 System – Trade Analysis
Number_Of_Trades 209
Profitable_Trades% 88.04%
Average_Trade_Length 5 days
Longest_Trade 17 days
Largest_Win% 18.78%
Largest_Loss% 25.70%
Avg_Win% 4.19%
Avg_Loss% 5.95%
Avg_Profit_Per_Trade% 2.98%
Avg_Invested% 10.54%
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What If I Don’t Have Real-time or Intra-day Data?
Check the charting tools available from your broker
Broker Platform
Schwab StreetSmart Central
Fidelity ActiveTraderPro
TD Ameritrade ThinkOrSwim
Compare RSI(4) value against VectorVest RSI(4)
SPY on 11/15/2017 had an RSI(4) value of 18.6186
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Schwab StreetSmart Central Chart
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Fidelity ActiveTraderPro Chart
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TD Ameritrade ThinkOrSwim Chart
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Questions?
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12:00 Special Presentation (25min.)
• Trading The ADX, Tips and Techniques, presented by Stan Heller, Consultant, VectorVest Canada
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Random Tips and Ideas for Making Money With VectorVest
TODAY’S TOPIC: Trading The ADX, Tips and Techniques.
April 7, 2018
Stan Heller, Presenter
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What Is The ADX➢ ADX: Average Directional Index;
developed in 1978 by J. Welles
Wilder
➢ The ADX by itself is a non-
directional, Price Trend Strength
Indicator. We use ADX to show if
market is trending or non-
trending, and identify how strong
is the trend.
➢ The ADX is constructed from two
directional indicators called DI’s,
or Directional Movement Index.
The trend is deemed to be bullish
when the +DI (green line) is
above the –DI (red line).
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What Is The ADX➢ The ADX together with +DI and –DI can form an effective trading system
✓ Use the +DI/-DI as your price direction indicator
✓ +DI/-DI crossovers can deliver Buy/Sell signals on their own, but generally best used in
conjunction with ADX
✓ Use ADX to show if market is trending or non-trending, and the strength of the trend
General Guidelines:
• If ADX rises above 10-18 after being lower, expect the market to trend
• If ADX crosses above 20 from below, the market is trending
• If ADX crosses below 20, the market is consolidating or non-trending
• If ADX crosses below 35-40 after being higher, it suggests the trend is getting
exhausted and is likely to consolidate or reverse
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Popular ADX Settings
➢ Standard Settings or Periods: ADX - 14, ADXR - 14, +DI/-DI – 14 (14,14,14)
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ADX Works In All Timeframes
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ADX Works In All Timeframes
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ADX Works In All Timeframes
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ADX Works In All Timeframes
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ADX Works In All Countries
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Use Your Own Favourite Searches
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Combine With Your Favourite Set-ups
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Create Your Own Search
* Requires ProTrader premium add-on module.
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Create Your Own Search
* Requires ProTrader premium add-on module.
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ADX and DMI Basic Trading SignalsBasic Trades:
➢ Buy or go long when the +DI is above the –DI. Other considerations:
1. ADX is rising off a bottom, generally below the +DI and –DI, and between the 10 and
18 line.
2. The +DI is rising and crosses above the –DI
3. For confirmation, ADX rising above 18-20 line is sign of trend strength
4. -DI is losing momentum
➢ Sell or go short when:
1. –DI is above +DI
2. +DI is losing momentum and/or ADX has crossed below the 40-line or higher, and
especially if it crosses below the +DI line.
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ADX and DMI Basic Trading Signals➢ Use Caution when:
1. ADX is below the 20-line. The market is said to be ranging (sideways
or choppy). It will be more difficult to make money. Often best to wait
until the ADX is clearly rising off that bottom (10-line to 15-line) and
either approaching the 20-line or wait until it crosses the 20-line for
confirmation.
2. The ADX has peaked, reversed, and is now falling. This frequently
happens when ADX is above the 40-Line or when it crosses through
the upper DI. The trend is losing strength.
3. When ADX is above both +DI and –DI. A reversal back to the mean
may be imminent.
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VectorVest
END OF PRESENTATION
If you have a question or comment about the foregoing, or you would like to request a short video on a topic of interest, please send me a brief email at:
Thank-you for attending.
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Let’s share your questions, your trading methods and stock
ideas at our next Forum!
Please send me your comments and ideas at
Thank you for joining us today!
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