TEA Trend Indicator

Andrew FaldeSystems TradingLeave a Comment

The TEA has fired off a big warning on SPY – The first since May 8th. The current bullish move was confirmed about a month ago and held nicely with only moderate warnings on down days. In the context of slowing momentum and an extended move; yesterday’s bearish move is a more relevant warning.   Applications I’ll be quick to … Read More

Duration: The Sixth Step to Systems Success

Andrew FaldeSystems TradingLeave a Comment

Number six in our seven steps is Duration. Duration represents the expected length of time in winning trades, losing trades, and all trades. Almost without exception we find that trend- and momentum-oriented signals have a shorter duration for losing signals and a longer duration for winning signals. The reverse is true for mean-reversion trades. Knowing your expected duration is important … Read More