EWATSS® TRADING SYSTEM CONCEPT
- Most of the time, markets are going nowhere and just moving around in a consolidating directionless manner (“The Market Can Remain Irrational Longer Than You Can Remain Solvent” – by John Maynard Keynes, a British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments).
- Investors tend to lose capital during such periods.
- After such often long frustrating periods of directionless drifting, there comes a time when markets acquire strong directionality (up or down).
- This period of strong directionality comes after basically useless periods of painfully slow development of various technical patterns like Head and Shoulders/Inverted Head and Shoulders, Double/Triple Tops or Bottoms etc. or in Elliott Wave Theory terms, after corrective patterns like Zig Zags (Single/Double/Triple), Flats (Regular, Irregular/Expanded), Triangles (Contracting, Barrier, Running etc) or complex combinations thereof.
- While it may be a Technical Analyst’s job to analyse and identify these patterns through their development phases, a Trader/Investor should mostly not be interested (or will have time and patience) to analyse/trade through these pattern development phases which are consolidating or corrective in nature with no real directionality. Even if the Trader/Investor acquires the ability to analyse and identify such patterns, he can not enter the trade because he has to excruciatingly again and again watch these patterns many times to wait for these patterns to fully complete and then only try to zero in on breakouts therefrom for possible trade entry (even after so painfully monitoring and waiting, breakouts from the patterns may never actually happen). It is an exhausting process making good profitable trading an extremely difficult, tedious, risky and low results/high effort occupation.
- The Trader/Investor should rather be directly interested to be alerted when such patterns have already been formed and completed and the confirmed Impulsive breakouts from these completed consolidating/corrective patterns are about beginning.
- In Elliott Wave Theory terms, Trader/Investor should be interested to get into the best portions of Motive/Impulse Wave 3 and/or Wave 5 of the Stock/Commodities/Currencies etc., and ride these best portions to exit till such best portions last. Most of the rest of the Elliott Waves in the markets are not easily tradeable and should be avoided.
- Once such confirmed breakout trade into a Motive/Impulse Wave 3 or Wave 5 is entered, the Trader/Investor should be interested in riding the trend till the best part of the trend lasts.
- The Trader/Investor should then be interested to be alerted when the best part of the trend has just about finished for the time being.
- As Robert Prechter says in his book “Elliott Wave Principle: A Key to Market Behavior”, 3rd Waves are a joy to behold.
ONE OF THE BEST RIDES A TRADER CAN TAKE IS ON A THIRD WAVE
- The Elliott Wave Principle states that in financial markets, prices unfold in 5 wave patterns:
- In wave 1, the trend has begun. Wave 2 makes a sucker outta you. Wave 3 is a powerful sight to see. Wave 4 is a corrective chore. And wave 5 is time to look alive -- once more. Robert Prechter’s book “Elliott Wave Principle: A Key to Market Behavior”(the ultimate resource for all things Elliott) provides this personality for wave 3:
- "Third waves are wonders to behold. They are strong and broad, and the trend at this point is unmistakable. Increasingly favorable fundamentals enter the picture as confidence returns... AND: "It follows, of course, that the third wave of a third wave and so on will be the most volatile point of strength in any wave sequence. Such points invariably produce breakouts... and runaway price movement."
- We have deeply studied and developed our Elliott Wave Analysis and Trade Selection System (EWATSS™) Algorithm to identify enter tradeable portions of Motive/Impulse Wave 3 and Wave 5.
OUR EWATSS® TRADING SYSTEM
Our EWATSS® Trading System Algorithm:-
- Does not read news;
- Has no political opinion;
- Does not get tired, bored, scared or excited;
- Does not take breaks or holidays;
- Is always ready, willing and available;
- Will analyse and select high probability trades from market;
- Uses Elliott Wave Principles without bias, subjectivity or emotions;
- Combines powerful analysis of combination of patterns, Elliott Wave theory, price, fractal nature of markets, momentum, sentiment, directional congruence on multiple time frames etc.
- Does not bore you with unreadable, incomprehensible long texts of market/stock analysis for which you may not have time or inclination;
- Is superbly consistent in its analysis and trade selection;
- Watches a large number of stocks and symbols and throws up strict rules based mechanical suggestions (through simple just 5 colour codes Blue, Red, White, Sandy Brown and Light Pink) which is humanly not possible to do consistently every day over years and years of trading.
- Enforces strict rules based mechanical approach to trading through simple just 5 colour codes Blue, Red, White, Sandy Brown and Light Pink;
- Enforces patience and discipline upon Trader/Investor to wait for strict rules based mechanical suggestions through simple just 5 colour codes Blue, Red, White, Sandy Brown and Light Pink.
We can’t think of any human analyst with these traits.
ADVANTAGES OF OUR EWATSS® TRADING SYSTEM
- Avoids frustrating long consolidation / corrective/ unproductive pattern development phases of the markets;
- Avoids over trading since EWATSS® selects quality trades over quantity of trades;
- Avoids picking tops and bottoms;
- Avoids over-analysis which often leads to paralysis to enter the trades;
- Avoids needlessly sticking to computer screens which leads to stress, mental and physical exhaustion, health problems, lack of time for family, friends and other enriching activities;
- Avoids drudgery in finding goods points for entry and exit;
- Avoids subjective analysis of news, fundamentals, events, announcements etc.
- Identifies best portions of best trending directional Motive/Impulse Waves 3 and/or 5 in the markets.
- Promotes trading in the direction of multi time-frame directionally congruent trends on Daily, Weekly, Monthly and Quarterly charts, with buying/selling pressure coming from lower time frames;
- Promotes Trend Following with relatively smaller Drawdowns;
- Promotes higher Win/Loss ratio, with patience and discipline of the Trader/Investor;
- Promotes higher Average Profit per trade/Average Loss per trade ratio, with patience and discipline of the Trader/Investor;
- Promotes Positive Expectancy, with patience and discipline of the Trader/Investor;
- Avoids emotional trading in view of simple clear pre-determined methodology of suggesting entries, holding and exits through simple just 5 colour codes Blue, Red, White, Sandy Brown and Light Pink;
- Promotes profit accumulation, profit booking and cutting losses in view of simple clear pre-determined methodology of suggesting entries, holding and exits through simple just 5 colour codes Blue, Red, White, Sandy Brown and Light Pink;
- Promotes to have a strong perpetual edge in the markets without which no success is possible in the markets;
- Promotes trading analysis and decisions without any other indicator;
- Promotes online checking of the daily EWATSS® EOTD Reports from any smartphone, tablet or computer anywhere in the world, for trading education inputs to you;
- Promotes to keep your trading in alignment with Professional and Institutional Traders;
- Promotes instantaneous trading decisions by you anywhere in the world;
- Promotes clear trading decisions by you to enter, hold and exit well before the market opens next day morning so that you are ready to confidently shoot orders next day morning and move off to your office, factory, college, work, excursion etc.;
- Promotes centralised analysis using machines in a strict precise mathematical manner (without human subjectivity and its failings), which is made available to a large number of subscribers;
- Promotes trading with only 4 basic requirements (i) a computer/smartphone/tablet with internet access (ii) an account with a broker (iii) should not be colour blind (iv) should not hesitate to consider what EWATSS® suggests at the end of every trading day for making your own decisions for action by you on the next trading day start – just as e.g. we don’t hesitate using so many machines in our everyday life like aeroplanes, trains, ships, computers, phones, tablets, televisions etc.).
- Promotes higher Profitability/Effort ratio which is very low in trading industry;
- Promotes zeroing in on excellent high probability trade setups with greatest ease while you are anywhere in the world with a smartphone/tablet/computer – which, otherwise, is like trying to find a needle in a haystack even if you know the best of theory of technical analysis;
- Promotes clear easy Bar by Bar decision (i.e. either enter, hold/do nothing, exit) on price movement by the Trader/Investor;
- The old Buy, Hold and Forget (for years) approach for stocks etc. has been proven to under-perform as it, inter alia, suffers from deep equity drawdowns from which price may never recover (The Market Can Remain Irrational Longer Than You Can Remain Solvent – by John Maynard Keynes). EWATSS® keep you in sync with the tradeable ups and downs in the markets and keep you ‘dancing with the market’ which is probably the only holy grail in the markets;
- EWATSS® moves you from “Opportunity is NOWHERE” paradigm to “Opportunity is NOW HERE” paradigm.
- EWATSS® is not a typical black box system with mere buy and sell recommendations. EWATSS® is rather a glass box showing Subscribers what it is sensing and it would also suggest invalidation if price is not developing as originally envisaged. Its output is detailed and nuanced. A Subscriber is free to and must examine the charts and its implications and choose to accept, reject or amend EWATSS® message. All controls and choices are with the Subscriber only.
- EWATSS® allows you to benefit from the huge leverage of information technology by assisting you in your trading decisions.
- EWATSS® monitors a large number of Symbols across a large number of sectors and alerts you to worthwhile tradeable events to draw your attention for your decision making. It is well neigh impossible to do so manually every day, and for years.
- EWATSS® does not need any market forecasting and operates in the NOW moment of the market, keeping you aligned with current market movements independent of any subjective/variable forecasts.
- All popular commentaries are simply rationalizations of non-rational herding crowd impulses. EWATSS® is immune to such banter. It simply interprets patterns in the price data based on practical application of Elliott Wave Theory. These patterns reflect the unfolding mass psychological dynamics, which ultimately creates events and therefore the news.
- Crowd psychology and not news or events, is the primary driver of price movements; and the Crowd psychology creates identifiable patterns deciphered by Elliott Wave Theory. Crowd psychology does not change (because humans do not change the way they think at mass level) and always repeats itself again and again, thereby again and again creating identifiable patterns deciphered by Elliott Wave Theory. All Elliott Wave patterns are, however, not tradeable and may rather lead to losses if traded. Our EWATSS® alerts you to potentially profitable tradeable patterns as and when these emerge on charts and also assists you to take your own decisions to enter, hold and exit such patterns till these near about end.
- EWATSS® enhances your confidence in your market decisions as you may re-check your own opinion against the educational inputs provided by EWATSS®.
- Promotes you to invest/deal with your own money in your own account as per solely your own decisions and not having to give away your money to any intermediary, broker, financial/investment advisor or mutual fund etc.
- EWATSS® promotes your trading in the direction of the multi time-frame trend which is difficult to judge otherwise.
- EWATSS® avoids you from trading in the wrong direction.
- EWATSS® avoids you from trading during complex consolidation/corrective phases of the market. Avoids picking tops and bottoms;
- EWATSS® promotes your trading along the sound wise principles “let your profits run, cut your losses’ ,’money saved (or not lost) is money earned’.
- EWATSS® promotes your trading along the sound wise principle of trading only when you see a pattern that you recognise (always ask before entry “is there a pattern that I recognise?”). EWATSS® alerts you when it sees a pattern that it recognises as a high potential bullish or bearish pattern, to assist you in your trading decisions.
- EWATSS® avoids you from rushing into a raging trend or come in front of a raging train or catch a falling knife. It promotes you to wait for good entry points into high potential trends and ride the train when it is standing at a station to depart, not when it is already running.
- Patience to wait is a great virtue while trading. But it should be educated patience to wait for what you know you are waiting for. EWATSS® promotes you to be patient to wait for right high potential trend patterns that you may recognise/begin to recognise as you use EWATSS® educational inputs.
- EWATSS® may not get you into the very first pip of the trend or keep you till the last pip of the trend, but that is also not the aim of professional traders. They want the main meat of the mid portion of the best part of an established trend and come in when such best part starts and leave before just the best part of the trend gets over. They do not fall in love with any particular symbol or stock to trade but rather look for viable high probability patterns in a variety of symbols or stocks and are prepared to trade accordingly. Their approach to trading is not stock-centric but pattern-centric. They do not seek to trade every pattern in a particular stock but rather seek to trade one/two patterns repeatedly in a variety of stocks and have a sound mechanism to know when this is happening in the stocks being watched by them. EWATSS® assists you precisely in such sound approach to trading the markets.
- EWATSS® promotes ‘Let the market commit to you before you commit to the market’ wise approach.
- EWATSS® greatly facilitates you to think, have and enjoy life beyond trading making you a better balance person with better work-life balance and harmony.
- EWATSS® makes your learning curve much less steep as your EWATSS® guide is always by your side anywhere in the world, with its bar-by-bar suggestions as a sound second opinion for your own opinion.
- EWATSS® promotes ‘trade the best, leave the rest’ and ‘trade the tradeable, leave the untradeable’ approach to trading.
- EWATSS® provided all such benefits to the Subscribers while keeping Subscriber end requirements very simple e.g. to have at least a simple colour smartphone with basic net connection and a Demat Account with a stock broker.
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