IndexTrader

IndexTrader
I released IndexTrader in 2001.

IndexTrader is an immediate-term breakout and mean-reversion index trading methodology.

IndexTrader is 100% objective and 100% mechanical.

All the trading rules for set-up, entry, stop and exit are fully explained.

There is no discretion used with IndexTrader. It’s a systematic strategy.

IndexTrader consists of 5 patterns;

• ITR – Breakout trend trading, asymmetrical, buy only.
• ITS – Mean reversion, asymmetrical, buy only.
• ITM – Mean reversion, asymmetrical, sell only.
• ITD – Mean reversion, asymmetrical, sell only.
• ITB – Mean reversion, symmetrical, buy only.

Within the 5 patterns there are 6 variables. One variable is for a 200-day moving average while another is for a 4-bar average true range calculation. The other four variables are known only to owners of IndexTrader. Where a variable exists in a pattern IndexTrader uses the same variable value for all markets and where applicable, for both buy and sell setups. Being pattern based helps to ensure IndexTrader is free of excessive “curve fitting”, one of the twin evils faced by all strategy developers.

[As a side note, these were the foundational patterns behind IndexALERT, a newsletter I published continuously for 20 years (2004–2024). While these patterns were evolved and tweaked over time by IndexALERT, they still closely resemble their original forms.]

Although I released IndexTrader in 2001, when it was called SpiTrader, I have been trading these patterns and their evolutionary selves since 1998.

I originally designed IndexTrader to trade the Australian index SPI200 futures contract. However, due to its robustness, IndexTrader succeeds over my portfolio of global index markets;

• SPI
• Nikkei
• Hang Seng
• Dax
• Stoxx50
• Ftse
• E-Mini Nasdaq
• E-Mini Dow and
• E-Mini SP500

IndexTrader’s success across a global portfolio of out-of-sample index markets since its release under scores the soundness of its methodology and demonstrates the absence of “data mining”, the second twin evil faced by strategy developers.

IndexTrader’s simplicity, absence of both excessive curve fitting and data mining, and continuing positive performance since its release in 2001 demonstrates both its effectiveness and robustness. Two commodities which are very rare in the business of trading education and system development.

Whether you trade Asian, European or North American index CFDs or index Futures IndexTrader will give you the edge you’re looking for.

This strategy represents a complete methodology and is a revolution in trader education. The revolution comprises two elements:

    – the theory and
    – practical live trading.