S&P 500:

An Example of a Trading System based on the SBV Oscillator

March 6, 2009

Chart 1. Relationship between the SBV oscillator and index reversal points. S&P 500 index. 15-day view. 1 bar = 15 min. SBV(16)

1. Once the SBV indicator declines below negative signal level (the indicator will now show red), we enter a short position (if we are not already short);
2. Once the SBV indicator advances above negative signal level (after having been below that level), we will enter a long position (the indicator still shows red);
3. Once the SBV indicator rallies above positive signal level (the indicator will now show green), we enter a long position (if we are not already long);
4. Once the SBV indicator declines below positive signal level (after having been above that level), we will enter a short position (the indicator still shows green);
5. Additional Stop Loss Rule - If the SBV dropped into negative territory and started to rise without hitting the signal line, close the short position when the SBV is back in the positive territory, and stay in cash until a new buy signal is generated. Vise versa for a long position.

Table 1: Trades based on the   5-rule (additional stop-loss rule) system.

Time	Motivation	Signal	Index	Profit (points)
02/19/09	rule #1	Sell Short	786	+13
02/20/09	rule #2	Buy	773	-3
02/20/09	rule #5	Cash	770
02/23/09	rule #4	Sell Short	762	+12
02/24/09	rule #2	Buy	750	+7
02/25/09	rule #4	Sell Short	757	-7
02/25/09	rule #2	Buy	764	+8
02/26/09	rule #4	Sell Short	772	+5
02/26/09	rule #2	Buy	767	-4
02/26/09	rule #1	Sell Short	763	+19
02/27/09	rule #2	Buy	744	-1
02/27/09	rule #4	Sell Short	743	+40
03/03/09	rule #2	Buy	703	-5
03/03/09	rule #5	Cash	698
03/03/09	rule #2	Buy	700	-3
03/03/09	rule #5	Cash	697
03/04/09	rule #4	Sell Short	709	-11
03/04/09	rule #2	Buy	720	-7
03/04/09	rule #4	Sell Short	713	+26
03/06/09	rule #2	Buy	687	-1
03/06/09	rule #4	Sell Short	686	+5
03/06/09	rule #2	Buy	681	-10
03/06/09	rule #1	Sell Short	671
Total:				+83 (+10.6%)

Note: The 20% level for the SBV indicator was determined in relation to the prevailing market conditions at the time the trading examples were selected. In order to establish the optimal critical levels for the SBV indicator, traders should consider the current market situation and review a chart history of prior volume surges including their magnitude (i.e., the level the SBV indicator reached).

Our charts are unique in that they give traders the option to choose specific chart settings that best fit their personal trading styles and risk tolerance. Traders can thus develop and test their own trading systems. On our charts, you can scroll back in history to test any system you created.

 More Examples:

Date	Index	Timeframe	Result	Number of Trades
Nov 6, 2009	Nasdaq 100	10-day	+81 points (+4.7%)	9 "Long" and 9 "Short"
Oct 30, 2009	Nasdaq 100	10-day	+31 points (+2.3%)	8 "Long" and 7 "Short"
Oct 23, 2009	Nasdaq 100	10-day	+40 points (+2.3%)	8 "Long" and 10 "Short"
Oct 16, 2009	Russell 2000	5-day	+10 points (+1.7%)	8 "Long" and 10 "Short"
Oct 9, 2009	S&P 500	60-day	+59 points (+5.0%)	4 "Long" and 4 "Short"
Oct 2, 2009	S&P 500	15-day	+41 points (+3.8%)	5 "Long" and 6 "Short"
Sept 18, 2009	S&P 500	60-day	+107 points (+12%)	5 "Long" and 4 "Short"
Sept 18, 2009	S&P 500	60-day	+107 points (+12%)	5 "Long" and 4 "Short"
Sept 11, 2009	S&P 500	60-day	+81 points (+9.2%)	5 "Long" and 4 "Short"
Sept 4, 2009	S&P 500	60-day	+44 points (+5.0%)	5 "Long" and 4 "Short"
Aug 28, 2009	S&P 500	5-day	+14 points (+1.4%)	9 "Long" and 6 "Short"
Aug 21, 2009	S&P 500	5-day	+14 points (+1.4%)	7 "Long" and 9 "Short"
Aug 14, 2009	S&P 500	15-day	+15 points (+1.5%)	8 "Long" and 7 "Short"
Aug 7, 2009	S&P 500	60-day	+93 points (+9.8%)	6 "Long" and 6 "Short"
July 31, 2009	S&P 500	60-day	+104 points (+11%)	4 "Long" and 4 "Short"
July 24, 2009	S&P 500	60-day	+109 points (+12%)	4 "Long" and 4 "Short"
July 17, 2009	S&P 500	15-day	+74 points (+7.9%)	7 "Long" and 8 "Short"
July 10, 2009	S&P 500	15-day	+57 points (+6.3%)	8 "Long" and 8 "Short"
July 02, 2009	Nasdaq 100	30-day	+74 points (+5.0%)	7 "Long" and 7 "Short"
June 26, 2009	S&P 500	30-day	+68 points (+7.5%)	8 "Long" and 8 "Short"
June 19, 2009	S&P 500	30-day	+48 points (+5.3%)	7 "Long" and 7 "Short"
June 12, 2009	S&P 500	15-day	+47 points (+5.0%)	9 "Long" and 10 "Short"
June 5, 2009	S&P 500	30-day	+59 points (+6.4%)	5 "Long" and 7 "Short"
May 29, 2009	S&P 500	30-day	+36 points (+4.2%)	8 "Long" and 9 "Short"
May 22, 2009	S&P 500	30-day	+32 points (+3.7%)	6 "Long" and 9 "Short"
May 15, 2009	S&P 500	10-day	+39 points (+4.3%)	7 "Long" and 7 "Short"
May 8, 2009	S&P 500	60-day	+84 points (+11.8%)	8 "Long" and 8 "Short"
May 1, 2009	S&P 500	60-day	+65 points (+9.1%)	7 "Long" and 7 "Short"
April 24, 2009	Nasdaq 100	5-day	+53 points (+4.0%)	6 "Long" and 7 "Short"
April 17, 2009	S&P 500	60-day	+93 points (+11%)	7 "Long" and 6 "Short"
April 9, 2009	S&P 500	60-day	+99 points (+12%)	6 "Long" and 5 "Short"
April 3, 2009	S&P 500	15-day 60-day	+135 points (+17%) +86 points (+10%)	6 "Long" and 6 "Short" 5 "Long" and 4 "Short"
March 27, 2009	S&P 500	15-day	+129 points (+18%)	7 "Long" and 8 "Short"
March 20, 2009	S&P 500	15-day	+45 points (+6.3%)	9 "Long" and 10 "Short"
March 13, 2009	S&P 500	15-day	+38 points (+5.0%)	10 "Long" and 10 "Short"
March 6, 2009	S&P 500	15-day	+83 points (+11%)	10 "Long" and 10 "Short"
Feb. 27, 2009	S&P 500	15-day	+46 points (+5.6%)	10 "Long" and 10 "Short"
Feb. 20, 2009	S&P 500	60-day	+239 points (+27%)	6 "Long" and 5 "Short"
Feb. 13, 2009	S&P 500	60-day	+239 points (+27%)	6 "Long" and 5 "Short"
Feb. 2, 2009	S&P 500	15-day	+58 points (+7.0%)	7 "Long" and 6 "Short"
Jan. 23, 2009	Nasdaq 100	5-day	+75 points (+6.2%)	7 "Long" and 7 "Short"
Jan. 23, 2009	S&P 500	60-day	+287 points (+34%)	9 "Long" and 7 "Short"
Jan. 16, 2009	S&P 500	60-day	+254 points (+30%)	8 "Long" and 7 "Short"
Jan. 09, 2009	S&P 500	60-day	+252 points (+29%)	9 "Long" and 9 "Short"
Jan. 02, 2009	S&P 500	60-day	+242 points (+24%)	9 "Long" and 8 "Short"

 

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11/7/2009 - SV1