Simple SBV Trading System Blog

DJI Index Trading

noreply@noemail.com (MarketVolume.com Team) — Friday, February 03, 2012 13:30:00 +0000

This week's SBV chart example is based on the 30-day SBV(20) Dow Jones Industrials (DJI) chart.

Chart 1. Relationship between the SBV Oscillator and
index reversal points. DJI index. 30-day view. 1 bar = 15 min. SBV(20)

It's Simple and Profitable

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.

Time	Motivation	Signal	Index	Profit (points)
01/09/2012	Rule #2	Buy	12378	+77
01/10/2012	Rule #4	Sell Short	12450	-12
01/10/2012	Rule #3	Buy	12462	+9
01/10/2012	Rule #4	Sell Short	12471	+66
01/11/2012	Rule #2	Buy	12405	+16
01/11/2012	Rule #1	Sell Short	12421	-10
01/11/2012	Rule #2	Buy	12431	-20
01/12/2012	Rule #4	Sell Short	12411	-30
01/12/2012	Rule #5	Cash	12441
01/13/2012	Rule #4	Sell Short	12337	-41
01/13/2012	Rule #2	Buy	12378	+147
01/17/2012	Rule #4	Sell Short	12525	-14
01/18/2012	Rule #2	Buy	12539	+57
01/19/2012	Rule #4	Sell Short	12596	-71
01/20/2012	Rule #3	Buy	12667	+22
01/23/2012	Rule #4	Sell Short	12689	+27
01/24/2012	Rule #2	Buy	12661	-34
01/25/2012	Rule #1	Sell Short	12627	-43
01/25/2012	Rule #2	Buy	12670	+67
01/26/2012	Rule #4	Sell Short	12737	+147
01/30/2012	Rule #2	Buy	12590	+125
02/02/2012	Rule #4	Sell Short	12715	-45
02/03/2012	Rule #2	Buy	12750
Total:				+440 (+3.6%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.

DJI Index

noreply@noemail.com (MarketVolume.com Team) — Friday, January 27, 2012 13:30:00 +0000

+8% on the DJI in a month

This week's SBV chart example is based on the 30-day SBV(20) Dow Jones Industrials (DJI) chart.

Chart 1. Relationship between the SBV Oscillator and
index reversal points. DJI index. 30-day view. 1 bar = 15 min. SBV(20)

It's Simple and Profitable

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.

Time	Motivation	Signal	Index	Profit (points)
12/20/2011	Rule #2	Buy	12008	+31
12/21/2011	Rule #4	Sell Short	12039	-20
12/21/2011	Rule #2	Buy	12059	+106
12/22/2011	Rule #4	Sell Short	12165	-6
12/22/2011	Rule #3	Buy	12171	+126
12/27/2011	Rule #4	Sell Short	12305	+130
12/28/2011	Rule #2	Buy	12175	+75
12/29/2011	Rule #4	Sell Short	12250	+3
12/29/2011	Rule #3	Buy	12247	+25
12/29/2011	Rule #4	Sell Short	12272	+31
12/30/2011	Rule #2	Buy	12241	+190
01/03/2012	Rule #5	Cash	12431
01/03/2012	Rule #2	Buy	12421	+13
01/03/2012	Rule #1	Sell Short	12434	+47
01/04/2012	Rule #2	Buy	12387	+2
01/04/2012	Rule #5	Cash	12389
01/05/2012	Rule #4	Sell Short	12340	-19
01/05/2012	Rule #5	Cash	12359
01/06/2012	Rule #4	Sell Short	12377	+9
01/06/2012	Rule #5	Cash	12368
01/09/2012	Rule #2	Buy	12378	+77
01/10/2012	Rule #4	Sell Short	12450	-12
01/10/2012	Rule #3	Buy	12462	+9
01/10/2012	Rule #4	Sell Short	12471	+66
01/11/2012	Rule #2	Buy	12405	+16
01/11/2012	Rule #1	Sell Short	12421	-10
01/11/2012	Rule #2	Buy	12431	-20
01/12/2012	Rule #4	Sell Short	12411	-30
01/12/2012	Rule #5	Cash	12441
01/13/2012	Rule #4	Sell Short	12337	-41
01/13/2012	Rule #2	Buy	12378	+147
01/17/2012	Rule #4	Sell Short	12525	-14
01/18/2012	Rule #2	Buy	12539	+57
01/19/2012	Rule #4	Sell Short	12596	-71
01/20/2012	Rule #3	Buy	12667	+22
01/23/2012	Rule #4	Sell Short	12689	+27
01/24/2012	Rule #2	Buy	12661	-34
01/25/2012	Rule #1	Sell Short	12627	-43
01/25/2012	Rule #2	Buy	12670	+67
01/26/2012	Rule #4	Sell Short	12737	+74
Total:				+1030 (+8.6%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.

DJI

noreply@noemail.com (MarketVolume.com Team) — Friday, January 20, 2012 13:30:00 +0000

+8% on the DJI in a month

This week's SBV chart example is based on the 15-day SBV(20) Dow Jones Industrials (DJI) chart and is continuation of the example published on January 6, 2012.

Chart 1. Relationship between the SBV Oscillator and
index reversal points. DJI index. 15-day view. 1 bar = 15 min. SBV(20)

It's Simple and Profitable

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.

Time	Motivation	Signal	Index	Profit (points)
12/20/2011	Rule #2	Buy	12008	+31
12/21/2011	Rule #4	Sell Short	12039	-20
12/21/2011	Rule #2	Buy	12059	+106
12/22/2011	Rule #4	Sell Short	12165	-6
12/22/2011	Rule #3	Buy	12171	+126
12/27/2011	Rule #4	Sell Short	12305	+130
12/28/2011	Rule #2	Buy	12175	+75
12/29/2011	Rule #4	Sell Short	12250	+3
12/29/2011	Rule #3	Buy	12247	+25
12/29/2011	Rule #4	Sell Short	12272	+31
12/30/2011	Rule #2	Buy	12241	+190
01/03/2012	Rule #5	Cash	12431
01/03/2012	Rule #2	Buy	12421	+13
01/03/2012	Rule #1	Sell Short	12434	+47
01/04/2012	Rule #2	Buy	12387	+2
01/04/2012	Rule #5	Cash	12389
01/05/2012	Rule #4	Sell Short	12340	-19
01/05/2012	Rule #5	Cash	12359
01/06/2012	Rule #4	Sell Short	12377	+9
01/06/2012	Rule #5	Cash	12368
01/09/2012	Rule #2	Buy	12378	+77
01/10/2012	Rule #4	Sell Short	12450	-12
01/10/2012	Rule #3	Buy	12462	+9
01/10/2012	Rule #4	Sell Short	12471	+66
01/11/2012	Rule #2	Buy	12405	+16
01/11/2012	Rule #1	Sell Short	12421	-10
01/11/2012	Rule #2	Buy	12431	-20
01/12/2012	Rule #4	Sell Short	12411	-30
01/12/2012	Rule #5	Cash	12441
01/13/2012	Rule #4	Sell Short	12337	-41
01/13/2012	Rule #2	Buy	12378	+147
01/17/2012	Rule #4	Sell Short	12525	-14
01/18/2012	Rule #2	Buy	12539	+57
01/19/2012	Rule #4	Sell Short	12596	-71
01/20/2012	Rule #3	Buy	12667	+57
Total:				+974 (+8.1%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.

Technical Analysis

noreply@noemail.com (MarketVolume.com Team) — Friday, January 13, 2012 13:30:00 +0000

+42% on the S%P 500

This week's SBV chart example is based on the 60-day SBV(20) S&P 500 chart and is a continuation of the S&P 500 chart example that was published on December 16, 2011.

Chart 1. Relationship between the SBV Oscillator and
index reversal points. S&P 500 index. 60-day view. 1 bar = 60 min. SBV(20)

It's Simple and Profitable

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.

Time	Motivation	Signal	Index	Profit (points)
5/23/2011	Rule #4	Sell Short	1318	+3
5/25/2011	Rule #2	Buy	1315	0
6/01/2011	Rule #4	Sell Short	1315	+23
6/09/2011	Rule #2	Buy	1292	-18
6/10/2011	Rule #1	Sell Short	1274	+1
6/13/2011	Rule #2	Buy	1275	-9
6/15/2011	Rule #1	Sell Short	1266	-6
6/16/2011	Rule #2	Buy	1272	+3
6/17/2011	Rule #1	Sell Short	1275	-2
6/20/2011	Rule #2	Buy	1277	-10
6/23/2011	Rule #4	Sell Short	1267	-16
6/27/2011	Rule #2	Buy	1283	+55
7/6/2011	Rule #4	Sell Short	1338	+7
7/13/2011	Rule #2	Buy	1331	-12
7/13/2011	Rule #5	Cash	1319
7/19/2011	Rule #2	Buy	1319	+19
7/25/2011	Rule #4	Sell Short	1338	+189
8/11/2011	Rule #2	Buy	1149	+44
8/16/2011	Rule #4	Sell Short	1193	+47
8/23/2011	Rule #2	Buy	1146	+51
8/29/2011	Rule #4	Sell Short	1197	-5
8/30/2011	Rule #3	Buy	1202	+5
9/01/2011	Rule #4	Sell Short	1207	+12
9/07/2011	Rule #2	Buy	1195	-45
9/09/2011	Rule #5	Cash	1150
9/13/2011	Rule #2	Buy	1172	+21
9/20/2011	Rule #4	Sell Short	1203	+58
9/26/2011	Rule #2	Buy	1145	+24
9/28/2011	Rule #4	Sell Short	1169	+25
10/05/2011	Rule #2	Buy	1143	+51
10/13/2011	Rule #4	Sell Short	1194	-14
10/18/2011	Rule #5	Cash	1208
10/25/2011	Rule #5	Sell Short	1237	-48
10/27/2011	Rule #5	Cash	1285
10/31/2011	Rule #5	Sell Short	1269	+19
11/03/2011	Rule #2	Buy	1250	-5
11/07/2011	Rule #5	Sell Short	1245	+7
11/10/2011	Rule #5	Cash	1238
11/22/2011	Rule #2	Buy	1188	-17
11/23/2011	Rule #1	Sell Short	1171	+1
11/23/2011	Rule #2	Buy	1170	+87
12/06/2011	Rule #4	Sell Short	1257	+16
12/13/2011	Rule #5	Cash	1241
12/15/2011	Rule #2	Buy	1219	+15
12/21/2011	Rule #5	Cash	1234
12/28/2011	Rule #4	Sell Short	1253	-17
01/03/2012	Rule #5	Cash	1270
01/03/2012	Rule #4	Sell Short	1277
Total:				+559 (+42.4%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.

DJI Chart

noreply@noemail.com (MarketVolume.com Team) — Friday, January 06, 2012 13:30:00 +0000

+6% on the DJI in two weeks

This week's SBV chart example is based on the 15-day SBV(20) Dow Jones Industrials (DJI) chart.

Chart 1. Relationship between the SBV Oscillator and
index reversal points. DJI index. 15-day view. 1 bar = 15 min. SBV(20)

It's Simple and Profitable

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.

Time	Motivation	Signal	Index	Profit (points)
12/20/2011	Rule #2	Buy	12008	+31
12/21/2011	Rule #4	Sell Short	12039	-20
12/21/2011	Rule #2	Buy	12059	+106
12/22/2011	Rule #4	Sell Short	12165	-6
12/22/2011	Rule #3	Buy	12171	+126
12/27/2011	Rule #4	Sell Short	12305	+130
12/28/2011	Rule #2	Buy	12175	+75
12/29/2011	Rule #4	Sell Short	12250	+3
12/29/2011	Rule #3	Buy	12247	+25
12/29/2011	Rule #4	Sell Short	12272	+31
12/30/2011	Rule #2	Buy	12241	+190
01/03/2012	Rule #5	Cash	12431
01/03/2012	Rule #2	Buy	12421	+13
01/03/2012	Rule #1	Sell Short	12434	+47
01/04/2012	Rule #2	Buy	12387	+2
01/04/2012	Rule #5	Cash	12389
01/05/2012	Rule #4	Sell Short	12340	-19
01/05/2012	Rule #5	Cash	12359
01/06/2012	Rule #4	Sell Short	12377	+9
01/06/2012	Rule #5	Cash	12368
Total:				+743 (+6.2%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.

Trading SPX Index

noreply@noemail.com (MarketVolume.com Team) — Friday, December 30, 2011 13:30:00 +0000

+44% on the S&P 500 in 7 months

This week's SBV chart example is based on the 60-day SBV(20) S&P 500 chart and is a continuation of the S&P 500 chart example that was published on December 16, 2011.

Chart 1. Relationship between the SBV Oscillator and
index reversal points. S&P 500 index. 60-day view. 1 bar = 60 min. SBV(20)

It's Simple and Profitable

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.

Time	Motivation	Signal	Index	Profit (points)
5/23/2011	Rule #4	Sell Short	1318	+3
5/25/2011	Rule #2	Buy	1315	0
6/01/2011	Rule #4	Sell Short	1315	+23
6/09/2011	Rule #2	Buy	1292	-18
6/10/2011	Rule #1	Sell Short	1274	+1
6/13/2011	Rule #2	Buy	1275	-9
6/15/2011	Rule #1	Sell Short	1266	-6
6/16/2011	Rule #2	Buy	1272	+3
6/17/2011	Rule #1	Sell Short	1275	-2
6/20/2011	Rule #2	Buy	1277	-10
6/23/2011	Rule #4	Sell Short	1267	-16
6/27/2011	Rule #2	Buy	1283	+55
7/6/2011	Rule #4	Sell Short	1338	+7
7/13/2011	Rule #2	Buy	1331	-12
7/13/2011	Rule #5	Cash	1319
7/19/2011	Rule #2	Buy	1319	+19
7/25/2011	Rule #4	Sell Short	1338	+189
8/11/2011	Rule #2	Buy	1149	+44
8/16/2011	Rule #4	Sell Short	1193	+47
8/23/2011	Rule #2	Buy	1146	+51
8/29/2011	Rule #4	Sell Short	1197	-5
8/30/2011	Rule #3	Buy	1202	+5
9/01/2011	Rule #4	Sell Short	1207	+12
9/07/2011	Rule #2	Buy	1195	-45
9/09/2011	Rule #5	Cash	1150
9/13/2011	Rule #2	Buy	1172	+21
9/20/2011	Rule #4	Sell Short	1203	+58
9/26/2011	Rule #2	Buy	1145	+24
9/28/2011	Rule #4	Sell Short	1169	+25
10/05/2011	Rule #2	Buy	1143	+51
10/13/2011	Rule #4	Sell Short	1194	-14
10/18/2011	Rule #5	Cash	1208
10/25/2011	Rule #5	Sell Short	1237	-48
10/27/2011	Rule #5	Cash	1285
10/31/2011	Rule #5	Sell Short	1269	+19
11/03/2011	Rule #2	Buy	1250	-5
11/07/2011	Rule #5	Sell Short	1245	+7
11/10/2011	Rule #5	Cash	1238
11/22/2011	Rule #2	Buy	1188	-17
11/23/2011	Rule #1	Sell Short	1171	+1
11/23/2011	Rule #2	Buy	1170	+87
12/06/2011	Rule #4	Sell Short	1257	+16
12/13/2011	Rule #5	Cash	1241
12/15/2011	Rule #2	Buy	1219	+15
12/21/2011	Rule #5	Cash	1234
12/28/2011	Rule #4	Sell Short	1253
Total:				+576 (+43.7%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.

Trading SPX

noreply@noemail.com (MarketVolume.com Team) — Friday, December 16, 2011 13:30:00 +0000

+43% on the S&P 500 in 7 months

This week's SBV chart example is based on the 60-day SBV(20) S&P 500 chart and is a continuation of the S&P 500 chart example that was published on December 9, 2011.

Chart 1. Relationship between the SBV Oscillator and
index reversal points. S&P 500 index. 60-day view. 1 bar = 60 min. SBV(20)

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.

Time	Motivation	Signal	Index	Profit (points)
5/23/2011	Rule #4	Sell Short	1318	+3
5/25/2011	Rule #2	Buy	1315	0
6/01/2011	Rule #4	Sell Short	1315	+23
6/09/2011	Rule #2	Buy	1292	-18
6/10/2011	Rule #1	Sell Short	1274	+1
6/13/2011	Rule #2	Buy	1275	-9
6/15/2011	Rule #1	Sell Short	1266	-6
6/16/2011	Rule #2	Buy	1272	+3
6/17/2011	Rule #1	Sell Short	1275	-2
6/20/2011	Rule #2	Buy	1277	-10
6/23/2011	Rule #4	Sell Short	1267	-16
6/27/2011	Rule #2	Buy	1283	+55
7/6/2011	Rule #4	Sell Short	1338	+7
7/13/2011	Rule #2	Buy	1331	-12
7/13/2011	Rule #5	Cash	1319
7/19/2011	Rule #2	Buy	1319	+19
7/25/2011	Rule #4	Sell Short	1338	+189
8/11/2011	Rule #2	Buy	1149	+44
8/16/2011	Rule #4	Sell Short	1193	+47
8/23/2011	Rule #2	Buy	1146	+51
8/29/2011	Rule #4	Sell Short	1197	-5
8/30/2011	Rule #3	Buy	1202	+5
9/01/2011	Rule #4	Sell Short	1207	+12
9/07/2011	Rule #2	Buy	1195	-45
9/09/2011	Rule #5	Cash	1150
9/13/2011	Rule #2	Buy	1172	+21
9/20/2011	Rule #4	Sell Short	1203	+58
9/26/2011	Rule #2	Buy	1145	+24
9/28/2011	Rule #4	Sell Short	1169	+25
10/05/2011	Rule #2	Buy	1143	+51
10/13/2011	Rule #4	Sell Short	1194	-14
10/18/2011	Rule #5	Cash	1208
10/25/2011	Rule #5	Sell Short	1237	-48
10/27/2011	Rule #5	Cash	1285
10/31/2011	Rule #5	Sell Short	1269	+19
11/03/2011	Rule #2	Buy	1250	-5
11/07/2011	Rule #5	Sell Short	1245	+7
11/10/2011	Rule #5	Cash	1238
11/22/2011	Rule #2	Buy	1188	-17
11/23/2011	Rule #1	Sell Short	1171	+1
11/23/2011	Rule #2	Buy	1170	+87
12/06/2011	Rule #4	Sell Short	1257	+16
12/13/2011	Rule #5	Cash	1241
12/15/2011	Rule #2	Buy	1219
Total:				+561 (+42.6%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.

SPX Simple System

noreply@noemail.com (MarketVolume.com Team) — Friday, December 09, 2011 13:30:00 +0000

+41% on the S&P 500

This week's SBV chart example is based on the 60-day SBV(20) S&P 500 chart and is a continuation of the S&P 500 chart example that was published on October 21, 2011 and on August 5, 2011.

Chart 1. Relationship between the SBV Oscillator and
index reversal points. S&P 500 index. 60-day view. 1 bar = 60 min. SBV(20)

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.

Time	Motivation	Signal	Index	Profit (points)
5/23/2011	Rule #4	Sell Short	1318	+3
5/25/2011	Rule #2	Buy	1315	0
6/01/2011	Rule #4	Sell Short	1315	+23
6/09/2011	Rule #2	Buy	1292	-18
6/10/2011	Rule #1	Sell Short	1274	+1
6/13/2011	Rule #2	Buy	1275	-9
6/15/2011	Rule #1	Sell Short	1266	-6
6/16/2011	Rule #2	Buy	1272	+3
6/17/2011	Rule #1	Sell Short	1275	-2
6/20/2011	Rule #2	Buy	1277	-10
6/23/2011	Rule #4	Sell Short	1267	-16
6/27/2011	Rule #2	Buy	1283	+55
7/6/2011	Rule #4	Sell Short	1338	+7
7/13/2011	Rule #2	Buy	1331	-12
7/13/2011	Rule #5	Cash	1319
7/19/2011	Rule #2	Buy	1319	+19
7/25/2011	Rule #4	Sell Short	1338	+189
8/11/2011	Rule #2	Buy	1149	+44
8/16/2011	Rule #4	Sell Short	1193	+47
8/23/2011	Rule #2	Buy	1146	+51
8/29/2011	Rule #4	Sell Short	1197	-5
8/30/2011	Rule #3	Buy	1202	+5
9/01/2011	Rule #4	Sell Short	1207	+12
9/07/2011	Rule #2	Buy	1195	-45
9/09/2011	Rule #5	Cash	1150
9/13/2011	Rule #2	Buy	1172	+21
9/20/2011	Rule #4	Sell Short	1203	+58
9/26/2011	Rule #2	Buy	1145	+24
9/28/2011	Rule #4	Sell Short	1169	+25
10/05/2011	Rule #2	Buy	1143	+51
10/13/2011	Rule #4	Sell Short	1194	-14
10/18/2011	Rule #5	Cash	1208
10/25/2011	Rule #5	Sell Short	1237	-48
10/27/2011	Rule #5	Cash	1285
10/31/2011	Rule #5	Sell Short	1269	+19
11/03/2011	Rule #2	Buy	1250	-5
11/07/2011	Rule #5	Sell Short	1245	+7
11/10/2011	Rule #5	Cash	1238
11/22/2011	Rule #2	Buy	1188	-17
11/23/2011	Rule #1	Sell Short	1171	+1
11/23/2011	Rule #2	Buy	1170	+87
12/06/2011	Rule #4	Sell Short	1257
Total:				+545 (+41%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.

SPX Simple Trading System

noreply@noemail.com (MarketVolume.com Team) — Friday, December 02, 2011 13:30:00 +0000

+40% on the S&P 500 in 6 months

This week's SBV chart example is based on the 60-day SBV(20) S&P 500 chart and is a continuation of the S&P 500 chart example that was published on October 21, 2011 and on August 5, 2011.

Chart 1. Relationship between the SBV Oscillator and
index reversal points. S&P 500 index. 60-day view. 1 bar = 60 min. SBV(20)

In our trading example, we applied the following simple system which is based on our SBV indicator:

Once the SBV indicator has fallen below a negative signal level (the indicator will now show red), we will enter a short position(if we are not already short);
Once the SBV indicator has advanced above a negative signal level (after having been below that level), we will enter a long position(the indicator still shows red);
Once the SBV indicator has rallied above a positive signal level (the indicator will now show green), we will enter a long position(if we are not already long);
Once the SBV indicator has fallen below a positive signal level (after having been above that level), we will enter a short position (the indicator still shows green);
Additional Stop Loss Rule- If the SBV had dropped into negative territory and has begun to rise without having hit the signal line, close the short position when the SBV is back in positive territory, and stay in cash until a new signal appears.

Do the opposite for a long position: if the SBV had moved into positive territory and has begun to decline without having hit the positive signal line, close the long position when the SBV is back in negative territory, and stay in cash until a new signal appears.

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.

Time	Motivation	Signal	Index	Profit (points)
5/23/2011	Rule #4	Sell Short	1318	+3
5/25/2011	Rule #2	Buy	1315	0
6/01/2011	Rule #4	Sell Short	1315	+23
6/09/2011	Rule #2	Buy	1292	-18
6/10/2011	Rule #1	Sell Short	1274	+1
6/13/2011	Rule #2	Buy	1275	-9
6/15/2011	Rule #1	Sell Short	1266	-6
6/16/2011	Rule #2	Buy	1272	+3
6/17/2011	Rule #1	Sell Short	1275	-2
6/20/2011	Rule #2	Buy	1277	-10
6/23/2011	Rule #4	Sell Short	1267	-16
6/27/2011	Rule #2	Buy	1283	+55
7/6/2011	Rule #4	Sell Short	1338	+7
7/13/2011	Rule #2	Buy	1331	-12
7/13/2011	Rule #5	Cash	1319
7/19/2011	Rule #2	Buy	1319	+19
7/25/2011	Rule #4	Sell Short	1338	+189
8/11/2011	Rule #2	Buy	1149	+44
8/16/2011	Rule #4	Sell Short	1193	+47
8/23/2011	Rule #2	Buy	1146	+51
8/29/2011	Rule #4	Sell Short	1197	-5
8/30/2011	Rule #3	Buy	1202	+5
9/01/2011	Rule #4	Sell Short	1207	+12
9/07/2011	Rule #2	Buy	1195	-45
9/09/2011	Rule #5	Cash	1150
9/13/2011	Rule #2	Buy	1172	+21
9/20/2011	Rule #4	Sell Short	1203	+58
9/26/2011	Rule #2	Buy	1145	+24
9/28/2011	Rule #4	Sell Short	1169	+25
10/05/2011	Rule #2	Buy	1143	+51
10/13/2011	Rule #4	Sell Short	1194	-14
10/18/2011	Rule #5	Cash	1208
10/25/2011	Rule #5	Sell Short	1237	-48
10/27/2011	Rule #5	Cash	1285
10/31/2011	Rule #5	Sell Short	1269	+19
11/03/2011	Rule #2	Buy	1250	-5
11/07/2011	Rule #5	Sell Short	1245	+7
11/10/2011	Rule #5	Cash	1238
11/22/2011	Rule #2	Buy	1188	-17
11/23/2011	Rule #1	Sell Shor	1171	+1
11/23/2011	Rule #2	Buy	1170	+74
Total:				+532 (+40%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.

Nasdaq Trading

noreply@noemail.com (MarketVolume.com Team) — Friday, November 25, 2011 13:30:00 +0000

+23% on the NASDAQ 100 index

This week's SBV chart example is based on the 30-day SBV(20) Nasdaq 100 chart

Chart 1. Relationship between the SBV Oscillator and
index reversal points. Nasdaq 100 index. 30-day view. 1 bar = 30 min. SBV(20)

In our trading example, we applied the following simple system which is based on our SBV indicator:

Once the SBV indicator has fallen below a negative signal level (the indicator will now show red), we will enter ashort position(if we are not already short);
Once the SBV indicator has advanced above a negative signal level (after having been below that level), we will enter along position(the indicator still shows red);
Once the SBV indicator has rallied above a positive signal level (the indicator will now show green), we will enter along position(if we are not already long);
Once the SBV indicator has fallen below a positive signal level (after having been above that level), we will enter ashort position(the indicator still shows green);
Additional Stop Loss Rule- If the SBV had dropped into negative territory and has begun to rise without having hit the signal line, close the short position when the SBV is back in positive territory, and stay in cash until a new signal appears.

Do the opposite for a long position: if the SBV had moved into positive territory and has begun to decline without having hit the positive signal line, close the long position when the SBV is back in negative territory, and stay in cash until a new signal appears.

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.

Time	Motivation	Signal	Index	Profit (points)
10/17/2011	Rule #4	Sell Short	2346	+3
10/18/2011	Rule #2	Buy	2343	+12
10/19/2011	Rule #4	Sell Short	2355	+5
10/19/2011	Rule #3	Buy	2350	-3
10/19/2011	Rule #4	Sell Short	2347	+11
10/21/2011	Rule #2	Buy	2336	+49
10/24/2011	Rule #4	Sell Short	2385	+19
10/25/2011	Rule #3	Buy	2366	-2
10/25/2011	Rule #4	Sell Short	2364	+26
10/26/2011	Rule #2	Buy	2338	+57
10/28/2011	Rule #4	Sell Short	2339	+75
11/02/2011	Rule #2	Buy	2320	+43
11/07/2011	Rule #4	Sell Short	2336	+13
11/07/2011	Rule #5	Cash	2350
11/09/2011	Rule #4	Sell Short	2343	+1
11/11/2011	Rule #2	Buy	2342	+10
11/14/2011	Rule #4	Sell Short	2352	+11
11/15/2011	Rule #2	Buy	2341	+18
11/16/2011	Rule #4	Sell Short	2359	+139
11/21/2011	Rule #2	Buy	2220	-4
11/22/2011	Rule #4	Sell Short	2216	+66
Total:				+549 (+23.4%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.