SBV Technical Analysis - Trading Volume with Confidence
Simple SBV Trading System Blog
S&P 500 Trading System
Friday, July 09, 2010
+17% on the S&P 500
This week's SBV chart example is based on the 60-day SBV(20) S&P 500 chart. This chart example is a continuation of previous example on June 2, 2010.
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)
Profit with 10-point Stop-Loss
5/14/2010
rule #4
Sell Short
1141
+56
+56
5/24/2010
rule #2
Buy
1085
-4
-4
5/24/2010
rule #1
Sell Short
1081
+26
+26
5/25/2010
rule #2
Buy
1055
+4
+4
5/25/2010
rule #1
Sell Short
1059
-15
-10
5/25/2010
rule #2
Buy
1074
-5
-5
5/26/2010
rule #4
Sell Short
1069
-24
-10
5/27/2010
rule #5
Cash
1093
5/28/2010
rule #4
Sell Short
1090
+10
+10
6/1/2010
rule #5
Cash
1080
6/3/2010
rule #2
Buy
1099
-22
-10
6/4/2010
rule #4
Sell Short
1077
+7
+7
6/9/2010
rule #2
Buy
1070
+40
+40
6/17/2010
rule #4
Sell Short
1110
+3
+3
6/17/2010
rule #3
Buy
1107
+10
+10
6/18/2010
rule #4
Sell Short
1117
+41
+41
6/25/2010
rule #2
Buy
1076
-34
-10
6/29/2010
rule #5
Cash
1042
7/6/2010
rule #2
Buy
1025
+52
+52
Total:
+145 (+12.7%)
+200 (+17.5%)
Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.
Note: The 20% level for the SBV indicator was determined in relation to the prevailing market conditions at the time that 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 the history of prior volume surges, including their magnitude (i.e., the level that the SBV indicator reached).
Disclaimer:The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.
