12.11.12 – Do You Have An Edge?

Is progress actually being made on the budget talks?  The Street thinks so; now up five days in a row, the Dow Industrials gained another 78 points to close at 13,248.44.  The S&P 500 Index climbed .65% while the Nasdaq Composite jumped up 1.18%.

Volatility lessened as fears receded and XIV, the inverse VIX ETN, rose 3.32%.  QLD, the leveraged Nasdaq-100 Index ETF, was up 2.63%.  TAN, the solar ETF, gained 2.38%.  Please click on the symbols for details.

I’m a big fan of Chris White’s software applications, ETF Trading Bandit and EdgeRater.  Regular readers of the blog will probably recall my reviews of these products (if you don’t, please use the search box in the upper right of the page to find the reviews) and I use them every week.  Chris recently started a new service called EdgeClub that I think you will find valuable in its own right.

ETF Trading Bandit and EdgeRater come with built in strategies.  What if you read about a new strategy not currently coded in Trading Bandit or EdgeRater that you’d like to try?  That’s where EdgeClub comes in.  EdgeClub will provide new trading strategies each month.  You will get new EdgeClub trading templates which can be run daily or intraday to produce trading signals, market reports and trade simulations.  “Templates” are spreadsheets that Chris codes and builds into EdgeRater.

The EdgeClub platform is built on EdgeRater core technology.  You have full access to the platform to provide Charting, 3D Scanning, Trade Simulation and Backtesting, in addition to all the club trading templates.  The platform contains trading templates that fully automate the process of trade simulation and backtesting.  Select a template and a symbol list, then hit ‘run’ to see if the strategy is still working today.

One feature I appreciate is that I’m not limited to the trading templates that come with EdgeClub.  You can use the EdgeClub trading templates as a base for building your own, allowing you to easily get stock price data, technical analysis indicator values, and scan results into Excel for further analysis.

The EdgeClub platform can connect to data in a variety of formats including MetaStock, ASCII and HGSI (High Growth Stock Investor). The platform can also download free data from Yahoo for both End-of-Day analysis and Intraday updates.  The data updates your symbols lists and you can use EdgeRater’s included lists or create your own list.

For December 2012, EdgeClub provides templates for dozens of strategies available in HGSI; all seven systems from the book “High Probability ETF Trading” by Larry Connors and Cesar Alvarez; and the strategies described in the guide “2-Period RSI Pullback Trading, by Larry Connors, Cesar Alvarez, and Matt Radtke.

When first configuring EdgeClub you need to select a data provider or providers.  There is an icon on the top of the screen that you press and the following appears:

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I selected Yahoo.  Next, click on the Symbol List icon and select from the list, either the S&P 1500 or a sample data list, which is 18 months of the S&P 500.  You can also create a custom list of symbols.  I’ve created a custom list of ETFs for my use but for purposes of this review I’m using the two symbol lists that come with EdgeClub (S&P 500 and 1500):

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I selected the S&P 1500 list.  Next, click the Update List Data icon and update your data.  This takes a few minutes.  You’ll want to update your data whenever you load EdgeClub.

On the bottom of the screen are four tabs: EdgeClub templates; Security Chart; Entries and Exits; and Trade Simulation.  The EdgeClub templates shows the new templates for December:

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Let’s experiment with the 2-Period RSI strategies.  Click on the 2-Period icon on the far right; you’ll see four templates on the near right.  Click on Scan – All Setup, then click the Run icon at the top of the screen:

EC-4a After a few seconds of number-crunching, the calculations are complete, giving you the prices at which to buy the stocks:

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You can easily run the other scans as well as the trade simulation.  You can also view the reports in your own Excel compatible application by clicking on the View Spreadsheet icon at the top of the screen.

I’ve touched on just a few of the many features of EdgeClub.  I particularly appreciate the backtesting feature called “3D market scanner.”  It scans a list of stocks for every historical occurrence of the strategy criteria.

The cost of EdgeClub is a very reasonable $67 per month.  To get templates enabling you to test new systems each month for this price is remarkable.  The overwhelming request from EdgeClub members for January was for implementation of the ConnorsRSI indicator and templates to find signals and run performance reports based on the new ‘Trading Leveraged ETFs with Connors RSI” strategy guide’, so that’s what’s on its way.

You can save money by prepaying 12 months for the price of 10 months.  Chris is offering a special right now of $1 for the first month and $47 for additional months.  You can find out more information at EdgeClub.

I’ll be off for the rest of the year visiting friends and family.  Thank you for “tuning in” and reading the blog; I have a lot of fun writing it.  May your best trade of 2012 be your worst trade of 2013.  See you next month!

 

 

About Dave

David Steckler enjoyed 24+ years of experience as an investment counselor and portfolio manager before retiring. A former professor at Lindenwood University in Missouri, he also was a member and past president of the American Association of Professional Technical Analysts (AAPTA), and a member of the Market Technicians Association (MTA).
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