VectorVest SOTW - Become a Swing Trading Wizard with VectorVest (2018)

all right welcome everyone welcome to this special presentation on become a swing trading wizard my name is Steve Chappell the Director of trading systems development here at vector vast and do you I have a trading system for you let's jump in and take a look you know what they say proof is in the pudding and here is a snapshot of our portfolio performance for only the bull side of the portfolio from April the 4th until now the best part about this data is it's real time data it's not back tested 29 and a half percent

in just over six months time with very little drawdown along the way if you're willing or interested in the short side we were doing so well we says well I wonder if the same methodology would work on the short side of the market and sure enough it has the proof is in the pudding once again the last three campaigns each have been profitable and we are currently in a campaign you can see the stocks even listed at the bottom that are still in the portfolio at this time so just since July 27th there have been

three short campaigns since July 27th and 12 and a half percent would be added to the kitty if you're willing to go both long and short in the stock market so how did we do it right how are you I would certainly want to know so let's take a peek as we've said many times your system ultimately determines your success and so we have three cornerstones for this trading methodology for the swing trader one when to buy when do I start initiating my bullish swing trades or even bearish as we'll see in a bit what

do I buy another key ingredient I want to get the best stocks most appropriate for the swing trade and finally when do I sell them because that's where the money is and so ultimately what we want to know is how to solve for each of these three key cornerstones for when to buy we're gonna lean on the primary wave when we think about swing trading swing trading by definition is several days to several weeks the most appropriate timing model would then be the primary wave and so this gives us the best opportunity to get in

and out effectively on the what to buy we are gonna lean on what I feel truly is one of the most powerful tools factor vest has ever developed and I do mean ever and that is the vector vest derby we're not going to lean on just today's top performer or even the top performer over just the last five days we're going to use the entire 66 days of Derby calendar to come up with the most consistent performer and then finally how do we manage them effectively ideally we want to cut losers short and let winners

run so we're going to use the profit Locker and we've got some unique percentages that we've been using for this portfolio we're also going to close the entire basket when a primary down wave comes into play so whatever 10 stocks are left at the end of that campaign will be closed the day or the morning after a primary wave is produced so let's dig a little deeper break each one down individually on the wind to buy what market timing signal to employ we've already stated the primary wave as our timing signal and so let's take

a look at why that is best suited for a swing trader right inside a vector vast I'm going to move right into the platform and I'm going to go to the timing and then the market timing graph so here we have our market timing graph I'm just going to dial in to the most recent three months so we get a nice clean picture and you can see some of the finer detail now that we've done that I'll come down here to the bottom switch it from confirm call to primary wave will notice that the last

up signal came in on August 17th and took us all the way up to just after the peak where we could have stopped closed our long positions and potentially gone short if willing the following day September the fourth so on the fifth we could have initiated that morning the inception of a bearish campaign on the stock market and so just a quick reminder on the primary wave and how they're generated we're looking at the closing price today on the day of the signal to where it was five days prior and so the primary wave switches

to up the first day that we closed higher on a week over week basis and then just the opposite further down the first time after the up that we closed lower on a week over week basis or a five-day trading period it switches to down the one thing to note is that these signals get in very near the bottom and out very near the top and they do so on even the smaller waves within the larger waves or moves of the stock market that gives us the opportunity to really maximize quantity of trades here as

well if I jump back and look at a little bit more data you're gonna have times where the stock market is gonna rally for several weeks in a primary up call when things are going really good and the stock market is cooking you're also gonna have times where the stock market will be down or bearish for several weeks and take advantage of good short positions at that time so this is the timing model that we're going to employ and we do realize that on occasion we're gonna have to be pretty nimble and switch from too

short too long again in succession it will happen and we'll do that because we know when we get to the other side of that market capitulation it's going to start rolling again one way or the other so that's why use the primary wave for the swing trading approach in terms of the what do I buy we're going to lean on the consistent Derby performer so not just what strategy is up at the top of the list today necessarily although I have seen that there can be some correlation in how we pick our strategy and what

tends to be towards the top but we're going to lean on all of the historical data so we're going to use both the very the start date and sliding-window modes in the Derby but look at the entire three months of rolling data available in the Derby calendar because we're going to be analyzing two data sets I do suggest that you print each of the data sets out because we're gonna look to find the search that finishes nearest the top of both lists if it finishes in first position on both lists it'll have a total score

of two one plus one is two if it finishes one on one list in second position on another one plus two is three and the search with the lowest score will be the search that we choose for any future primary wave up or down campaign but we'll only use bullish searches for bullish campaigns and bearish searches for bearish campaigns so let's jump into vector vests and take a look so I'm going to close this out of the market timing graph and move us right over to the Derby so here's a look at today's Derby and

there's some incredible information right here you can see what searches are in favor and doing the best right now as we speak at 2:06 Eastern Time in the stock market what we're going to do however is lean on all the history available in the Derby that we have at our disposal so the way to do that is I'm gonna switch it from today's Derby which shows us the best strategies and the stocks in them right now - which have been the best performers over the last sixty six days and so I change the analysis mode

first to vary the start date in vary the start date please note it's already preset here but I did take the top start date calendar all the way back to in this case June 6th that produces the 66 days of data that we're going to analyze now there may be some occasions where there's a holiday or something and that number can change but 66 is the typical number that you'll see once I've done that now the strategy that's at the top of the list marijuana magic is there for a different reason it's not simply the

top performer today it's the top performer if you bought it and any day in the past and held it for 66 calendar days or 65 or 64 or 63 so let me show you the runs there's a lot of data here six six two nine seven ten stock basket produced seven out of 10 stocks made money on percent winners twenty four percent gain ninety three annualized pretty decent drawdown but I'll I'll take that for ninety three annualized and you produce an efficiency factor here as well what's most important here is not so much all the

data that's inside just wanted to open your eyes to what is here what's most important is simply where the strategies finish and so I want to just didn't fatica lis point out that when we say here some of your top strategies in the platform right now are at the top there's a lot of data giving you that information 66 runs for each one that's a lot of quick tests you'd have to try to do by hand on every stretch in the platform you've got marijuana magic marijuana stocks Seattle Bear beater which has been a strategy

that we have used almost entirely in that performance number that I showed earlier for the twenty nine and a half percent there was only one occasion where a different search beat Seattle Bear beater out and it was show me the money long and it was a long while ago I think it was the very first one we used since then we've been using Seattle bear beater and so it's just being recently overtaken now by Marisa marijuana stock searches but it's still holding very strong towards the top of the list and still one of the better

Derby performers during the day today early in the session until the market soured again so all of this to say it's pointing us towards great solutions think about how hot marijuana stocks have been think about what type of market were in we're in the late stages of a bull market were bear market beater searches like a Seattle bear beater tend to work the best and so the derby is always pointing you the right direction if you just know how to wield the instrument so terrific information in here and I wanted to try to give you

as best flavor for it as I could before we move on to the next one so within each of these bars are 66 runs worth of data indicating that you know marijuana stocks marijuana magic those are two of your better solutions in fact marijuana magic far and away the best because on average for the 66 runs its produced twenty six and a half percent on average now that has a bias to it because over the last sixty six days the stock market has gone up and so I says well we need to cross-reference that data

with something that gives us a little bit more security and peace of mind if the stock market doesn't perform as well as we expect and so that's where the sliding window comes in the sliding window you see takes the number of hold days that you specify and slides that holding period through the data so you're always starting and finishing on a different five date data set so some of that data the stock market will be going up some of the data the stock market will be going down and on other five day sets the stock

market will be flat or a fairly flat and so these are going to be the strategies produced at the top of this list that have also held up well no matter what the market threw at them and so what this suggests here again is look at their right at the top Seattle Bear beaters and so if I click on this bar you can see the first test was six six two six twelve then six seven two six thirteen six eight two six 14 so we're sliding that five-day window one week trading window forward through the

sixty six day data set what it says here then is that Seattle Bear beater on average produced one point six five percent on any given week no matter whether the market was going up or going down or sideways so now what we want to do is find the strategy that is the highest on both lists that way we have a little bit of quarterly market bias and we also have a little bit of persistent search baked into the same solution so that even if the market doesn't perform as well as expected we're going to be

in good shape so when we look at this list marijuana magic is in third position now remember it was in first position on the other one so just as a reminder all slide bear that's why I suggest printing these lists out because on occasion you're gonna have to dig down through to find out which one's the highest towards the top of both lists simultaneously so I will switch us back to very the start date point out that marijuana magic is indeed the top one there so that gets a value of one marijuana stocks would be

a value of two see how to bear beaters a value of three so on etc so when I take the one of marijuana magic and add it to the three one plus three is four now the interesting phenomenon here and something we haven't seen yet and hopefully we won't see when the signal is generated is Seattle bear beater here is one and if we go back to you vary the start date is three so one plus three is four so they're equivalent in that case in that event we'll have to create a new rule and

my rule at this point will be use your head but what I say that Seattle Bear beaters has been a terrific strategy it's got more diversification because it's not focused on one single sector of the market and it's been working really well you know over the last several turns the other thing I would say is I would simply go with the sliding window these are gonna be the ones that are going to be a little bit more on the robust side taking out the upward bias of the market so when in doubt when we have

a tie we're gonna lean towards the solution here on the five-day slide so should we have which we won't but should we have a primary wave up to finish the day today we would roll with Seattle Bear beaters it's been our best search it's produced most of the twenty nine and a half percent gain and it's the best five-day slide all right so let's uh let's go ahead and move back in to you the PowerPoint for a sec and we'll talk about how to manage them because that's where the money is it's great to be

able to know when to buy and what stocks to get into you but then you got to realize some profits right so when de sel becomes critically important we want to be able to cut losers quick so we're going to use a profit Locker to manage our trades we're going to use a target percentage of 21-game and at the same time a stop loss initial stop loss of seven percent remember the profit locker is a ratcheting stop so I have seen only one instance where we've taken a full loss on a trade so far a

lot of times we're somewhere in between and fortunately I've got a trade history to show you so let's go and take a quick peek so here we are I'm going to go into the portfolio section and as I mentioned this has been rocking and rolling right here in my portfolio's tab since April of Forth when we look down at the data here I'm simply going to point out I've got both the bullish and bearish campaigns here's the same curve same result we're currently in cash but I can show you some of the reports and show

you some of the history so I'm going to click on reports and go to the summary report first first thing to note here is that we have had a hundred and eighty five trades in total and so trade number is a consideration here there's gonna be some trading when we move ourselves towards a swing trading system having said that nearly 50% of the trades have been successful and swing traders realize that if you have effective stop loss management forty percent can get you home to Grandma's house so doing really well on the overall winning trade

number our best trade was been Chronos one of those marijuana stocks at $5,500 our worst trade has been tailored brands at minus 2600 so you have a two to one ratio from best to worst trades you'll also notice the Commission's here so going with someone like an interactive brokers may have some good impact when we're a little bit more on the active side this was on the 495 trade commission now when I close this and move to I think a more enlightening report this is our trade history when we just take a quick peek at

the trade history here you can see we started out on April 5th when we initiated the first campaign all of those positions were closed in fact on foreign and we didn't really have any additional trades from profit Locker and we started out on a little bit of a rough patch but then we kicked in and I want you to notice just watch the green and the numbers on the green and the red and the numbers on the red so we're starting to see more green and we're starting to see higher percentages like a 10% gain

here where it was a 1% loss on the trade before and as we continue to roll down through the data here's an 11 worst case scenario minus 6 here's a 7 7 10 6 13 9 let's keep rolling down here our worst loser in this bunch was - 1 2 4 3 piling up the winners on that segment ooh this one gapped against us that would be the tailored brands there at 25% so the the outlier if you will but right back to back we had a 33 a 16 a 16 sixes and sevens and

you know the hits just keep on rolling in here was a couple of really good ones 42 and 26 string a little losers but we kept them small and that's the that's the that's the real solution here is we're putting ourselves in a position with the stocks that we're buying to make some money and we're also managing them effectively with the profit Locker okay and so all of that activity then has produced the resulting curve tremendous tremendous performance here really super excited about it and of course we have the bearish side here as well and

you can see we're up twelve point nine one percent so it's improved even since the PowerPoint slide that I just showed you by getting closer to 13 percent if I click on the reports here in the trade history I'll slide this over stacking up the big winners in here as well eighteen percent on a recent trade and there's going to be some losers in there also but look at that 18 19 11 7 7 7 7 lots of the winners are far outweighing the losers there's a 15% the worst loss in this segment four and

a half so the winners are really performing a lot better than the losers when we cut them early and so that's the whole key that's so that's a huge key but it all begins with when to buy and what to buy that's just the final piece but I did want to share that with you because it is really really solid data and there's a lot of trades too for us to say hey look we've we've come across something here that we cannot help but share with you okay so let me move back into the presentation

here real quick what I want to do here next is just simply say a couple of things one we are going to be detailing this trading system in the jockey club it's it's part of the real-time Derby subscription we're going to be detailing this trading system every single day for those of you that might be interested in that also for any person who owns the Derby currently or anyone who decides to take out a trial subscription to the Derby we're also going to provide the click by click and I mean click by click directions on

how to do the trading system that I just detailed for you guys so that is going to be awesome and not only that we've also been already getting our jockey club members up to speed on the trading system and some of them are already doing it and dealing well which is terrific so we want to give everyone an opportunity to jump on board into it for themselves and so we're gonna offer a 30-day trial subscription to vector vests real-time because it runs only our vector vests Derby rather because it runs only on real-time service we're

going to give you the free upgrade to real-time to try it out and it's all going to be for just $29 so this is going to give you the ability if you'd like to monitor the performance of this for the next 30 days for just less than a dollar a day it's also going to give you access to us the instructors and watch us perform and do the trading system every single day for the next month for less than a dollar a day I suggest you do it I suggest you go to www.beadaholique.com before the

bell from 9 a.m. to 11:30 we are going to be detailing this trading system every single day and going through what motions we need to do for every session most days you're just letting vector fest genius do the job and just clicking except to all the traits but in the event that we have a primary wave change we are going to be walking everyone through we're going to close these positions and we're going to be opening these positions because it's the top performer from the Derby for the past 66 days alright guys so that's it

I hope you're as excited about it as I am I truly cannot wait for next week we're gonna turn this guy loose and we're gonna do so on a real trading account and it's gonna be awesome I'll see you there I'll see you in the jockey club next week see you then I can't wait to see all of you bye now