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S&P 500 Day Trading System

Trade Differences

We are occasionally asked why the same program on a different computer or data feed can generate different system trades.

The Cyclone system is extremely "Data Sensitive" in that even minor differences in data reception can cause a significant variation in signal generation.

As you have seen on the system explanation page , the system generates support and resistance levels each day from which the day's signals are generated. These levels are constructed using the high, low and close of the past several days.

The system will generate trades when these levels are crossed by the market. Since these levels are often very close to significant market turning points, slight variations in their calculations can have a major impact on trades which are generated. 

If, for some reason, the high or low or close for any of the past several days is different form one computer to another the signals will not be the same. 

For instance, let's assume that for one reason or another that your computer received a few ticks at the high or low of the day that mine did not. Thus the high or low of the day will be slightly different which will lead to variations in the calculation of the support and resistance points. This could be due to differences in data feeds, computer or server problems, and most often problems with short data feed interruptions that can go unnoticed.

I have tracked down many, many instances of the above occurrences. Frequently just two or three tick differences in the location of the support and resistance points can mean getting or not getting a trade.

Also consider that the system relies on the big profits to be successful. Should one computer or another miss one of these big trades the overall result of the system between each computer will be significantly different.

As for the results posted on this web site, all I can do is post the results which are generated by the system in my office. I make every effort to assure that the data used each day is complete. If necessary, I will download complete intraday data to patch up any gaps which may be generated by data outages, computer problems, etc.