S&P 500 Day Trading System
We are occasionally asked why the
same program on a different computer or data feed can generate different system
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.