JFC Self Adaptive Indicator Signals

Why Use Signals?

          While working with many traders over a significant numbers of years it has been my observation that the best ones I have encountered have been those who were able to incorporate their own trading style into an effective strategy. They find success in their trading careers not only due to their ability to develop a high probability strategy but also in their ability to confidently implement the developed system.

            These traders are, on average, more successful that those who rely totally on an automated system. Automated systems have a definite role in effective trading. The best use of systems is often as an “optimizable indicator” as statistics generated by systems can be used to accurately judge the effectiveness of a particular routine.

            The JFC Indicator Package was created in response to those traders who desired to enhance their trading style by using self adaptive technical analysis. Many have found these tools to be useful in giving them an extra edge in their trading activities. Others have used these indicators to build a trading strategy from the ground up.

            However, I have been regularly asked for statistics as to the relative profitability of one indicator or another used in combination with one of the exit routines, etc. For instance, I have been asked:  “How does the Reversal entry and Volatility Exit compare to the Cluster Entry and Real Time Target exits when used on a two minute chart of the Japanese Yen?”

My response to these questions has been that there are so many possible combinations and so many different markets and time frames on which these trading tools can be applied that it is almost impossible to quantify an accurate answer to these questions.  

The answers to these questions are important to have if one is to develop a trading strategy and have the confidence to trade it.

I have developed the JFC Trading Signals to solve this problem in the same manner that the JFC Indicator Library is being used to add additional functionality to trading systems.

Users of the Indicator Library can now apply the same self adaptive routines to actual automated trading systems. Using these tools traders are now able to accurately determine the relative accuracy of all of these routines.

By using the Strategy Builder in TradeStation 2000i or by applying each signal individually in the newer versions of TradeStation traders can now observe the actual buy and sell signals which are being generated by their favorite indicator combination. Additionally, the Strategy Performance Report in TradeStation will tell users what the results would have been has the combination been traded historically.

With the creation of the JFC Trading Signals traders now have not only the ability to visually apply these self adaptive routines to their trading style but now can quantify the historical effectiveness of these tools as well.