
The concept of trend following, which is entering a market that is showing strength or weakness in anticipation that the market will continue to move in that direction, has become an important strategy for many investors.
In 2003 TOVI introduced the Trend Tracker to help you efficiently "trade with the trend."
Through years of working with our clients and getting their feedback we learned that many believe that if they miss the initial move of the trend they tend to write off the market because they believe they have missed the entire move.
In reality this thinking can be detrimental to trading the futures markets. The length of trends can last from days to years. We do not want our clients limiting their thinking because they are only looking at the beginning of a move rather than in its entirety.
We want our clients to realize that the initial entry is just one of the many trading opportunities that could exist within a trend and beyond the various entry points within a trend can come profit taking opportunities. Exiting a portion of the position after a strong move and trying to re-enter the market after setbacks can add a whole new dimension to trading.
We want you to become a more "Dynamic" trader that is constantly looking for opportunities to adjust your positions to extract more from the market than you are currently pursuing. We recognize that what we are trying to ask our clients to do can seem like a very time consuming task, and this is the reason we are introducing two new features to our "Trend Tracker" tool.
THE OPPORTUNITY WINDOW
The Opportunity Window tool informs traders that TOVI has spotted a setback in the market that could allow them to enter a trade at better levels within the Trend. The Opportunity Window will indicate this by displaying an Open indication on the Trend Tracker page. Until our research tools indicate these opportunities exist the indicator will display Closed.
While the Opportunity Window is a great tool for traders who missed entry into an initial trend, it is just as powerful for traders that are looking for a way to ADD into an existing position.
When you have an Open indicator it is important to use an appropriate entry technique. It is important to use the TOVI team to assist you with this and we encourage you to use them.
As important as the Opportunity Window is for entering a position, TOVI will provide you an equally important indicator to assist you on areas to lighten up on a position.
THE TARGETING WINDOW
The Targeting Window identifies opportunities within a trend for traders who want to take partial profits or who do not want to carry excessive risk after a move in the market.
The Targeting Window indicator will display Reached to indicate we have reached a point that traders could consider proactively reducing their position. If current levels are not defined by TOVI to be optimal the indicator will display Not Reached.
As with the Opportunity Window when you have a Reached indicator it is important to use an appropriate exiting technique. It is important to use the TOVI team to assist you with this and we encourage you to use them. There are many ways to reduce risk exposure other than covering or closing your current position.
This is a more dynamic method of trade management and is becoming more critical in today’s higher volatility market environment. Both of these features are available in the Trend Tracker for our premium subscribers. Members can login using the link to the lower right but if you are new to the site please click the link to the lower left to get signed up for your 15-day free trial of our premium services.
