(Still under Development )

From Classact (aka Spock) at the Chartology Forum

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Spock Matrix Trading Rules and Rationale

THE RULES ARE AS FOLLOWS AND SHOULD BE FOLLOWED RELIGIOUSLY (THIS IS GOD’S WORK!):

1. ENTRY AND EXIT: ENTER OR EXIT TRADE ON NEXT TRADE DAY “MORNING”, AFTER SPOCK CONFIRMS UPDATED TRADE POSITIONS AFTER THE MARKET CLOSE.

2. STOP LOSS: USE TRAILING STOP LOSS FOR ALL TRADES. USE TWEAKED DAILY PSAR (0.08, 0.2) AND UPDATE DAILY. THIS TWEAKED PSAR STOP LOSS IS DESIGNED TO PROTECT THE POSITION AGAINST INTRA-DAY REVERSALS, AND LIMIT LOSSES OR LOCK IN PROFITS IF AN INTRA-DAY EVENT TRIGGERS A SUDDEN PRICE REVERSAL.

3. FLAT: STAY IN CASH UNTIL ENTRY OR EXIT SIGNAL CONFIRMED BY SPOCK.

4. “MORNING” MEANS BETWEEN 10:00AM TO 10:30AM NEW YORK LOCAL TIME. ENTER OR EXIT IN THIS TIME WINDOW.

5. ENTRY AND EXIT PRICE IS AT THE BID/OFFER MARKET PRICE AT THE TIME OF ENTRY/EXIT WITHIN THE “MORNING” TIME WINDOW.

6. POSITION SIZE: THE MAXIMUM TRADE POSITION ALLOCATED TO ANY ONE ETF TRADE, SHOULD BE A MAXIMUM OF 20% OF THE TOTAL TRADING PORTFOLIO SIZE ALLOCATED TO SPOCK TRADING. FOR 3X LEVERAGED ETFS, THE MAXIMUM ALLOCATION SHOULD BE 10%.

7. LEVERAGED ETF SELECTION: THIS IS LEFT UP TO THE INDIVIDUAL TRADER, BASED ON INDIVIDUAL RISK PROFILE. HOWEVER, IT IS RECOMMENDED THAT MAX LEVERAGE OF 2X BE USED FOR SPOCK TRADES, AS SOME TRADES MAY RUN FOR WEEKS AT A TIME, AND 3X LEVERAGE ETFS CAN SUFFER FROM SIGNIFICANT TIME DECAY IN PRICE DURING LONGER PERIODS.

8. NOTE: SPOCK TRADE SIGNALS ARE UPDATED DAILY AFTER THE CLOSE, FOR EXTRA-DAY TRADING PURPOSES, NOT FOR INTRA-DAY TRADING PURPOSES.

The development of the Spock Matrix Trading System :

The goal was to develop a Mechanical Trading System (Matrix) based on a universe of tweaked and standard indicators applied to a wide variety of global market sectors across long term, medium term and short term time frames. The Spock Matrix is designed to take out all opinion and emotion, the two deadly sins of trading. Also it is designed for those who do not wish to or cannot monitor their positions intra-day . It is an extra-day trading system and the signals should not be used for intra-day trading. The Spock trade signals are updated after the close each day for action the next day, in the “morning” time window. The recommended time window for entry/exit is between 10:00 AM and 10:30 AM New York local time. The rules should be followed explicitly. Its a robotic process with no emotional thought involved.

The Spock Matrix covers most major global market sectors and industries, currencies, bonds, equities and commodities. So it covers the whole spectrum. Trading vehicles are the non-leveraged and leveraged ETFs based on these market sectors and industries. All the trading vehicles are traded on the New York exchanges, where there is good liquidity and depth.

I have spent 1000s of man-hours on this system to date, so I am unwilling to post the exact details on the forum, as we have no idea who reads the forum. There could be fund managers there, who just take away the details, and use it to manage a large fund. So the details should remain confidential.

A number of significant changes to the criteria, with weightings on 14 different indicators, and go/no go switches, over four different time periods, have been recently added. The system has been back tested. The results will speak for themselves over the medium to long term. Back testing has proven that the system works incredibly well, if the rules are followed. That’s the most important aspect. Follow the rules and the signals generated, religiously.

I have done significant back testing now on different instruments, and it was spot on every time, in getting in early on the big trends. For example, if we had it this time last year, we would have got in on the short oil trade fairly early and ridden it all the way down. It would have extracted 75% to 80% of the price move down. Now that would have been a ride to remember!

Anyway, lets prove its worth in the future, not the past. The next few months will be a critical test, given the increasing volatility . I invite only disciplined members to do the trades virtually via the contest platform
or if you wish (and with the disclaimer applying) in your real accounts.

To follow this system simply check the “Spock Matrix” link at the top of the Chartology Forum. It will be updated
before the open every day. Best of luck out there.

Spock (formerly Classact)

Trade Long (and Short) and Prosper

PS: Below is an example of the Spock output matrix updated after the close on Friday 13th march 2015. The trade signals shown would be acted upon on the next trade day, being Monday 16th March 2015, within the “morning” time window, as per the rules.

SPOCK TRADES 16 MAR 15

SPOCK-TRADES-16-MAR-15

Fully’s Note:

The Spock Matrix has been tweaked since this time

More sectors have been added and the formula has evolved

Many Forum Members are participating in the trials

Preliminary results from one member show many small losses ranging from

0% to 6% but mostly 3%

3% of a 20% PF position is less than a 1% loss…but there was one 36% gain which more than offset all the losses

Again very preliminary but there have ben no real trends in the test period of 2 weeks so far

I believe this system will be a winner

Getting traders in early and out early while letting the winners run

all with NO Emotion or decision making .

Yesterday Spock Followers had a Buy Silver Signal…those who took the trade in USLV were instantly rewarded

Even if it reverses Spock will have them out with nice profits .

The trials will begin in earnest April 1

We will keep Goldtent informed on the progress

Trade Long (and Short) and Prosper

spock1