PowerTrendSystem – Trade Traction Graph
Understanding the Traction Performance of the System Alerts
Trade Traction History
The “Traction” indicator is displayed in the upper section of the Alert Software to the right of the Current Stop level. The Trade Traction tells us the maximum price excursion against us and in our favor, measured from the Entry price on a trade. It shows us how much “heat” we took on any given trade and what the potential max point move in the desired direction was. It’s an ideal way of “scoring” and measuring the effectiveness of the entry on each alert. It’s also useful in visualizing the potential gains on “runners” that travel through both Targets and continue to run in the direction of the trade Alert.
Note: The Fixed Max Stop on any Alert is 18.00 Points per Contract
Some Alerts will show 0.00 points of negative Traction. This is when an Alert triggers-in and begins moving in our favor instantly and never looked back. In other words the price never moved against us after we took the Entry. These are trades that had enough “forward inertia” to keep moving in the direction of our trade from the moment we get filled.