Dynamic Profit Module

Maximize the Profit of Every Trade You Take

Using the new optimization features in OmniTrader, both the accuracy and profitability of our Entry Signals have been dramatically improved. This led us to ask the question: “Is there a dynamic way to manage Exits as well?” Indeed there is!

Stocks and futures move in cycles. That is, they form successive highs and lows as a result of the ebb and fl ow between supply and demand. What if we could accurately predict the next high or low before it occurs?  Wouldn’t Exits that adapt to the chart be better than fixed Exits?

The first step was to identify the cycles, and to do that we examine the turns in the chart or pivots. By measuring the size of the moves and the time between turns, we were able to predict the next cycle high or low.

Having accurate cycle projections has enabled us to create the Dynamic Profit Module. When activated, it plots the next most likely cycle high or low on the chart. This helps us know the best time to enter a trade on a new Signal. It also enables us to determine the best point to take profits!

The module uses the next projected high or low to generate three Profit Targets (Conservative, Moderate, and Aggressive). The user can place their Fixed Profit Stop at the appropriate level. It’s easy to see where the Stop Loss should be placed to maintain a desired Reward:Risk ratio.

In the The Power to Trade with Confidence Seminar, we show you how to select the best Target, but the Moderate (middle) Target is generally the best selection. It’s also the one we used in the automated Strategy tests described on the next page.