Organised Market Environment.

MECHANICAL SYSTEMS DEVELOPMENT

Analytical Market Trading (AMT) is based on the presumption that the market has moved beyond the notion that human sentiment is the driving force behind the market. The market, especially derivative markets have moved into the 21st century driven solely by the saturation of computer-generated systems.

These 24-hour markets have gravitated from its function to facilitate trade between two parties of human interaction to the facilitation of ‘price over time’. Even in the quietest of times on the Globex session, the same pattern of precise movements and patterns are occurring over and over again even though volume and trader participation is extremely low.


So what does this mean?


Well if this is the case, derivative markets should have a more probable and predictable outcome than before. If the unknown outcome of human action has been replaced by the probability of precise movements occurring within the market regularly, then we as traders should be able to maximise the trading potential that exists. There are two reasons for this. 1. Our profit objectives will become a lot clearer through the distribution of price with each and every extended movement in price over time and, 2. Any negative mindset that exists should be replaced by the statistical probability of future outcome. If the market performs the same sequence of repetitive patterns based on past data, then the trader should become more systematic in their approach and maximise the unlimited trading potential that exists within the numerous timeframes.


What single indicator provides one of the most robust automated systems there is, and Proves the market rotates as the market extends as TIME moves forward.The Core theory of AMT.

Market Profile Theory statistically proves that price will return to the most traded area, ‘the value area’ or as some call it ‘Point of Control’ (POC). Fibonacci takes what has occurred in the past and through the science of mathematics projects extended movements into the future. The argument though, is that, the market is non-linear, so any form of predictive analysis will fail. Where as, a non-linear market provides the perfect environment for Market Profile to flourish. A discretionary trader trading the smaller daily cycles or an intra-day timeframe essentially sells against all trends; short, medium or long. The reason why she trades against all trends is that, she expects prices to rotate back to some central point. If the market spends more time rotating within itself and making extended moves as time moves forward then combining the two concepts would provide a very robust methodology. The combination of the two has the potential to form a predictive model with high probability of success!

Below is an automated system of ‘one’ lone indicator that never exits the market, is always open to market forces and has no stops what so ever. The system has no correlation to trading Price, the system is only concerned with TIME, it enters and exits based on TIME alone.

AMT shows you the indicator and the most optimum use for it, and also describes in detail the relation between the past to provide robust systems for the future.

The book takes a close look at developing systems for short term traders, the best way of trading derivative markets, and why most traders fail when it comes to short term futures trading.

*Note: these are results for the past trading year and is no indication for any future
results.