S&P 500:

An Example of a Trading System using the technical analysis based on the SBV Oscillator

June 27, 2008

+4% (62 points) in 2 months

This week SBV technical analysis example is a continuation of previous example on June 20, 2008. In the last week's example we have explained the using of the trailing signal that would help to avoid a situation when the SBV oscillator moves close to the signal line, yet does not hit it to generate signal.

Chart 1. Relationship between the SBV oscillator and index reversal points. S&P 500 index. 60-day view. 1 bar = 1 hour. SBV(20)

1. Once the SBV indicator declines below negative signal level (the indicator will now show green), we enter a short position (if we are not already short);
2. Once the SBV indicator advances above negative signal level (after having been below that level), we will enter a long position (the indicator still shows green);
3. Once the SBV indicator rallies above positive signal level (the indicator will now show red), we enter a long position (if we are not already long);
4. Once the SBV indicator declines below positive signal level (after having been above that level), we will enter a short position (the indicator still shows red);
5. Additional Stop Loss Rule - If the SBV dropped into negative territory and started to rise without hitting the signal line, close the short position when the SBV is back in the positive territory, and stay in cash until a new buy signal is generated. Vise versa for a long position.

Table 2: Trades based on the   5-rule (additional stop-loss rule) system.

Open Trades				Closed Trades				Profit (points)
Time	Motivation	Trade	Index	Time	Motivation	Trade	Index
05/06/08	rule #4	Sell Short	1402	05/12/08	rule #2	Buy to Cover	1397	+5
05/12/08	rule #2	Buy	1397	05/14/08	rule #4	Sell	1410	+13
05/14/08	rule #4	Sell Short	1410	05/15/08	rule #3	Buy to Cover	1421	-11
05/15/08	rule #3	Buy	1421	05/20/08	rule #4	Sell	1416	-5
05/20/08	rule #4	Sell Short	1416	05/27/08	rule #2	Buy to Cover	1379	+37
05/27/08	rule #2	Buy	1379	06/02/08	rule #4	Sell	1388	+9
06/02/08	rule #4	Sell Short	1388	06/05/08	rule #2	Buy to Cover	1391	-3
06/05/08	rule #2	Buy	1391	06/06/08	rule #5	Cash	1385	-6
06/12/08	rule #2	Buy	1350	06/17/08	rule #5	Cash	1356	+6
06/17/08	rule #4	Sell Short	1356	06/23/08	rule #2	Buy to Cover	1317	+39
06/23/08	rule #2	Buy	1317	06/24/08	rule #4	Sell	1310	-7
06/24/08	rule #4	Sell Short	1310	06/24/08	rule #2	Buy to Cover	1305	-5
06/24/08	rule #2	Buy	1305	06/26/08	rule #5	Cash	1295	-10
Total:								+62

Note: The 33% level for the SBV indicator was determined in relation to the prevailing market conditions at the time the trading examples were selected. In order to establish the optimal critical levels for the SBV indicator, traders should consider the current market situation and review a chart history of prior volume surges including their magnitude (i.e., the level the SBV indicator reached).

Our charts are unique in that they give traders the option to choose specific chart settings that best fit their personal trading styles and risk tolerance. Traders can thus develop and test their own trading systems. On our charts, you can scroll back in history to test any system you created.

 More Examples:

Date	Index	Timeframe	Result	Number of Trades
Jan. 02, 2009	S&P 500	60-day	+242 points (+24%)	9 "Long" and 8 "Short"
Dec. 19, 2008	S&P 500	60-day	+294 points (+31%)	13 "Long" and 12 "Short"
Dec. 19, 2008	S&P 500	60-day	+290 points (+30%)	12 "Long" and 12 "Short"
Dec. 12, 2008	S&P 500	10-day	+91 points (+11%)	9 "Long" and 8 "Short"
Dec. 5, 2008	S&P 500	60-day	+354 points (+36%)	10 "Long" and 10 "Short"
Nov. 28, 2008	S&P 500	60-day	+420 points (+43%)	10 "Long" and 9 "Short"
Nov. 21, 2008	S&P 500	60-day	+244 points (+20%)	14 "Long" and 10 "Short"
Nov. 14, 2008	Nasdaq 100	10-day	+69 points (+5.1%)	5 "Long" and 6 "Short"
Nov. 7, 2008	DJI	30-day	+3,137 points (+30%)	5 "Long" and 6 "Short"
Oct. 31, 2008	S&P 500	5-day	+42 points (+4.7%)	9 "Long" and 9 "Short"
Oct. 24, 2008	DJI	30-day	+3,004 points (+27%)	5 "Long" and 6 "Short"
Oct. 17, 2008	DJI	30-day	+2,886 points (+26%)	4 "Long" and 4 "Short"
Oct. 10, 2008	DJI	30-day	+2,262 points (+20%)	5 "Long" and 6 "Short"
Oct. 3, 2008	DJI	30-day	+958 points (+8.3%)	8 "Long" and 9 "Short"
Sept. 26, 2008	S&P 500	60-day	+74 points (+5.8%)	7 "Long" and 7 "Short"
Sept. 19, 2008	S&P 500	60-day	+114 points (+9.0%)	6 "Long" and 7 "Short"
Sept. 12, 2008	DJI	30-day	+1,232 points (+11%)	5 "Long" and 5 "Short"
Sept. 5, 2008	DJI	30-day	+734 points (+6.3%)	5 "Long" and 5 "Short"
Aug. 29, 2008	DJI	30-day	+600 points (+5.2%)	6 "Long" and 6 "Short"
Aug. 22, 2008	DJI	30-day	+995 points (+8.7%)	5 "Long" and 5 "Short"
Aug. 15, 2008	S&P 500	15-day	+41 points (+3.2%)	7 "Long" and 8 "Short"
Aug. 8, 2008	S&P 500	15-day	+44 points (+3.5%)	6 "Long" and 7 "Short"
Aug. 1, 2008	S&P 500	15-day	+45 points (+3.6%)	4 "Long" and 8 "Short"
July 25, 2008	S&P 500	15-day	+28 points (+2.2%)	1 "Long" and 3 "Short"
July 18, 2008	S&P 500	60-day	+7 points (+0.0%)	9 "Long" and 5 "Short"
July 11, 2008	S&P 500	15-day	+103 points (+7.8%)	4 "Long" and 6 "Short"
July 3, 2008	S&P 500	15-day	+69 points (+5.2%)	4 "Long" and 6 "Short"
June 27, 2008	S&P 500	60-day	+62 points (+4.4%)	7 "Long" and 6 "Short"
June 20, 2008	S&P 500	60-day	+113 points (+8.5%)	4 "Long" and 2 "Short"
June 13, 2008	S&P 500	60-day	+108 points (+8.1%)	4 "Long" and 2 "Short"
June 6, 2008	S&P 500	15-day	+47 points (+3.4%)	7 "Long" and 10 "Short"
May 30, 2008	S&P 500	60-day	+201 points (+15%)	4 "Long" and 3 "Short"
May 23, 2008	S&P 500	60-day	+222 points (+16%)	3 "Long" and 4 "Short"
May 16, 2008	S&P 500	60-day	+243 points (+18%)	4 "Long" and 3 "Short"
May 9, 2008	NASDAQ 100	10-day	+97 points (+5.1%)	10 "Long" and 10 "Short"
May 2, 2008	S&P 500	15-day	+31 points (+2.2%)	7 "Long" and 9 "Short"
April 25, 2008	S&P 500	60-day	+251 points (+18%)	7 "Long" and 8 "Short"
April 18, 2008	S&P 500	15-day	+91 points (+6.6%)	3 "Long" and 3 "Short"
April 11, 2008	S&P 500	15-day	+39 points (+3.0%)	4 "Long" and 5 "Short"
April 4, 2008	NASDAQ 100	5-day	+93 points (+5.2%)	7 "Long" and 6 "Short"
March 28, 2008	S&P 500	60-day	+29 points (+2.1%)	6 "Long" and 7 "Short"
March 20, 2008	S&P 500	5-day	+53 points (+4.2%)	3 "Long" and 4 "Short"
March 14, 2008	S&P 500	5-day	+77 points (+6.0%)	6 "Long" and 5 "Short"
March 7, 2008	S&P 500	60-day	+222 points (+15%)	9 "Long" and 9 "Short"
Febr. 29, 2008	S&P 500	60-day	+211 points (+14%)	8 "Long" and 8 "Short"
Feb. 22, 2008	S&P 500	15-day	+85 points (+6.4%)	4 "Long" and 5 "Short"
Feb. 15, 2008	S&P 500	60-day	+211 points (+15%)	7 "Long" and 7 "Short"
Feb. 8, 2008	S&P 500	60-day	+214 points (+14%)	6 "Long" and 6 "Short"
Feb. 1, 2008	S&P 500	60-day	+246 points (+17%)	5 "Long" and 5 "Short"
Jan. 25, 2008	S&P 500	60-day	+330 points (+20%)	5 "Long" and 5 "Short"
Jan. 18, 2008	S&P 500	60-day	+330 points (+22%)	4 "Long" and 5 "Short"
Jan. 11, 2008	S&P 500	60-day	+309 points (+21%)	5 "Long" and 5 "Short"
Jan. 4, 2008	S&P 500	60-day	+291 points (+20%)	4 "Long" and 5 "Short"

 

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1/6/2009 - SV3