TD 2.0

The TD 2.0 is an updated version of TD 1.0 which is a combined dip-buyer and breakout system fully developed and adjusted for short-term swing trading in the American stock market.

The system is 100 % mechanical and scans over 3000 stocks every day in search of preferable setups. The main difference between TD 2.0 and TD 1.0 is that the new version has been updated with a new component enabling trendfollowing trading. The new version therefore generates a lot more signals compared to the older version, providing all subscribers with significantly more trading alternatives.

DIP BUYING

The overall fundamental idea behind the structure of a dip-buying trade is to search and find stocks that are lying in relatively strong long-term trends but who also, at the same time, find themselves in quite sharp short-term pullbacks. The thought is then to take advantage of these overreactions and rely on that the overall long-term trend will have the strength to bring the stock back to its previous uptrend.

BREAKOUT TRADES

A breakout trade works in a slightly different way. Just as with a dip buy we concentrate on stocks that lie in long term uptrends. The difference in setups is in the distinction of pullbacks. In a breakout setup the system looks for a stock that finds itself in a low-volatility state and a low-volume consolidation, only taking a small pause in the rising trend, just waiting to breakout. When it does, we trade it.

TRENDFOLLOWING TRADES

Just as it sounds, a trendfollowing trade is a trade taken in line with both the short-term, as well as the long-term, trend. A trendfollowing system does normally not generate as many winners as for example a dip-buing system does. However, the winners tend to be significantly larger than the losers making the expectancy quite satisfactory anyway.