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CLAYBURG.COM

Stock and futures traders looking for a subscription-based service that generates trading signals can utilize the services offered on this site. Although the site may be graphically underdeveloped, it does contain information valuable to traders. Here, both long- and short- term signals are generated based on trend-following systems.

On the home page, you can see four different sections: System Builder Indicators, Cyclone System, Feeder Trader, and the Spectrum Portfolio Trading Method. In the system builder section, you will find the list of indicators used to build the spectrum system. Each indicator has a description of its chart signals, entry and exit options, and stops.

The Cyclone System is one of the more popular systems and has been rated in the top five systems tested by Futures Truth. It is a longer-term day trading system for the Standard & Poor's 500 contracts, and a discussion on how the systems are designed and how signals are generated is included. You can also take a look at the 10-year performance history of the system. Keep in mind, though, that if you decide to subscribe to one of these systems, you should follow it strictly by entering and exiting every trade. This principle is emphasized to users of this service.

The Feeder Trader system is for trading feeder cattle on the Chicago Mercantile Exchange. It uses chart patterns to generate signals.

The Spectrum Portfolio Trading Method provides performance results of equities. There is also a description of the theories that the spectrum system is based on, namely, the follow-through and range expansion theories. The performance of these systems over a given period is provided. Historical performance for bonds, S&P 500, Dow futures, and certain stocks are provided on the Website.

FIGURE 1: RESULTS OF THE CYCLONE SYSTEM. The number of losing trades is greater than winning ones, but the returns generated from the winning trades are much greater than of losing ones.

Figure 1 displays the performance results of the March 2000 S&P 500 futures contracts between 12/9/99 and 1/28/00. Although the number of trades that generated losses was greater, the returns on winning trades were significantly higher.

This Website generates trading signals for both stock and futures traders. Utilize the three-week free trial offered to new users during which period you receive signals by E-mail. This gives you the opportunity to determine whether the spectrum trading method is suited to your trading style.

TRADINGSIGNALS.COM

The ETS trading system, developed by Tradingsignal.com's parent company TCSI, has long been known in the trading community. It has made the October/November 1998 Futures Truth top 10 list of systems traced for the past 12 months with a percentage return rate of 103.3% for the period. The company's Website, which can be found under several domain names, serves as an informative window for visitors.

The home page consists of two frames, the one on the left-hand side containing links to the various sections and the main body containing the S&P 500 equity curve displaying the performance of the ETS system. A ticker tape scrolls along the top. There are no direct links to the subscription-based services from this Website. New subscribers receive a link via E-mail that takes them to their selected service, and they will have to bookmark the spot in order to access the subscription-based section again.

Access to the signals generated by the system is available for a fee. There are three options:
 

1 ETS Real-time futures and OEX signals
2 ETS Java stock/index signals
3 Live S&P Futures Squawk Box

The ETS real-time futures and OEX signals service is available for $250 monthly, $650 quarterly, or $1,300 for six months. Subscribers receive real-time signals during the trading day. These signals are displayed in a dialog box that pops up on your computer screen when they are generated. You will need to be connected to the Internet throughout the trading hours.

The ETS Java stock/index signals are available for $49.95/month or $500/year. You get access to stock and futures charts that are updated every night by 9:00 pm EST. This includes the ETS daily and weekly market scans, which provide a list of stocks or indices that make the initial and secondary buy and sell signals.

FIGURE 2: ETS PERFORMANCE. Chart of March 2000 S&P 500 contracts displaying buy and sell arrows as generated by the ETS Model 1 trading system; additional stops are also displayed.

In addition, you also receive charts that display buy/sell signals. These interactive charts give you the flexibility to select from various options. For example, Figure 2 shows the results of the  S&P 500 March 2000 contracts. You can select either the ETS Model 1 or ETS Model 2, target stops and signals, change the parameters of technical indicators, or choose not to have any indicators displayed. The technical indicators include stochastics, RSI, Bollinger Bands, and moving averages. Other options include daily or weekly charts, and changing the display of the price bars.

Daily market signals and commentaries of some of the indices such as the NYSE Index, S&P 500 futures, and the Internet Index are also available.

The Live S&P Futures Squawk Box is available for $100/month. Subscribers to this service can hear a bidder directly from the pits.

This site contains several features that both stock and futures traders would find beneficial. To view past performance of the ETS system, you can call up the charts and determine their success rate based on the generated signals.

TRADESIGNALS.COM

This Website generates trading signals on a select group of futures contracts. For $20/month or $120/year, you can get access to signals for about 40 futures contracts. The site is well designed, easily navigable, and the home page reflects the contents of the site. Charts of the various indices update frequently and are continuously cycled through on the homepage. You can also see the profit and loss of closed-out positions from the previous trading days' close.

Each futures market that is covered contains three sections: technology & market news, trend system strategy, and short-term strategy. The trend system strategy provides the general outlook (bullish, bearish, or neutral, trading strategies and money management techniques). The short-term strategy section also provides the outlook, money management advice and trading strategy. In addition, it includes a chart with bullish, bearish, and neutral trends together with technical commentary. You can also receive signals by E-mail.

FIGURE 3: INTERACTIVE JAVA CHART. The interactive chart gives you the flexibility to insert indicators, drawing tools, change periodicity, and change the chart type.

Other features included in this site are live quotes on select CME contracts, live trading and charting advice, and quotes for options on futures. Another attractive feature is the interactive Java charts. Members can access the intraday chart where they can insert indicators, utilize the drawing tools, change the periodicity, select chart type, and change parameters of the indicators. An example of the March 2000 S&P 500 contract with Bollinger Band overlays, the average directional index (ADX), and the relative strength index (RSI) is displayed in Figure 3.

Before committing to a service that provides trading signals, find out if the system works. The trading history section provides details of the system for the various contracts displaying historical equity curves, spreadsheets, and trading statistics.

FIGURE 4: EQUITY CHARTS. These equity charts show the performance of the trading system for the Mini S&P from 1995 to 1998.

Figure 4 displays two equity curves of the S&P Mini trading system. The top chart displays the year-by-year profit curve from 1995 to 1998 and the chart at the bottom displays a month-by-month curve for the same period.

If you are a futures trader who trades one of the contracts covered in www.tradesignals.com, take advantage of their 30-day free trial to test the performance of their system and decide whether it would be a beneficial service.

Originally published in the April 2000 issue of Technical Analysis of STOCKS & COMMODITIES magazine. All rights reserved. © Copyright 2000, Technical Analysis, Inc.