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Prior to the last two years investing your hard earned money in swing trading systems was a suckers bet, but not today. Since 1990, when system trading really started to catch on, and in back testing starting in the early 1970’s, the performance of swing trading placed a poor third in profits generated by both trend following approaches and day trading. Suddenly that is no longer the case.
The last two years have seen a dearth in medium to long-term trends and volatility on the S&P 500 has steadily declined until now reaching a 14 year low. Without trends, trend following systems can’t do very well. Even in markets that took huge moves like the energies it was very difficult to take advantage of those moves because they spiked up and then spiked down. And where the Indexes longed for greater volatility in 2005 and 2006, the energies at times had way too much. The Natural Gas, for example, had several days where just the opening range approached $20,000 per contract, which is too rich for almost anybodies blood. On the other hand, volatility has dropped almost every month in the stock index futures. Without large daily ranges it is difficult to make a great deal of money in day trading systems. Enter the swing trading systems!
While there is little doubt that we will again see major trending markets and greater volatility in Index futures in the coming years, the addition of swing trading strategies to alternative investment portfolios makes a great deal of sense. Statistically, markets don’t trend 70% of the time. The majority of the time they chop back and forth in a “trading range” and don’t take much of a direction. Swing trading systems are designed to identify markets that are in trading ranges and take advantage of the swings in the market.
Every year we see numerous markets that appear to be starting a major trend only to fail after a small breakout. Swing trading strategies can make great money in these short lived momentum breakouts. They are generally short term strategies lasting only 2 to 4 days. This gives them the advantage of being able to capture larger profits than the limitations of a day trading system but does not require a big trend to develop to be successful like medium to long-term systems.
One of the most successful of the developers in accomplishing this is Lincoln Fiske of Trading Visions Systems, Inc. Worldwide Futures Systems offers his two swing trading systems Delphi and Axiom Index , which have been tremendously successful in capturing profits on short-term trend breakouts since their release dates. Futures Truth Magazine ranks these two swing trading systems the #4 and #3 most profitable multi-market systems since their release dates in its most recent issue.
To find out more about swing trading systems offered by Worldwide Futures Systems and how they can add diversification, stability and profitability to your futures portfolio contact us at 888-989-WWFS for a no obligation consultation.
