Equitrade Research

1.  Tradesearcher

2.  Steven Mayne Technical Analysis

3.  Andrew Collins - Fundamental Analysis

Contracts for Difference (CFDs) are generally a product more suited to short term trading and as such we tend to favour technical analysis (as opposed to a purely fundamental, value based approach). 

Our analysts have spent years refining their trading and at Equitrade we promote the use of a number of investment strategies which we believe offers a diversified approach to CFD trading to help maximise performance and provide consistent returns.  Our analysts use a blend of Technical and Fundamental analysis alongside the Tradesearcher programme.  We then apply strict money management techniques to ensure that when we enter a trade we try to eliminate as much uncertainty from the equation as possible, by knowing at the outset what our entry levels are, what our targets are, what our stops are, and what our position sizes will be. 

The Tradesearcher Strategy

Here Joraber Sahota (Senior Trader - Equitrade Markets) talks about the Tradesearcher system and how it can be used both on its own and as part of an already established trading strategy.

"I joined Equitrade having already developed a trading style that I was comfortable with. However, utilising the TS system and the money management tools it offers in tandem with my trading, has helped push my performance to the next level. "

The Tradesearcher programme requires the satisfaction of certain criteria when selecting a trade and based on how many and to what scale these factors are satisfied, determines the initial risk assessment of the trade.

At the end of each trading day in the UK we analyse the positions we have and assess any potential new trades.  We send out a report (click here for a sample), which clearly identifies what our clients should be looking out for on the open the next day.  In most cases entry and stops/limits are placed on the open at 8:00am.  For US trading, reports are sent out before the open at 2:30pm, often after US economic data due out an hour before.  Whilst technical analysis does form the basis of our decision making, we will use common sense when assessing the fundamental corporate and economic outlook, to ensure we (and our clients) are always aware of external influences on their trades.

Once we enter each position, all trades are then confirmed to our clients via telephone, SMS or MSN/AOL messenger, so at each stage of the process, you know what is happening to your trades.  Clients have access to their own online account management system (click for example) to monitor their positions at any stage.

Any amendments to stops and limits, new trades, or news during the day is transmitted to our clients by the various methods above.  For those clients at work or unable to speak during the day, the members area provides a useful source for monitoring the latest news.  As a client, you receive secure access to a number of resources including our Morning Briefing Video presentation (see example), an archive of all past reports, and the latest news posted real time to your member area.

Tradesearcher

Tradesearcher is not one of the many 'black box' systems out there that purports to offer amazing returns for very little effort.  Tradesearcher is a trading programme that requires a good knowledge of technical analysis and money management techniques.  We use a combination of various parameters to determine what constitutes an acceptable trade.

Of course we are limited to how much information we are prepared to post on this site.  Unlike many of our counterparts, we are not interested in selling this as a product...why would we?  We use the programme to trade for our clients and this forms the basis of our successful trading.  All the TA we use is available to everyone anyway, we just use it the way we have found to be successful.  If our clients are successful, then so are we! Its that simple.  The only way you can get access to the programme is to open an account with Equitrade or subscribe to the daily reports. 

We do not have the time nor inclination to spend valuable time and resources posting countless records of successful trades for you to look at.  In our view, unless its live, and you see it with your own eyes, who is really that concerned with what HAS happened.  We sell our services in a simple, transparent way....a FREE TRIAL.  This is why an inordinately high percentage of clients that sample our reports go on to open an account.  If you sample our reports for a week, and these reports tell you the trades we are doing the next day, you will see pretty quickly whether our advice is successful.  If you like what you see... open an account!

The chart below is an example of a trade which we would describe as satisfying all the criteria i.e

• Do we have the buy/sell flag?

• Has the price action broken (on close) minor support or resistance.

• Have the parastops (often used as a short term trend indicator) turned in the direction of the intended trade. 

• Does the candle formation lend support to the trade?

• Is minor support/resistance close enough for the stops to justify the trade.  In general we do not like stops to be more than 2.5% away for the trade.  There are exceptions, although this is generally when we look to build a position on a longer term time frame and this may necessitate a wide stop.

• Are the targets appropriate given the stops levels?

• Where is the price action within the matrix?

Sequence of the decision making

• The buy flag (which is automatically generated on the close) highlights the trade initially on the close

• We enter 1/2 a position on the open at 118.25 (see below why it was a 1/2 position and not a full position).

• At the point of entry the target is given by the red major resistance

• Initial stops go in behind the support at115.25

• Stops are trailed behind the red parastop dots

• Target is filled at 124.25 - Here that represents a rise of 4% after 6 days

• Three days later we see a sell flag on the close.

• We enter a full short on the open at 119.75

• Stops go on behind the purple minor resistance at 121.5

• Target is the red support line at 114.75

• Target is filled at 114.75 - That represents a fall of 4.1% in 4 days.

Of course this is but one example, and we can assure you that there are loss making trades when using this method.  For us, losses are a simple expense of trading, a cost associated with running any successful business.  Managing those losses and making sure the profitable trades outperform, is the key.

The trade set-up above represents our 'perfect' set-up and needless to say, not all the trades are as clear cut.  The reason we entered a 1/2 position on the initial trade was because the price had not yet broken the medium resistance on close and this was highlighted further by green minor resistance behind it.  In the second trade, the set-up was entirely different, and the close was below the medium support and no (green support dots) where there.

Click here to view a video 'walkthrough' of a recent trade.

If you would like to find out more about the trades we are doing tomorrow, click below to start you free, no obligation trial.

Steven Mayne Technical Analysis

Warning: Trading Contracts for Differences (CFDs), Futures and spread betting carries a high level of risk to your capital, and is not suitable for all investors. Only speculate with money you can afford to lose. Trading or placing any bets can result in consumers incurring liabilities in excess of their initial stake. Please ensure you fully understand the risks, and seek independent advice if necessary.  Equitrade CFDs is a trading name of Equitrade Markets Ltd, a company authorised by the FSA to provide advice on spread betting, CFDs, futures. options and rolling spot foreign exchange.

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