Trendchannel: Futures Trading System.

Welcome to Trendchannel.com. I'm John Tolan, the developer of Trendchannel
To learn more about our trend following, futures trading system
please read all of the information provided below, scrolling down the page.
(To Print this page, set the left and right margins in your File, Page Setup to 0.5".) 
If you have questions, or if you want additional information, please e-mail or call me.

  e-mail address:
    tolan@Trendchannel.com  

  phone number:    970-948-6211
  mailing address: 
1501 Walz Avenue, Glenwood Springs, CO 81601     

Trendchannel has been included in the Futures Truth "Top 10 Trading Systems" since 2001.

Trendchannel has the essential components of a system that work together to automatically provide answers to the 3 Basic Trading Questions: When, What, and How Much to trade. Or to use financial terminology: Market Timing, Asset Allocation, Money Management and Risk Control. 

1) When to Trade or Market Timing - When to enter and exit the market:
The Trend Indicator component of the Trendchannel System is based on a mathematical formula that combines adaptive measurements of price direction, momentum, and volatility to define when the markets are trending. The System is designed to automatically adapt to changing market conditions seeking to profit from market trends. 

The Trendchannel System's trend indicator is a solution that I discovered after many years of research and literally 100's of tests.  

The
Trendchannel trend indicator filters out the "noise" in the market, identifying the trend - "the music", giving the exact price levels that will signal a change in trend. This trend signal alerts you when to buy and when to sell. It gives you precise, computer generated entry and exit signals. This eliminates the human elements of subjective judgment and emotion that can unconsciously influence your decision making process when you're trying to determine the trend of the market. Automatic green light, red light signals help you to make clear and timely decisions in the "heat of battle".

The finished product, Trendchannel, is different from other technical studies and trading systems that are available. Trendchannel defines trends in a way that is consistent with classical trend analysis, but it is designed to attempt to keep you out of sideways or trend-less markets and get you in early and keep you in the market for the full ride in a major trend.  

2) What to Trade or Asset Allocation: In addition to the Trendchannel Portfolios, Trendchannel is a versatile trend trading system that has been developed, tested, and can be applied to all markets - including stocks, bonds, ETFs, futures, commodities, and forex.

3)
How Much
to Trade or Money Management/Risk Control:
Trendchannel Portfolios use money management techniques (explained in more detail in the Trendchannel Trading Guide) with the objective to maximum returns with minimum drawdowns for any account size. 

Historical Testing, Development, and Hypothetical Performance.

Developing the Trading System: Over the years, I was always intrigued by the possibility of creating a mechanical system to trade the markets.* I began the system development process by looking at other existing indicators and trend following trading systems, and then correcting what I found to be flaws or drawbacks with these methods. Extensive historical testing (using a computer to make literally 100's of simulated tests) helped me to identify the most desirable trading system characteristics, improve and simplify system formula design, confirm the final system's robust nature (the same formula can be applied to all  markets), and to get a realistic idea of the system's potential performance in the future. 

*To read about my background, as it relates to the development of Trendchannel, please go to this page: John Tolan Biographical Information and "My Story" - http://www.trendchannel.com/mystory.htm

Trendchannel
can be described as a medium to long-term, trend following trading system.
 
It is not an "over-optimized" or "curve-fit" system. These systems generate outstanding results in testing because the system rules and parameters have been adjusted, with the benefit of hindsight, to fit the data being tested. The problem with curve-fit systems is that actual performance has little chance to equal back-tested performance. The more rules and parameters a system has, the more likely the system has been curve-fit. Some other signs include the use of different, specifically formulated rules for each market, or varying the parameter settings for each market the system trades. Curve-fit systems also generate erratic results when parameter values are changed.
When a system is based on a sound testing methodology, it should produce a wide range of profitable results when parameters are modified and it should produce positive results over a wide range of markets. 

The
Trendchannel formula has only 2 parameters and the same parameter values are used across all markets. In historical tests, the Trendchannel System produces consistent, positive results, even with changes in parameter settings. 

The suggested parameter settings that come with the system are in the center of the bell curve, the profit plateau, when measuring the largest total profits on 40 or more of the highest volume futures markets tested on 30 years of market data. This test totals approximately 12,800 trades.    


Statistical Trading Edge: The futures markets that trade the Trendchannel System in the 6 market Trendchannel Portfolio, produce on average these hypothetical statistical results:

Probability or % Win: 41.8%
Reward/Risk or Win/Loss ratio:  3.8/1
Trade signals per year: 5. (8 trades per year including rolling positions in expiring futures contracts forward) 
.418 x 3.8 x 5 = Total Profit.

Source of data: TradeStation Strategy Performance Reports, 1/21/2005.

In baseball stats, this would translate into a .418 batting average, hitting either a triple or home run.
(and without the risk of using steroids)

Although your attention may be drawn to the results of each individual trade (each "at bat" ) what matters most is the long-term bottom-line performance of your entire Trendchannel Portfolio.  

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

How to Track and Trade the Trendchannel System.

Trendchannel is a long-term, channel breakout, trend following trading system
Trendchannel
is adaptive, end-of-day, 100% mechanical, and fully disclosed.

Trading the Trendchannel System is an end-of-day process.

Trends are defined as: UP, SIDE, or DOWN. 
The Trendchannel System indicates support and resistance levels that form the "Trendchannel".

An example that illustrates the Trendchannel System is provided below. This chart from TradeStation shows the Trendchannel System applied to daily bar data on the Nasdaq 100.

The Support and Resistance Levels - that are included with the purchase of the Trendchannel Trading System - are not shown here. For illustration purposes the trends are shown with PaintBars. 

Green bars indicate an UP trend.
White bars indicate a SIDE trend.
Red bars indicate a DOWN trend. 

Trading Signals:
A new UP trend is signaled with Green bars if the market closes above the Resistance level of a SIDE trend. This is the signal to take a long position on the next open and to hold until a SIDE trend is signaled. 

A new DOWN trend is signaled with Red bars if the market closes below the Support level of a SIDE trend. This is the signal to take a short position on the next open and to hold until a SIDE trend is signaled. 

A new SIDE trend is signaled with white bars when the market closes below the Support of an UP trend or above the Resistance of a DOWN trend. This is the signal to EXIT the current long or short position on the next open. No position is held while the market is in a SIDE trend.

Simply stated: Buy the up trends, sell the down trends, and exit positions when the market turns sideways. 
These are the simple, 100% mechanical, trading instructions used to track and trade Trendchannel.  



FAQ: What will I need to run the system?
When you purchase the system I will provide you with the complete Trendchannel System Formula - fully disclosed. The Trendchannel can be easily set up and will work on any charting software/data platform that includes the most basic standard indicators and that allows you to adjust the parameters settings on the indicators. Some examples are: TradeStation, CQG, FutureSource, e-Signal, QCharts, MetaStock, DTN, etc.

FAQ: What if I don't have any software/data service? You do not need to have TradeStation to track Trendchannel. FREE charting services are available on the Internet that you can use. I have used them myself and they work. I will show you how to get set up to track the Trendchannel from one of these FREE sources. In addition, The Trendchannel Operating Manual includes complete easy-to-follow set up instructions. 

FAQ:
Can I have someone trade the system for me? Yes, you can set your Trendchannel Account on "Automatic Pilot" with a Trendchannel System Assist Broker. If you want to take advantage of the Trendchannel System, but you can't follow the markets every day, or if you would simply prefer to have someone follow the system for you, a system assist broker can trade the system for your account. This gives you the opportunity to use a tested system without having to take the time to check signals and enter the trades.

 FAQ: What's Included with my
Trendchannel System Purchase?
When you purchase the Trendchannel System, you will receive:


The Trendchannel Trading Guide - This is a complete guide to the basics of trend following combined
with all of the trading procedures, methodology, and money management techniques of the Trendchannel System. Each trading rule is fully explained and you are then shown step-by-step how to apply the rule using the Trendchannel Trading System

Trendchannel Trading Guide:  
1) "The 5 BIG Mistakes Traders Make", why traders make these mistakes, and how
you can avoid them.
2) "The 5 Essential Rules for Successful Trading".
3) A way traders can earn higher returns, with less volatility risk.
4) Why 90% of all futures traders lose money over time
.
5) How traders manage investment risks.
6) Ways to achieve the 2 primary trading objectives of the serious trader or investor:
     Assume the minimum risk to earn the maximum return.
7
) "The Common Denominator of Trading Success".     
8) When, what, and how much to trade.

Trendchannel
is a powerful, fully integrated system that seeks to provide solutions to the basic trading problems. The complete Trendchannel Trading System is much more than the trend indicator component!

The advice I share with you in
The Trendchannel Trading Guide is just as important and valuable as the Trendchannel Trading System algorithm component that generates the entry and exit signals.

Trendchannel
as an end solution, is like a high performance machine, made up of parts or components, that when combined may produce superior results. The trading procedures, techniques, and disciplines in combination with the portfolios give you a complete trading strategy. It's similar to having your own private hedge fund.

When you purchase the Trendchannel System, you will receive by e-mail:


1) Trendchannel Futures Trading System, Fully Disclosed. You will get the complete, exact mathematical formula. The system logic is completely revealed to you.

2) Trendchannel Trading Guide -
The Guide explains the research, logic, and the reasons behind the system rules.

3) Trendchannel Operating Manual - Simple and complete set up and user instructions are included. You will be shown with exact step-by-step detail how to use the system. You can follow the Trendchannel System on any basic charting service. You do not need to have TradeStation to use Trendchannel.
FREE
internet sources are also available. I will show you how to track the Trendchannel from one of these web based charting services.
 

4) Trendchannel E-mail Newsletters and Updates As an added FREE bonus, I will keep you updated on any new research discoveries, including any future enhancements to the system, any suggested changes in markets to include in the portfolios, and any suggested changes in position size, money management techniques, trading strategies, performance updates, and more. 

5) Trendchannel Support and Trading Advice
In addition to helping you, to get set up to use the system, I will provide ongoing education, training, and support with your Trendchannel Purchase. If you have questions about the markets, trading, or the Trendchannel System, you are always welcome to e-mail or call me.

Once you have made your system purchase, you are a lifetime, non-exclusive holder of
the Trendchannel System. If you want or need assistance, I would be glad to put you in touch with a Trendchannel System Assist Broker and personally help you get your account set up and started. 

Additional Potential Benefits of Owning the Trendchannel System:
 More Freedom, Power, and Control.

1) You will have the power to accurately determine and track the trend of any market - on your own - giving you more freedom and control in your trading - whether you are trading on your own and/or having your account managed with Trendchannel System Assist.
2) You won't be forced to rely on outside sources for
market information, opinions, or advice.  
3) You can trade with more confidence - because you will know the fully disclosed
logic and performance history of a tested trend following trading system.
4) You can learn our system and then
apply it to other systems or strategies that you are already using.
5) If you are already trading another system, consider adding Trendchannel
to your portfolio for a greater level of diversification.

You will have an easy to use, and versatile trend indicator that gives you the POWER to reliably define price trends in all markets, both now and in the future. As long as competitive, free markets exist, the Trendchannel System should continue working for you, because it is designed to continuously adapt to new and changing market conditions.
 

Trading systems can cost as much as $5,000 or more. However, I want to make the Trendchannel System easy-to-get and affordable. I want satisfied customers who feel like they have gotten a good value when they purchase the system. At the same time, I want ownership of the Trendchannel System to remain exclusive. You can purchase the Trendchannel Trading System for $1,995.

With your Trendchannel purchase you will receive the Fully Disclosed Logic and Code. 

(The cost of your Trendchannel purchase may be tax deductible. Ask your tax advisor.) 

It's easy to get started and you can begin any time. Once you have made your Trendchannel System purchase, you can either begin following the system signals on your own, or if you prefer, I would be glad to put you in touch with a Trendchannel System Assist Broker, who you can direct to track and trade the system for your account.

Trendchannel Trading System Guarantee: If any of the Trendchannel marketing information is not true,
or if it is deceptive or misleading,
or if performance has been misrepresented, in any way, you can get a full refund of the purchase price of the Trendchannel System. You are paying for this fully disclosed system along with research and educational materials to trade the system. Please be advised that even though the work that went into research to find the optimal trading system was complex and extensive, the final solution, the Trendchannel System, has been reduced to a relatively simple formula. 

Trendchannel Purchase:
If you would like to purchase the fully disclosed Trendchannel System now, plus the Trendchannel Trading Guide and all of the other extras included, to be sent immediately to your e-mail address, please send a check in the amount of $1,995 payable to Trendchannel, and mail your payment to: 
Trendchannel, 1501 Walz Avenue, Glenwood Springs, CO 81601  (please include your e-mail address) 

Before Purchasing, please read the: Risk Disclosure and Customer Agreement

Thank you for your interest in Trendchannel and for giving me the opportunity to help you with your trading.
If you have a friend or associate who shares your interest, please tell them about us.


If you have any questions, if you want additional information, or to get started now, please don't hesitate
to e-mail or call
me. Thank you for your attention. I look forward to hearing from you.    

John Tolan, Trendchannel System Developer,  tolan@Trendchannel.com   970-948-6211 

Scientific Trading Solutions, Inc. 1501 Walz Avenue, Glenwood Springs, CO 81601

To read about my background as it relates to research and development of Trendchannel, please see:
John Tolan Biographical Information, "My Story"  http://www.trendchannel.com/mystory.htm

No completely "safe" trading system has ever been devised. And no one can guarantee profits, or freedom from loss, or guarantee to limit the extent of any loss trading. Certain market conditions may make it difficult or impossible to limit losses to the amount intended. You can read the: CFTC Consumer Advisory on Trading Systems - "Beware of Websites Selling Commodity Trading Systems that Guarantee High Profits with Minimal Risks". http://www.cftc.gov/enf/00orders/enfposting4-tradingsystem.htm

 

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. Futures trading involves substantial risk of loss and may not be suitable for all investors: Please see: Risk Disclosure
Scientific Trading Solutions, Inc. (DBA Trendchannel) is registered as a CTA (Commodity Trading Advisor) with the Commodity Futures Trading Commission (CFTC). The NFA (National Futures Association) can be contacted for verification of CTA status. Futures Trading Systems: http://www.futurestradingsystems.com   


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