Trend Sigma
  trade the Big Run & smile  

About Trend Sigma

This is a site for traders and investors who want to make a killing without being killed themselves. Trend Sigma aims to ride the monster wave...

Trading the trend

The very basic trend trading system is something like the following. Interestingly most market participants do something else. Good luck for us. Otherwise the below wouldn't work:

  1. Find a situation with the odds in your favor

  2. The trend must be running right now and potential must be there

  3. Enter the trade with a tight stop

  4. Be prepared to be stopped out by pullbacks or an ending trend

  5. But wait for new strength and if the trend is still or again running

  6. Reenter

Sounds simple?

Yes, it is! But the devil is in the details and that's why there is more to it. The above is basically good, but it perhaps is not good enough. And here is what is missing:

The Sigma Trend

The trend is your friend. True, and everybody knows it or at least feels it, but a trend alone is not sufficient. You will need a meaningful trend. That is what the Sigma stands for. By concentrating on meaningful trends we increase the chances that we get on board without too much friction and that the trend goes longer ahead.

Specifically Trend Sigma offers this:

  1. A strategy for finding and selecting a possibly meaningful trend.

  2. Mostly technical systems for the specific timing.

Both are endeavours on an ongoing basis. We have to monitor and scan the markets and we also have to change and fine tune and later to adapt again our trading system.

Finding interesting market situations is part of TS: See our blog

A technical system is necessary as the trend finding strategy doesn't work perfectly. You will only know in hindsight for sure that an emerging trend was the killer wave. In other words, we need a system that is robust enough to handle the many "wrong" trends. Such a system needs some sort of stop loss, but it also has to keep these losses in check in relation to the gains. At this point the meaningful trend helps as it likely has smoother entry zones and yields possibly larger profits.

If you are interested in riding the megatrends, the Trend Sigma system is a compact start to do the jump