You are here: Educational Videos » Bulls 'n Bears » Blue Light Trailing Stops

Track 'n Trade Bulls 'n Bears Trading System

Blue Light Trailing Stops

Video Transcript

The Blue light system is a mathematically calculated trailing stop system that has been hyperbolically linked to the mathematics of the Bulls ‘n Bears Traditional, Progressive and Aggressive formulas.

By hyperbolically linking the Blue Light trailing stop system to the formulas of the Bulls ‘n Bears, we get a dynamically updating trailing stop system that becomes more or less sensitive based on the sensitivity of the Bulls ‘n Bears system itself.

In the drop down menu you’ll notice two settings, Bullish/Bearish, and Both.

With the setting on Bullish/Bearish, you’ll only receive the trend side of the Blue Light Calculation, this may be less confusing for some individuals, as this is the setting you would primarily use when using the Blue Light as a trailing exit system.

For example, let’s say our primary strategy is to enter the market long on a bullish signal from the Bulls ‘n Bears, looking for a continuation of the rising market.

Once you’ve established your entry point, locate the blue light system, which should be several points behind your entry point; this would be your primary stop loss placement point.

With each new price bar, you’ll also receive a new dot, or blue light. The strategy at this point is to move your stop along to each new blue light, advancing your stop to either the breakeven point, or continue to exit, depending on your strategy.

On the other hand, if you set the blue light system to both, you’ll receive blue dots on both the trend side as well as the counter-trend side of the market.

This may seem a bit confusing at first, but one advanced trading strategy is to use these counter trend dots as entry, or re-entry points into or back into the market.

Rather than following the dots for exit, when on the counter trend side of the trade, you could follow the dots for entry.

Track ‘n Trade has the ability to automatically advance your stop for you with each new blue dot. This feature can be activated through the order settings dialog box, at the point of order placement, or through the Track ‘n Trade Autopilot System.

This is what we call an intercept order, since the Blue Light will eventually intercept the market price at the optimal order execution point for either entry, or exit.

Close
Questions: Call 1-800-862-7193, Ext. 2
Note: All data/software services are recurring