How can I use Trading Edge Dynamics®?

Trading Edge Dynamics® is a tool that performs automated Technical Analysis (TA) on historical ASX stock data. The system generates alerts to identify “Bull” uptrends and “Bear” downtrends to assist users in identifying trend direction and trend change points. Trading Edge Dynamics® is a TA tool and not a trading system. User judgement is always required. We recommend that users first identify their selected stocks with sound fundamentals. Trading Edge Dynamics® offers a setting option for a range of long to short term TA strategy styles. The system utilises end of day data with daily updates available after 5.30pm AET on each ASX trading day.

Is it true that if I exit in a downtrend I am going to miss out on the rebound?

Trading Edge Dynamics® alerts are designed to flag a Bear alert on the downtrend and should the trend change, then flag a Bull alert so you don’t miss out on the uptrend.

How does Trading Edge Dynamics® preserve my capital?

Trading Edge Dynamics® will flag a Bear alert if the trend reverses to warn you that you have a potential losing trade. The dynamic predicted values can reflect a trailing stop after Bull entries so your capital need not be stuck in non-performing trades when it can be better utilised in other performing trades. Trailing predicted values can also reflect trend change points after Bear exits to help identify a point of potential uptrend change.

How does Trading Edge Dynamics® help me build long term capital growth?

When a Bullish trend develops, Trading Edge Dynamics® will dynamically adjust the trailing Bear alert to indicate at which point the trend remains Bullish. Some Bull or Bear alerts can last for many years even in times of high volatility. By holding investments in Bullish stocks and freeing up capital from Bearish stocks, your capital is always being fully utilised therefore maximising capital returns.

Is it true that if I buy and hold quality stocks, I will be better off in the long run?

The key reason you buy a stock is to make a profit from capital growth and/or from dividends. So buying and holding without an exit plan may be very risky and may cost you a lot of money. The Global Financial Crisis is prime proof that quality stocks are not immune to rapid loss of capital value and an exit plan is always necessary. Trading Edge Dynamics® provides dynamic alerts for a range of long to short term TA strategy styles so you don’t have to keep working out if the trend has changed for each and every stock. Trading Edge Dynamics® will flag the trend for you with its dynamic alerts.

If I have a long term investment strategy would I be better off holding?

Always have your exit plan ready before you enter a trade and don’t be fooled by thinking that long term holding is equivalent to a long term investment strategy. Try our back testing simulation and compare the strategies. Trading Edge Dynamics® has inbuilt dynamic alerts designed to minimise alerts within a range of past data price volatility. In some cases where the volatility is exceeded and a whipsaw in price movement alerts you in and out of a trade, the cost of brokerage is relatively low compared to a price correction. If for example you traded in and out of a stock several times in one year, the cost of 8 trades with an online brokerage platform may equate to around 1% to 1.5% compared to a price correction of 10%, 20%, or even more. This is a small price to pay to be on the right side of the trend every time. Waiting for stock price recovery is a lost opportunity. If your capital is freed up at early stages of a stock downturn it can be protected from heavy losses and it can also be available for early entry opportunities in a stock upturn.

How can Trading Edge Dynamics® work for every stock?

Trading Edge Dynamics® is a powerful TA tool and works very well with most stocks or even ASX sectors and indices. It has limitations with new listings as it relies on historical data movements and with stocks of low liquidity or stocks with no price movement over long periods. As with most technical analysis, Trading Edge Dynamics® doesn’t compensate for many factors like ex-dividend day drops or unexpected announcements, so if the system alerts you of a change in trend on such occasions your judgement will be required on how you handle such stocks. We recommend that you monitor such events along with the TA alerts before making any decisions. We will continue development of our system so one day we can release an update that takes into account dividends and other quantifiable variables.

Can I try Trading Edge Dynamics®?

We offer initial trial free subscription so you can test Trading Edge Dynamics® first. We value what our customers have to say and will use feedback to drive our future developments.

Can I share any of the information I get from Trading Edge Dynamics®?

The database and all the information derived from this database are copyright under strict licencing rules from ASX. Under your subscription agreement the information is licenced to you as a single user and may not be copied or shared with anyone else.

Can I use the information I get from Trading Edge Dynamics® for a commercial application?

Corporate use of Trading Edge Dynamics® requires a separate commercial licencing agreement. Please contact us to discuss your specific needs and licencing requirements for a commercial application.