TVO Market Barometer 10/7/16


Some folks say that I’m obsessed with market volume. In actuality, the thing I’m truly obsessed with is finding a trading system that works. Why focus so much on volume? Because it works. Why not use price or other related indicators? Because they don’t work… for me, that is, and the kind of living I do. I like to have big returns, as well as free time during the day to do what I enjoy (instead of over trading in front of the screen all day long) and a volume based system has allowed me to do just that since 2014. If I had continued using the price systems I used in the years before (and believe me I studied the best of the best), you wouldn’t be hearing this from me now because my account would have imploded long ago.

So how does the TVO System do? The signals that are posted daily in TVO Market Barometer (referred to as our General Investment Strategy or GI) produce an equity curve that looks like this:


These results were simulated over a 15 year period with the SPY ETF going long (50% position) when either TVO or IO says “BUY.” When both say “BUY” 100% of capital is invested. Right now both oscillators say “BUY.” When HG next move is “UP”, go in long on another 50% position (in many cases this needs to be done on margin) and hold for a week. Our options signals, which are only available to subscribers, have an even better track record, both in backtesting and in real life trading that we started 2 years ago.

You may be thinking if it’s so good why not just trade it instead of sell it? I’ve often thought that maybe I should just keep it to myself, but I must confess I have another obsession… I’m obsessed with helping other traders to find their way, and not get caught in the abyss that almost ended my trading career years ago. And if you’re already spiraling down, I want to be the hand that will help pull you out and get your life back on track. That’s my obsession. -MD

To learn more about market volume, The TVO System, The Heat Gauge (HG), or How We Trade, find us on Twitter (@TradingLicks) and StockTwits!

The indicator descriptions in the above graphic represent general market sentiment and are not the actual TVO System signals. To view today's active signals and options trades, please . Not a Member? Join us.