Creative Breakthrough's Philosophy

System R&D
The development of a profitable trading system is based on how you understand the markets. The essence of that understanding is the notion of the Holy Grail or the perfect trading system. Obviously, we know perfection is an idea, not a reality, but it is the concept and goal that are important.

By definition, to be profitable, all systems must catch a trend in the direction of a long or short position. Furthermore, all systems must have a method of getting into that long or short position. In general, trading methods can only have one of two types of entries. One is in the direction of the previous trend. In this case the entry is made on a breakout or on a moving average cross over. The second entry type is called anti trend. This is where entry is made at an extreme in price with the expectation of a reversal of the trend. Therefore successful trading, when reduced to its simplest terms is knowing when the market is at an extreme (bottom or a top) or when the trend is going to continue.

Ideally then, to develop a successful plan or system to day trade or position trade the ability to predict the condition of the market is key. Is the market in a trading range where picking prices for a high and low works or is the market in a trend beyond the trading range? In the parlance of the trader: "Do I play the break or fade the break?" All of the trading systems CBI has developed and offers to its traders uses a unique solution to this key question: The %C Formula.
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