General Execution Methods

A. EBC Execution

Entry at Bar Close (EBC) Execution is the simplest approach to using AbleTrend. After you choose your parameters, the system generates buy and sell signals. By waiting until the bar closes to enter a trade, you will have 100% RTSA by definition and therefore avoid the uncertainties associated with the real-time signals. You simply issue buy or sell orders at the close of bars according to the AbleTrend trading signals. You will know the buy/sell signals before, sometimes way before the bar closes, but will wait until the bar closes to execute your order. EBC is simple and 100% mechanical. Those fully mechanical signals can be used by Autopilot Order Execution (AOE) to execute orders automatically. The downside of using the EBC execution method is that filled prices for the orders are less optimal due to the signal slippage between the real-time TS triggering prices and bar close prices. Although the EBC execution method can be applied to charts using any time intervals, it has been more effective on 30-minute charts or above.

Another advantage of EBC execution is that since it is 100% mechanical, as long as you have the discipline to execute signals, you will be able to avoid costs associated with stops placement. Some traders prefer to enter trades at the open of the next bar. The long-term back testing reports show that bar open execution and bar close execution have the same results.

EBC remove all uncertainties in taking the real time trade signals. Entry time period becomes a point. RTSA will be 100% by using this execution method.

B. Stop Order Execution

Stop Order Execution: When you see price is close to previous bar stop, then place a "Stop Order" with Stop Value of the previous bar. Use micro stop (very small stop, a few ticks from the entry price) to protect the positions before the bar closes. It has less slippage, some risk. Some attentions in order executions are needed. If the micro stop were hit, then place stop order to enter again… This method can be only applied to longer time charts, such as 120-minute or daily chart. After the bar close, you must cancel and replace the micro stop with real system stop.

RTSA should be adjusted to about 80% if you decide to use this execution method. You don’t want to see too much false signals while using this method.

C. Dynamic Execution

Dynamic Execution allows you to enter trades based on the real-time signals before the bar closes or at bar close according to the following guidelines.

After a long period of consolidation (triangle pattern, flat prices and low volume), take the trade aggressively if it is a "sure" TS in the early stage of the bar formation.

Take the trade if the TS is stable and 80 percent of the bar time has elapsed.

If the signal is unstable (appearing and then disappearing several times), wait for the bar close to enter a trade.

The Dynamic Execution method will result in better order fills but you need to have the experience to deal with the uncertainties of the real-time signals. Since you created a position before the bar close, you are holding a so-called real-time position. You need a way to protect the real-time position since the real-time TS has a potential to reverse. You can place a very tight stop order to protect the real-time position. This may have an adverse effect on your trading performance.

The Dynamic Execution method requires more attention and experience than EBC execution method. A trader must have strong discipline to apply the Dynamic Execution method in order to be successful. Virtual Paper Trade will help you improve your skills.

In order to trade according to a reliable signal and retain as much profit as possible, RTSA should be calculated at least 60 to 80 percent or higher if you decide to use this execution method.

Dynamic execution is not the same as the TS Trading Method mentioned in Part Two.

D. Simplified Trading Method (STM)

You may apply the AT1, AT2 and Exponential Moving Average (10 bar EMA) to a chart. It uses all their default settings of the indicators.

We suggest all new users to start with this STM method. It’s simple and easy to learn. Basic rules to enter a buy or sell position is seeing agreement of the AT1 and AT2, and price is near by the EMA line. Blue bars and blue dots are buy signals. Red bars and red dots are sell signals.

Exit rule is simply following AT2 stop dots. The stops are placed a few tick below or above the AT2 stops.

E. Sweet Spot Entry

See our article “Sweet Spot Entry".

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