The Assagai Trend Day Trader Explained

The Assagai Trend Day Trader (ATDT) is specifically designed to identify trend days in markets. The system measures and detects:

• A prevailing tendency or inclination in prices.
• The general movement in the course of time of a statistically detectable change in movement.
• A statistical curve reflecting such a change.
• And, the tendency for a market to extend in a specific direction during a single day.




The Assagai Trend Day Trader

The Assagai Trend Day Trader (ATDT) is specifically designed to identify trend days in markets. The system measures and detects:

• A prevailing tendency or inclination in prices.
• The general movement in the course of time of a statistically detectable change in movement.
• A statistical curve reflecting such a change.
• And, the tendency for a market to extend in a specific direction during a single day.

On a typical Assagai Trend Day the market will tend to continue to move one directionally into the last period of the day which is roughly bounded by the last half hour of trading (one directionally means into the absolute high or low of the day). In addition, more than 20 percent of the time the market is expected to make its high or low of the day within the last 10 minutes of trading.

The Assagai Trend Day System (ATDS) is designed to identify “trend days”. The system is expected to win on approximately 80 percent of its trades over time.

Some of the unique aspects of the ATDT include:

• The system is expected to trade about 4-5 times a month in normal markets.
• The system enters the market during the day when a signal price is met and exits the market the same day. No positions are held overnight. The ATDT is an intraday only trading system.
• A series of rules exist to control risks including: stops, negate signal, negate trade while in progress, and a series of late day exit rules.
• The system is not designed to compete with the hundreds of trend following systems and algorithms that already exist and are competing for capital or customers. The majority of these systems take long term positions in the market and require the assumption of substantial risk. These risks include, but are not limited to, overnight and event risk.

Assagai: a slender hardwood spear or light javelin usually tipped with iron and used in southern Africa.

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