I’ve purchased dozens of trading systems over the last several years, searching for systems that would work for me.  I’m able to program and back-test most systems against years of historical data.  What I’ve found is that every system I’ve programed is not profitable for the instruments that I trade (futures on US market indexes).  The systems that do work usually require some sort of market interpretation which is usually difficult to program into an automated and back-testable system.  I’ve found that systems that focus on using Support and Resistance to define a tradable market structure make logical sense and thus work for me.  Trading near SRs provides a market structure to place stops behind which keeps risk to a minimum.  Out of all the systems I’ve purchased and evaluated, I’ve found a few gems that have influenced my trading:

Read the Greed

This ebook by Mike Reed of TradeStalker introduced me to the concept of using price based support and resistance in trading.  Mike also taught me how to use the NYSE $TICK when trading US market indexes.  The ebook provides about 20 trade setups utilizing price based support and resistance.  The focus of the book is day trading.  It includes scalping type trades using 2-minute charts and intraday swing type trades using higher time-frame charts.  This ebook is excellent and has provided me with knowledge that improved my profitability.  You can get more information on the TradeStalker site:

TradeStalker – Read the Greed

Watts Trading Group

Ryan Watts wrote an ebook called “Scalping the NASDAQ E-mini Futures”.  The ebook uses NQ for all it’s examples, but this scalping concept can be applied to any market.  The system trades pull-backs in a trend.  There are two things about the Watts program that make it stellar.  The first is the course’s Progressive Flow Excercises.  If you want to learn how to trade, this is an excellent approach.  The exercises break the Watts system down into individual components which you learn one at a time.  You spend one or a few weeks on a single component until it becomes instinctive and second nature.  Most traders try to learn a new system by applying the whole system at once.  If one component is ignored or trivialized under pressure, the system fails and the trader blames the system without even realizing some factor was not taken into consideration.  It takes months to work through the flow exercises, but it will change your trading.

The second great thing about this course is access to Ryan’s chat room.  Ryan is a great mentor; ask him questions about trading and he’ll answer in real-time.  The environment in the chat room is wonderful with traders helping each other learn the system and how to trade.  It would be very difficult to beat the value provided by this course, progressive flow exercises, and the chat room.  You can find more information here:

Watts Trading Group

Discovery Trading Group Blog

This is a very interesting blog focused on using volume at price to define support and resistance.  They post their trade plan and pre-market commentary every trading day.  A big differentiating factor is how they use MarketDelta’s footprint chart to read changes in bid and ask volumes to time and confirm trade entries at the SR levels.  They have done a few webinars which have a lot of excellent trading information.  You’ll also find a lot of good trading information written in their blog.

Discovery Trading Group