System Overview

As technology advances and continually evolves becoming more complex DramRock introduced alternative markets to help increase clients overall portfolio returns while spreading out risk across different asset classes. We believe in trading only the strongest and most liquid of markets that tend to trend well intraday with sufficient volitility and momentum to provide us with the best trading conditions for our strategies. More importantly, they tend to react better to key Fibonacci turning points with tighter spreads to provide more potential for better intraday trading opportunities. In addition, using a systematic approach to the markets we avoid the emotional trading decisions by typical retail traders and place a higher emphasis on mitigating risk while taking full advantage of the power of technology by automating the trading process.

Our trading methods and strategies include proprietary technical analysis looking for high probability trade opportunities. We do not believe in lagging indicators of any kind. We believe markets are efficient and all information (both publicly and privately) is already factored into the price. We use unique and proprietary timing of entries including exit methods to cut losses or when to take profits to mitigate risk exposure, resulting in lower drawdowns that will provide our clients with a smoother equity curve. The system is driven by pure price action and proprietary institutional volume analysis combined with specific confluence criteria built on key Fibonacci price levels and reversal zones. We don't use hedging, grids or martingale strategies and the system is flat at the end of the US trading session each day and flat over the weekend.

 

We only focus on intraday trading opportunities to reduce risk vs. holding positions for longer periods of time and still generate above average monthly returns without the large drawdowns associated with long-term strategies. Its during these intraday trading opportunites defined as key turning points when volume and price action are triggering overbought / oversold market conditions driven mostly by institutional buying and selling around key proprietary Fibonacci support and resistance levels that present the best trading opportunities. This is when most traders intraday will sell at the bottom and buy at the tops based on their lagging indicators and arbitrary stop-losses being triggered just as the market turns around. It's during these inflection points in the market when the system makes the most profits.

Backtesting statistical data points along with forward real time trading using the same live data running on our brokers live server during the systems beta phase has shown consistent profitable results with low drawdowns. These results support the quality and profitability of the system's trading setups which acts as a good barometer of the systems trade management style, viability and overall performance. Low risk and high probability setups plays an important and very integral part of the systems strategies. Risk per trade is set to 1% of account balance and up to 2% for aggressive traders. The system's conservative approach to risk and position management allows it to meet profit objectives averaging more than 15% per month.

 

Since market conditions are always changing and are open 24/5 it's important to be very selective when to trade including when not to trade. But even more importantly, the system needs to be constantly monitoring the market looking for setups every day. Since empirical data teaches us that 80% of the net annual profits will come from 20% of the largest profitable trading days during the year, you can't afford to miss any of the big profitable days by standing on the sidelines or not taking every trade the trading system identifies. 

In the final analysis, the system looks for an edge in the market by focusing on being an expert in one instrument (Symbol: US30, the proxy for the Dow Jones CFD) using pure price action and proprietary algorithms to identify key reversal and breakout chart patterns to seek out trading opportunities with the highest probability for success. The system seeks a quarterly profit goal of 50% with a 90-day rolling average relative drawdown of <20%.

For more information on our trading system and strategies click on the White Paper tab - Executive Summary that goes into further detail.