Jazz Trading System in nutshell is made of three important moving parts i.e variables. The below three segments are key variables that add up to a trade on the Jazz. These variables are constantly changing and effecting each other.
1. Northern lights diffusion index:
This is an “Advanced Warning Trading System (AWTS)” for forex pair trend reversal, trend development and trend consolidation. This is the heart and soul of Jazz. It works by popping up alerts to the trading system be on the lookout for a change in prevailing dynamics and hence take preventive actions like reducing risk or raising risk on positions in the portfolio. In fact no forex pair will ever develop a new trend without AWTS catching it much before. However AWTS being a warning system can sound many false alarms as well which is fine as it only means we remain alert.
Forex Trading is different from other asset classes in that it is a pair. Therefore each trade is a dual trade. When you buy EURUSD, you are buying EURO and selling dollar and therefore its a leveraged buyout. Anyone who has done leveraged deals will know how quickly it can go wrong if you get it wrong on even one part of the deal. The AWTS is a trend finder, trend reversal finder and trend consolidation finder but it works on individual currencies before pairing them up to find the best trade.
2. Fx Orderboard:
Accurate orderbook information is sought by our “ears” on the trading floor on 5 major banks in London. Majority of insti volumes and corporate volumes are routed through them 3. Fx vol meter:
This measure level of activity in market. It keeps the trading system out of the market when volume are low and major treasury desks are on holiday. You only want to be trading when there is real activity rather than market manipulation by dealers and brokers.
We started in July and after a major run up in returns to well over 60% in less than 60 days, we hit a speed bump in Sept. This was our earlier system started in July. It raced hjgher before dipping. Much of the problem lay in some errors in our lot sizing. All of that was resolved in October. The system ultimately was expired with a overall return of 27% after hitting above 70%. Jazz Main System by marketedge | Myfxbook
Post October, our trading began again and right away we are back to the speed of return we saw in July. All issues were resolved and system was back to full steam. Its an agreesive trading system which makes over 20%. So keep that in mind.