BTS is showing that the markets are currently overbought and the mechanical trading system is looking for a short entry.  Based on Friday’s close, BTS is suggesting that a close below 1078.60 on the $SPX would be a high probability short going into next week.

BTS has issued 3 trades so far this year yielding about 6% returns on leveraged ETFs and about 18% returns if using a leveraged 3x ETF such as BGU and BGZ.

To read more about BTS you can visit the Trading System page at: http://www.redliontrader.com/trading-systems/beehive/

To review the last trade see: http://www.redliontrader.com/headline/beehive-exits-3rd-position-this-year/

The Beehive Trading System (BTS) closed it’s third trade of the year making a 3rd successful trade in a row. A  conditional trade exit signal was issued for February 11th with the criteria of the S&P 500 index closing above 1072.65.  Today’s SPX closed at 1078.47.

Beehive is a mechanical trading system using a proprietary algorithm for timing long and short market entries based on an adaptive analysis of current trading and underlying marked breadth data. BTS generates on average 2 to 3 trades a month with a duration of 2 to 5 days on average.

The most recent trade is:

The entry signal for this trade was generated on the market close of February 9th and was in the market for two full trading days yielding a 2.66% profit for an aggressive trade (BGU 3X Trade).

The two prior trades this year were:

In less than two months Beehive as racked up about 18% return in the aggressive portfolio. About 6% in the non-leveraged SPY ETF.   The SP500 during the same time frame has had a return of about -6%. 

For more information about BTS visit http://www.redliontrader.com/trading-systems/beehive/

or email beehive@redliontrader.com

With the trading signal moving from extreme oversold to neutral the Beehive trading system issued a market long position today on the close.  This is the 3rd signal this year with two signals issued in January both with gains.

The entry was bases on a close of the S&P 500 above 1069.36 today.  This moved the over oversold indicator from negative territory to neutral which is a trigger for a buy.

Beehive is an adaptive mechanical trading systems that evaluates recent market trading patterns and cycles and weighs in sentiment data to determine the likely hood of a successful trade.

There are no stops in the Beehive trading systems as the market is evaluated each day for the best exit.  A bad entry might be held for several days until a better exit is found, even if the exit is a loss.   Each day a target value for the S&P500 will be published for closing an open trade.  There may be some days where mathematically a closing value can not be found.  This will be indicated by 2pm.

It is possible to outperform Beehive by knowing ahead of time if Beehive is going to issue an opening and closing trade.  All efforts are made to publish Beehive’s sentiment by 2pm each day.

The current trade looks like:

Followers can select how aggressive they wish to trade the system using either straight SPY ETFs or leveraged ETFs such as SSO and BGU.

BTS initiated the following trade on January 27th and the trade completed today at the market close on February 3rd.   This is BTS’s 2nd trade this year.  BTS initiated a short trade on January 13th.

The January 27th trade managed to tweak out a .48% gain unleveraged and an almost 1% gain leverage 3:1. 

Previous Trade:

Beehive is currently being ported from a workstation trading system to work on the web using Google apps.  Once the work is complete interested parties may sign up to receive BTS trading signals sent to their email or twitter accounts.

Once the BTS port is complete the system will  issue a status via email and twitter around 2pm with any trigger information.  It is possible to improve BTS trading results by exiting or entering intraday since BTS only issues market on close orders.  A 2pm message would read something like:

BTS LONG @ CLOSE if $SPX.X  greater than 1101.09

this allows the subscriber discretion on his or her entry.

To track the progress of BTS and the other work by RedlionTrader please sign up for email updates at http://RedlionTrader.com

About RedlionTrader:

RedlionTrader (aka: Marlin Cobb)  has been trading independently the markets for the past 10 years.  His fulltime income has been derived by market trading and timing for the past 5 years.  Over the course of those years Marlin has developed a library of proprietary systems and indicators used for finding an edge in the markets.  In June of 2009, Redliontrader partnered  with Tom Malone of TTT Hedge to help develop and trade as the TTTHedge.com.Trading Group.  Their online room can be accesses at: http://TTTHedge.acorbat.com/traders where Tom makes live market calls daily and trades.  In addition to trading market ideas but current and future are discussed live amongst the trading group.  Membership to the group is via an annual subscription.  More information can be found at http://TTTHedge.com.

On January 13th Beehive issued a short signal based on current market conditions.  That trade ended on Friday’s close and the system currently sits in cash waiting for the next signal.

Below is a chart of the last trade and the return generated depending on how aggressively you are trading the system.

If you want to follow along with the status of this automated trading system make sure you bookmark the Beehive Trading System page.

Beehive:

This is a trading system I have been using for about a month now after many years of development and backtesting.  I am beginning to role it out in pieces for a public viewing.  It is here for a test feel free to follow along as I develop a signaling system and reporting system for this website. – RedlionTrader

Current Signal:

A trade is executed once the signal moves to an extreme either the red or green area.  A long trade will execute when then indicator moves from the green area back to yellow.  The long trade will close once the indicator moves to the red zone.  A short will execute when the trade moves from red to yellow and will cover once the indicator moves to the green zone.

Current Trade:

Last Four Trades: