Download and save on your computer UWL_GemsBot.efs, which will be attached to the email you will receive from us. Install it in any Watch List, add the instruments that you are trading; and sort your Watch List as shown in the following image:
UWL Sorting
If you are not familiar with eSignal 11, please see the detailed Installation instructions.
You now have a Watch List in front of you, with the best instruments to trade long ranked from top to bottom and the best instruments to trade short ranked from the bottom to top of the list.
At this stage it is important to establish your investment profile with regards to the period that you wish your trades to last and to adjust the UWL Interval in the Format Columns window accordingly. See image below:
UWL Interval
If you trade Intraday, then you should be selecting the minute interval that suits your style of trading, i.e., 1-minute, 2-minute, 10-minute, 120-minute, etc. If you are a swing trader, then the interval should be set to Day; and if you are a position trader, then Week or Month is the interval for you.
If you want to have a broader view than the interval you are trading, using longer intervals in a different Watch List with the same instruments will give you that view, just as you probably were doing with charts of various time frames.
Bear in mind that CS, the Current interval Signal may change before the interval you are using is completed, particularly with larger intervals or volatile instruments. Trading decisions should always be taken at the end of the selected interval.
If you trade Intraday then you should be selecting either 1 minute or a different one of the above minute intervals, to suit your style of trading. If you are a swing trader then the interval should be set to Day and if you are a position trader then Week or Month is the interval for you.
If you want to have a broader view than the interval you are trading, then using longer intervals in a different Watch List with the same instruments will give you that view, just as you probably were doing with charts of various time frames.
Bear in mind that CS, the Current interval Signal may change before the interval you are using is completed, particularly with larger intervals or volatile instruments. Trading decisions should always be taken at the end of the selected interval.
Entry Signals
Entries are triggered when a triple aces pattern is seen in the UWL. See images below:
Long triple aces pattern
Short triple aces pattern
The patterns are arranged in such a way that the long triple aces with higher probability of success are nearer the top of the list; and, inversely, the lower near the end of the list you see a short triple aces pattern, the better your trade is likely to be. The entry price should be equal to the prevailing bid or ask price that you see at the end of the interval you are using, on your trading platform, so that you get a fill.
Trade Management
This is an important aspect of all trading. Stop Loss and Profit Taking are essential and should be entered simultaneously with any entry. However the distance they are placed away from your entries depends a lot on your personal trading profile, particularly your tolerance to risk. In addition they are specific to the instrument and the time frame that you are trading with.
Generally speaking, shorter time frames need tighter stops and profits than longer time frames would require.
Having said the above, you will probably notice over a long period of time that the UWL trading signals tend to cut losses early and leave profits to run for most instruments. So stops and profits placed fairly away from the entry to act as a safety net are reasonable.
Holding a Position
As long as the CS cell does not show a signal in the opposite direction than you position, the trade is not closed by the system.
Adding to a Position
While we are in a trade, more trade signals in the same direction may be generated by the UWL add-on in the CS cell. These signals are not as strong as the one that was triggered first, but they are still valuable and can be used to add to an existing position. They are weaker than the original since, as you will notice in the IS cell, the strength is changing in line with our trade direction and we want the strength to be far away to get strong signals.
A good trading practise, particularly for traders with substantial funds, is to plan to build a position with multiple entries at various prices over different time instances. This way you will be increasing your exposure during profitable periods and the losing trades will be of lower value at risk. Of course many traders do the exact opposite, by averaging down on a losing position, something that is catastrophic.
Exit Signals
An exit signal is depicted with a triple aces pattern in the opposite direction than your entry. The exit price should be equal to the prevailing bid or ask price you see at the end of the interval you are using, on your trading platform, so you definitely close the trade. If you have on your UWL and are trading only one instrument then the exit signal is also a reversal signal. If you have on your UWL and are trading a number of instruments, then the signal that exited you from the last trade is ranked amongst the others and you should only look for the best signal to trade, not necessarily to reverse on your last trade.
Trading the Pairs
An interesting pattern to trade develops when at each interval, starting from the initial trade trigger, there are continuously additional trade signals produced. See the following images:
Long pair trade pattern
Short pair trade pattern
One way to take advantage of such a pattern is when adding to an existing trade to do so with a larger exposure than normally you would have.
Another intriguing way to trade the pairs, which is applicable when the number of instruments you look at is large, is to delay the initial entry until you get a pair with the value of 2's and just trade this instrument, adding if it continues to produce 3's, 4's etc.
The concept behind both these trading methods is to take maximum advantage of the instruments that perform exceptionally well.
