Sample of Short-Term Trade Performance for the Dow Jones Industrial Average

Upon acquiring access to the Near Term Outlook, we will reveal our profit-packed list of eight strategic trading disciplines designed-specifically to extract optimal results from our proprietary charting protocols.

This goldmine of long-term profit building strategies is permanently located in a file titled: NTO-Essentials. Everything one needs to know about trading markets successfully can be found in this concise, easy to follow reference guide.

The following is a cumulative summary of these disciplines as extracted from Elliott Wave Technology's Near Term Outlook for January 2008.

These were not pre-announced trading recommendations; rather they were a compilation of price-action triggers and probes which had been clearly identified in the Near Term Outlook.

Quantifying Profit and Risk
The TOTAL performance summary below was designed to track (without discretion) points lost or captured for ALL COLLECTIVE sell-side, buy-side, and counter-trend campaigns.

The record will show that the profit potential of our trading strategies working in concert with our charting protocol, provide profit potential far in excess of monthly subscription premiums.

In fact, our service fee's are a mere fraction of what similar services charge for chat rooms filled with hundreds of different opinions with a "you-decide," shoulda, coulda, woulda, and "told-you-so" type reporting format. With so many opinions, one is bound to be right for recall at the end of the day.

As we all know, markets are constantly embroiled in a state of immense conflict. The most famous being the general conflict of Bulls vs. Bears. Beyond the most general, there are a plethora of strategic and tactical conflicts as well. These are the battles which make up tactical trading strategies geared for individual and discretionary selection.

As some strategies maybe short while others are long, the results presented was based on each trade's strategy-specific, individual merit and ultimate outcome. We monitored each strategies position through completion, and without regard for single-account offset implications.

The impartiality and volume of signals identified, provided traders with an abundance of non-biased discretionary trade selections from which to choose and monitor. Each trade or signal was tracked through fruition using proprietary, strategy-specific (non-discretionary) mechanical stops and exit targets.

Obviously, at their individual discretion, traders are free to choose adhering to one or more of our suggested strategies, or to use and/or develop their own trading strategies. Additionally, traders are free to use and experiment with modified entry-points, exit-targets, and stop-management criteria to suit their various trading/account preferences, and tolerance for risk.

As such, depending on trade selection, strategy adopted, single or multiple account strategies, along with discretionary stop and position management, one's actual performance may be far-better, or far-worse than the cumulative (non-discretionary) performance statistics recorded.

TRADE LIKE A SPARTAN WARRIOR

Making a conscious decision to trade financial markets is the same as engaging in battle with the most cunning and merciless of adversaries.

It is not only possible, but also essential to engage markets with the skills and instincts of an elite warrior. Odds of success can be insurmountable. In order to prevail, one must be equally cunning.

Before committing to battle, it is essential that one is adequately prepared. In this sample commentary and analysis, we will outline three essential attributes one must acquire prior to engagement.

300 is a 2007 film adaptation of the graphic novel 300 by Frank Miller, about the Battle of Thermopylae in 480 BC. In this battle, an alliance of Greek city-states fought the invading Persian Empire army at the pass of Thermopylae in central Greece. Vastly outnumbered, the Greeks held back the Persians for three days in one of history's most famous last stands. As a city-state devoted to military training, Sparta possessed the most formidable army in the Greek world. The Spartan Warriors possessed extraordinary strength, courage, and ingenuity. When brute strength did not suffice, they used their wits to prevail over their adversaries.

Short-term S&P traders utilizing advance market guidance from Elliott Wave Technology’s Near Term Outlook have captured a minimum of 130-pts profit in just 3-weeks time.

Elliott Wave Technology's "NEAR TERM OUTLOOK"

The conservative profit estimates summarized in the above chart reflect the Spartan nature in which Elliott Wave Technology’s adept guidance breeds success in applying the three essential attributes necessary to prevail in a highly adversarial trading environment.

DEVELOP STRATEGIES WHICH IDENTIFY SPECIFIC TRADE PARAMETERS
First, one needs to develop a well-conceived trading plan or tactical strategy. Such plans should be consistent with ones’ objectives, time horizon, account size, and tolerance for risk.

It is essential that traders not confuse “planned strategy” with technical analysis, chart study, or any other method by which market direction is forecast.

Although entry triggers may spawn from such analysis, by no means does such analysis comprise a complete trading plan. Strategy and tactics must also include Spartan-like management of a position once elected. As such, having a clear exit strategy prior to engagement is of vital importance.

The key question one must repeatedly answer in sizing up and managing a trade is “what if.” Preparing in advance how one will respond should price action exhibit x, y, or z, is the cornerstone of a successful trading plan.

USE PRUDENT RISK & PROFIT ASSESSMENTS TO GOVERN STRATEGY
Before placing an order, prospective trades must first pass a risk and profit assessment. Outlining entry, exit, stop loss, and profit target contingencies in advance, allows traders to determine if various outcomes are within appropriate boundaries relative to the specific risk and profit management guidelines which they have decidedly embraced.

Once passed, and a position opened, the battle is on. In the heat battle, pondering over chart analysis must now take a distinct back seat to a heightened sense of tactical awareness.

In placing central focus on the “trade plan as a whole,” traders minimize emotion immensely. A newly elected trade is merely one of many that will comprise and define overall success of ones’ “plan.”

Once a trade is “on”, it is essential to focus on imposing the cold and calculated protocols that now govern trade plan tactics.

SECURE A COMPETITIVE ADVANTAGE FROM WHICH TO PLAN AND EXECUTE The last essential element is to acquire a consistent competitive advantage. Competitive advantage is some form of adept navigational guidance, knowledge, or other reliable method by which one (more often than not) correctly anticipates market direction. With the third essential element in place, one can now develop, assess, and execute tactical trade strategies with the highest level of confidence and profit.

Elliott Wave Technology's "NEAR TERM OUTLOOK" recap for Friday March 9, 2007

Above is an example of our March 9 tactical guidance amid recently changing market conditions.

In the past month, Elliott Wave Technology has relayed guidance for five outstanding short-term trading opportunities in the S&P 500 index. Having access to this competitive navigational advantage, our clients had adequate time to develop their trade strategies, mitigate risk, and profit accordingly.

Elliott Wave Technology's "NEAR TERM OUTLOOK" guidance for Wednesday March 14, 2007

The chart above illustrates outcome of previous guidance, and new directives for the March 14 guidance.

After enduring another Tuesday air pocket just one week after the Dow’s 400-pt loss the previous Tuesday, Elliott Wave Technology’s short-term guidance for Wednesday, March 14, was preparing broad market index traders to anticipate a fresh low for the move.

We suggested in advance, that clients evaluate contrarian long side trading opportunities for all of the major equity indices. Before Wednesday’s opening bell, a portion of our concise guidance for the S&P was the following:

”A marginal new low testing the S-3 trendline should be anticipated as part of a near term basing process. However, an outright failure at S-3 opens the floodgates to a move toward 1282. Although a contrarian, bullish stance is most appropriate short-term, we must respect the possibility for another big fall-out ahead. Any fresh longs initiated upon a marginal new low on Wednesday, should consider risks associated with trailing initial sell stops sufficiently below S-3 to allow the market room enough to base.”

Friday’s follow up report included the following:

“Navigational guidance cannot get much better than the above. What lies ahead for the major equity indices is up for grabs at this stage. If you positioned long basis Wednesday’s guidance, consider taking profits outright, or trailing a profit-locking stop. Whatever you do, do not let the hard-earned bounty slip away. Take a breather, pat your self on the back, and celebrate if you must. Should you remain “engaged,” stay sharp, keep calm, and remain on plan. As with the Dow, too many short-term possibilities lie dead ahead which prevents us from issuing high confidence short-term guidance at this time."

In the balance of that report, we outlined very explicit guidance for three immediate price path contingencies for the benefit of those clients still engaged in the market.

In closing, it is important to understand that we do not predict markets; instead, we take ownership of the dynamic price action as it unfolds and do so in such a way that no black box algorithm could possibly match.

Doing so impartially, allows us to anticipate direction then formulate astute and unrivaled guidance based on the daily evolution of price. As further evidenced in this presentation, the resultant competitive edge is most compelling.

© 2007 Elliott Wave Technology

TRADE BETTER / INVEST SMARTER

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