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3 Steps to Profitability with AskChart PowerTrade and Pro

!!! All data samples on this page are screen-captured on 08/28/2003 !!!

Step one. Create your personal Watchlist

Both AskChart PowerTrade and AskChart Pro subscribers can login to our new real-time website at: http://realtime.askchart.com

Under the "Trading System" - "Watchlist" menu you can create or modify your personal watchlist to track up to 100 stocks. Your watchlist will look like

Clicking on the "System Group Two" will list the result of 5 more trading systems like:

Each trading system gives either a "buy" or a "sell" signal for each stock. The date next to "buy" or "sell" is the most recent date on which the trading signal is generated by that trading system. All those signals are optimized by Askchart Auto-optimization technology.

How do you interpret those "buy" and "sell" signals listed under different trading systems?

Step two. Find the top performing systems using System Selector

Click on any stock symbols on your watchlist will take you to the "System Selector" report page for that stock. (you can also manually enter a symbol by selecting "Trading System" - "System Selector" menu). The top part of "System Selector" report looks like:

The "System Selector" report gives a 300-day back testing profit (loss) in whole dollar amount, assuming a 1000-share trading size for all of each trades taken during past 300 days. Now, you can find the top 5 profitable systems for the reported stock symbol (QQQQ is shown as the example) based on your trading preferences (long + short trading, long trading only or short trading only). In the QQQQ example, the top 5 systems for long + short trading are:

System DMI -- $13000 profit, last signal was a buy on 08/14/2003
System AI2 -- $7980 profit, last signal was a buy on 03/30/2003
System RSI-cross -- $7780 profit, last signal was a buy on 08/27/2003
System Money Flow -- $6830 profit, last signal was a sell on 08/27/2003
System Bollinger -- $6800 profit, last signal was a buy on 08/05/2003

Now you should be able to get a clear idea of how to trade QQQQ since 4 out of 5 top performing trading systems are in the buy zone on 08/28/2003.

Under the "System Selector" report table it shows Power Zone charts for all 10 trading systems. Studying those charts, especially the charts of top 5 systems, can help you make better decisions.

You can also rate your stock based on the signals given by those top 5 trading systems.

Step three. Rate your stocks by AskChart Stock Scoring System

How do we score a stock?

AskChart Stock Scoring System an help you to quickly rate a stock by numeric score. The scoring is based on the top 5 trading systems selected in the step two. Our recommended scoring method is,

Top 5 Systems	If the last trading signal is	Score for the stock
Best System	Buy	10
Best System	Sell	0
2nd Best System	Buy	9
2nd Best System	Sell	1
3rd Best System	Buy	8
3rd Best System	Sell	2
4th Best System	Buy	7
4th Best System	Sell	3
5th Best System	Buy	6
5th Best System	Sell	4

The total score is calculated simply by adding the scores of all top 5 trading systems together. Here is our recommended reference stock rating table,

AskChart PowerScore	35 - 40	29 - 34	21 - 28	16 - 20	10 - 16
Stock Rating	Strong Buy	Buy	Hold	Sell	Strong Sell

For the above QQQQ example,

Best system - DMI - Buy, score for QQQQ is 10
2nd best system - AI2 - Buy, score for QQQQ is 9
3rd best system - RSI-cross - Buy, score for QQQQ is 8
4th best system - Money Flow - Sell, score for QQQQ is 3
5th best system - Bollinger - Buy, score for QQQQ is 6

The total score for QQQQ is 10+9+8+3+6 = 36

Thus, on 08/28/2003, the AskChart Rating for QQQQ is Strong Buy




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