Frequently Asked Questions

The PhaseTrader Indicator® tool suite is intended for serious, experienced traders who have outgrown the simplistic, ineffective “buy/sell now” tools offered by most brokers, trading platforms and other vendors. Those tools are not designed to deal with the rapid, complex price movements generated by the high-frequency trading (HFT) algorithms that dominate today’s markets.

PhaseTraderIndicator.com was designed for those traders know that there is no “magic” trading strategy that always makes money. Our members know that every dollar earned in the market must be won from another trader — and in today’s market, the other trader is most often a high-frequency trading algorithm. Our service provides each member with access not only to a completely unique suite of trading tools developed specifically to exploit movements of HFT algorithms, but also to critical current information via Weekly Webinars, Market Insights, and Weekly Market Reviews. This constant flow of key information and insight is critical to helping our members build a knowledge base that includes understanding the flow of money between equity and debt markets, the link between forex markets and gold, the domestic and international implications of economic and political events, and other key information that is a prerequisite to successful trading in current, complex market environments.

If you are looking for a “press the button now” simplistic approach that requires minimal focus and effort, these tools probably are not right for you.

Membership in our service and access to the PhaseTrader Indicator® tool suite is limited to private traders who are using the tools and information solely for their own private trading purposes.  Professional traders are not permitted access to our tools or information unless you verify that you are acting solely in your own individual capacity to use the Services exclusively in connection with your own individual personal investment activities and not in connection with any trade or business activities.  If you are a professional broker, dealer or trader or employed by or conducting business in the securities industry, you must represent and warrant: (i) that you meet and comply with all NYSE, NYSE MKT LLC (fka AMEX), NASDAQ and Data Providers requirements for qualification as a Non-professional Subscriber; (ii) that you are acting solely in your own individual capacity to use the Services solely in connection with your own individual personal investment activities and not in connection with any trade or business activities; and (iii) that you are a sophisticated investor.

In today’s market, algorithmic trading systems strengthen a trend during its early phase, then extinguish the same trend by over-trading it. Long-term trends that appear on traditional stock charts are the accumulated results of these activities. This style of automated, tick-level investing dominates all financial markets, often accounting for more than 90% of the trading volume. Traditional indicators are not designed to work in this environment. However, the PhaseTrader® family of software charting tools are completely unique because they were developed explicitly to detect and respond to the behavior of algorithmic trading systems

The FlexTune Indicator — the core component of the software suite — was created specifically to analyze and exploit ultra-fast algorithmic trading. The FlexTune Indicator decomposes a typical price chart into hundreds of small sub-charts that are individually analyzed for statistical significance then reassembled using a mathematical model that fits the overall data stream.

A special form of the FlexTune Indicator referred to as “non-resetting phase” displays the output of the mathematical model as a trace that resembles a simple price chart. Peaks and valleys that appear to be much different on a price chart are often aligned using the non-resetting version of the Phase Indicator. This feature allows our members to accurately predict the tops and bottoms of rallies and selloffs.

Finally, new artificial intelligence technology has been incorporated into the PhaseTrader® suite that dynamically tunes the indicators to accommodate volatility changes in the underlying data. This AI technology gives clear signals when a powerful and persistent trend ends, making this technology indispensable to traders looking for an opportunity to buy or sell a trend reversal.

The FlexTune Indicator is the core indicator in the suite. This unique software tool utilizes sophisticated mathematical functions to convert rapid, complex price fluctuations driven by institutional algorithmic trading programs into clearly recognizable, quantifiable “phases.” These phases exhibit characteristic patterns that subscribers can use to identify entry and exit points for individual trades for any security, in any market, in any timeframe…regardless of overall market direction.

In addition to the Phase Indicator, the software suite includes five other key indicators:

NetPremium Indicator  —  tracks the net flow of money in and out of near-the-money puts and calls for any stock and can be used to exploit the tendency of option prices to lead the changes in the price of the underlying stock, and so provide a custom leading indicator.

Percent Contango Indicator  —  uses subtle distortions in the volatility futures market to identify trading opportunities in the broad stock indexes.

Smart Money Indicator  —  compares the performance of a stock, index, or ETF at different times of the day and charts the cumulative difference. This indicator allows our members to capitalize on various studies showing that private investors tend to overreact to overnight news with bad trading decisions early in the trading day (e.g., panic selling, aggressive short covering, etc.). Institutional traders tend to wait for the market to settle and then collect information that allows them to make more informed decisions, often based on confidential information,  in the final hour of trading. The indicator allows our members to set two time windows — early and late — that it uses to weigh market price action. Strong “up” signals are created by early selling and late buying, while strong “down” signals equate to early buying and late selling.

PhaseTrader® Indicator for TradeStation Radar Screen  —  allows members to build a custom composite indicator that simultaneously applies the PhaseTrader® calculation across any group of stocks, indexes, ETFs, futures, currencies, or options.

Accumulated Volatility Indicator — compares market corrections of all sizes and durations by measuring the total amount of volatility accumulated during a drawdown. The indicator can be used in timeframes as brief as a few minutes to as long as several months.

The monthly subscription includes access to the following components of the service for one month:

  • The PhaseTrader® Indicator tool suite
  • Live Weekly Webinars
  • Weekly Market Reviews
  • Market Insights
  • Full Reference Document library and historical Webinar and Market Review libraries

No, the signals on a PhaseTrader® chart have a unique appearance that can be used to reliably identify tops and bottoms of trends generated by algorithmic trading systems. The position and appearance of the signals cannot be replicated using traditional indicators.

Yes, the indicators generate accurate signals on charts ranging from seconds to months. They have been successfully back tested against long-term trends like the Housing Bubble, NASDAQ Technology Boom, Post-Vietnam recession, 1960s Electronics Boom, 1930s decline, and the rally of the 1920s.

The PhaseTrader™ Software suite runs on the TradeStation Platform, and therefore, the system requirements are the same as those for the TradeStation Platform. For a detailed list of system requirements, please review this link  System Requirements .

No, currently TradeStation has the only programing language powerful enough to support the indicators.

No, although the indicators only run on TradeStation, you can still place your trades on any platform you choose.

No, the indicator suite does not include any automatic trading programs. However, the indicator suite does includes signaling indicators that members can “tune” to provide alerts when specific market conditions that may be favorable to a particular type of trade occur.

Yes, The PhaseTrader® Indicators can be applied to trading any ticker in any market.

Yes, the indicators are particularly well suited to trading in markets with characteristically high-volume such as Forex and Futures.

Capital requirements depend both on the market in which you are trading (equities, option, futures, forex, etc.), and the type of trading (e.g., day trading vs longer-term). The broker through which you place your trades can provide more detailed information for your specific trading strategies.

Yes.  Members can sign-up for Personal Coaching Sessions with Jeff through the site.  These personal sessions are scheduled to accommodate both the member’s schedule and Jeff’s.  The fee for these Personal Coaching Sessions is $300/hour.

Please note that the Support Team provides assistance for technical issues related to the site or the indicator suite (i.e., downloading issues, site access problems, password resets, etc.).  The Support Team does NOT provide answers to questions regarding application of the indicators to specific trading scenarios, tuning of the indicators, or general trading advice.  If members wish to address questions related to specific trading scenarios, tuning of the indicators, or individual trading recommendations, they will need to schedule Personal Coaching time with Jeff.