REMEK! Momentum Pro standalones - Documentation

Part 2: Theoretical foundations

Remek! Momentum Pro’s methodology is based on the following principles:

- Momentum (and regression to the mean)

- Volatility-based HTF targets based on market structure

What ties these principles together into a profitable trading system are

a) the capture by software of a valid aspect of crowd behaviour and

b) the trader's effective decision-making and self-mastery.

Momentum and Regression to the mean

Price on any market tends to move away from and then regress back to the mean, only to move away again. Within Remek! Momentum, pullback trades (i.e. trades upon pullbacks, into the direction of the trend) are usually initiated around the Keltner midline, in the direction of the higher timeframe (HTF) trend. Countertrend trades (i.e. antis and failure tests) are initiated farther away from the Keltner midline and aims to capture price movement back towards the average price area.

Volatility-based Higher-timeframe targets

This refers to the technique of fine-tuning our entries and defining our targets in ATRs, thereby automatically adjusting them to current market conditions and higher timeframe market structure. 

E.g. you would enter at Nr. 1 and aim to have at least a runner to Nr. 2 on the higher timeframe. Same way, enter at Nr. 3 and exit at Nr. 4. Whether this technique is executed automatically or manually, it must be done in a consistent, rule-based manner. 

Enter Remek! Momentum

The Remek! Momentum Pro Indicator, PRO STR, PRO STR BT and BTX are distinct versions of our semi-automated trading methodology that is based on the inherent volatility characteristics of financial markets rooted in crowd behaviour. The observation that volatility comes in clusters is backed by data going back decades: a forceful move away from market equilibrium tends to lead to another move in the same direction after a regression to the mean. Read the information on the following pages to decide how to fit your Remek! Momentum edition(s) into your short-term investing strategy.