"Wednesday 10th July was my best trade so far - 104 points shorting the DAX................... Friday ws another winner with a 97 1/2 point profit again on the DAX.................................... with some other trades on the FTSE and the NASDAQ, profit for the week was £3,500."
N.M London

FIRST Smart is a computer system that is especially designed to forecast intra-day price movements of the financial markets. The program is a result of research into the behaviour of market participants when the market price approaches predetermined price levels generally termed resistance or support.

FIRST Smart is based on the market hypothesis - "The market moves in accordance to the fixed laws of computable numbers involving price and time. If these numbers are known in advance then the future direction of the market can be determined accurately".

FIRST Smart computes daily price targets (resistance/support) for a given market and analyses the trader reaction when the market approaches these target levels.

FIRST Smart is a unique concept that is particularly suited for futures markets and has been successfully applied to several futures markets (e.g. Dax, FTSE, EuroStoxx, German Bund, Bobl, Long Gilts, Nasdaq, S&P, T-Bonds).

FIRST Smart is a mathematical tool for modelling market behaviour. It relies entirely on historical data for its computations. It does not take into account any fundamental financial and/or economic factors (interest rates, inflation, unemployment etc.). Because, it is believed that in liquid markets where adequate data is available, technical analysis is more appropriate than fundamental analysis over shorter time frames (e.g. a day). However, over a longer time period (e.g. several months) it may not be possible to ignore the influence of fundamental factors.

FIRST Smart provides highly selective and filtered information for the next trading opportunity. Its aim is to provide experienced traders with critical price information as a decision support tool. However, futures markets are prone to rapid movement and sudden changes of direction. As a result, every trade should be protected with an appropriate stop-loss and the user must be prepared to act without delay if and when unexpected price behaviour is observed.

FIRST Smart also incorporate a unique proprietary trade management system.

 

System Principles

The system generates red and green triangles which indicate the start of a potential move in the market.

The red and green triangles appear on completion of a bar.

Each bar is formed after a certain number of trades have been completed. The advantage of this type of charting can clearly be seen by looking at time scale at the bottom of the charts. It will be noticed that the hour markers vary in length. The more active the market the more bars are created, fewer trades result in fewer bars. Therefore during the overnight session on the eMinis, for example, where a time bar chart would have multiple bars, all showing very little movement, our charts compress that quiet period into just a few bars..

Once the triangle has appeared the signal is assessed as to the likely outcome of the move.
This assessment is aided by the use of certain tools available to the user, in particular the FTI, NSD and Volume, each of which can be selected from the tools buttons below the chart.

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Assessing a signal using the FTI and NSD indicators

Long Signal A green triangle appears on completion of a bar which meets the system signal criteria. An audible alert is sounded at the same time. The trend is confirmed when the market reaches the FSO level, at which point we would place our entry stop with the broker.

There are a number of other tools available to aid the decision making. The DPT, DTL and the PP are predictive tools anticipating the potential turning points and the trend angle of the market.
DPT ( Dhallu Profit Target) - the DPT is accessed from the tools menu and projects 3 levels, not all of which will necessarily be seen at once. These levels are potential turning points of the market and may be used as a guide, at which point, profits could be taken. The DPT should be projected from the low of the day prior to a signal for targets to the upside, and from the high of the day for targets to the downside.
DTL (Dhallu Trend Line) - the DTL can be projected from the same place as the DPT. It shows three trendlines at varying angles. These lines can offer support to a trend. If a signal is generated against the major trend it may be wise to treat the signal with caution.
The PP or Profit Potential - shows a dynamic target level. On reaching this level the market can be considered to have reached it's likely potential for that move.

 

 

 

• Downloading the software
• Installing the software
• Screen Overview
• Troubleshooting