About The Pinnacle System

Pinnacle is a trend following system that aims to outperform the ASX equities market using very precise selection criteria coupled with sensible money management and exit conditions.

Pinnacle is a long term trading system with  expected average trade length of about 120 days. You will need to trade Pinnacle for at least 12 months before the results produced take on any meaning. The system is not sensitive to daily price fluctuations and you should avoid falling into the trap of following the trades too closely.

The system only trades the long side of the market hence will experience long periods without giving new entry signals when the market as a whole is bearish.

All entry and exit signals are provided on an end of day basis. This means the signals are provided after the market has closed and need to be placed prior to the market open the following day. This makes the system easy to trade for people that don’t have access to a computer during the day.  The system is not sensitive to slippage or brokerage costs given the high average profit and long trade duration.

The entry criteria for Pinnacle are a set of filters that analyse price data and isolate shares that may have a high probability of a substantial, sustained upward trend.  Pinnacle identifies shares that have:

• Outperformed the market for more than a year. 
• Experienced a phase of short-term weakness. 
• Low volatility. 
• Mid-range price.

The system does not trade a basket of securities but rather all the shares traded on the ASX.  There are liquidity requirements that must be passed before a share can be traded by the system which eliminates shares that don’t have a high enough turnover to allow for every entry and exit.

The system has an initial fixed stop-loss and a trailing stop-loss that is ratcheted up to lock in profit when price makes new highs.  Both types of stop-loss are sized according to the volatility of the share.  As a result we highly recommend a fixed percent risk position sizing model.  If either the stock closes below either the fixed or trailing stop levels, a sell signal will be given.

The system is designed to be traded using appropriate risk management taught as part of the training modules that form part of the Home Trader Signals training course.  It is absolutely imperative that you fully understand the money management used in the Pinnacle system BEFORE you start trading.

IT IS POSSIBLE TO TRADE A PROFITABLE SYSTEM AND STILL LOSE MONEY IF YOU DON’T USE THE CORRECT RISK MANAGEMENT.

Read more about the risks associated with trading shares and other financial products here

Past performance is no guarantee or reliable indication of future results. Trading involves risk of loss and may not be suitable for you. This material is of the nature of general information only and must not in any way be construed or relied upon as legal, financial or professional advice. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please ensure you obtain and read the current offer documentation prior to acquiring the products advertised herein, so you are fully informed regarding the key risks and costs associated with these products.