The dark and silent night erupted into muzzle flashes and the deafening blasts of automatic weapons fire. The Israeli commandos were in close quarters combat with a group of terrorists holding their fellow Israelis hostage. Their SARs (short assault rifles) were used like extensions of their own bodies. The famous 1976 raid on Entebbe Airport was successful and the hostages were freed.
SARs are used by military forces in close combat because of the ability to reposition them quickly. Combat conditions require quick actions and responses.
The futures market also offers the exact same type of weapon system for aggressive traders. It is also referred to as a SAR… a short and reverse system. As with the short assault rifle, the futures market’s SAR is designed for success in close quarters combat in the market.
What Is The Market’s SAR?
The short and reverse (SAR) trading system is designed for aggressive traders. It keeps them engaged in the market combat at all times. As the battle rages, they quickly reposition using their SAR and keep attractive targets in their sights.
The market SAR uses an overlay of two moving averages to determine the current flow. It overlays a short-term moving average and a longer-term moving average. These lines are then imposed on a price chart for the asset.
In a broad view, it shows the movement of an asset price in relationship to its moving averages.
How Is A SAR System Used In The Market?
There are no timeouts in combat. Those who lack the proper weapons or the skill to use them simply don’t last long. The futures market is much the same.
Conditions change fast in the market, just as they do in combat. Weapons that can be redirected quickly are essential to survival for soldiers and traders.
In combat, individual battles tend to ebb and flow. Often the outcome remains in doubt until near its end. Traders using the SAR in the market don’t really care which side wins the battle. They make their profits by switching sides as the battle rages.
The short-term moving average crosses the line for the longer-term average when the tide of battle has changed. This is the time for traders using the SAR to change positions. When they have been long, they now go short. If they were short, it is time to close that position and go long. These position changes need to be performed quickly to take full advantage of the new trend in the market.
Rapidly changing positions with the trend has another benefit for traders. It greatly enhances the chance of being on the right side of the market when a breakout occurs.
Does This System Work All The Time?
No. No system or technique works all the time.
The SAR system is designed to produce exceptional profits in trending markets. When markets are moving sideways in a tight range, it is difficult to generate enough profits to offset the inevitable losses. There are also the commissions and fees that will be higher when trading such an active system.
This system keeps traders in the market at all times when it is in use. This can create small losses when the trend turns sideways in a tight range. However, this minor risk is mitigated by the high return potential that exists when the battle finally ends.
Start Making Money With SARs Now!
The ability to reposition quickly. It keeps you actively in the market at all times. This allows you to profit whether a particular asset is rising or falling.
The market SAR is not designed for trading in a sideways pattern. It does need a trend in place for it to be at its most effective. Attempting to use it without a trend will result in trading fees and commissions eating up any small gains achieved.
The SAR system can help any aggressive trader to increase their profits in trending markets. It keeps you in the market at all times and allows you to capture profits from both the upswings and downswings that occur.
Don’t let the markets take your trading account hostage. Use your own SAR to win the close combat situations in the market with very minor casualties.