Characteristics:
Drawing on many years of experience and opinions of the users of Advantage System 1, we have built a new system for MetaStock: Advantage 2. Like the first version, the system generates the buy and sell signals based on technical analysis. Even though in this case the indicators used are completely different, yet the concept remains the same. Firstly, the system identifies a prevailing market trend, and subsequently, generates signals corresponding to its direction.
Results:
As shown by numerous tests using historical data, this strategy gives excellent results. Advantage 2 and Aggressive Advantage 2 performed well on the stock markets worldwide. The systems bring very large gains to substantial majority of the world's 30 largest stock market indices.
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Fig. 1 Results of the Advantage Aggressive 2 System for world's 30 largest indices. | Fig. 2 Results of the Advantage 2 System for world's 30 largest indices. |
Below, you are presented with the results of the system Advantage 2 (blue) in comparison with Advantage 1 (green). For vast majority of cases, it is hard to tell exactly which one gives better results. Usually, Advantage 2 changes the trend more quickly and generates the buy and sell signals more frequently. Therefore, it should be more valued by active investors anticipating fast and aggressive trading.
AMEX INTERNET (USA)  | RTS1 (Russia)  | WIG20 (Poland)  |
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BUX (Hungary)  | STRAITS TIMES (Singapore)  | KLSE (Malaysia)  |
Fig. 3 Equity curves of the Advantage Aggressive 2 System for selected world's indices. *The charts include a commission of 2 x 0.015 percent. |
Protection of Capital:
In order to boost the psychical comfort of an investor and maximize profits through diversification of risk, the system manages two positions instead of one, which is accepted as a standard. The first position is closed relatively fast so as to protect the gains in case of a rapid turn of the trend. The other position remains opened until the beginning of a correction, or an end of the trend, in accordance with the rule "let the profit grow".
According to the experts, protection of capital is one of the most important factors determining success on the stock market. Like Advantage 1, the new version of the system checks conditions on the market with respect to safety of the investment. If the transaction is regarded as involving too much risk, the system would inform the user about it and stop generating the buy and sell signals. However, this does not mean that the system is not operating any longer. It would start generating the signals anew as soon as conditions favorable for investment appear on the market.
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Fig. 4 The Advantage 2 System stops generating signals if the trading risk is too high. |
Advantage 2 marks with grey colour the periods on the chart when it has stopped generating the buy and sell signals because of the high investment risk. If, however, contrary to the recommendations, the user decides to trade, then it is sufficient to use Advantage Aggressive 2, which is devoid of the market condition examination function and generates the trading signals irrespective of the risk.
NASDAQ (USA)  | RUSSELL 2000 (USA)  | XETRA DAX (Germany)  |
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FTSE 250 (United Kingdom)  | ALL ORDINARIES (Australia)  | Hang Seng (China)  |
Fig. 5 Equity curves of the Advantage 2 System for selected world's indices. *The charts include a commission of 2 x 0.015 percent. |
The Equity Market:
Advantage 2 and Advantage Aggressive 2 yield high profits on the spot and future markets. They perform very well both in the equity and the future transactions quoted on stock markets worldwide. As shown below, the systems generate profits for definitive majority of stocks of the Dow Jones Industrial Average index.
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Fig. 6 Results of the Advantage Aggressive 2 System for stocks of the main DJIA index (only long positions). |
Investment Timeframes:
Advantage is a non-optimised system. This means that for all stocks the buy and sell signals are always generated on the basis of the same rules notwithstanding of the type of the market. Lack of the optimalisation allows to use the system in different timeframes. The system functions both in the intraday and daily basis, as well as a weekly, or even monthly one.
NIKKEI  | LUMBER  | GOODYEAR  |
Fig. 7 The Advantage 2 System can be used in different trading timeframes: intraday, daily, weekly.. |
The Expert Module:
Like in case of an earlier version of the system, the expert module is one of the most important elements of Advantage 2. It displays information about the current trend, number of opened positions and the buy and sell signals on the chart. It also informs the user about a change in the trend and the trading signals in the form of a short commentary one day in advance.
A possibility of building your own trading strategies is especially important function of the expert module. The investor does not have only to follow the signals generated by the system, but one may try on own ones to adapt it to the character of the market in which one is trading. Sometimes a small change is sufficient to obtain still better results. The expert module is an excellent starting point for development of your own unique trading strategy. For example you can be guided only by the trend change signals, trade with one position instead of two, or combine the expert's indications in the daily and weekly, or intraday and daily basis.
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Fig. 8 MetaStock expert module generates all the trading signals in the form of a short commentary one day in advance. | Fig. 9 MetaStock expert module of the Advantage 2 allows to create your own trading strategy. |
Look:
In order to use the potential of Advantage 2 best and adapt the system to individual preferences of every user it is possible to change the system's look. You can choose the optimum scope and manner of displaying the information. Advantage 2 allows displaying the current number of opened positions, the type of trend, and the buy and sell signals on the chart. All those elements can be modified so as to use the system in the most comfortable and transparent manner.
US STEEL | WALT DISNEY 
| MERCK 
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Fig. 10 The look of the Advantage 2 System may be adapted to individual preferences of its user. |
Explorator:
To select appropriate stock from among all the stocks listed on a stock exchange may pose a certain problem. It is hard to monitor several dozen or several hundred different stocks. It is easy to oversee the buy signal and lose an opportunity to earn. Advantage 2 and Advantage Aggressive 2 comprise as much as 14 different explorators allowing selection and monitoring of a large number of stock. Each of them provides different set of data. They allow quickly to access information about the current trend, its level of change, the buy and sell signals, taking profit and the current number of opened positions on individual stock.
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Fig. 11 The Advantage 2 and Advantage Aggressive 2 Systems feature 14 MetaStock explorators which facilitate to search out appropriate companies. | Fig. 12 Every explorator provides a different set of information about the trend change levels, investment signals, or number of opened posisions. |
Why Investors Worldwide Choose the Advantage Systems:
The Advantage Systems have already been appreciated by investors worldwide. They perform excellently on many different stock markets. They bring high profits both on developed markets, such as the American or Australian, and the emerging markets such as the Asian or Central European. Even though one perfect trading system that always performs well on all stock markets does not exist, yet, owing to lack of the optimalisation and a well-thought out construction, the Advantage Systems allow to achieve success on stock markets worldwide!
Take advantage on Advantage System 2!

| Advantage System 2 includes: ● Trading System Advantage 2 ● Expert System Advantage 2 ● Trading System Aggressive Advantage 2 ● Expert System Aggressive Advantage 2 ● Explorer Advantage 2 and Aggressive Advantage 2 |
Price:

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Advantage trading systems were developed for MetaStock version 7.2 or higher.