Since I’m not adding much new to the site this week while the whole Gumshoe family vacations in the sun and sand, I asked the man behind Carrot Trader if he would write up a description of how it works for you, and give a few examples of trades that the Carrot Trader system has triggered recently.

Carrot Trader is a system that takes the “Gumshoe Universe” of touted and teased stocks and uses a proprietary scanning and charting system to pick entry and exit points for trades. There’s a special link at the bottom of this article that will give you the special “Stock Gumshoe” deal from Carrot Trader (OK, you don’t have to wait — the link is here, too) — that special deal includes a ten day free trial if you’d like to check it out for yourself.

It won’t be for everyone, I’m sure, but I am sure that it’s worth at least taking advantage of that free trial to have a look. Your credit card won’t be billed until after the free trial period is over.

So, without further ado, here’s the explanation that Carrot Trader contributed for you today:

An Inside View of How Carrot Trader Works

To illustrate the inner workings of Carrot Trader, we’ll review a summary of the trades it has generated over the past two weeks and provide an explanation of the Prime-Line Matrix charts.

Of the eleven trade setups discussed in the Carrot Timer section over the past two weeks, eight trades were triggered, and three were not. Of the eight trades entered, all remain as open positions; seven of the eight trades are currently profitable.

The largest open position winner is LDK which was entered as a long position on August 12th; LDK has gained $2.95 per share. The one open position loser is NM which was bought on August 14th; NM is down $0.26 per share.

The Matrix chart of LDK provides insight into how the trade was generated. The system’s Trade State on the day the latest trade was signaled is shown by the chart price bar colors:

Yellow: Trade entry
LDK chart 8/12/08

The following trade data was shown in Carrot Radar for LDK Solar Co Ltd (LDK):
Entry Date: 08/12/08
Entry Price: $39.85
Initial Stop: $26.96

LDK’s latest Matrix chart is shown below. Carrot Radar now shows the following data:
Close Price: 42.80
Trade State: Long 8/12/2008 39.85 (green price bars)
Stop: 33.97 (Green dot - stop price has automatically moved up)
Profit/Loss: +2.95

LDK chart 8/15/08

Next, let’s look at the one open position loser which is Navios Maritime Holdings (NM), which was bought on August 14th; NM is currently down $0.26.

NM chart 8/14/08

The following trade data was shown in Carrot Radar for Navios Maritime Holdings (NM):
Entry Date: 08/14/08
Entry Price: $9.81 (yellow price bar)
Initial Stop: $7.90

NM’’s latest Matrix chart is shown below. Carrot Radar now shows the following data:
Close Price: $9.57
Trade State: Long 8/14/2008 $9.81 (green price bars)
Stop: 8.11 (Green dot - stop price has automatically moved up)
Profit/Loss: - 0.26

NM chart 8/15/08

What goes on behind the Carrot Radar printout and the Matrix charts is a complicated set of proprietary harmonic algorithms. What’s displayed is easy to interpret and follow.The “Neutral” Trade State (magenta price bars) says Matrix parameters are not aligned - to hold-off trading until they do. Red price bars designate the Trade State is Short. Green bars designate Trade State is Long. The yellow bar signifies an alignment shift and new trade setup. The stop price (dot) shows the current protective stop and trade risk.

You can sign up for the special introductory deal for Carrot Trader — for Gumshoe readers only — by clicking here.

As part of this special offer, Carrot Trader will also, as a special bonus for the first hundred subscribers, pay for your membership in the Stock Gumshoe Irregulars if you like (once you’re a paid Carrot Trader subscriber, you just have to pay a small setup fee and you’ll get an Irregulars membership, free, for as long as you remain a Carrot Trader subscriber).

Note that Stock Gumshoe does not run the Carrot Trader system or contribute to their development, other than providing them a universe of stocks to work with, but I am compensated by them if any of my readers — that means you! — choose to become paid subscribers to Carrot Trader.

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    • The author will always disclose any direct long or short equity, debt or option position in any stocks written about as of the day of publication, and will not trade in any stocks mentioned for three days (72 hours) after publication. Full disclaimer is at the bottom of the page.