GETTING STARTED WITH VIDEOS
Welcome to Zillion
Investing With Results
TradeTrend and Divergence Cloud
Scanner and Charting
WHAT IS ZILLION?
Zillion is a trading and investment system for all traders and investors, from novice to seasoned professional.
It employs simple steps to help you scan, find, and follow high-probability trading signals easily.
Its goal is to provide financial literacy and clarity in its trading process. Zillion is a researched and tested market analysis tool that can be easily used by the retail and professional trader.
WHAT MAKES ZILLION DIFFERENT?
Besides its powerful trading signal system, Zillion gives you access to:
- Predictive buy and sell signals built on the proven TradeTrend system
- Powerful scanning of over 4,900 instruments across multiple asset types (Stocks, ETFs, FX, and Crypto)
- Top market commentary from the head of Altos Trading Jeff Tompkins
WHO ARE WE?
We are a team of traders, designers, and software engineers.
We build innovative tools that are useful for all traders and investors, and we don’t sacrifice intuitive designs for complex features.
We build feature-rich visuals like the Divergence Cloud, powerful real-time trading statistics, and intelligent indicators like TradeTrend.
THE RESULTS PROCESS
Using RESULTS to get the most out of Zillion
Zillion is built-around an easy and effective 6-step process. It’s called RESULTS.
RESULTS makes Zillion easy and straightforward to use so that you can gather relevant information as efficiently as possible.
The first step in the process is to read Jeff’s commentary for a high-level view of trends and opportunities. There are also links and notifications about upcoming live sessions and events in this section.
For example, Jeff may point out important or notable moves or shifts in the market.
The commentary will also include important upcoming events or announcements that may impact the markets, as well as any ‘buy’ or ‘sell’ signals from TradeTrend that coincide with these.
Look for things like key support and resistance levels, notable ‘buy’ or ‘sell’ warnings, trend direction, and volatility analysis.
We will also hold live sessions where we dig into these market factors on a deeper level, typically 2-3 times per month.
Explore Market and Sectors
Jeff’s commentary is complimented by the Market Sentiment and Sector Performance, which display the overall sentiment across the market, indexes, and sectors.
This step helps you to frame your approach towards the market with a bird’s eye view across the short, medium, and long term.
At the top of this section are high-level trend indicators where you can view the overall direction of the various indexes:
- The S&P 500 (SPY)
- The Dow Jones Industrial Average (DIA)
- The Nasdaq-100 Index (QQQ)
across three different timespans:
- Short-term (S)
- Medium-term (M)
- Long-term (L)
If you would like to know more about how these indicators and the market sentiment are calculated, check out this section.
The accompanying arrows indicate the direction of the trend for the index across that timespan – an upward to indicate a bullish trend, a downward arrow to indicate a bearish trend, and a rightward arrow to indicate a sideways trend.
By now you should have a good sense of how the market is currently acting.
The next step is to check out the top and under performing sectors.
The top and under performing sectors are displayed here.
Sectors are represented by corresponding ETFs:
When a sector in the ‘Sector Performance’ table is selected, the scanner will update to show only the symbols from that sector.
You can then look through the symbols from that sector, and top and under performing sectors can be correlated with the overall market sentiment.
Your favorite symbols can be added to your watchlist as you browse.
Scan TradeTrend Signals
The next step is to use the scanner to scan for predictive buy and sell entry signals.
Buy and sell signals can be sorted by their recency, making it very easy to spot new signals.
What is TradeTrend?
TradeTrend provides entry and exit signals for stocks, futures and FOREX using a proprietary formula. The signals can also be used to make more informed and confident decisions for a wide range of Options strategies. TradeTrend is designed to help traders stay on the right side of the market and momentum for both long and short positions.
Momentum trading is a technique in which traders make decisions according to the strength of recent price trends. Price momentum in trading is similar to momentum in physics, where mass multiplied by velocity determines the likelihood that an object will continue on its path.
The basic premise is that as an asset is traded, the velocity of the price movement approaches a maximum as new investors enter that asset near peak prices. As demand and money flow into the asset decreases, the tendency is for the price trend to reverse direction. Similar principles apply for momentum continuations.
How do the signals work?
TradeTrend pinpoints long and short entry setups based on an algorithm that identifies momentum shifts or continuations that are likely to persist.
It provides a ‘buy’ or ‘sell’ warning up to three days in advance of an anticipated move. The algorithm also provides a trailing stop level for all triggered signals.
Since momentum is a significant component of the foundation of TradeTrend, a key feature of the strategy is to enter trades on a confirmation of the anticipated momentum direction. Therefore, ‘Buy Stop’ orders are used for long signals and ‘Sell Stop’ orders are used for short signals.
Use the Chart and Divergence Cloud
As you load symbols on to the chart, the next step is to take matters into your own hands and explore with technical analysis.
The chart makes uses of all of TradingView’s charting capabilities, with savable indicators and chart drawings so that you can return to your past analysis.
The Divergence Cloud is a built-in filter that will help you focus on the buy and sell signals that make sense for your Trading Style.
What is the Divergence Cloud?
Divergence Cloud is a trend and volatility based indicator and trading system designed to detect and profit off of reversals and continuations.
It analyzes price, trend, momentum, and volatility to predict the most likely future price action, and then depicts its predictions on the chart with glowing clouds.
How is it used with TradeTrend?
Divergence Cloud is layered on top of the TradeTrend logic as a ‘Go/No-go’ filter to adjust the signals depending on your trading style.
The usage of Divergence Cloud can be adjusted by changing your trading style mode.
The signals in the scanner and on the chart will update accordingly.
Historical performance statistics can be viewed and compared for all three trading styles in the Statistics tab.
Look at Performance Statistics
Perhaps the most important step is reviewing the historical performance statistics of the trading signals for the symbols, sectors, and trading styles you are looking to approach.
Why is this important?
Checking the backtest statistics for a trading strategy is a crucial step when you want to methodically measure its statistical performance.
Backtesting assesses the profitability of a trading strategy by analyzing how it performed historically.
By checking the statistics for symbol and trading style combinations, you can confirm with confidence that the signals you’re following have performed well in the past.
If you would like to know more about statistics in Zillion check out the Advanced Statistics section.
Execute the trade and follow the adaptive stop losses as needed, following the steps below:
Step 1: Buy or Sell Entry Signal appears on the chart with suggested entry price and order type.
Step 2: Enter the order with your broker once the candle finishes displaying.
Step 3: Wait for the security to hit the suggested entry price within the next 3 candles.
Step 4: If the trade is triggered, adjust TradeTrend’s stop loss level after each candle finishes displaying.
Advanced Market Sentiment
Index Trend Indicators
The high-level trend indicators for the three covered indexes:
- The S&P 500 (SPY)
- The Dow Jones Industrial Average (DIA)
- The Nasdaq-100 Index (QQQ)
are calculated according to these look backs:
- Short-term (S) – looks back approximately 2 weeks
- Medium-term (M) – looks back approximately 25 weeks
- Long-term (L) – looks back approximately 1 year
The risk gauge utilizes the VIX index to measure the level of risk, fear , or stress in the market for making investment decisions. It uses a proprietary volatility projection algorithm to determine the displayed value.
When risk is low, perceived market volatility is anticipated to remain in the low risk range – indicating an expectation of smaller price swings.
When risk is medium, perceived market volatility is anticipated to remain in the medium risk range – indicating an expectation of larger price swings with possible range-bound markets.
When risk is high, perceived market volatility is anticipated to remain in the high risk range – indicating an expectation of extreme price swings with possible market sell-offs.
The Trend gauge displays the overall, long-term market trend of all S&P 500 stocks.
The gauge depicts the percentage of S&P 500 stocks which are currently trending bullishly relative to their long-term average.
At the bearish end of the gauge, the majority of stocks are trending downwards; in the neutral, or middle area, there are a roughly similar number of stocks trending downwards as there are trending upwards. At the bullish end of the gauge, the majority of stocks are trending upwards.
The Buy/Sell Ratio displays the ratio of open Trade Trend buy trades to sell trades. When the gauge is low, or toward the Sells end, it indicates that the majority of current open Trade Trend trades are short trades, or sell signals. When it is pointed toward the Buys side, it indicates that the majority of open trades are long trades, or buy signals.
Divergence Cloud is a trend and volatility based indicator designed to help you profit off of reversals and continuations. It analyzes price, trend, momentum, and volatility to predict the most likely future price action, and draws glowing areas on the chart called ‘divergence clouds’ to indicate its predictions.
It is often use as a ‘go/no-go’ filter to validate trade signals from other indicators. In Zillion, it is combined with the TradeTrend algorithm in the Conservative and Moderate trading styles to offer higher probability signals.
Bullish divergence clouds develop around areas where volatility is stabilizing and decreasing, while price trend and momentum are accelerating upwards. These moments often indicate strong bullish support before an upward reversal, and are usually good long entry points during a pullback before bullish trend continuation. This kind of price action is also referred to as ‘grinding upwards’ – when volatility is low but the trend is steadily bullish.
Simply put, Bullish Divergences occur when:
- Volatility is low and decreasing
- Price and momentum are sloping upwards
Bearish divergence clouds develop in zones where volatility is high and increasing, while price trend and momentum are accelerating downwards. These clouds are designed to single out unsustainable tops before drops, and failing strength and support leading into downtrends. Commonly known as ‘blow-off tops’, these prime points of reversal are generally solid short entry points.
Thus Bearish Divergences occur when:
- Volatility is high and increasing
- Price and momentum are accelerating downwards
Divergence Cloud in Zillion
Depending on how aggressive you’re looking to be in your trading style, the Divergence Cloud will filter the TradeTrend signals in a different way. Zillion provides three built-in trading styles: aggressive, moderate, and conservative.
Check out the Trading Styles section for detailed information on how these different trading styles work.
All of the trades signaled by Zillion are generated by the TradeTrend algorithm – but with different optimized approaches depending on the trading style selected.
There are three trading styles: Aggressive, Moderate, and Conservative.
When the Aggressive trading style is used, trade signals are generated by the TradeTrend algorithm without any input from Divergence Cloud. They are ‘unfiltered’ TradeTrend signals.
For Moderate, Divergence Cloud is used as a filter – but only as a reference point. TradeTrend buy entries are signaled only if the cloud is not bearish red; sell entries are signaled only if the cloud is not bullish green.
For Conservative, Divergence Cloud is used as an absolute trend filter. TradeTrend buy entries are only signaled when the cloud is currently bullish green; sell entries are only signaled when it is bearish red.
The Zillion scanner comes complete with over 4,900 symbols across different asset classes. These symbols can be selected in the scanner to view their chart and trade performance statistics.
The symbols in the scanner can be filtered depending on what you would like to see. There are numerous columns which provide information about the symbols:
- Date displays the date of the last data refresh for the symbol in format MM/DD/YY
- Price displays the close price of the latest day
- % shows the percent change of the latest day
- Volume displays the average volume
- Buy shows either pending or active buy entry signals
- Sell shows either pending or active sell entry signals
- Div Cloud displays the current color of the Divergence Cloud
- Stats shows selected statistics
All of the columns can be sorted by clicking on their title. For the Price, Volume, Buy, and Sell columns, the filter icon beside the column title can be clicked to filter the column for specific values.
The icon beside the Stats column title can be selected to choose the statistic you want the column to display (see video).
Pending buy entries are represented by a yellow upward arrow. The number in the arrow shows the number of bars ago this pending buy entry was signaled.
Buy entries are represented by a green upward arrow. The number in the arrow shows the number of bars ago this buy entry was signaled.
Pending sell entries are represented by a yellow downward arrow. The number in the arrow shows the number of bars ago this pending sell entry was signaled.
Sell entries are represented by a red downward arrow. The number in the arrow shows the number of bars ago this sell entry was signaled.
Div Cloud Markers
Bullish divergence is depicted by a green square when a symbol is currently within a bullish divergence cloud.
Bearish divergence is depicted by a red square when a symbol is currently within a bearish divergence cloud.
The Statistics Panel in Zillion provides a detailed breakdown of the trading results and statistics for trades taken by the Zillion TradeTrend algorithm. The statistics will automatically update when the selected symbol or trading style is changed.
The Trade Performance by Weekday chart provides a bar chart breakdown of trade performance depending on which day of the week their entries were signaled.
For example, if the long trades for a symbol perform overwhelmingly well on Fridays compared to the other weekdays, this indicates that buy entries signaled for this symbol have historically performed best when they occurred on a Friday.
By hovering your mouse on the bars in the chart, you can view exact information regarding the profit or loss incurred for relevant trades on that weekday.
Trade Performance by Weekday
The Winners vs Losers chart provides a visual breakdown of the winning and losing trades – as well as their total profit and loss contributions – for all trades, long trades, and short trades.
The green portion of each ‘track’ on the chart represents winning trades; and the red portion represents losing trades. By hovering your mouse on these sections, you can view exact information regarding the profit or loss incurred for that portion of the trades taken.
Winners vs Losers
The Stats Table displays the overall statistics for all trades, long trades, and short trades at a glance. Here, you can view the net profit, profit factor, number of trades taken, winning and losing trades, and winning and losing trade percentages.
The figures for profits and losses in all sections of the statistics panel are calculated based on an assumed $10,000 USD investment per trade entry.
Zillion’s charting system is built on TradingView’s charting software. It comes equipped hundreds of indicators and dozens of drawing tools amongst other useful features.
New indicators can be applied to a chart by opening the ‘Indicators’ window in the toolbar above the chart (shown in the ‘Adding indicators’ video).
Indicators can be edited by hovering your mouse over their name in the top left corner of the chart panel they are applied to, and clicking the gear icon. In an indicator option window, you can adjust the indicators’ parameters and/or visual styling (shown in the ‘Editing indicators’ video).
Again by hovering your mouse over an indicator name, you can toggle the indicator’s visibility – or remove it entirely (see the ‘Hiding and removing indicators’ video).
Hiding and removing indicators
There are also many drawing tools which can be selected in the toolbar on the left side of the chart and used to plot out your ideas and analysis. (see the ‘Using drawing tools’ video).
Using drawing tools
The gear icon in the top right corner of the chart can be used to access the chart’s settings, including various appearance options and others preferences.
Adjusting chart settings