Wednesday’s Results: The suggested short @ 3994.50 offered 8.25 points, but you shouldn’t have taken it.
Quick Tip: Filters
Your trading approach and basic strategy rules should have a positive expectation. We call it “edge.” Like a casino, you’ll lose plenty of trades but in the end you have a profit.
Here’s the power in review and documentation. Once you’ve captured all kinds of data about your trades you can look for filters.
The obvious filter yesterday was the FOMC announcement. You didn’t need review and documentation for that one. When the market gets too volatile you simply back off and wait for it to settle down.
Other common filters are time of day, day of week, even day of month. Try some technical indicators, too. You’ll find benefit with RSI, Bollinger Bands, ATR, and others.
Keep in mind, these are NOT predictive. They are lagging. But in some cases they ADD confluence to your trade setups and by using them as a filter you can fine tune your trading results.
Today’s Best S&P Turning Points (in fast moving markets consider a wider stop and less size):
Sell 3994.50 stop 4000.25.
Buy 3908.50 stop 3903.75.
P.S. If you want to learn more about multiple strategy trade plans, our FREE “Ultimate Personalized Trade Plan” class has been updated with PAIDtm methodology (Plan/Abundance/Investigate/