Trade Aptitude
Results of Wednesday’s Best S&P Futures Turning Points: The suggested buy at 4101.50 was the bottom of the day and ran to the close of the session for 17.50 points.
Today’s Best S&P Futures Turning Points (consider wider stops and less size in fast moving markets):
Buy 4082.25 stop 4077.50. Short 4148.75 stop 4154.00.
The World Sentiment Index: (+100/-100) jumps from -40 to +7 in a world of mixed sentiment and falling volatility.
Catalysts: Jobless Claims @ 8:30. Fed’s Bullard speaks @ 10:00. The big news is tomorrow’s Non-Farm Payrolls report but the markets are closed for Good Friday.
Quick Tip: Adjusting Targets
Your trading plan should have a basic set of entry and exit rules. Think of them as useful for “typical” market conditions. You can define typical by data mining your Excel spreadsheet of results and finding the average moves for and against (called Maximum Favorable Excursion or MFE and Maximum Adverse Excursion or MAE).
The market is not always typical though. It will be more or less volatile any given day (week, month). Expecting your basic set of targets to perform in varying conditions isn’t ideal. You need to have rules for slower and faster markets.
Obviously you’ll be looking for smaller gains in narrow markets and larger gains in wide markets. Once again, you can define these conditions by data mining your results spreadsheet. Make sure you’re tracking data that allows for this research.
Here’s a few data points that our team has found useful; Average True Range or ATR (daily), expected move in the options chain of the asset, and Globex range (for futures).
Our team day-trades multiple strategies with edge in a live online environment. Each strategy has thousands of trades documented with dozens of data points to help us improve the edge in varying market conditions. Join our team, learn the strategies, and trade live with us daily for 30 days. Money back if you’re not blown away!
Trade Fearlessly,
Mike Siewruk