Trade Aptitude

Today’s Best S&P Futures Turning Points: Buy 5236.25 stop 5231.50. Short 5296.25 stop 5300.75 (filtered out for CPI announcement). 

Tuesday’s results: Buying 5213.00 bounced for 6 points before stopping out one tick from the day session low. 

The World Index: (+100/-100) gains from +7 to +21 with most major world markets leaning Bullish on low volatility.

Catalysts: CPI @ 8:30. Fed’s Bowman @ 8:45. Crude Oil Inventories @ 10:30. Fed’s Goolsbee @ 12:45. FOMC Minutes @ 14:00. 

Quick Tip: Stop Trading?

hemAll trading strategies have drawdowns (a protracted losing streak). The challenge is trading through them. You can’t stop thinking that it may “never come back” or churn for an extended period. Then you get FOMO and think if you stop now it will roar back and you’ll miss the gain. Obviously, these thoughts are destructive. Don’t go there. 

What you should do is have Halt & Start rules to follow. These are rules that tell you when to stop trading the strategy and when, if ever, to start up again. This will take the emotion out of the process. Apply these rules to the performance of individual strategies, not your whole trading account. 

Here’s an example of a rule set:

1. Chart the equity curve of the strategy by logging every trade setup and the cumulative results given your stop loss and profit target rules. If you have the capital, trading only one strategy per account makes it easy. 

2. Determine the most loss you can tolerate. 

3. The next time the equity drops there, halt trading the strategy. Continue to record the cumulative results. 

4. Go back and measure the distance to a new equity high, or some percentage of the move

5. Start the strategy once it repairs to that level. 

While nothing in this business is foolproof, this technique has some edge. You’ll miss the big down moves and the following up moves, but that’s breakeven and inefficient anyway. The big benefit comes when the strategy has stopped working and you weren’t still trading.

Tired of trading alone and guessing what to do next? Join our team. You can learn the strategies and trade live with us daily for 30 days. Money back if you’re not blown away! Take advantage of the final days of this promotional price.  

Trade Fearlessly,

Mike Siewruk

P.S.  Feel free to pass this along to your trading buddies. Share in the wealth!