The Daily Market Forecast... do something.

Tuesday’s Blog Results: Neither suggested level triggered.

Quick Tip: Do something.

Yesterday was “Do nothing” today is “Do something,” what’s going on?

There are many trading styles to choose from. Saying one is the “best” is foolish. It may be the best for someone, but no trading style is best for everyone. While yesterday’s quote came from Jim Rogers suggesting you do nothing between great trades it is his style (very long term). “Doing something” works too.

Out team of traders share best practices for multiple strategies. Volume Profile, Breakouts, Volatility Reversal, Supply/Demand, Directional Options, and Spreads. Not everyone trades all the strategies. You should find the style of trading that resonates with your personality and risk tolerance and stick to it.

But if you have the ability to trade multiple styles (strategies) here are the pros and cons:

Pros:

1. More trading opportunities. When one strategy is waiting for entry, another may be active. This means more efficient use of your capital AND TIME.
2. Smoother equity curve. No guarantees, but you’re likely to have less severe drawdowns in your account if the strategies you trade are not correlated. This means you’ll FEEL better about your performance and trade with more confidence.
3. “Sunset” protection. If you haven’t already noticed, trading strategies don’t always work forever. The markets are a technology business now. And we know technology advances at lightning speed. You need to constantly learn and apply newness to your strategies. Measure it and establish new rules.

Cons:

1. Capital required. You MAY not have enough capital to run multiple strategies but given the small contract size and leverage in the options, FX and futures markets a capital constraint is unlikely.
2. You need to learn. It’s tough to call this a “con” but some people get in that “fur-lined rut” and don’t want to grow their trading IQ. Reach out and learn something new… it’s fun!
3. This is probably the only true “con” to running multiple strategies. You’ll get a buy signal from one and a sell signal from another. The fix is easy though. Think confluence. If both are in harmony, that’s GOOD. If there is conflict, then maybe it’s time to “do nothing.”

Your suggested levels didn’t trigger yesterday. The team always has more levels to trade but the real kicker was our Volatility Reversal strategy. The ES contract contributed 37.75 points for the day.

Today’s Best S&P Futures Turning Points:

Short Level: Sell 4497.50 stop 4503.25 (same as yesterday).

Long Level: Buy 4449.25 stop 4443.75.

Trade well,

Mike Siewruk

P.S. Tired of trading alone? Need more quality setups? Join our team of great traders and accelerate your performance. Copy down this coupon code WINTER2022 and save 100 per month for life on your membership. Click here for FREE video training and details.