The Daily Market Forecast... Time Filters

Wednesday’s Results: The suggested buy at 3932.75 triggered late and bounced for 4.75 points before failing.

Quick Tip: Time Filters

One easy and excellent filter you should apply to your strategies is “time-of-day.” Your broker should have a download available to you with time stamps on all your trades. Import this to a spreadsheet and sort the trades by time of day. If you have enough trades you may see a pattern.

Going forward, its’ better to capture more information about each trade to fine-tune your filter. For example, one strategy here offers both reversal and breakout trades. With that appended to the time-of-day data, you can see if there is an edge for either of those trades. Obviously, you’ll customize your data captured to fit your rules. Remember to document all trade setups, not just the trades you took.

Here’s how this can be helpful: Yesterday’s buy suggestion triggered at 3:45 PM ET. Not much time left in the session. It was a reversal entry. According to our database that was a “no take” based on the cumulative performance of all reversals around that time of day. Oddly, breakouts do fine then. Good to know?

Today’s Best S&P Turning Points – (same as yesterday)

Sell 3950.00 stop 3955.75.

Buy 3875.50 stop 3871.25.

Trade Fearlessly,

Mike Siewruk

P.S. What’s more important in trading? Math or emotions? Learn how to change your unwanted behavior here.