Trade Aptitude
Results of Monday’s Best S&P Turning Points: Buying 3895.25 missed filling by 2 points and was the low of the session. Shorting 3999.00 filled in the Globex last night and ran for 9.25 points.
Today’s Best S&P Turning Points (consider wider stops and less size in fast moving markets):
Buy 3951.50 stop 3946.25. Short 4073.50 stop 4077.50.
The World Sentiment Index: (+100/-100) SOARS from -7 to +92 with all major world markets very bullish. Historically price closed higher 63% of the time.
Catalysts: Existing Home Sales @ 10:00. Risk on mood.
Quick Tip: The Live Trade Plan
In your trade plan you’ve established a set of rules that when followed, show a positive outcome. You have an edge.
Most trade plans start simple. When to enter and exit. Which asset to trade. Which tools to use. How much to risk.
That’s a good start but the real meaty rules come from live trading experience. We can’t possibly consider all outcomes and influences in the beginning. We need to trade live, observe, document, and mine the data for new rules to improve. This means your trade plan is a living document. It should evolve.
Add to all that the fact that markets change character. This means you will eventually experience enough change to add conditional rules to your plan. These are rules you never thought of until you witnessed the result live trading.
Beyond the typical stats you’re keeping, here are a few data points you should record for every trade triggered in your plan, taken or not.
1. Time based stats including time of day, day of week, day of month.
2. Sentiment of major world markets.
3. Correlated assets including inverse.
4. Catalysts.
5. Technical indicators. Your favorites and a few you never use.
6. Alternative entry and exit rulesets.
That last stat is critical. While you already have an entry/exit ruleset with edge, how do you know it will endure? What happens to those rules when the market changes character? Does their performance stay positive but become better or worse and in what market conditions?
Here's an example of a rule change we found regarding exits. How you move your stop loss has a big impact on your results. If you kept track of different exit rulesets; never moving the stop, trailing the stop, and setting rapid breakeven exits for winners, you would have a rich database to mine for edge… based on market conditions. With that data you can optimize your exits and get your “living” trade plan in harmony with present time action.
Our team day-trades multiple strategies with edge in a live online environment. Several exit strategies are discussed and shared in real time. 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