Trade Aptitude

Today’s Best S&P Futures Turning Points: Nothing tradeable today.  

Monday’s results: This strategy is on hold... but is improving and likely out of the drawdown soon.

The World Index: (+100/-100) eases from -36 to -14 with sentiment mixed with low volatility. 

Catalysts: Retail Sales & Import/Export Prices @ 8:30. Business Inventories & Housing Market Index @ 10:00. Fed’s Kugler @ 14:45.  

Quick Tip: Volatility Stops

Price is either trending or not, volatile or not. Your results will largely depend on the rules you apply to these four Market States. 

In the chart above I’m trading our intraday trend strategy. It performs best when the market is trending on LOW volatility. 

After the open price chopped up and down in a range that was volatile but not extremely so. Once the signal to enter the trend triggered, you’ll notice the volatility slowed considerably. All the candles were narrower range and smoothly ascending. You’ll also notice that price moved slower. That trade lasted an hour and 20 minutes. 

This strategy utilizes a volatility-based trailing stop. With that you’ll give back a bit more profit waiting for price to trigger a stop in a volatile market. In a smooth trending low volatility market, the stop tightens and gives up less open profit. 

If you’re trading stocks and/or options, you should watch this training session I recorded recently. I demonstrated these two leading indicators of stock price movement that are unique enough to get you a solid edge. Get instant access here: Stock/Options swing traders.

Trade Fearlessly,

Mike Siewruk

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