Trade Aptitude
Results of Tuesday’s Best S&P Futures Turning Points: Shorting 4305.75 caught the high of the session twice and ran for 12 and 14.75 points. Feel better about your win by donating a slice to my preferred charity, the Alzheimer’s Association. Click here.
Today’s Best S&P Futures Turning Points (consider wider stops and less size in fast moving markets):
Buy 4266.00 stop 4260.75. Short 4305.75 stop 4311.25.
The World Sentiment Index: (+100/-100) dips from -21 to -29 in a world of Bearish leaning mixed sentiment with low volatility.
Catalysts: International Trade @ 8:30 Crude Oil Inventories @ 10:30.
Quick Tip: Filtering
The successful turning point from yesterday did not come from a chart pattern. This level was derived from the highest volume on the price axis the prior day. They’re “hidden” on a time-based chart. The theory is that the price was fair, many orders were filled, and when price breaks above or below it should run for a while.
Nothing works all the time, as you know from reading this newsletter every day and seeing stopped out trades.
We’ve been tracking the performance of this strategy for several years and over 12,000 trade setups. Using that evidence, we can find edge by filtering out some trade candidates. For example, yesterday’s level produced two solid winners. But we know that statistically the “second touch” works far less often.
The key to filtering is to not allow recency bias to creep in. You’ll miss some winners like yesterday. But overall, you’ll be missing way more losers.
On our trading team, we document dozens of statistics for every trade setup, taken or not. This provides a statistical edge.
It's our 3-year anniversary this month and we're celebrating by offering qualified new members a fabulous gift! Our Team Membership is normally $349/mo. but you can join now for only $199 (never an increase, cancelable anytime). Use coupon code ANNIVERSARY2306. Join us, learn the strategies, and trade live with us daily for 30 days. Money back if you’re not blown away!
Trade Fearlessly,
Mike Siewruk
P.S. Are you looking for the best Leading Indicator for your stock and options trading? Watch the recording from our recent training session and take advantage of another Anniversary gift! Click here.