Trade Aptitude

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

Monday’s results: This strategy is on hold. 

The World Index: (+100/-100) rises from -7 to +36 with most major world markets mildly Bullish on low volatility. 

Catalysts: Retail Sales @ 8:30. Industrial Production @ 9:15. Business Inventories & Fed’s Barkin @ 10:00. Fed’s Collins @ 11:40, Logan & Kugler @ 13:00. 20-year Bond Auction @ 13:00. Fed’s Musalem @ 13:20, Goolsbee @ 14:00. 

Quick Tip: Time to Change?

All traders experience losing streaks and drawdowns in their trading account. Market conditions change. Some strategies stop working and others start working. It can appear cyclical.

Handling this is tricky. One voice in your head says, “stay the course, it’ll come back.” The other voice says, “dump this strategy and find one that is working.” 

But it doesn’t have to be a black or white decision. You can reduce your position size to the bare minimum or trade in simulation. Examining your equity curve for clues on how much prior down cycles lasted helps. 

The BEST solution is not reactive, though. It’s proactive. Design your trade plan with multiple strategies. Even if you’re not trading them all at once, monitor their performance as if you were actively trading them. Keep detailed records. If you’re struggling with your primary strategy and you see another strategy is running smooth, the solution is obvious.

Here’s an example: Our futures trading room runs 5 strategies. You’ve noticed lately that this newsletter starts out with our Volume Profile strategy “on hold.” It’s in a drawdown and we have start/stop rules when this occurs. The good news is that our intraday trend strategy is performing very well. 

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

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