Trade Aptitude

Results of Wednesday’s Best S&P Turning Points: The suggested short @ 3875.50 missed entry by 2 ticks and was the high of the session. 

Today’s Best S&P Turning Points (consider wider stops and less size in fast moving markets): 

Buy 3811.00 stop 3806.75. Short 3857.50 stop 3860.50.   

The World Sentiment Index: (+100/-100) DROPS from +21 to -14 in a world of mixed sentiment and low volatility. Historically the close was higher than the open 74% of the time. 

Catalysts: Jobless Claims @ 8:30. EIA Petroleum Status Report @ 11:00. Renewed concerns about Covid. 

Quick Tip: Test More

Your strategy is working just fine. You finally found your trading “rhythm.” Your account is growing and you’re ready to start taking a paycheck (which you should, make those gains tangible). But...

Boredom is setting in. It’s all too mechanical. The challenges you cherished and were passionate about solving are gone. You’re tempted to tweak the rules to improve your results. You’re becoming a change agent. 

“If it ain’t broke, don’t fix it” repeats in your thoughts. Wrong. Markets change, strategies lose steam, you should be constantly looking to improve your results. 

How? Testing. Don’t change anything that is working, but research potential changes off-market hours.

Study your results and your journal for clues on what to research. Maybe your entry or exit rules can be improved. Maybe your time interval isn’t optimal. There are so many rules to test. 

Make a list, then research one at a time through back-testing in varying market conditions. Some will offer no improvement. Good! Check it off the list and move on. When you find a change that improves results, sim or paper trade it simultaneously to your proven strategy. That’s how you keep your edge. 

Too busy to do this on your own? Join our trading team. We use evidence-based rules across multiple strategies, and constantly research and test new ideas. Click here for a no-risk 30-day offer. This offer expires January 1st. Don’t miss out. 

Trade Fearlessly,

Mike Siewruk 

P.S. Feel free to share this blog with all your trading buddies.