|
Results of Wednesday’s Best S&P Futures Turning Points: No trade triggered.
Today’s Best S&P Futures Turning Points (consider wider stops and less size in fast moving markets):
Buy 5247.00 stop 5241.25. Short 5311.25 stop 5316.00.
The World Index: (+100/-100) reverses from -29 to +30 with the open world markets neutral to mildly Bullish (China, HK closed).
Catalysts: Jobless Claims @ 8:30. Fed Speakers: Barkin @ 12:15, Mester @ 14:00.
Quick Tip: Handling Streaks
Regardless of strategy, trading results move in waves much like price on a chart. Winning, losing, and flat streaks. Your trade plan should have rules for how you respond to these events.
Winning streak rules are simple if you follow a fixed percentage risk management plan. Let’s say your maximum risk per trade is 2% (common) of your trading account. As your winning streak continues the percentage of the growing account increases and therefore you’re risking more anticipating gaining more.
Losing streak rules are also simple with the fixed percentage risk management plan. As your account decreases your risk is less per trade as well.
Here’s the tougher rule to determine. What do you do in a drawdown (extended losing streak)? You’re not losing every trade, but the equity in your account looks like a Bear Market price chart with impulses down and corrections up. You’re wondering if the strategy has lost its edge.
One good solution is to document every trade your strategy sets up (taken or not). Build a database and chart the equity curve of the strategy itself, not only your real results. With this evidence you can look at prior drawdowns and set rules for either temporarily shelving the strategy OR finding filters that minimize your trades to only the best conditions.
Tired of trading alone and guessing what to do next? Join our team. You can learn the strategies and trade live with us daily for 30 days. Money back if you’re not blown away! Take advantage of the final days of this promotional price.
Trade Fearlessly,
Mike Siewruk
P.S. Feel free to pass this along to your trading buddies. Share in the wealth!
|
