Trade Aptitude

Results of Wednesday’s Best S&P Futures Turning Points: Neither level triggered and remain on the chart. 

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

Buy 4336.25 stop 4332.50. Short 4433.25 stop 4436.75. 

The World Index: (+100/-100) jumps from -14 to +29 with most major world markets Bullish.  

Catalysts: Jobless Claims @ 8:30. 30-year Bond Auction @ 13:01. Powell speaks on a panel discussion titled "Monetary Challenges in a Global Economy" @ 14:00. 

Quick Tip: Trade THIS Way

Should you trade multiple strategies? Or focus on one? 

Given a big enough account diversification becomes mandatory. You’ve never heard of a hedge fund that ran “one” strategy. But what about those of us with relatively smaller trading accounts? There are pros and cons. 

Pros: 

More trading opportunities. When one strategy is waiting for entry, another may be active. This means more efficient use of your capital and time. You'll have an "abundance" rather than a "scarcity" mentality.  

Smoother equity curve. No guarantees, but you’re likely to have less severe drawdowns in your account if the strategies you trade are not correlated. This means you’ll feel better about your performance and trade with more confidence. 

Sunset protection. If you haven’t already noticed, strategies don’t always work forever. By monitoring each strategy’s equity curve you can establish “start” and “stop” times. 

Cons (although all are weak):

Capital required. You may not have enough capital to run multiple strategies but given the small contract size and leverage in the options, FX and futures markets a capital constraint is unlikely. 

You need to learn. It’s tough to call this a “con” but some people get in that “fur-lined rut” and don’t want to grow their trading IQ. Reach out and learn something new… it’s fun!

Conflicting signals. You’ll get a buy signal from one and a sell signal from another. The fix is easy though. Think confluence. If both are in harmony, that’s good. If there is conflict, then maybe that’s a trade to pass on. Alternatively, once you’re in a trade seeing a reversal signal from another strategy can be a great profit target. 

Join our team. You can learn multiple strategies tuned for different market conditions and trade live with us for 30 days. New reduced price offer. Money back if you’re not blown away!

Trade Fearlessly,

Mike Siewruk

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