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Today’s Best S&P Futures Turning Points: Nothing tradeable today.
Tuesday’s results: This strategy is on hold... but is improving and likely out of the drawdown soon.
The World Index: (+100/-100) drops from -14 to -43 with international markets mixed on low volatility and the S&P futures plunging on a tech-led selloff.
Catalysts: Building Permits & Housing Starts @ 8:30. Fed’s Barkin @ 9:00, Waller @ 9:35. Industrial Production @ 9:15. Crude Oil Inventories @ 10:30. Beige Book @ 14:00.
Quick Tip: Strategy Halts
If you’re a regular reader of this blog you know that one of the strategies our team trades, Volume Profile, has diminished in performance for the past few weeks. Thus, no S&P turning points are forecast.
All strategies have losing trades, streaks, and in severe cases drawdowns. It’s important to document your trade results, taken or not, to maintain a clear vision of the actual performance. This review work gives you critical evidence for either halting the strategy or in minor cases lowering risk and/or position size.
Over the past several days the performance of our Volume Profile rules has modestly improved. Last night the strategy performed very well. Are we out of the woods? Scanning historical performance over thousands of trades in all market conditions suggest we may be close.
Since performance variation is inevitable for all traders, the best solution is to have more than one, if not multiple strategies to trade. For example, the equity curves for our Volatility Reversal strategy have hit new equity highs in recent weeks. Our Intraday Trend strategy has maintained normal, tradable performance. Our Enhanced Supply/Demand strategy has continued to perform well.
Most traders learn one strategy when starting out and can become blind to the variations in strategy performance. The challenge is finding other strategies with edge in a timely manner.
If you’re stuck with only one trading strategy it’s time to join a trading team that executes multiple strategies. You should also consider multiple time horizons. Another example is our Stock/Option Swing trading strategy, which has produced incredible trades lately with returns in the hundreds of percent on many assets.
Join me and learn what could be the best alternative you have for a rapid acceptance of another trading strategy! Get instant access to a recording of my last session here: Stock/Options swing traders.
Trade Fearlessly,
Mike Siewruk
P.S. Feel free to pass this along to your trading buddies. Share in the wealth!
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