Week Weekly Performance Running Total
July 21-25, 2014 +38.50 +38.50
July 28-Aug 1, 2014 +92.00 +130.50
Aug 4-8, 2014 +37.00 +167.50
Aug 11-15, 2014 +9.00 +176.50
Aug 18-22, 2014 -19.50 +157.00
Aug 25-29, 2014 -45.00 +112.00
Sep 1-5, 2014
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I am constantly trying to improve my strategies. Many times, I will get an email about why we took a certain trade or why we lost the trade. The answer is no one knows. If you have a strategy and trade it, you must take the ups with the downs. If it has been back tested enough and put through rigorous trial, you should have a strategy that you can rely on.
I posted a book on our group site today. It is called "Trend Following" by Michael Covel. A trader really needs to read that because it has all the statistics anyone would need to learn to ride out the losses.
Mark my words, there will be a few weeks in the next year which produce hundreds of points of profit. You just need to keep striving. Keep learning. Always keep getting better and better.
Some clients asked me this week, "Why did you change your strategy?" I didn't. I have a toolbox of strategies I use because the market is always changing, always evolving.
I did a webinar this week that showed how a trader could make a living by one strategy alone. If you want to stick to it day in and day out, you must first back test it. I showed a month or so of back testing in the webinar but in order to put your own money on the line, make damn sure you know it inside and out. If you want to test it, here it is...
At 8am every day, if the Wall Street 30 price is above the hourly 30 period exponential moving average, then buy the 8am-415pm upper bull spread at $30 risk or less. Set your Take Profit at +20. Vice A Versa goes for a sell. That's it.
Now this strategy wins way more than it loses and it works great during trends. During consolidations, it doesn't work so well.
Back test it. Back test it for the past 10 years, day by day and you will gain confidence. Always trade on a demo account until you have that confidence.
Well until next week! I am excited for September!