Bubba & Dr. FANG’s Futures Trading Publication Mega-Trade Model Portfolios
Futures Portfolios Weekly Update
To join Futures Portfolio Text Group, text futures to (872)395-6371
Most of the Model Portfolios had losses for the week- mostly minor. We are seeing a “pause to refresh” phase in the equity curves meaning we are consolidating recent strong gains made in December and the early part of January.
Price is the only reality in trading, so price dictates our every move. We took a huge profit in Soybean Meal on Friday and we will also take huge profits in Corn and Soybeans on Monday. We caught at least 75% of the moves in these markets and few traders can ever make what we make on a trend move.
*We still have twelve (12) markets in Mega-Trade status meaning an open trade profit of 3k or more. This can only be achieved by mechanical and unemotional trading and the reason we trade this way is for one reason and one reason only: it makes money.
Amateurs continuously violate our trading rules and often end up losing instead of winning. Over the long term, we make a lot of money. Over any given short-term period, we can have losses and often those losing periods can last for a year or more. You must be committed to following the rules and trading exactly as the algorithm directs.
Markets usually trend about 35% of the time and 65% of the time they find themselves in congestion. Congestion always leads to breakouts which is what our algorithm is based upon. In addition, unlike other trend following methods, we do not get whip-sawed in congestion. The algorithm employs factors that eliminate a high percentage of potential whip-saws.
All you must do as a trader is to follow our simple trading rules. Never think you can outguess our algorithm because we cannot and you certainly cannot. No ego=success in markets and those that insist on being smarter than the market end up broke.
The key is consistency and discipline as always. Some ask what does your algorithm pay attention to? The best way of answering that question is what it does not pay attention to. You see, the algorithm looks at significant chart points, price and time. News, fundamentals and all forms and variations of technical analysis are totally and completely ignored.
We make money by surrendering to what the market is doing- if we are in an up-trend we are long and if we are in a down-trend we are short. How simple a concept- yet 97% of all traders are unable or unwilling to grasp it.
The algorithm does not pick “turning points” per se, but it does get aboard a new trend quickly because that is what it was designed to do. Remember, we are trying to “mirror the market” and we do that by doing what the market is doing. If we are long and the market is going down, at some point, we will get short, etc. You may not like the fact that at times it seems we are late to the party, but that is a misperception and all I can say to that is: stay disciplined and follow the rules.
Our performance is not based on “forecasting” or “analysis” but rather what a price of a commodity is doing right now. The words “too high” or “two low” are not in our dictionary because no one knows what “too high” or “too low” is in trading- although the multitude of foolish losing traders think they do.
We make big money by being long term position trend traders- nothing more-nothing less. You need to be 100% disciplined to replicate the Model Portfolios and the more you deviate from full discipline, the worse your performance.
***New Trade Alert***
**Apply these trend changes to all pertinent Model Portfolios**
Reverse and roll the following:
Sell March Corn and sell May Corn
Sell March Soybeans and sell May Soybeans