Futures Micro and Mini Portfolios Weekly Update
As we stated in our webinars, we were “due” for a drawdown or at least some profit taking because of the large recent trading gains and the fact that we were well above the trend regression lines on most of the equity graphs.
This week, all but one of the Model Portfolios gave back some of the recent gains. However, there was still a good deal of strength in the 16k Model Portfolio because it had a new historic high equity close this week.
Do not fall into the trap of thinking you can “time” exactly when a drawdown is going to start and exit your positions. Timing an equity graph is like timing the market- you will not be able to do it consistently. The risk of drawdown “timing” is that you are off by a week or two, and during those two weeks, the Model Portfolio you are trading makes large gains without you.
We make 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.
**Trades can be entered during the electronic night session or in the morning. However, in volatile stock index and currency markets, you should enter a trade as soon as possible
-meaning the beginning of the electronic night session as it will tend to be a more profitable entry point. Trades shown in the Model Portfolio spreadsheet are the fills I get for my own trades. Your trade entries can be better or worse.