Futures Micro and Mini Portfolios No New Trades
It was another week of mixed-bag results- we had two of the Model Portfolios having gains for the week while one had losses. We continue to experience incredible intra-day volatility which destroys all short and intermediate term trading methods. My method could care less what happens intra-day; we make no decisions during the day.
**We never-ever get stopped in or stopped out of a position during the day’s trading session. Intra-day volatility is of no consequence to us. We slow down frenetic market action because we only are concerned about price after settlement. Late that evening, I run the algorithm on settled prices to see if market movement has resulted in a new trend. If it has, we reverse our position.
If you ever deviate from strict trading rules, you are setting yourself up for failure. It is as hard and cold as that. Non-rule based trading will cause you to lose money, and the more subjective your trading, the faster you will lose money.
Price forecasts the future– not traders or investors (repeat this to yourself 100 times) when you think you have achieved some great forecasting ability). Losers think they know more than the market (price is too high or too low to take that trade) and the market will often deal harshly with such hubris. The market will kill know-it-alls.
Profitable traders and investors know they cannot forecast anything consistently (re-read John Henry’s quote at the bottom of the page). I always laugh at the multitudes of traders that barely can meet their monthly obligations that think they can forecast the market. Here we have the owner of the Boston Red Sox telling you that his profits come from your (and others) forecasting foolishness.
We don’t care about small market moves- we are looking for big moves the kind of moves that grow your account fast. We leave the nickel and dime short-term trading to others. We are always looking to hit home runs- not singles.
Reverse British Pound from short to long
Reverse 10-Year Note from long to short
**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.