Major Breakthrough…Wait Till You See This!
The most challenging market action, particularly for trend traders like me is sideways chop. Chop refers to when the market makes short term moves up and down without any particular trend direction. My system has always been configured to take advantage of the trends up, but sit out when the market trends down. So sideways chop was something I just had to put up with and manage my risk around as best I could.
In December, January and March my system did not perform as well as I would have hoped. So I set to work on finding a way to manage trades in this condition allowing me to grab trades closer to the bottom of these shorter term choppy moves in a codable systematic rule based way.
Well, this week I finally achieved this feat. In the chart above there are 2 examples of what I have to look forward to as I walk forward in the months and years to come. For example, turning a 3% cash loss into almost a 14% gain would have made a HUGE impact on my trading performance at the end of 2014. (Especially when it follows the monster winner I had in October)
The ability to grab and anticipate market bottoms has been an obsession of mine for many years. Most don’t think it is possible, but study the chart in the picture and tell me it’s impossible. Visually the system as it stands grabbed the bottom of the major trend in August & October 2014 and Feb 2015 as well as many other times in the previous months and years not on view.
I of course remain but a humble participant in the trading world and this system is not perfect, no trading system is, but every year I get closer to the top and bottoms of all the large and small trends in the market using a systematic algorithmic approach that has no room for emotional decisions. Therefore, I am absolutely delighted with this change and look forward to yielding the incredible returns it will undoubtedly bring me and those that follow me.
If you can buy bottoms and sell tops as shown in the chart above, while continuing to manage your risk and compound your money…it’s pretty hard to fail. And frankly, the system is this good now because I started sharing it. I am driven by the humbling testimonials I have received over the years since I started sharing my trades, It makes me work harder and work smarter towards my goal of having the best trend trading system on the planet…If it isn’t already 😉
