Our Free Trading Strategies are BUYING again today

This is a tricky time to get back in the market because the broad (US) markets from a technical analysis standpoint are RIGHT at resistance and have come up a lot already.  If they decide to break out, we should be good, but the risk is still pretty high! 

 

I totally understand those that would rather stand aside in cash and wait to see what the market will do for another few days or week and see if it follows through or not... 'I' would 'personally' like to do the same 🙂

 

It's especially difficult because the Nasdaq (QQQ) is pretty close to it's recent high before the Coronovirus-inspired sell-off, and the SP 500 (SPY) has retraced over 60% of the down move already, too...

 

This is one of the biggest challenges of being a Systematic Trader/Investor, that is, taking signals when your Strategy says to and just following the rules, even against your own personal feelings and your own personal judgement.  (I 'personally' don't want to be trading right now based on the state of the world.  I would rather see how things unfold a little further, first.)

 

I don't know about you all, but I've often been wrong as a discretionary trader (without any trading rules) and many times have sat there just watching the market move higher and higher without me.  As a trader, you have to be OK with either outcome.

 

One of the other things I track when wearing my "Technical Analyst" hat, is an indicator called the "Squeeze".  It tells you when a market is consolidating but getting ready to potentially set up the next big move.  Why?  Because markets cycle from low volatility to high volatility.  Markets can't stay quiet forever as they have over the past trading week+. 

 

The "Squeeze" indicates a relatively low volatility period of time, but it can't stay that way for too long.  The SP500 futures (/ES) is in a multi-day Squeeze right now, which could indicate a potential big move up or down might be setting up for the near future. 

 

Perhaps if I were to look at just trading "the market" like the SPY as a discretionary trader, I might consider an option straddle from that discretionary stand-point, since it "looks" like a good move is setting up but we can't know for sure which way it will go.  But as a Systematic Trader, I'm better off just following my rules - whether they end up working "this time around", or not!  Over the long-term, they will keep me out of trouble and consistent.

 

BTW you all have access to these trading strategies for free and can set up a paper trading account to trade them automatically (in paper testing) if you want, or just look at the daily buy/sell signals (we call them Strategy Scans) if you are interested in seeing what each Strategy will do each day.

 

P.S. - Stay tuned, I'll be releasing in depth strategy research that explains exactly how these strategies work (the rules) along with their 20 year back testing history in the next week or two... maybe sooner!

P.P.S. - Yesterday I shared with our group a FREE Backtesting Mini-Course designed to help members get started in how to evaluate these types of Strategies for themselves. 

 

Remember, You're Just One Systematic Strategy Away...!,

 

"Consistent Processes Lead To Consistent Outcomes"

 

Dave
Systematic Investors Group Team
www.systematic-investors.com