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Hypothetical Trading System Signals on August 8, 2022 - Drawdown Entry Alert To Go Live


Today we have a drawdown entry alert for Stock Index Portfolio 26. We have been tracking the hypothetical trading system signals. The Stock Index Portfolio 26 was down 6k today and is in an 18K drawdown per E-mini. We recommend risking a worse case drawdown, down to the 33-38K level, which is another 15-20K away from the current drawdown levels.


We recommend trading 4 micros per 200K and 1 micro per 50K. This puts the risk at $1.5-2.0K per 50K and $6-8K per 200K.


Some recent research shows that Mondays been the worse trading day of the week.


The constant bid in the market is interesting as it appears to be contrary to the fundamentals but if all the excess liquidity just continues to buy and institutional traders don't short this market or sell existing longs on this rally, it will drive the market higher.


It is possible the market could roll over at any time and is due for a correction. It is also possible all the liquidity could continue to drive the market up to all time highs by the end of the year.


More fiscal stimulus has been added than monetary stimulus has been been taken away since April with the new bill that was passed over the weekend.

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