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Hypothetical Trading System Signals on October 5, 2022 - Momentum Reversal Longs

Capstone Trading


The result were breakeven on the day in the Stock Index Portfolio 26.


I was happy to see breakeven results on the hypotheticals after such a wild reversal where so many shorts were stopped out. The follow through was enough to get some longs going and bring it back to breakeven.


The case for long only strategies continues to remain on days like today. Long only doesn't mean buy and hold longs or buy on the way down. In automated trading, it just means to take the long signals. Since we are short term traders, the market could crash and we may not even take a trade on a day the market goes straight down, depending on the setup.


The Momentum Reversal E-mini S&P and E-mini Nasdaq were the big winners on the day with massive gains calling the long reversal for the trade of the day.

We are tracking the hypotheticals while we continue our portfolio research before we go back to live trading. I will have some updates soon. Right now, I have about 20 strategies in the new setup including a new Tick Reversal with an Advance Decline line filter as well as removing some redundancies in strategies such as Gap Continuation.


We seem to be going through a cycle of Gap Fills more than Gap Continuations.

The market gapped down, sold off and reversed to take out the highs from yesterday. A Gap Continuation and Reverse could also be seen as a delayed gap fill.



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