Live Trading System Signals on 05/06/2025

The stock index patterns were similar to yesterday. The market gapped down, rallied early in the day and then rolled over so that the day session close was near the day session open (as it was yesterday). Today's pattern was slightly more favorable and generated gains today in most of the portfolios. There was a mid-day surge based on "news from the White House". There is a continuous desire to buy and drive the market higher when there is any vague hint that there could be a tariff resolution. The market sold off in the after hours on earnings but surged again at the start of the evening session at 6 pm EST on more breaking news, "Trump officials Bessent and Greer to meet with Chinese counterparts on trade, economic issues"

The One Million MNS and 250K trading Sibilance NQ v24 were up enough to make back yesterday's losses to put us around breakeven on the week.

Tomorrow is Fed Day and we trade on FOMC Day. We have adjusted our portfolios to trade through news events since the daily price action includes constant news feed price action. It would be arbitrary to not trade on Fed Day considering the type of price action that has become normal and regular in the current market environment.

V-Reversal had a nice long trade in the morning and was nearly at a profit target on the second trade before the market rolled over and gave back some of the gains on the second trade. Overall, V-Reversal was up on the day. We have had two days in a row where the market has strongly reversed against us at the end of the day to take back some significant gains.

One of the keys to systems trading that I have found to be true over the years is to 1.) keep strategies simple and 2.) consistent application of the strategy. In short term windows, we can see cycles where some rules would improve the strategy but don't work as well in a longer term backtest. We don't want to constantly change or adjust the strategy since what typically happens is, the rule that you switched to stops working and the rule you switched away from begins working again. We have the tendency to dismiss previous trades that had favorable results based on a rule that we seek to change based on a short cycle. Since consistent application of simple strategies provides the best outcome, some trades "look dumb". Nevertheless, I am constantly testing ideas for longer term adjustments.

The hypothetical results for the portfolios are listed below.

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| Portfolio | Combined Daily P/L |

|--------------------------------+----------------------|

| Sibilance NQ 28 $7,265.00

| Stock Index Portfolio 11 $3,325.00

| 50K Portfolio -$820.00

| EMINI NQ 2 System Portfolio $1,560.00

| EMINI NQ 3 System Portfolio II $5,085.00

| EMINI NQ 4 System Portfolio $5,085.00

| EMINI NQ 5 System Portfolio $535.00

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