I'm always discouraged when going through an extended drawdown but renewed and excited when I work with the data based research and opportunities.
Only 25% of our last 12 trading days have been profitable. We take a look at what happened the last time this occurred (a big runup) and how to "load up" for some end of year gains in a new portfolio setup.
In our blitz package, we add 10 strategies to the existing 18 for a total of 28 for an optional portfolio setup. We want to take advantage of this drawdown by adding strategies that are not correlated. We are focused on market internal strategies and continue to improve strategies that do not use market internals by potentially adding market internals to those strategies. For now, by adding back some of our top non-market internal based strategies, including Zig Zag NQ and Adaptive Moving Average, which have the knack for calling turning points in wide ranging markets, we reveal our Blitz package for this week's trade and potential reward vs risk.
This approach allows us to maintain our current 18 strategies while also adding 7-10 strategies that also work well with Zig Zag NQ.
The market has been extremely range bound and mean reverting with the mid terms on Tuesday this week. We are anticipating a breakout in one direction or another.
New Strategy Gap Continuation 2023 & Adaptive Moving Average 2023
I am excited about the Advance Decline line filter that improves this strategy as well as Adaptive Moving Average. All Strategy Access subscribers will receive the updates this week.
Two Trading Systems and One Discretionary Trading Setup that Called Friday's Turning Points
There were three approaches that worked really well on Friday that we were not trading. Two are systematic and one is a discretionary idea that could become a strategy.
1.) Adaptive Moving Average E-mini S&P
2.) Zig Zag E-mini Nasdaq
3.) TICK Divergences
Adaptive Moving Average can do well trading the trend as well as reversal days like Friday. It captured a long, a short, and another long, capturing 3 of the 4 significant moves on the day. This strategy did well on Friday and is still in a drawdown. It has also gone sideways in the equity curve and is off its equity peaks and in a drawdown. I also used a simple rule using the Advance Decline line to improve this strategy.
Zig Zag E-mini Nasdaq recovered from a recent drawdown and is in a small pullback in the equity curve but did really well on Friday.
I am working on taking advantage of the drawdown to implement these two strategies.
The third strategy is a discretionary idea that takes advantages of TICK Divergences and could be developed into a trading system.