In April 2024, the top trading system is Momentum Reversal NQ.
It is essential to have a diverse group of trading systems in a trading systems portfolio so that when regimes or patterns in the markets change, there are strategies that are in place to trade the current regime. The goal is to maximize winning trades and minimize losing trades so that the strategies that are in sync with the market will generate more profits than the strategies that are out of sync with the market will lose. This will minimize the need to predict future patterns in advance.
Momentum Reversal excels particularly in market conditions where traditional trend and momentum breakouts underperform. When stock indexes become less correlated, intra-day patterns diverge, and reversals persist, generating intra-day mean reversion patterns, Momentum Reversal continues to be on the right side of the trade.
In April 2024, we see this robust regime of reversal patterns accelerate since October 2023.
Throughout April, the Momentum Reversal NQ system has consistently captured reversals on both the long and short sides in our live trading sessions. It's a featured strategy in our latest Market Portfolios, trading not only the E-mini Nasdaq but also the E-mini S&P, enhancing portfolio versatility.