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Trading System Signals on August 13, 2024

Capstone Trading

The Stock Index Portfolio 18 has had six days in a row of equity peaks. The winning streak started last Tuesday (same day I took a break for a surgery - difficult to time these type of things). The One Million MNS 130 /250K Portfolio has been on a run since then as well. This set of strategies is really in sync with the market on up days, down days, and choppy days.


The hypothetical trading system signals for the Stock Index Portfolio 18 was +$6,760 while the Micro Stock Index Portfolio 18 was up +$678. The hypothetical trading system signals for the One Million MNS 130 was +2.99% and the 250K Portfolio was up +$5,975.


It is difficult to miss out on this move and it is taunting me to jump in at equity peaks. I will refrain and wait for the drawdown entry alert. We do expect this type of performance in our strategies but saw more volatility in Q4 2023 and Q1 2024.


At the end of Q1 2024, and a tough first quarter, we moved to a higher percentage of intra-day counter trend strategies for Q2, 2024 going forward. This has really reduced the volatility of the trading system signals in spite of a spike in volatility in the market.


Since 2020, we had increased the number of range expansion, momentum, and trend breakout strategies through Q4, 2023. The market volatility decreased and we have now adjusted to more countertrend strategies as of Q2 2024.


A high percentage of the countertrend strategies we are using now, such as the SR CounterTrends, were developed prior to 2020. The adjustment we made at the end of Q1, 2024 was a move to more traditional and older strategies and away from the massive range strategies that were added since 2020. This adjustment has paid off.


I am looking forward to trading this portfolio live once again on a drawdown entry alert signal.


The stock market seems to be determined to form another V-Reversal and quickly recover from any of the recent selling. This amped up pattern of quick V-Reversal recoveries seems to have started in 2018 and remains since the Fed has backstopped the stock market with liquidity. The strategy signals captured many long trades today to take advantage of this type of price action.


Just last Monday, stock market bulls were calling for an emergency rate cut.....

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1件のコメント


Michael Puett
Michael Puett
2024年8月14日

Good insights on the counter trend strategies being added and how that has affected performance! Thanks for the writeup explaining.

いいね!

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