Matt, is your volatility system going to hold its shorts? /ES hitting 6037-51 resistance zone will provide for a good entry on the short side.

Gold is making one more push lower, which need not make a new low. 2596.7 is a major Fib number on the futures. A positive close today will make room for closing above 2624, and a reversal.

There is a positive divergence on PPO on 30-min charts of gold futures though, A small bounce is due, 2624 is buy stop for a long (a daytrade only), taken on the closing basis for 30-minutes.

Is there a table with stats for volatility systems somewhere?  They are not too shabby in their performance :-)

this logic is clear-cut. You could add a couple of factors to quantify quality of your entries then. Among the factors are divergence on the respective time frame on PPO or MACD, professional activity near the lows in larger than usual trade size (and avoid the same on "Amateur"/low trade size activity), positioning at or near the demand zone on that or next higher time frame. 

Ok, I am going to watch what that KISS system is going to do next: wave 4 is a corrective wave, and contains only 3 subwaves. That requirement has already been fulfilled with today's drop.

Hi Matt, regarding a high-performance KISS system. It went long on IAU (gold) on 130-minute charts on Thursday and exited today near daily lows. Today's gap was a wave 3 gap down, and it closed its long trade while IAU was in the demand zone. The system is experimental, but I notice that it could have doubled down instead of exiting or simply deciding to hold. Your old pullback long system is going to take its third entry today on the futures (/MGC). Just FYI.

My small account lacks capital for trading individual stocks. I have not been profitable on the indexes with micro futures. All I see is a bubble, and I am not comfortable to partake in it with my money. I have no feel for it. Without that advantage, I do not want to be wondering who is a fool at the poker table.

I wish everybody on this site a pleasant long holiday weekend!

On a personal note, I have decided to take a break from trading stock indexes. I will not be posting for a while. Profitable trading to you all!

a golden target, indeed!

Chicago wheat is providing its expected lift-off into the end of the month.

It looks like /NQ is aiming for 14,040-ish target, which will become a divergent high.

Chicago wheat is also on my radar for today. Energy flows on 15-minute charts were almost at zero, and were not confirming the move lower. Divergence on RSI on the daily chart is unmistakable. I am expecting a red to green move today and a positive close for the week.

Today's drop in gold is a gift in my opinion. My energy indicator was still negative this morning, so I did not buy yesterday's pullback. I am watching whether energy flows turn positive before buying. 

With June contract's first notice date on 31st, I do not expect this dip to last long.  I see this as an attempt to rinse weak long hands without closing the contract at attractive prices to initiate delivery. The rumor has it that The Fed is stuck short and is unable to exit its short position. Today's rinse of longs serves that purpose for them to reduce their short exposure as much as others are willing to give.

EW update. Based on the action of /NQ, which is telling the truth, the after hours move up is a beginning of an impulsive move up towards 14,040 or  a corrective A-B-C to the upside, with a move lower to follow.

Matt, i remember Chris Moore's tradefloor setup. It was ended before our accounts could grow significantly though. As I recall there was regulatory issue that killed that deal. Nowadays, with an API setup the same automated trading can be done in IB accounts held in our own name. The risk is, of course, that a whale could sign up for this service and make it unworkable.

And while we are on the subject of automated trading, could you add signal feed with trades based on some of your systems, as a pilot? Format could be something like: Shallow PB1 buy 1 MES price 4125 limit 4130 stop 4100 to OPEN, etc. 

vasilboy, I don't disagree with you:  this year the market was one reversion to the mean after another, up and down.

Matt, 

if we wanted to crowdfund your system development, what are likely individual contributions for a couple of systems what could bring a steady stream of income? My assumptions are 1. about 100 contributors, 2. a handful of subsystems trading micro futures contracts (with a $10K account requirement), 3. text notifications, 4. a shared account to monitor trades in real time for those who want that, 5. a professional trading platform (not Tradestation), perhaps CGQ or similar. Bare minimum but reliable to ensure expected performance.

I could do the technical part. Unfortunately, the business side is not my forte.

Please, kindly let me know. Many thanks in advance!  

Matt is the best automated system developer I have met. He is very talented in this respect, and his potential is largely underutilized.

Regarding the systems, I am of the opinion that his systems were developed and backtested for bull markets. During this bear market, a lot of settings no longer apply which result in missing trades or stuck trades. What seems to work in this bear market is quick trades with short duration. A variation of day trades that spans under one day or a day or two at most. Perhaps, a system based on 30- or 60-minute times would be optimal, and trading is done on micro futures to ensure entry and exit as needed. Also, micro futures contracts permit to dispense with the $25,000 requirement for day trading that limits many small account holders.

Back in 2015, Matt devised an automated system based on 60-minute charts. The idea was good. Perhaps, it could be revised and reimplemented. I see it as rather viable. 

Between 5 and 15 minutes. Those are time frames for intraday trading. That low could occur on the next day as well.