one obvious place would be under the uptrend line of that
potential wedge or even below the 61.8% Fib on that 60 min chart.
If one was stopped out, one could consider re-entering the
position if the SPY system takes a 2nd or even 3rd entry.
But again that's one reason I discussed the position size last
week, decide the dollar amount you are comfortable and with that
you can also just follow the system. The issue when you start
trading around the system is that it becomes impossible to follow
it, at least in my experience. Can't tell you how many times
I didn't take a trade because I didn't like it only for it to be a
nice winner that a missed, or stopped out only to miss a good
trade. I just think in the end either follow the system or
don't. And remember Steve is never ever going to trade the
system and he never has.
I think in the end either pick a position size you are
comfortable with, set stop to about 10%, which is the max
historical draw down, and follow the system. Or just don't
follow the system and do discretionary trades. When you mix
discretionary with systems too much it just ends up being a mess. I
know because I've done it.
and regarding this current trade, the system is just looking for
a bounce trade, so it's also possible that that wedge
ultimately plays out, however it would use a bounce higher for a
proper wedge.
I'm thinking back to the beginning of February when the market
started dropping, and a second SPY Pro entry occurred, followed by
more downside. Then I think you mentioned having a stop in
place in case things continued to drop. Previous to that
point I had always traded the SPY Pro system with no stops, just
waiting for exit signals.
Now that volatility and choppiness has appeared in the market,
I'm more conscious of protecting the downside risk but somehow
still allowing for second and third entries lower.
I'll place a safety stop under the bottom trend line and hope
that it gives it enough room.
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In today's newsletter, Steve repeatedly
SPY System - To be clear, it is long? Right?
Posted by rojoch on 18th of Mar 2018 at 07:18 pm
In today's newsletter, Steve repeatedly urged us to have a stop in place due to the ascending wedge of the SPX.
Where would be a good stop for those of us who entered the SPY Pro this past week?
Thanks!
.../john
one obvious place would be
Posted by matt on 18th of Mar 2018 at 08:07 pm
one obvious place would be under the uptrend line of that potential wedge or even below the 61.8% Fib on that 60 min chart. If one was stopped out, one could consider re-entering the position if the SPY system takes a 2nd or even 3rd entry.
But again that's one reason I discussed the position size last week, decide the dollar amount you are comfortable and with that you can also just follow the system. The issue when you start trading around the system is that it becomes impossible to follow it, at least in my experience. Can't tell you how many times I didn't take a trade because I didn't like it only for it to be a nice winner that a missed, or stopped out only to miss a good trade. I just think in the end either follow the system or don't. And remember Steve is never ever going to trade the system and he never has.
I think in the end either pick a position size you are comfortable with, set stop to about 10%, which is the max historical draw down, and follow the system. Or just don't follow the system and do discretionary trades. When you mix discretionary with systems too much it just ends up being a mess. I know because I've done it.
and regarding this current trade, the system is just looking for a bounce trade, so it's also possible that that wedge ultimately plays out, however it would use a bounce higher for a proper wedge.
I'm thinking back to the
Posted by rojoch on 19th of Mar 2018 at 02:14 am
I'm thinking back to the beginning of February when the market started dropping, and a second SPY Pro entry occurred, followed by more downside. Then I think you mentioned having a stop in place in case things continued to drop. Previous to that point I had always traded the SPY Pro system with no stops, just waiting for exit signals.
Now that volatility and choppiness has appeared in the market, I'm more conscious of protecting the downside risk but somehow still allowing for second and third entries lower.
I'll place a safety stop under the bottom trend line and hope that it gives it enough room.